MENLO PARK, Calif., April 30, 2025 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. (NASDAQ: HOOD) has reported impressive financial results for the first quarter of 2025, showcasing significant growth across multiple key metrics. The mobile brokerage firm announced a remarkable 50% increase in revenues year-over-year, totaling $927 million, driven by strong transaction-based revenues and a surge in customer engagement.
Robinhood's net income soared by 114% to $336 million, while diluted earnings per share (EPS) rose 106% to $0.37, reflecting the company's robust performance and effective cost management strategies. This upward trend in earnings surpassed the expectations set by FactSet analysts, who had projected earnings of 33 cents per share on revenues of $920 million.
Transaction-based revenues, a critical component of Robinhood's business model, experienced a staggering growth of 77%, reaching $583 million. This growth was primarily fueled by a doubling of cryptocurrency revenues, which accounted for $252 million, alongside a 56% increase in options revenue and a 44% rise in equities revenue.
Vlad Tenev, Chair and CEO of Robinhood, expressed optimism about the company's trajectory, stating, "This quarter, we significantly accelerated product innovation across our key initiatives, highlighted by the announcement of Robinhood Strategies, Banking, and Cortex. Customers have clearly responded — demonstrated by record-breaking net deposits, Robinhood Gold subscriptions, and options volume, as well as robust year-over-year growth in trading across all asset classes."
In addition to revenue and income growth, Robinhood achieved record net deposits of $18 billion, reflecting a 37% annualized growth rate relative to total platform assets. The total platform assets surged by 70% to $221 billion, bolstered by the acquisition of TradePMR, which added $41 billion in Registered Investment Advisor (RIA)-managed assets.
Customer metrics also revealed strong engagement, with funded customers increasing to 25.8 million, an 8% rise year-over-year. Furthermore, Robinhood Gold subscribers reached 3.2 million, marking a 90% increase, illustrating the growing demand for premium services among users.
The board of directors took a proactive approach to shareholder returns by authorizing an additional $500 million for share repurchases, bringing the total buyback program to $1.5 billion. Jason Warnick, Chief Financial Officer of Robinhood, commented, "As a result, in Q1 we grew revenues by 50 percent year-over-year and EPS by over 100 percent. It's also great to see strong customer engagement to start Q2. Additionally, we continue to return capital to shareholders and increased our share repurchase authorization by $500 million to $1.5 billion, reflecting management and the board's confidence in our financial strength and future growth prospects."
Robinhood's recent product launches, including Robinhood Strategies and Banking, are part of its strategy to enhance customer offerings and expand its market presence. The company has also made strides in international markets, with over 150,000 customers across the UK and EU. The acquisition of the cryptocurrency exchange Bitstamp Ltd. is expected to close mid-year, further enhancing Robinhood's capabilities in the digital asset space.
Despite the positive results, Robinhood faces challenges, including rising operating expenses, which increased by 21% year-over-year to $557 million. The company plans to continue investing in growth while managing costs effectively. Adjusted Operating Expenses and Share-Based Compensation (SBC) rose 16% year-over-year to $533 million, partly due to costs associated with the TradePMR acquisition.
Looking ahead, Robinhood has outlined its financial outlook for 2025, emphasizing growth investments in new products, features, and international expansion while striving for efficiency in existing operations. The company anticipates total operating expenses to fall between $2.085 billion and $2.185 billion for the year, including anticipated costs related to TradePMR.
Robinhood has transformed financial services by democratizing access to the markets for millions of investors. The company's innovative approach, which introduced commission-free stock trading, has positioned it as a leading player in the brokerage industry. As Robinhood continues to expand its product offerings and enhance customer experiences, the firm remains committed to delivering value to its users and shareholders alike.
For more details on Robinhood's financial performance, investors can access the earnings press release and accompanying slide presentation on the company's investor relations website. A video call discussing the results will also be available for those interested in deeper insights into the company's strategies and future direction.
