Executive Summary

Record quarter: Revenue up 100% YoY to $1.27B; diluted EPS up 259% YoY to $0.61; net margin expanded to 44% on strong crypto, options, and net interest revenues .
Broad-based strength: Crypto revenue rose over 300% YoY to $268M, options to $304M (+50%), and net interest to $456M (+66%), with Total Platform Assets up 119% YoY to $333B .
Guidance raised: Full-year 2025 Adjusted Opex + SBC raised from $2.15–$2.25B to ~$2.28B to reflect stronger performance, bonus accruals, vesting-related payroll tax, and increased growth investments (Prediction Markets, Ventures) .
Catalyst: Management flagged Q4 off to a strong start with October records across equities, options, prediction markets, margin and higher crypto volumes; CFO transition to Shiv Verma announced (Jason Warnick retiring) .

What Went Well and What Went Wrong

What Went Well
- “Relentless product velocity” driving record results; Prediction Markets and Bitstamp each surpassed ~$100M annualized run rate, taking total to 11 lines ≥$100M; October volumes imply ~$300M run rate for Prediction Markets .
- Active trader engagement at records, with new tools (Robinhood Social, Cortex indicators/scanners, multiple brokerage accounts, shorting) and record October single-day/monthly volumes in equities and options .
- International momentum and tokenization: 400+ stock tokens in EU; Bitstamp volumes up >60% QoQ; UK/EU funded customers near 700k; strategies AUM >$1B .
What Went Wrong
- OpEx above prior outlook midpoint due to higher bonus accruals and vesting-triggered payroll taxes from 2019 CEO RSUs; Adjusted Opex + SBC guided up to ~$2.28B .
- AWS outage highlighted resilience improvements but still degraded performance for some customers; management working to further strengthen platform resiliency .
- Other revenues down sequentially (-5% QoQ) amid near-term mix despite YoY doubling; continued need to scale discoverability and UI for prediction markets to broaden participation .

Financial Results

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$637	$927	$989	$1,274
Net Income ($USD Millions)	$150	$336	$386	$556
Diluted EPS ($USD)	$0.17	$0.37	$0.42	$0.61
Net Margin %	24%	36%	39%	44%
Adjusted EBITDA ($USD Millions)	$268	$470	$549	$742
Adjusted EBITDA Margin %	42%	51%	56%	58%
Total Operating Expenses (GAAP, $USD Millions)	$486	$557	$550	$639
Adjusted Opex + SBC (non-GAAP, $USD Millions)	$476	$533	$522	$613

Versus Estimates (Q3 2025):

Metric	Consensus	Actual	Surprise
Revenue ($USD Millions)	$1,215.1*	$1,274	+$58.9 (+4.9%)*
Primary EPS ($USD)	$0.5443*	$0.61	+$0.0657 (+12.1%)*
EBITDA ($USD Millions)	$741.4*	$742 (Adj. EBITDA)	+$0.6 (~in-line)*

Segment Revenue Mix (quarterly):

Revenue Line ($USD Millions)	Q1 2025	Q2 2025	Q3 2025
Transaction-based	$583	$539	$730
• Crypto	$252	$160	$268
• Options	$240	$265	$304
• Equities	$56	$66	$86
Net Interest	$290	$357	$456
Other	$54	$93	$88

Key KPIs and Operating Data:

KPI	Q1 2025	Q2 2025	Q3 2025
Funded Customers (Millions)	25.8	26.5	26.8
Investment Accounts (Millions)	27.0	27.4	27.9
Total Platform Assets ($USD Billions)	$221	$279	$333
Net Deposits ($USD Billions)	$18.0	$13.8	$20.4
Robinhood Gold Subscribers (Millions)	3.2	3.5	3.9
ARPU ($USD, annualized)	$145	$151	$191
Cash & Cash Equivalents ($USD Billions)	$4.4	$4.2	$4.3
Retirement AUC ($USD Billions)	$14.4	$19.0	$24.2
Cash Sweep ($USD Billions)	$28.2	$32.7	$35.4
Margin Book ($USD Billions)	$8.8	$9.5	$13.9
Equity Notional Trading ($USD Billions)	$413	$517	$647
Options Contracts Traded (Millions)	500	515	610
Crypto Notional Trading ($USD Billions)	$46	$35 (App $28; Bitstamp $7)	$80 (App $40; Bitstamp $40)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted Operating Expenses + SBC (non-GAAP, $USD Billions)	FY 2025	$2.15 – $2.25	~$2.28	Raised
Notes	FY 2025	Prior did not include vesting-related payroll tax; assumed lower bonus accruals; included Bitstamp costs	Updated for stronger business, higher bonus accruals, 2019 CEO RSU payroll taxes, added investments (Prediction Markets, Ventures); excludes provision for credit losses, WonderFi costs, potential significant regulatory matters	—

Earnings Call Themes & Trends

Topic	Q1 2025 (Prior-2)	Q2 2025 (Prior-1)	Q3 2025 (Current)	Trend
Active trader platform & product velocity	Strategies, Banking, Cortex unveiled; record deposits/Gold subs; options volume strong	Tokenization launch; Legend upgrades; HOOD Summit planned	New products: Social, Cortex indicators/scanners, multiple accounts, shorting; record trading in Oct	Accelerating product cadence
Prediction Markets	Launched hub; >1B contracts over 6 months	Building momentum	2.3B contracts in Q3; Oct alone 2.5B; targeting ~$300M run rate; strategy focus vs new entrants	Rapid scale-up
Tokenization	Announced tokenization focus	Launched EU stock tokens (200+)	400+ stock tokens; plan for secondary trading on Bitstamp and future DeFi bridges; FX fee model ~10bps	Expanding breadth and utility
International growth (UK/EU)	150k customers across UK/EU	Expanded to 30 EU countries; Bitstamp closed	~700k funded international customers; crypto perpetual futures EU; UK Futures; Digests by Cortex	Building footprint
Crypto business, routing & staking	Crypto rev up 100% YoY; staking to be offered	App crypto volumes $28B; Bitstamp $7B	Smart exchange routing “high 60c” take rate; prosumer segment traction; $1B staked at quarter end	Improving mix and engagement
Platform resiliency	—	—	AWS outage impact; resilience improved vs past; further hardening underway	Ongoing infra investment
Private markets / Ventures	—	—	On file with SEC for “Robinhood Ventures One” aiming daily liquidity and non-accredited access; strong demand	New adjacencies
Expense outlook	Initial guide $2.085–$2.185B	Raised to $2.15–$2.25B (Bitstamp costs)	~$2.28B reflecting performance-linked items and growth investments	Upward adjustment

Management Commentary

CEO: “Our team’s relentless product velocity drove record business results in Q3… Prediction Markets are growing rapidly, Robinhood Banking is starting to roll out, and Robinhood Ventures is coming” .
CFO: “Q3 was another strong quarter of profitable growth… two more business lines—Prediction Markets and Bitstamp—are generating approximately $100 million or more in annualized revenues… Q4 is off to a strong start in October” .
CEO on tokenization: 400+ tokens available; future secondary trading on Bitstamp and eventual DeFi interoperability; FX fee ~10bps .
CFO on expenses: Q3 Adjusted Opex + SBC at $613M; above prior range midpoint due to stronger results (bonus accrual) and vesting-triggered payroll taxes; FY 2025 guide ~$2.28B .
CEO/CFO on resilience: AWS outage caused degraded performance but systems remained operational; continued hardening across partners .

Q&A Highlights

Prediction Markets strategy vs new entrants: Robinhood’s distribution (26M+ funded accounts) and multi-asset platform give durable advantages; expect venue competition to benefit customers; aiming to deepen integration rather than verticalizing exchange/market-making .
Crypto smart routing/take rate: blended take rate in “high 60c zone”; routing driving higher volume concentration from active/prosumer traders; Q4 mix similar to Q3 .
Tokenized equities interoperability: Expect multi-chain bridging/wrappers over time; initial “walled garden” backed by TradFi executions; FX fee slightly higher than foregone PFOF .
Private markets access: “Robinhood Ventures One” in quiet period; designed for non-accredited investors with daily liquidity and concentrated baskets; strong customer demand .
Platform resiliency: AWS outage learnings; significant progress vs prior years; ongoing infra and partner work to further reduce latency/impact .
Other: Shorting not yet rolled to external customers (in testing); crypto staking ~$1B at quarter end (subject to market moves) .

Estimates Context

Q3 2025 results exceeded S&P Global consensus on revenue and EPS; EBITDA was ~in-line. Continued strong October operating metrics suggest upward estimate revisions for Q4 revenue/EBITDA, particularly across options, equities, prediction markets, crypto, and margin interest .
FY 2025/2026 consensus implies continued revenue and EBITDA growth; raised OpEx + SBC guidance signals reinvestment in high-ROI growth vectors while maintaining margin expansion discipline .

Consensus snapshot:

Q3 2025: Revenue $1,215.1M*, EPS $0.5443*, EBITDA $741.4M* [S&P Global].
FY 2025/2026: Revenue $4,521.4M* / $5,372.8M*; EBITDA $2,521.5M* / $3,275.0M*; EPS (normalized) 2.3295* / 2.5882*; Target Price consensus $150.50* (22 ests)* [S&P Global].

Key Takeaways for Investors

Broad-based beat on revenue and EPS driven by crypto, options, and net interest; net margin expansion and record KPIs indicate durable engagement and wallet share gains .
Prediction Markets and Bitstamp materially diversify revenue; October run rates and records point to strong Q4 setup—a near-term trading catalyst .
Raised FY 2025 Adjusted Opex + SBC reflects performance-linked costs and targeted growth investments; management maintains discipline with margin expansion as a north star .
Tokenization and Ventures open new, potentially large TAMs; early traction in EU tokens and filing for retail-accessible private markets can support multi-year growth and multiple expansion .
Active trader product roadmap (Social, Cortex, shorting, multi-accounts) strengthens share in high-value cohorts; smart routing improves economics for prosumers .
Watch regulatory developments (event contracts, PFOF, crypto) and integration execution (WonderFi pending) as risk factors; platform resilience initiatives mitigate infra risks highlighted by AWS outage .
Near term: momentum favors estimate revisions upward for Q4; medium term: diversification plus international scale underpin thesis for sustained profitable growth .

S&P Global consensus values marked with an asterisk. Values retrieved from S&P Global.

Citations: Press release and 8-K Q3 2025 ; Q3 2025 press release duplicate ; Q2 2025 press release and 8-K ; Q1 2025 8-K ; August monthly metrics ; Earnings call transcript Q3 2025 .

Robinhood Markets, Inc. (HOOD)·Q3 2025 Earnings Summary