Robinhood reports mixed February operating data

MENLO PARK, Calif. - Robinhood Markets, Inc. (NASDAQ: HOOD) disclosed its monthly operating data for February 2025, revealing a complex financial landscape with both gains and declines across different areas of its business. The data, which excludes the recent acquisition of TradePMR and futures trading volumes, shows a slight increase in funded customers but a decrease in assets under custody (AUC) compared to the previous month. With a current market capitalization of $31.55 billion and impressive revenue growth of 58.23% over the last twelve months, Robinhood continues to demonstrate strong market presence. According to InvestingPro analysis, the company’s stock has shown significant volatility recently, with several key indicators suggesting potential investment opportunities.

The number of funded customers at the end of February stood at 25.6 million, marking an increase of approximately 150,000 from January 2025 and an overall growth of about 2 million from the same period last year. Despite this rise in customer base, AUC experienced an 8% month-over-month decline, settling at $187 billion, although this still represents a 58% increase year-over-year.

Net deposits in February amounted to $4.8 billion, translating to a 28% annualized growth rate in comparison to January 2025 AUC. The 12-month net deposits reached $53.5 billion, showcasing a robust annual growth rate of 45% relative to AUC in February 2024.

Trading volumes presented a mixed picture. Equity notional trading volumes slightly decreased by 1% from January 2025 to $142.9 billion but showed a significant 77% surge year-over-year. Options contracts traded also dipped by 1% month-over-month to 165.6 million, yet this was coupled with a 39% increase from the previous year. Crypto notional trading volumes saw a notable 29% decrease from January 2025, amounting to $14.4 billion, but they more than doubled when compared to the same period last year, with a 122% jump. This trading activity has contributed to Robinhood’s solid financial performance, with InvestingPro data showing a price-to-earnings ratio of 22.8 and basic earnings per share of $1.60 for the last twelve months.

Margin balances at the end of February were $8.7 billion, up 5% from January 2025 and a striking 129% increase year-over-year. Total cash sweep balances remained relatively stable at $26.2 billion, closely matching January’s figures and marking a 45% rise from the previous year. Securities lending revenue, however, faced a 12% month-over-month decline, totaling $22 million, but still exhibited a 69% increase compared to February 2024.

These figures are preliminary and unaudited, subject to the completion of financial closing procedures. The final results for the fiscal quarter may differ from the data presented in this release. This information is based on a press release statement from Robinhood Markets, Inc. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels, though investors should note the company’s strong year-over-year return of 111.33%. For deeper insights into Robinhood’s valuation and growth prospects, including access to over 10 additional ProTips and comprehensive financial metrics, consider exploring InvestingPro’s detailed research report.

In other recent news, Robinhood Markets Inc. reported a record-breaking surge in cryptocurrency revenue for the fourth quarter, reaching $360 million. This marks an almost fivefold increase from the previous quarter’s $61 million, making it the highest crypto revenue quarter for the company. Cryptocurrency now accounts for nearly 40% of Robinhood’s total quarterly revenue, up from about 20% in the third quarter. Meanwhile, Robinhood has agreed to a $30 million settlement with the Financial Industry Regulatory Authority (Finra) over alleged violations related to anti-money laundering protocols and other compliance issues. The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Robinhood Crypto without any enforcement action, a decision welcomed by the company. Analyst firms BofA Securities and Bernstein have maintained their positive outlooks on Robinhood, with BofA maintaining a Buy rating and a $65 price target, while Bernstein holds an Outperform rating with a $105 target. These ratings highlight confidence in Robinhood’s growth potential, particularly in the cryptocurrency and self-directed retail sectors. The company continues to expand its offerings and innovate within its platform, contributing to its robust performance in the financial services landscape.

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