Palantir shares slip by 7% despite posting record revenue in third quarter
Robinhood Markets Inc. (NASDAQ:HOOD) reported strong financial results for the second quarter of 2025, with total net revenues increasing 45% year-over-year to $989 million. The company’s stock closed at $138.07 on the day of the announcement, up 6.31%, with aftermarket trading pushing it up another 4% to $143.59.
Quarterly Performance Highlights
Robinhood’s Q2 2025 results showed robust growth across all key metrics. Total net revenues reached $989 million, up 45% year-over-year and 7% sequentially. The company reported net income of $386 million, up $198 million year-over-year, with diluted earnings per share of $0.42, a 100% increase from the previous year.
As shown in the following financial results highlights, adjusted EBITDA grew 82% year-over-year to $549 million, representing a 56% margin:
The company’s customer base continued to expand, with funded customers reaching 26.5 million, an increase of 2.3 million year-over-year and 750,000 sequentially. This growth includes approximately 520,000 funded customers from the recently acquired Bitstamp.
Robinhood’s total platform assets nearly doubled year-over-year, increasing 99% to $279 billion. This significant growth was driven by continued net deposits, acquired assets, and higher equity and cryptocurrency valuations.
As illustrated in the following chart, total platform assets have shown consistent growth across all asset classes:
Net deposits for the quarter reached $13.8 billion, representing a 25% annualized growth rate. Over the last twelve months, net deposits totaled approximately $58 billion, translating to a 41% growth rate.
Revenue Drivers and Trading Activity
Transaction-based revenues were up 65% year-over-year to $539 million in Q2, with significant growth across equity, options, and crypto trading. Net interest revenues increased 25% year-over-year to a record $357 million, driven by growth in cash sweep and margin interest.
The following chart illustrates the company’s total net revenue composition and growth:
Trading volumes showed strong performance across asset classes. Equity notional volumes increased 112% year-over-year to $517 billion, while options contracts traded grew 32% to 168 million. Robinhood App crypto notional volumes rose 32% year-over-year to $28.3 billion, though they decreased 39% sequentially. The newly acquired Bitstamp contributed an additional $6.7 billion in exchange crypto notional volumes.
As shown in the trading volumes breakdown:
Robinhood Gold, the company’s premium subscription service, continued to gain traction with subscribers increasing 76% year-over-year to 3.48 million, representing over 13% of funded customers. The service offers benefits including 4% APY on uninvested cash, a 3% IRA match, and lower trading fees.
The following chart highlights the value proposition and growth of Robinhood Gold:
Strategic Initiatives and Product Development
Robinhood maintained a rapid pace of product development and strategic acquisitions throughout the quarter. The company completed the acquisition of Bitstamp and announced plans to acquire WonderFi, expanding its presence in the cryptocurrency market.
The company’s product roadmap for 2025 focuses on three key areas: active traders, wallet share for the next generation, and building a global financial ecosystem.
As illustrated in the product velocity slide, Robinhood launched several new features and services during Q2:
In the cryptocurrency space, Robinhood introduced stock tokens in Europe, US staking, and Robinhood Chain. The company also increased its crypto asset offerings, adding 7 new assets in the EU for a total of 55, and 2 new assets in the US for a total of 28.
For active traders, Robinhood is enhancing its Legend platform, rolling out futures trading, and developing a prediction markets hub. The company is also expanding its banking services with the planned rollout of Robinhood Banking and the Robinhood Gold Card.
Financial Strength and Capital Allocation
Robinhood’s adjusted EBITDA margin reached 56% in Q2 2025, demonstrating the company’s operational efficiency. The "Rule of 40" metric, which combines adjusted EBITDA margin and year-over-year revenue growth, stood at 112% for the last twelve months.
As shown in the following chart, Robinhood’s net income and EPS have shown consistent growth:
The company maintains a strong balance sheet with over $4 billion in corporate cash, investments, and stablecoin, as well as $3.8 billion in available lines of credit. During Q2, Robinhood returned $124 million to shareholders by repurchasing approximately 3 million shares. Over the past twelve months, the company has returned approximately $700 million through share repurchases.
Forward-Looking Statements
Robinhood updated its 2025 outlook for adjusted operating expenses and share-based compensation to include the acquisition of Bitstamp. The company now expects these costs to range between $2.15 billion and $2.25 billion for the full year, with approximately $65 million related to Bitstamp.
In the earnings call, CEO Vlad Tenev highlighted the transformative potential of tokenization, stating, "Tokenization is the biggest innovation in capital markets in over a decade." The company views its expansion into stock tokens in Europe and other tokenized assets as a significant opportunity for future growth.
CFO Jason Warnick emphasized the company’s disciplined approach to operations, noting, "We have a DNA at the company and it’s in our culture to be lean and disciplined."
Robinhood plans to launch its banking services in the fall and continues to focus on expanding its Gold subscriber base and international presence, particularly in the UK and EU markets.
Full presentation:
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