Steven Chubak's questions to Robinhood Markets Inc (HOOD) leadership • Q1 2025
Question
Steven Chubak from Wolfe Research asked for near-term guidance on Net Interest Income (NII) for Q2 and an updated sensitivity to a 25 basis point interest rate cut.
Answer
CFO Jason Warnick did not provide specific Q2 NII guidance but reiterated that a 25 basis point cut would have about a $50 million standalone headwind. However, he stressed that this is misleading in isolation, as the company's rapid growth in interest-earning assets has more than outpaced the effect of dropping rates over the past year. He also pointed to the natural hedge where lower rates are expected to boost trading activity.