Executive Summary

Record quarter: total net revenues rose 115% YoY to $1.01B, driven by crypto ($358M), options ($222M), and equities ($61M); Adjusted EBITDA surged to $613M (60% margin) and diluted EPS was $1.01, aided by a $369M deferred tax benefit and a $55M regulatory accrual reversal .
Engagement and asset growth accelerated: AUC reached $193B (+88% YoY), Net Deposits were $16.1B (42% annualized vs Q3 AUC), Gold subscribers hit 2.6M (+86% YoY), and ARPU rose to $164 (+102% YoY) .
2025 guide: management plans another year of double‑digit revenue growth (qualitative), with Adjusted OpEx+SBC of $2.0–$2.1B and marketing up by roughly $100M; diluted share count expected roughly flat in 2025 .
Near-term catalysts: product velocity (Legend desktop, index options, futures), expanding crypto suite and Bitstamp integration, and strong January momentum (all-time high January options volumes; margin balances >$8B) .

What Went Well and What Went Wrong

What Went Well
- Transaction revenue inflected hard on crypto strength: crypto revenue hit $358M (+700%+ YoY), options $222M (+83%), equities $61M (+144%); total transaction-based revenue rose to $672M (+236% YoY) .
- Operating leverage: Adjusted EBITDA jumped to $613M (60% margin), with total operating expenses up just 3% YoY to $458M (helped by $55M accrual reversal) .
- Strategic traction: Gold subscribers reached 2.6M (+86% YoY); Legend and index options showed early revenue run-rates ($50M and $15M annualized, respectively) and strong incrementality; management reiterated multi-year roadmap and international expansion plans .
- Quote: “Q4 was a record-breaking quarter… new highs for AUC, Net Deposits, Gold Subscribers, Revenues, Net Income, Adjusted EBITDA, and EPS.” – CFO Jason Warnick .
What Went Wrong
- One-off drivers in EPS: Q4 net income/EPS benefited from a $369M deferred tax benefit ($0.41 per diluted EPS) and a $55M regulatory accrual reversal ($0.06 per diluted EPS), which are non-recurring by nature .
- Credit costs drift higher: provisions for credit losses were $19M in Q4 and management expects a gradual increase as customer onboarding expands; beginning Q1’25, provision will be excluded from Adjusted OpEx definition .
- Estimate comparisons unavailable: S&P Global consensus figures could not be retrieved at time of analysis, limiting precision on “beat/miss” framing (see Estimates Context) [GetEstimates error].

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024	Vs. Est.
Total Net Revenues ($B)	$0.471	$0.637	$1.014	N/A (SPGI unavailable)
Diluted EPS ($)	$0.03	$0.17	$1.01	N/A (SPGI unavailable)
Net Income ($M)	$30	$150	$916	N/A (SPGI unavailable)
Total Operating Expenses ($M)	$445	$486	$458	—
Adjusted EBITDA ($M)	$133	$268	$613	—
Adjusted EBITDA Margin (%)	28%	42%	60%	—
Net Margin (%)	6%	24%	90%	—

Segment and Revenue Mix

Revenue ($M)	Q4 2023	Q3 2024	Q4 2024	YoY % (Q4)
Transaction-based	$200	$319	$672	236%
• Cryptocurrencies	—	$61	$358	700%+
• Options	—	$202	$222	83%
• Equities	—	$37	$61	144%
Net Interest	$236	$274	$296	25%
Other	$35	$44	$46	31%
Total Net Revenues	$471	$637	$1,014	115%

Key KPIs and Operating Metrics

KPI	Q3 2024	Q4 2024	YoY Commentary
Funded Customers (M)	24.3	25.2	+8% YoY
Investment Accounts (M)	25.1	26.2	+10% YoY
AUC ($B)	152.2	193	+88% YoY
Net Deposits ($B)	10.0	16.1	42% annualized vs prior Q AUC
ARPU ($)	105	164	+102% YoY
Gold Subscribers (M)	2.2	2.6	+86% YoY
Retirement AUC ($B)	9.9	13.1	>600% YoY
Cash Sweep ($B)	24.5	26.1	+59% YoY
Margin Book ($B)	5.5	7.9	+126% YoY
Equity Notional Vol. ($B)	286.2	423.0	+154% YoY
Options Contracts (M)	443.4	477.0	+61% YoY
Crypto Notional Vol. ($B)	14.4	71.0	+400%+ YoY

Notes: Q4 included a $369M deferred tax benefit ($0.41 of diluted EPS) and a $55M benefit from regulatory accrual reversal ($0.06 of diluted EPS) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted Operating Expenses and SBC (non-GAAP)	FY 2025	N/A	$2.0B–$2.1B	New framework; excludes certain items (e.g., significant regulatory, M&A-related)
Adjusted OpEx methodology	From Q1 2025	Included provision for credit losses	Provision for credit losses to be excluded from Adjusted OpEx going forward	Methodology update
Marketing spend	FY 2025	N/A	Increase by ~+$100M vs 2024	Increased growth investment
Diluted share count	FY 2025	N/A	Roughly flat	Supports EPS/FCF per share growth
Revenue outlook	FY 2025	N/A	“Another year of double‑digit growth” (qualitative)	Qualitative only

The 2024 expense outlook communicated previously (Q3 release) is not directly comparable to the new FY25 expense framework; 2024 guidance was $1.85–$1.95B for Adjusted OpEx+SBC , while FY25 is guided to $2.0–$2.1B .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2’24, Q3’24)	Current Period (Q4’24)	Trend
Active trader platform (Legend), index options, futures	Q2: Focus on margin rates, product cadence; Q3: Announced Legend, index options pricing, futures roadmap; strong options/equity volumes	Legend run-rate ~$50M; index options ~$15M; futures rolling out; strong week-over-week growth; incrementality observed	Accelerating product monetization
Gold ecosystem (subs, card)	Q2: Gold 2.0M; 1% deposit boost; card early rollout	Gold 2.6M; ~100k cardholders, plan to add “several hundred thousand” in 2025; strong cross-sell effects	Rapid adoption; flywheel strengthening
Crypto strategy (tokens, staking, Bitstamp)	Q2: Bitstamp deal signed; AI/Pluto; crypto volumes up	Crypto revenue $358M; adding tokens; EU staking live; exchange routing; regulatory clarity needed; tokenization vision	Major revenue driver; expanding globally
International expansion	Q2: UK brokerage; EU crypto; roadmap	UK options launched; APAC expansion in 2025; using single stack to scale features globally	Broadening footprint
Advisory/RIA (TradePMR)	Q2: Announced TradePMR acquisition	Positioning advisory as core to wallet share; strong adviser/customer interest pending close	Building multi‑gen wealth platform
Macro/interest rate “natural hedge”	Q3: Noted hedge as rates fall, trading rises	Expect business to thrive regardless of rates; 2025 double-digit growth plan	Diversification improving resilience
Deposits incentives	Q2/Q3: 1% boost, strong paybacks; winding down boost in Nov (Q3)	Personalized APY boosts; retirement transfer incentives active; attractive paybacks	Sharpening promo ROI

Management Commentary

Strategic priorities: “#1 in active traders… #1 in wallet share for the next generation… #1 global financial ecosystem.” – CEO Vlad Tenev .
Product velocity: “Legend… added nearly 30 additional indicators… crypto trading… we added a whole new Derivatives business… futures and event contracts.” – CEO .
2025 framework and investing: “Another year of double-digit growth… Adjusted OpEx and SBC $2.0–$2.1B… increase marketing by another $100 million… diluted share count roughly flat.” – CFO Jason Warnick .
Crypto momentum and pricing: “Take rate up 9 bps QoQ… experimenting while keeping great customer pricing… January take rates in line with Q4.” – CFO .
Tokenization vision: “Bringing real assets onto crypto technology… RWAs via crypto rails… Robinhood uniquely positioned at intersection of TradFi and DeFi.” – CEO .

Q&A Highlights

Monetization of new products: Legend annualized ~$50M and index options ~$15M with strong week-over-week growth and early incrementality; futures rolling out, expected to be a nine-figure revenue opportunity over time .
Gold card rollout: ~100k cardholders; plan to roughly double “in the next few months,” and add several hundred thousand in 2025; strong second-order effects on brokerage engagement and deposits .
Crypto pricing and routing: Take rate increased sequentially; new Smart Exchange Routing offers order book access; Bitstamp integration expected to enhance the exchange-side economics .
Rates and revenue mix: Management reiterated the “natural hedge” thesis—trading activity offsets pressure from lower rates; confident in double-digit revenue growth regardless of rate path .
Deposit incentives: Shift toward personalized APY boosts (Gold) and targeted retirement transfer offers; management highlighted attractive paybacks on cohort behavior .

Estimates Context

S&P Global (Capital IQ) Wall Street consensus for Q4 2024 EPS and Revenue was unavailable at the time of this analysis due to an API request limit. As a result, we do not present a vs-consensus “beat/miss” view for EPS/Revenue in the tables above [GetEstimates error].

Key Takeaways for Investors

Transaction-driven upside was outsized, led by crypto; maintain awareness that crypto volumes and take-rate experimentation amplified Q4 results and could normalize with market conditions .
Quality of EPS: headline EPS benefited from one-offs (deferred tax allowance release and regulatory accrual reversal); on a core basis, profitability still improved materially on strong operating leverage .
2025 setup: management plans double-digit revenue growth and is reinvesting (marketing +$100M; OpEx+SBC $2.0–$2.1B) while keeping diluted share count roughly flat—supportive of EPS/FCF per share compounding .
Product catalysts: Legend, index options, and futures provide incremental monetization and active trader share gains; early revenue run-rates and strong week-over-week growth indicate traction .
Gold flywheel: rising Gold adoption (2.6M subs; >10% attach, >30% for new customers) and the Gold card contribute to higher AUC, deposits, and multi-product uptake; expect continued expansion in 2025 .
International and crypto optionality: UK options launch, EU staking, Bitstamp integration, and tokenization ambitions expand TAM and diversify beyond U.S. retail brokerage cyclicality .
Watch risks: regulatory outcomes (crypto, PFOF), credit losses as lending scales, and potential volatility in crypto volumes remain key sensitivities (explicitly flagged by management) .

Additional references to late-2024 operating momentum:

October and November operating data highlighted step-ups in AUC, trading volumes, margin balances, and securities lending revenue heading into Q4, consistent with the reported record quarter .
The company pre-announced its Q4 earnings date on Jan 7, reinforcing cadence and transparency; call and transcript were made available the same day as results .

Robinhood Markets, Inc. (HOOD)·Q4 2024 Earnings Summary