Robinhood(US:HOOD) Yahoo Finance·2025-12-25 14:30Core Insights - Robinhood Markets Inc. has experienced a significant surge of over 220% in 2025, driven in part by the rapid growth of prediction markets, which have become the fastest-growing product in the company's history [1] Financial Performance - In Q3, Robinhood reported revenue of $1.27 billion, reflecting a 100% year-over-year increase, with net income reaching $386 million, up 105% [2] - The full-year revenue for 2025 is projected to be between $4.6 billion and $4.7 billion, representing a 55% increase from 2024, with EPS estimates ranging from $1.95 to $2.07, an increase of 79% [2] - Equity trading volume reached a record $647 billion in Q3, marking a 126% year-over-year growth [2] Customer Growth and Activity - The customer base has expanded to approximately 27 million funded accounts, holding over $300 billion in assets, with deposit growth exceeding 40% annually [3] Growth Catalysts - Prediction markets have emerged as a key growth driver, with over 9 billion contracts traded by Robinhood customers in the first year, generating annualized revenues exceeding $100 million [4] - The partnership with Kalshi to launch event contracts in March 2024 has led to the fastest adoption of any product in Robinhood's history [4] Strategic Acquisitions - Robinhood and Susquehanna International Group have agreed to acquire 90% of LedgerX, a regulated derivatives exchange, aiming to create a fully vertically integrated prediction markets platform, with a new exchange expected to launch in 2026 [5] Crypto and Tokenization - Crypto trading volumes reached $80 billion, with revenue in Q1 hitting $252 million, doubling year-over-year and accounting for about 27% of transaction revenue [6] - The launch of crypto-based "stock tokens" for EU customers allows trading of over 200 U.S. equities and ETFs on blockchain infrastructure [6] - This tokenization strategy positions Robinhood at the intersection of traditional finance and decentralized infrastructure [8]