PART I - FINANCIAL INFORMATION [Item 1. Unaudited Financial Statements](index=5&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) Robinhood's unaudited condensed consolidated financial statements for Q2 2025, covering balance sheets, operations, cash flows, and notes [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $35.3 billion and liabilities to $27.3 billion by June 30, 2025, with stable stockholders' equity Condensed Consolidated Balance Sheet Highlights (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$35,324** | **$26,187** | | Cash and cash equivalents | $4,162 | $4,332 | | Receivables from users, net | $9,685 | $8,239 | | Securities borrowed | $6,159 | $3,236 | | Goodwill | $383 | $179 | | **Total Liabilities** | **$27,252** | **$18,215** | | Payables to users | $10,511 | $7,448 | | Securities loaned | $12,640 | $7,463 | | **Total Stockholders' Equity** | **$8,072** | **$7,972** | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 total net revenues rose 45% to $989 million, with net income up 105% to $386 million, driven by strong revenue growth Statement of Operations Summary (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total net revenues | $989 | $682 | +45% | $1,916 | $1,300 | +47% | | Transaction-based revenues | $539 | $327 | +65% | $1,122 | $656 | +71% | | Net interest revenues | $357 | $285 | +25% | $647 | $539 | +20% | | Total operating expenses | $550 | $493 | +12% | $1,107 | $953 | +16% | | Net income | $386 | $188 | +105% | $722 | $345 | +109% | | Diluted EPS | $0.42 | $0.21 | +100% | $0.79 | $0.38 | +108% | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly improved to $4.15 billion in H1 2025, with investing providing $841 million and financing using $703 million Six Months Ended June 30, Cash Flow Summary (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $4,151 | $(569) | | Net cash provided by (used in) investing activities | $841 | $(59) | | Net cash used in financing activities | $(703) | $(72) | - Key financing activities in H1 2025 included **$446 million** used for the repurchase of Class A common stock and **$372 million** for taxes paid on net share settlement of equity awards[24](index=24&type=chunk) - Key investing activities in H1 2025 included **$1.19 billion** in cash acquired from business acquisitions, offset by **$399 million** in consideration paid for those acquisitions and **$1.53 billion** for purchases of credit card receivables[24](index=24&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, business combinations, revenue sources, credit losses, financing, and legal contingencies [Note 3 - Business Combinations](index=16&type=section&id=Note%203%20-%20Business%20Combinations) Robinhood completed acquisitions of TradePMR for $175 million and Bitstamp for $224 million, with WonderFi acquisition pending - On February 26, 2025, the company acquired TradePMR for approximately **$175 million** in cash, adding **$112 million** in goodwill[45](index=45&type=chunk)[46](index=46&type=chunk)[48](index=48&type=chunk) - On June 2, 2025, the company acquired Bitstamp for approximately **$224 million** in cash to accelerate global expansion, adding **$91 million** in goodwill[52](index=52&type=chunk)[53](index=53&type=chunk) - On May 12, 2025, Robinhood entered an agreement to acquire WonderFi for a total equity value of approximately **$180 million**, with the deal expected to close in H2 2025[57](index=57&type=chunk) [Note 5 - Revenues](index=21&type=section&id=Note%205%20-%20Revenues) Q2 2025 total net revenues were $989 million, primarily from transaction-based ($539 million) and net interest ($357 million) revenues Disaggregation of Revenues - Three Months Ended June 30 (in millions) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | **Transaction-based revenues** | **$539** | **$327** | | Options | $265 | $182 | | Cryptocurrencies | $160 | $81 | | Equities | $66 | $40 | | **Net interest revenues** | **$357** | **$285** | | Margin interest | $114 | $73 | | **Other revenues** | **$93** | **$70** | | Robinhood Gold subscription | $44 | $26 | | **Total net revenues** | **$989** | **$682** | - Citadel Securities, LLC was a significant source of transaction-based revenue, accounting for **13%** of total revenues in Q2 2025 and **12%** in Q2 2024[38](index=38&type=chunk) [Note 11 - Common Stock and Stockholders' Equity](index=32&type=section&id=Note%2011%20-%20Common%20Stock%20and%20Stockholders%27%20Equity) The company repurchased 10 million shares for $446 million under its $1.5 billion program, with $426 million in unrecognized share-based compensation - The board authorized a share repurchase program of up to **$1.5 billion**. For the six months ended June 30, 2025, the company repurchased **10 million shares** for **$446 million**[110](index=110&type=chunk) - As of June 30, 2025, there was **$426 million** of unrecognized share-based compensation expense expected to be recognized over a weighted-average period of **1.21 years**[119](index=119&type=chunk) - As of June 30, 2025, outstanding warrants could be exercised to purchase **10.79 million shares** of Class A common stock at a strike price of **$26.60**[109](index=109&type=chunk) [Note 14 - Commitments & Contingencies](index=38&type=section&id=Note%2014%20-%20Commitments%20%26%20Contingencies) Accrued legal contingencies decreased to $45 million by June 30, 2025, with settlements in Best Execution and FINRA matters, and ongoing litigation - Accrued loss contingencies decreased to **$45 million** as of June 30, 2025, from **$128 million** as of December 31, 2024[122](index=122&type=chunk) - In June 2025, Robinhood agreed to a settlement in principle in the Best Execution and PFOF civil litigation[128](index=128&type=chunk) - On March 6, 2025, the company resolved multiple FINRA investigations by paying a **$26 million** penalty and approximately **$3.76 million** in restitution[131](index=131&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 financial performance, highlighting significant revenue and net income growth, strong customer metrics, and liquidity Q2 2025 vs Q2 2024 Performance Highlights | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total net revenues | $989 million | $682 million | +45% | | Net income | $386 million | $188 million | +105% | | Adjusted EBITDA (non-GAAP) | $549 million | $301 million | +82% | | Funded Customers | 26.5 million | 24.2 million | +10% | | Total Platform Assets | $278.6 billion | $139.7 billion | +99% | | ARPU | $151 | $113 | +34% | [Revenues](index=50&type=section&id=Revenues) Broad-based revenue growth in Q2 2025, with transaction-based up 65%, net interest up 25%, and other revenues up 33% Transaction-Based Revenues - Q2 2025 vs Q2 2024 (in millions) | Category | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Options | $265 | $182 | +46% | | Cryptocurrencies | $160 | $81 | +98% | | Equities | $66 | $40 | +65% | | **Total** | **$539** | **$327** | **+65%** | - Net interest revenues increased by **$72 million** YoY in Q2 2025, driven by growth in interest-earning assets like margin loans and securities lending activities[168](index=168&type=chunk) - Robinhood Gold subscription revenues grew **69%** YoY to **$44 million** in Q2 2025, driven by a **76%** increase in subscribers to **3.48 million**[171](index=171&type=chunk)[159](index=159&type=chunk) [Operating Expenses](index=53&type=section&id=Operating%20Expenses) Total operating expenses increased 12% to $550 million in Q2 2025, driven by higher marketing and brokerage costs Operating Expenses - Q2 2025 vs Q2 2024 (in millions) | Category | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Brokerage and transaction | $48 | $40 | +20% | | Technology and development | $214 | $209 | +2% | | Marketing | $99 | $64 | +55% | | General and administrative | $132 | $134 | -1% | | Provision for credit losses | $28 | $18 | +56% | | **Total Operating Expenses** | **$550** | **$493** | **+12%** | - Marketing costs increased by **$35 million** in Q2 2025 due to higher investments in digital and brand marketing to promote the brand and products[177](index=177&type=chunk) - General and administrative costs decreased slightly, partly due to a **$14 million** reduction in legal expenses associated with historical matters[179](index=179&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) Robinhood maintains strong liquidity with $4.16 billion in cash and $3.775 billion in credit facilities, exceeding regulatory capital requirements - As of June 30, 2025, the company had **$4.16 billion** in cash and cash equivalents and **$134 million** in held-to-maturity investments[184](index=184&type=chunk) - The company's broker-dealer subsidiary, RHS, had net capital of **$2.89 billion**, which is **$2.67 billion** in excess of its required net capital of **$215 million**[188](index=188&type=chunk) - Total material cash commitments for the remainder of 2025 are estimated at **$495 million**, primarily for purchase commitments and the Credit Card Funding Trust[186](index=186&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Robinhood's market risk is primarily interest rate sensitivity, with a 100 bps rate increase potentially boosting annual net revenues by $247 million Annualized Impact of Hypothetical Interest Rate Change (in millions) | Basis Point Change | Impact on Net Revenues (June 30, 2025) | Impact on Net Revenues (June 30, 2024) | | :--- | :--- | :--- | | +150 bps | $370 | $234 | | +100 bps | $247 | $156 | | +50 bps | $123 | $78 | - The company manages credit risk on margin lending by requiring customers to maintain collateral and monitoring accounts for excessive concentration or large positions[202](index=202&type=chunk) [Item 4. Controls and Procedures](index=61&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2025, with Bitstamp integration ongoing and excluded from 2025 assessment - The CEO and CFO concluded that as of the end of the reporting period, the company's disclosure controls and procedures were effective[204](index=204&type=chunk) - Following its acquisition on June 2, 2025, Bitstamp is being integrated. Management expects to exclude Bitstamp from its assessment of internal control over financial reporting for 2025[206](index=206&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=63&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 14 for details on ongoing legal and regulatory matters, including settlements and investigations - For information regarding legal proceedings, the report directs readers to Note 14 - Commitments & Contingencies in the financial statements[208](index=208&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) Key risks include slower growth, expansion challenges, reliance on PFOF, interest rate sensitivity, regulatory scrutiny, and concentrated voting power - A large portion of revenue is transaction-based (PFOF), which is sensitive to trading volumes, regulatory changes, and relationships with liquidity providers[222](index=222&type=chunk) - The business is subject to extensive and complex regulations. Failure to comply could result in substantial costs, penalties, and changes to business practices. The company has been and expects to continue to be subject to regulatory investigations and actions[211](index=211&type=chunk)[273](index=273&type=chunk) - The legal status of any particular cryptocurrency as a 'security' in the U.S. is highly uncertain. An adverse determination for a supported coin could lead to regulatory penalties, customer lawsuits, and a requirement to cease trading that asset[211](index=211&type=chunk)[375](index=375&type=chunk) - The multi-class stock structure concentrates over **50%** of the voting power with the company's founders, limiting other stockholders' influence on corporate matters[215](index=215&type=chunk)[467](index=467&type=chunk)[468](index=468&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=129&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued 2,049,711 unvested shares for TradePMR acquisition and repurchased 3 million shares for $124 million in Q2 2025 - On February 26, 2025, the company issued **2,049,711 unvested shares** of Class A common stock as part of the TradePMR acquisition in a transaction exempt from registration[478](index=478&type=chunk) Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Total Value (approx.) | | :--- | :--- | :--- | :--- | | April 2025 | 2,471,752 | $36.60 | $90.5M | | May 2025 | 307,171 | $56.99 | $17.5M | | June 2025 | 222,832 | $74.81 | $16.7M | | **Total** | **3,001,755** | **$41.52** | **$124.7M** | [Item 5. Other Information](index=130&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q2 2025 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the second quarter of 2025[483](index=483&type=chunk)

Company Overview - Robinhood's results are being discussed on CNBC's 'Closing Bell Overtime' [1]

Q2 2025 Business Performance - Robinhood's Funded Customers reached 265 million, a 23 million increase year-over-year and a 750k increase sequentially[10] - Robinhood Gold Subscribers reached 348 million, a 15 million increase year-over-year and a 290k increase sequentially[10] - Total Platform Assets reached $279 billion, a 99% increase year-over-year and a 26% increase sequentially[10] - Net Deposits were $138 billion in Q2, translating to a 25% annualized growth rate, and were ~$58 billion over the last twelve months, translating to a 41% growth rate[10, 46] Q2 2025 Financial Performance - Total Net Revenues were $989 million, a 45% increase year-over-year and a 7% increase sequentially[14] - Adjusted Operating Expenses were $444 million, a 9% increase year-over-year and a (3%) decrease sequentially[14] - Adjusted EBITDA was $549 million, an 82% increase year-over-year and a 17% increase sequentially[14] - Net Income was $386 million, a +$198 million increase year-over-year and a +$50 million increase sequentially[14] Updated 2025 Outlook - Robinhood is updating its 2025 outlook for Adjusted Operating Expenses and SBC to $215 billion to $225 billion to include the acquisition of Bitstamp in Q2 2025[78, 83]

Financial Performance - Robinhood's Q2 revenue reached $989 million, a 45% year-over-year increase, surpassing the estimated $921.5 million [1] - Net income for Q2 rose to $386 million, or $0.42 per share, exceeding expectations [1] Revenue Breakdown - Crypto-related revenue increased 98% to $160 million, slightly below the $162.1 million forecast [1]

Core Insights - Robinhood reported second-quarter revenue of $989 million, a 45% increase year-over-year, surpassing the consensus estimate of $898.95 million [1] - The company achieved earnings per share of 42 cents, exceeding the consensus estimate of 29 cents per share [1] Financial Performance - Transaction-based revenue rose 65% year-over-year to $539 million [1] - Options revenue was $265 million, up 46% year-over-year [7] - Cryptocurrencies revenue reached $160 million, a 98% increase year-over-year [7] - Equities revenue totaled $66 million, reflecting a 65% year-over-year growth [7] Customer Metrics - Robinhood ended the quarter with 26.5 million funded customers, a 10% increase year-over-year [2] - Investment accounts grew by 10% year-over-year to 27.4 million [2] - The company reported total platform assets of $279 billion, up 99% year-over-year [2] - Net deposits for the quarter were $13.8 billion [2] - The number of Robinhood Gold subscribers reached a record 3.5 million [2] Strategic Developments - The acquisition of Bitstamp was completed on June 30, with trading volumes reaching $7 billion post-acquisition [3] - Robinhood app's crypto notional trading volumes hit $28 billion in the quarter, a 32% year-over-year increase [3] - The company anticipates closing its acquisition of WonderFi in the second half of the fiscal year [5] Future Outlook - July saw strong customer activity with net deposits around $6 billion and robust trading across categories [5] - Full-year adjusted operating expenses and share-based compensation are expected to be between $2.15 billion and $2.25 billion, an increase from the previous estimate [6] Stock Performance - Robinhood's stock price increased by 1% to $107.01, within a 52-week trading range of $13.98 to $113.44 [6]

Robinhood Beats Q2 Expectations Despite Sagging Crypto Revenue► https://t.co/tnzYT2PLfv https://t.co/tnzYT2PLfv ...

Robinhood’s Q2 crypto volume jumps 32% as firm pushes tokenization, Bitstamp deals https://t.co/DAle18uM87 ...

Robinhood二季度净营收9.89亿美元，分析师预期9.215亿美元。 ...

Robinhood Reports Second Quarter 2025 Results Revenues up 45% year-over-year to $989 million Net Deposits were $13.8 billion, and Robinhood Gold Subscribers reached a record 3.5 million Diluted EPS up 100% year-over-year to $0.42 MENLO PARK, Calif. – July 30, 2025 – Robinhood Markets, Inc. ("Robinhood") (NASDAQ: HOOD) today announced financial results for the second quarter of 2025, which ended June 30, 2025. "We delivered strong business results in Q2 driven by relentless product velocity, and we launched ...

Financial Performance - Total net revenues increased by 45% year-over-year to $989 million [5] - Transaction-based revenues rose by 65% year-over-year to $539 million, driven by options revenue of $265 million (up 46%), cryptocurrencies revenue of $160 million (up 98%), and equities revenue of $66 million (up 65%) [5] - Net income increased by 105% year-over-year to $386 million [5] - Diluted earnings per share (EPS) doubled year-over-year to $0.42 [5] - Adjusted EBITDA increased by 82% year-over-year to $549 million [5] Customer Growth and Engagement - Funded customers increased by 2.3 million, or 10%, year-over-year to 26.5 million [5] - Investment accounts grew by 2.6 million, or 10%, year-over-year to 27.4 million [5] - Robinhood Gold subscribers reached a record 3.5 million, an increase of 1.5 million or 76% year-over-year [5][12] Market Expansion and Product Development - The company closed the acquisition of Bitstamp, enhancing its cryptocurrency offerings and institutional business [3][12] - Robinhood launched new crypto products and expanded into 30 European countries [12] - The company hosted its first product spotlight livestream in June 2025, introducing Robinhood Legend charts on mobile and options simulated returns pre-trade [4] Financial Outlook and Expenses - Total operating expenses increased by 12% year-over-year to $550 million [5] - Adjusted Operating Expenses and Share-Based Compensation (SBC) increased by 6% year-over-year to $522 million, including costs related to Bitstamp [5] - The updated expense outlook for 2025 is projected to be between $2.15 billion and $2.25 billion, including anticipated costs related to Bitstamp [11]