Executive Summary

Q1 2025 delivered broad-based strength: total net revenues rose 50% YoY to $927M, GAAP diluted EPS increased 106% YoY to $0.37, and net income grew 114% YoY to $336M .
Results beat Wall Street consensus: revenue exceeded S&P Global consensus by ~$9.8M (1.1%)* and Primary EPS beat by ~$0.12*; GAAP diluted EPS of $0.37 contrasted with Primary EPS actual of ~$0.44*, reflecting non-GAAP normalization .
Record customer engagement and scale: Net Deposits hit $18.0B; Gold subscribers reached 3.2M; options contracts set a quarterly record at 500M; Total Platform Assets reached $221B .
Strategic catalysts: board increased share repurchase authorization by $500M to $1.5B (remaining ~$833M to execute over ~2 years), and management highlighted rapid product velocity (Legend, futures, prediction markets) plus Banking, Strategies, and Cortex initiatives .
FY25 expense outlook updated to include TradePMR costs: Adjusted OpEx + SBC guided to $2.085B–$2.185B (vs. prior $2.0B–$2.1B), excluding Bitstamp costs and credit losses .

What Went Well and What Went Wrong

What Went Well

“We significantly accelerated product innovation… Robinhood Strategies, Banking, and Cortex,” driving “record-breaking net deposits, Robinhood Gold subscriptions, and options volume” (Vlad Tenev) .
Transaction-based revenues surged 77% YoY to $583M, led by crypto $252M (+100%), options $240M (+56%), and equities $56M (+44%) .
Adjusted EBITDA rose 90% YoY to $470M and margin expanded to 51% (from 40% a year ago), signaling strong operating leverage .

What Went Wrong

Sequential revenue fell 9% vs. Q4 2024 ($1.014B to $927M), largely reflecting lower crypto activity quarter-over-quarter .
Provision for credit losses increased to $24M (vs. $19M in Q4), with brokerage-related losses (fraud) contributing to the step-up (team engaged) .
GAAP operating expenses rose 22% QoQ to $557M; marketing and G&A both expanded sequentially, consistent with growth investments and strategic initiatives .

Financial Results

Consolidated P&L and Margins

Metric	Q3 2024	Q4 2024	Q1 2025
Total Net Revenues ($USD Millions)	$637	$1,014	$927
Net Income ($USD Millions)	$150	$916	$336
Diluted EPS ($USD)	$0.17	$1.01	$0.37
Net Margin %	24%	90%	36%
Adjusted EBITDA ($USD Millions)	$268	$613	$470
Adjusted EBITDA Margin %	42%	60%	51%
Total Operating Expenses ($USD Millions)	$486	$458	$557
Adjusted Operating Expenses ($USD Millions)	$397	$431	$460
Share-Based Compensation ($USD Millions)	$79	$77	$73

Revenue Components

Metric	Q3 2024	Q4 2024	Q1 2025
Transaction-based revenues ($USD Millions)	$319	$672	$583
- Crypto revenue ($USD Millions)	$61	$358	$252
- Options revenue ($USD Millions)	$202	$222	$240
- Equities revenue ($USD Millions)	$37	$61	$56
Net interest revenues ($USD Millions)	$274	$296	$290
Other revenues ($USD Millions)	$44	$46	$54

KPIs and Operating Metrics

Metric	Q3 2024	Q4 2024	Q1 2025
Funded Customers (Millions)	24.3	25.2	25.8
Investment Accounts (Millions)	25.1	26.2	27.0
Assets Under Custody / Total Platform Assets ($USD Billions)	$152.2 (AUC)	$193.0 (AUC)	$221.0 (TPA)
Net Deposits ($USD Billions)	$10.0	$16.1	$18.0
ARPU ($USD)	$105	$164	$145
Gold Subscribers (Millions)	2.2	2.6	3.2
Cash Sweep ($USD Billions)	$24.5	$26.1	$28.2
Margin Book ($USD Billions)	$5.5	$7.9	$8.8
Equity Notional Trading Volumes ($USD Billions)	$286.2	$423.0	$413.0
Options Contracts Traded (Millions)	443.4	477.0	500.0
Crypto Notional Trading Volumes ($USD Billions)	$14.4	$71.0	$46.0

Note: Total Platform Assets (TPA) introduced in Q1 2025 includes AUC plus $41B of RIAs’ assets managed on TradePMR’s platform not custodied by Robinhood .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted OpEx and SBC (Non-GAAP)	FY 2025	$2.0B–$2.1B (provided at Q4; excluded TradePMR)	$2.085B–$2.185B (adds ~$85M TradePMR)	Raised to include TradePMR costs

Additional considerations:

Management reiterated that outlook excludes provision for credit losses, Bitstamp costs, and potential significant regulatory matters .
NII sensitivity: a 25 bps rate cut implies ~$50M headwind standalone; asset growth and trading provide offsets (no formal NII guidance) .

Earnings Call Themes & Trends

Topic	Q3 2024 (Prior)	Q4 2024 (Prior)	Q1 2025 (Current)	Trend
Active trader platform (Legend)	Announced Legend; strong adoption; roadmap for futures/index options	Legend added nearly 30 indicators; crypto trading on desktop	Ongoing speed upgrades; index options & crypto on Legend; strong incremental volumes	Strengthening product velocity
Futures/prediction markets	Announced “coming soon” with low fees; launched election market	—	April futures >4.5M contracts; >1B event contracts in last 6 months	Rapid scaling, incremental volumes
Crypto business	YoY notional up 112%; selection expanded	Record Q4 crypto; +700% YoY crypto revenue; Bitstamp deal targeted 1H25	Crypto rev ~$252M; market share focus; smart routing; tiered pricing experiments	Diversifying and optimizing take rates
Gold membership (incl. Credit Card)	~100k cards; Gold adoption >9%	2.6M Gold subscribers; >100k cardholders	3.2M Gold subs; ~200k cardholders; high attach among new users	Expanding adoption and monetization
Deposits & assets	Net Deposits $10B; AUC $152B	Net Deposits $16.1B; AUC $193B	Net Deposits $18.0B; TPA $221B; April Net Deposits $6.8B	Sustained inflows and scale
Regulatory/policy	UK options FCA approval; outlook detail	Bitstamp/TradePMR pending approvals	Tokenized private equities policy advocacy; staking clarity desired; FIT21 views	Active policy engagement

Management Commentary

“Customers have clearly responded — demonstrated by record-breaking net deposits, Robinhood Gold subscriptions, and options volume” (Vlad Tenev) .
“Revenues grew 50% year-over-year and EPS more than doubled… adjusted EBITDA margin expanded by 11 points” (Jason Warnick) .
“Board… increased our share repurchase authorization by $500 million to $1.5 billion… remaining authorization now totals approximately $833 million” (Jason Warnick) .
“Crypto… ~$260M in revenue… second highest quarter in recent years… we like to look at market share” (Vlad Tenev) .
“April net deposits are around $6.5B… equities trading at a 4-year high… options near all-time high… crypto trading north of $8B” (Jason Warnick) .

Q&A Highlights

Gold scaling: cardholders doubled to >200k; strong attach among new customers; banking slated for Q3 rollout as Gold-only product .
Crypto take rates: sequentially improving; experimenting with tiered pricing for high-volume traders; April take rates similar to Q1 .
Credit losses: delinquency/write-offs very low; Q1 step-up tied to brokerage fraud (non-margin); provisions expected to rise gradually as card rollout expands .
Futures adoption: April volumes >4.5M contracts; behaviors incremental and enabled short positioning; futures on Legend planned .
NII sensitivity: ~-$50M per 25 bps cut standalone; asset growth and trading offer natural hedge .

Estimates Context

Q1 2025 vs S&P Global consensus: revenue $927M actual vs $917.2M estimate* (beat ~1.1%); Primary EPS actual ~$0.44* vs $0.33 estimate* (beat ~35%)*. GAAP diluted EPS printed $0.37 .
Prior trend: Q4 2024 revenue beat (~$1.014B actual vs ~$951.8M estimate*), and Primary EPS beat driven in part by a $369M deferred tax benefit in GAAP EPS; Q3 2024 revenue miss ($637M actual vs ~$658.2M estimate*) with Primary EPS beat* .

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue Actual ($USD Millions)	$637	$1,014	$927
Revenue Consensus Mean ($USD Millions)	$658.2*	$951.8*	$917.2*
GAAP Diluted EPS Actual ($USD)	$0.17	$1.01	$0.37
Primary EPS Consensus Mean ($USD)	$0.176*	$0.446*	$0.326*
Primary EPS Actual ($USD)	$0.262*	$1.039*	$0.442*

Values with asterisk (*) retrieved from S&P Global.

Implications:

We expect sell-side models to raise FY25 revenue/EBITDA on sustained deposit growth, active trader engagement, and incremental products; some may moderate NII assumptions amid rate-cut sensitivity (-$50M per 25 bps) .

Key Takeaways for Investors

Strong beat-and-raise quarter anchored by diversified transaction revenue (crypto, options, equities) and disciplined cost control; operating leverage evident in 51% adjusted EBITDA margin .
Deposit momentum continues into Q2 (April Net Deposits $6.8B), supporting interest-earning assets and securities lending revenue growth even as rates drift lower .
Active trader franchise accelerating: Legend volumes largely incremental; futures/prediction markets scaling rapidly, enhancing resilience across market regimes .
Strategic M&A and product expansion (TradePMR closed; Bitstamp mid-year target) broaden B2B/international footprint; FY25 expense guide updated to reflect TradePMR costs .
Capital returns are a tangible support: buyback authorization increased to $1.5B with ~$833M remaining; management retains flexibility to accelerate repurchases .
Watch mix effects: sequential revenue down from record Q4 on crypto normalization; options strength and equities volumes provide offsets; tiered crypto pricing experiments target higher-volume share .
Near-term trading setup: catalysts include Banking (Q3), Cortex feature rollouts, and Bitstamp close; rate-cut sensitivities (~$50M per 25 bps on NII) balanced by trading tailwinds and asset growth .

Additional Notes

Non-GAAP considerations: Starting Q1 2025, Adjusted OpEx and Adjusted OpEx + SBC exclude provision for credit losses (methodology change) .
Q4 2024 GAAP EPS and margins benefited from a $369M deferred tax benefit and a $55M regulatory accrual reversal, inflating GAAP optics vs. underlying run-rate .
April operating data corroborate continued engagement: equity notional +26% MoM; options ~flat; crypto -24% MoM; margin balances $8.4B .

Robinhood Markets, Inc. (HOOD)·Q1 2025 Earnings Summary