Robinhood reports 89% year-over-year growth in platform assets

MENLO PARK - Robinhood Markets, Inc. (NASDAQ:HOOD) reported its May 2025 operating data Wednesday, showing total platform assets reached $255 billion, marking a 10% increase from April and an 89% rise year-over-year. The company’s stock has reflected this strong performance, delivering an impressive 212% return over the past year, according to InvestingPro data.

The company reported approximately 25.9 million funded customers at the end of May, representing a modest increase of about 5,000 from April after the impact of required escheatment of approximately 100,000 low-balance accounts. Year-over-year, funded customers grew by 1.8 million. This customer growth has contributed to Robinhood’s robust revenue growth of nearly 60% over the last twelve months, with the company maintaining an excellent 91% gross profit margin.

Net deposits for May totaled $3.5 billion, translating to an 18% annualized growth rate relative to April’s total platform assets. Over the past twelve months, net deposits reached $59.1 billion, representing a 44% annual growth rate compared to May 2024.

Trading volumes showed significant increases across all categories. Equity notional trading volumes rose to $180.5 billion, up 14% from April and 108% year-over-year. Options contracts traded reached 179.8 million, increasing 7% month-over-month and 36% year-over-year. Crypto notional trading volumes grew to $11.7 billion, up 36% from April and 65% year-over-year.

Margin balances at the end of May stood at $9.0 billion, reflecting a 7% increase from April and doubling year-over-year. Total cash sweep balances reached $30.8 billion, up 7% from April and 52% from the previous year.

The company’s securities lending revenue for May was $33 million, representing a 32% increase from April and a 43% rise year-over-year.

The reported figures do not include the impact of Robinhood’s Bitstamp acquisition, which closed on June 2, 2025, and added approximately 500,000 funded customers, according to the company’s press release statement. With a market capitalization of $64 billion and an overall "GREAT" financial health score from InvestingPro, Robinhood appears well-positioned for growth, though current valuations suggest the stock may be trading above its Fair Value. Investors can access 12 additional ProTips and comprehensive analysis through InvestingPro’s detailed research report.

In other recent news, Robinhood Markets has made significant strides in its business operations and market presence. The company recently completed its acquisition of European crypto exchange Bitstamp for $200 million in cash. This acquisition broadens Robinhood’s reach in the cryptocurrency sector and marks its first exposure to institutional crypto clients. Analysts at Piper Sandler have maintained an Overweight rating on Robinhood, setting a price target of $70, noting the potential benefits from the current bitcoin bull run and the company’s diversified business model.

Meanwhile, Redburn-Atlantic analysts downgraded Robinhood’s stock rating from Neutral to Sell, despite raising the price target to $48. The downgrade reflects concerns about the sustainability of recent improvements and challenges in Robinhood’s business model. The analysts also highlighted risks associated with global expansion and recent acquisitions, alongside a premium valuation compared to peers.

In another development, Robinhood announced the expansion of its desktop platform to the United Kingdom, aiming to reach a broader base of retail investors. This move aligns with Robinhood’s strategy to provide advanced trading tools to UK-based retail investors. The expansion is part of Robinhood’s ongoing efforts to enhance its platform and services for its growing user base.

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