Robinhood has come a long way from its Silicon Valley startup roots. Founded in 2013 by Stanford graduates Vlad Tenev and Baiju Bhatt, the company was built on a simple but revolutionary idea to make investing accessible to everyone. Before launching Robinhood, the duo developed trading software for Wall Street firms and noticed a striking imbalance that institutions were trading at near-zero cost, while ordinary investors paid steep commissions. Their response was to eliminate those fees altogether. The ...

Core Insights - Robinhood reported Q3 net revenue of $1.27 billion, exceeding analyst expectations of $1.21 billion [1] - Q3 revenue from cryptocurrency reached $268 million, slightly below the analyst forecast of $287.2 million [1] - Adjusted EBITDA for Q3 was $742 million, surpassing the analyst estimate of $726.9 million [1] - Average Revenue Per User (ARPU) for Q3 was $191, higher than the expected $182 [1]

Financial Performance - Robinhood reported a total net revenue of $1.274 billion for Q3 2025, a year-over-year increase of 100% [1] - The net profit surged by 271% to $556 million, with diluted earnings per share (EPS) rising 259% to $0.61, exceeding analysts' expectations of $0.53 [1] - Trading revenue reached $730 million, up 129% year-over-year, driven by significant growth in cryptocurrency, options, and stock revenues [1] Revenue Breakdown - Cryptocurrency revenue was $268 million, which, despite being over 300% year-over-year, fell short of expectations [1] - Options revenue amounted to $304 million, reflecting a 50% increase year-over-year [1] - Stock revenue was $86 million, showing a 132% year-over-year growth [1] - Net interest revenue grew by 66% to $456 million, benefiting from an increase in interest-earning assets and securities lending, although partially offset by declining short-term rates [1] - Other revenue doubled to $88 million, primarily due to the increase in Robinhood Gold subscription users [1] Management Changes - CFO Jason Warnick will officially leave in Q1 2026, with Shiv Verma set to take over the position [2] Strategic Initiatives - The CEO emphasized ongoing product development and the launch of new business initiatives, including Robinhood Ventures and banking services [2] - Robinhood is diversifying its revenue streams to reduce reliance on trading income, including a partnership with Sage Home Loans for mortgage services and plans to launch a closed-end fund for retail investors [2] Stock Performance - Following the earnings report, Robinhood's stock fell 1.74% to $140, although it has increased nearly fourfold this year, partly due to its inclusion in the S&P 500 [2]

Robin Hood's third quarter earnings. They are just now crossing the wire. Let's get you those results.Stock slipping a bit here about 2 and a half%. So it looks like Q3 EPS clocks in at 61 cents. I do not see a clean compare there just yet.I'm looking for revenue. There it is. 1.27% billion. Consensus was at 1.21% billion.Adjusted EBIDA for Q3 that looks like a beat 742 million. Expectations closer to 727 million. uh by segment crypto revenue that came in at 268 million that's versus consensus of 287.2% two ...

Core Insights - Robinhood reported Q3 earnings with an EPS of 61 cents, exceeding revenue expectations of $1.27 billion compared to the consensus of $1.21 billion [1][2] - Adjusted EBITDA for Q3 was $742 million, surpassing expectations of $727 million [2] - The stock experienced an initial decline of about 4% after the earnings report, despite a year-to-date increase of 270% prior to the announcement [3][5] Financial Performance - Q3 revenue reached $1.27 billion, beating the consensus estimate of $1.21 billion [1] - Adjusted EBITDA was reported at $742 million, exceeding the expected $727 million [2] - Crypto revenue was $268 million, falling short of the consensus of $287 million [2] Management Changes - Jason Warneck announced his intention to retire, with Shiv Verma named as the next CFO [2] Market Opportunities - The company is diversifying into prediction markets, which could provide significant growth opportunities beyond traditional trading activities [8][10] - Prediction markets are expected to be a substantial revenue stream, especially if institutional investment increases [10] Investor Sentiment - Initial investor reaction was negative, with a stock dip attributed to high expectations and management changes [5][6] - Despite the dip, analysts view the overall results as solid, highlighting strong net deposit growth as a key indicator of organic growth [5][6] Valuation Perspectives - Current valuation is around 65 times forward earnings, with a base case valuation of $120 per share and a bull case scenario suggesting a potential value of $300 per share [16][17] - A blended valuation approach suggests a target price of approximately $170 per share [17]

Robinhood Markets, Inc. (HOOD) came out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +19.61%. A quarter ago, it was expected that this company would post earnings of $0.31 per share when it actually produced earnings of $0.42, delivering a surprise of +35.48%.Over the last four quarters, th ...

Financial Data and Key Metrics Changes - In Q3 2025, revenues doubled year-over-year to nearly $1.3 billion, marking a record high [10][12] - Year-to-date revenues increased by 65%, and earnings per share rose by 150% [12][13] - Adjusted EBITDA margins reached 75%, indicating strong profitability [12] - Record net deposits exceeded $20 billion in the quarter, surpassing last year's total of $50 billion with another quarter remaining [10][12] Business Line Data and Key Metrics Changes - Trading volumes for equities, options, and crypto saw double to triple-digit growth [13] - Prediction Markets achieved over $100 million in annualized revenue within a year, tracking towards a $300 million run rate based on October volumes [12][13] - Robinhood Gold subscribers increased to a record 3.9 million, representing over 75% year-over-year growth [13][14] Market Data and Key Metrics Changes - International customer base grew to nearly 700,000 funded accounts, with significant growth in the U.K. and EU markets [11] - Assets under management reached over $300 billion, benefiting from a generational wealth transfer of $120 trillion [7][10] Company Strategy and Development Direction - The company aims to become a global financial ecosystem, targeting over half of its revenue from non-U.S. markets in the next decade [8][9] - Focus on expanding product offerings, including Robinhood Banking and Prediction Markets, to enhance customer engagement and wallet share [7][8] - Plans to leverage tokenization and private market access through Robinhood Ventures to tap into new growth opportunities [9][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing product velocity and customer engagement, with expectations for continued strong performance in Q4 [11][18] - The company is actively monitoring regulatory developments and is prepared to adapt its strategies accordingly [2] - Management highlighted the importance of building resilience in their platform following recent outages, emphasizing ongoing improvements [25][26] Other Important Information - The CFO announced plans to retire, with Shiv Verma set to take over the role, ensuring continuity in leadership [18][20] - The company is focusing on enhancing its user experience and product discoverability, particularly in the Prediction Markets segment [77] Q&A Session Summary Question: How quickly do you expect to roll out Robinhood Banking to users? - The rollout will be relatively fast, governed by customer feedback, with early results being positive [24] Question: How are you strengthening platform resiliency after the recent AWS-related outage? - Significant progress has been made in system resilience, allowing many customers to manage risk despite performance degradation [25][26] Question: How do you see the evolution of Robinhood as a super app for the next generation? - The goal is to be the primary financial account for customers, minimizing reasons for withdrawals and expanding product offerings [30] Question: What is the strategy for maintaining leadership in Prediction Markets amidst new entrants? - The company leverages its existing customer base and distribution advantages to maintain a competitive edge [33][34] Question: Can you discuss the demand for private markets and plans for Robinhood Ventures? - There is significant customer demand for access to private markets, and the company is working on innovative solutions to meet this need [46][49] Question: When do you expect tokenized equities to scale, and what implications might they have for revenue? - The company is ramping up the number of tokens available and anticipates greater interoperability in the future [52][70]

Customer Growth - Funded Customers increased by 2.5 million, or 10%, to 26.8 million compared to 24.3 million[163] - Robinhood Gold Subscribers increased by 1.69 million, or 77%, to 3.88 million compared to 2.19 million[164] - The number of users placing cryptocurrency trades increased by 92% and 45% for Q3 2024 and Q3 2025, respectively[172] Financial Performance - Total net revenues increased 100% to $1,274 million compared to $637 million[164] - Net income increased 271% to $556 million compared to $150 million[164] - Adjusted EBITDA increased 177% to $742 million compared to $268 million[164] - Total net revenues for Q3 2025 reached $1,274 million, a 99% increase from $637 million in Q3 2024[170] - Total net revenues for the nine months ended September 30, 2025, reached $1,746 million, up from $1,439 million in the same period of 2024, marking a 21% increase[180] Revenue Breakdown - Net Deposits were $20.4 billion, translating to an annualized growth rate of 29% relative to Total Platform Assets[164] - Transaction-based revenues for Q3 2025 were $730 million, a 129% increase compared to $319 million in Q3 2024[171] - Cryptocurrency transaction-based revenues surged by 339% in Q3 2025, totaling $268 million, up from $61 million in Q3 2024[171] - Margin interest revenues rose by 84% in Q3 2025, reaching $153 million, up from $83 million in Q3 2024[175] - Options revenues increased by 50% in Q3 2025, totaling $304 million, compared to $202 million in Q3 2024[171] Asset Growth - Total Platform Assets increased 119% to $332.7 billion compared to $152.2 billion, driven by continued Net Deposits and higher asset valuations[164] - Total Platform Assets composition: Equities at $203.0 billion (91% increase), Cryptocurrencies at $51.1 billion (162% increase), and Options and futures at $3.9 billion (225% increase)[165] - Total interest-earning assets for the three months ended September 30, 2025, amounted to $64,402 million, an increase from $56,783 million in the previous quarter, representing a growth of 13.5%[177] Operating Expenses - Total operating expenses increased 31% to $639 million compared to $486 million[164] - Total operating expenses for Q3 2025 were $639 million, up from $486 million in Q3 2024, reflecting a 31% increase[170] - Marketing expenses surged to $102 million for the three months ended September 30, 2025, reflecting a 73% increase from $59 million in the same period of 2024[180] - Technology and development costs increased by $32 million (16%) and $55 million (9%) for the three and nine months ended September 30, 2025, primarily due to higher employee compensation and benefits expenses[182] - General and administrative costs rose by $52 million (39%) and $65 million (17%) for the three and nine months ended September 30, 2025, driven by higher employee compensation and legal expenses[186] Credit and Interest Management - The company anticipates that potential future rate cuts by the Federal Reserve may negatively impact net interest revenues[175] - Provision for credit losses increased to $26 million for the three months ended September 30, 2025, a 13% rise from $23 million in the same period of 2024[180] - A hypothetical 100 basis point increase in interest rates would result in an increase of $171 million in total net revenues for 2024 and $298 million for 2025[204] - A hypothetical 150 basis point increase in interest rates would result in an increase of $257 million in total net revenues for 2024 and $447 million for 2025[204] - The company has established a comprehensive interest rate risk management policy to identify and implement appropriate hedging strategies[207] Cash Flow and Liquidity - Cash provided by operating activities increased by $1.33 billion, primarily due to a $783 million increase in net income and a $4.44 billion increase in securities loaned[196] - As of September 30, 2025, the company had cash and cash equivalents of $4.33 billion and held-to-maturity investments of $53 million[191] - The company had committed revolving credit facilities with a total borrowing capacity of up to $3.775 billion as of September 30, 2025[192] - Net cash provided by investing activities increased by $881 million compared to the prior period[198] Risk Management - The company monitors required margin levels daily and requires customers to deposit additional collateral or reduce positions when necessary to manage market-related credit risk[209] - Actual results may differ from simulated results due to various factors, including balance growth or decline and changes in market conditions[208] - The investment policy focuses on the preservation of capital and supporting liquidity requirements, investing in highly-rated debt securities with an average duration of less than one year[205]

Market Overview - The market is experiencing a rebound with the Dow up more than 300 points, S&P 500 up about 0.7%, and NASDAQ rallying about 1% [2][50] - Trade-sensitive stocks, including automakers and apparel retailers, are seeing gains following Supreme Court hearings regarding President Trump's tariff policies [2][10] Supreme Court Hearing on Tariffs - The Supreme Court justices, including Chief Justice John Roberts, expressed skepticism towards the Trump administration's legal arguments for tariffs, suggesting they may be viewed as taxes on Americans [6][7][10] - The questioning from both liberal and conservative justices indicates a potential challenge to the legality of Trump's blanket tariffs, which could impact market expectations [5][10][13] Labor Market and Federal Reserve Policy - ADP reported a surprising addition of 42,000 jobs in October, reversing a decline from September, which may influence Federal Reserve policy discussions [14] - Fed Governor Steven Myron indicated that the labor market poses a greater risk than inflation, suggesting a more cautious approach to monetary policy [15][16] AI and Technology Sector Insights - Concerns are emerging regarding AI valuations, with analysts cautious about the sustainability of current business models and potential market corrections [20][21][22] - Companies are underweight in AI-related stocks, favoring investments in European markets due to attractive valuations [23][24] Scott's Miracle Grow Performance - Scott's Miracle Grow reported a decrease in net sales but improved gross margins and market share, indicating a recovery phase [28][30] - The lawn and garden sector is described as recession-resistant, with strong consumer demand and growth in DIY projects [33][34] Qualcomm's Financial Results - Qualcomm's Q4 results showed earnings per share of $3, beating expectations, with revenue at $11.27 billion, also above estimates [54][57] - The company is diversifying into automotive and IoT markets, with a focus on AI chip development to enhance growth potential [59][66] Robinhood's Earnings Report - Robinhood's Q3 earnings showed a beat on both top and bottom lines, with significant net deposit growth, although initial stock reactions were negative due to high expectations [83][88] - The company is exploring opportunities in prediction markets, which could diversify revenue streams and enhance long-term growth potential [90][92] ARM Holdings Performance - ARM reported earnings per share of 39 cents, beating estimates, with revenue of $1.14 billion, also exceeding expectations [70][72] - The company is well-positioned in the chip industry, with strong demand for its designs across various markets, including data centers and IoT [79][80]

Core Insights - Robinhood reported Q3 net revenue of $1.27 billion, exceeding analyst expectations of $1.21 billion [1] - Q3 cryptocurrency revenue was $268 million, below analyst expectations of $287.2 million [1] - Adjusted EBITDA for Q3 was $742 million, surpassing analyst expectations of $726.9 million [1] - Average Revenue Per User (ARPU) for Q3 was $191, exceeding analyst expectations of $182 [1] - Monthly active users reached 13.8 million, above analyst expectations of 13.31 million [1] - CFO Jason Warnick announced plans to resign, with Shiv Verma appointed as the next CFO [1]