Robinhood Reports Fourth Quarter and Full Year 2025 Results

Financial Performance - Robinhood reported record revenues of $4.5 billion for 2025, a 52% increase year-over-year, with Q4 revenues reaching $1.28 billion, up 27% year-over-year [8][3] - The company achieved a record diluted EPS of $2.05 for 2025, compared to $1.56 in 2024, with Q4 diluted EPS at $0.66, down from $1.01 in Q4 2024 [8][3] - Net income for 2025 was $1.9 billion, an increase from $1.4 billion in 2024, while Q4 net income was $605 million, down from $916 million in Q4 2024 [8][3] Customer Growth and Engagement - Funded customers increased by 1.8 million, or 7%, year-over-year, totaling 27 million [3] - Investment accounts grew by 2.2 million, or 8%, year-over-year, reaching 28.4 million [3] - Robinhood Gold subscribers reached a record 4.2 million, reflecting a 58% increase year-over-year [3][5] Revenue Streams - Transaction-based revenues rose 15% year-over-year to $776 million, driven by significant increases in options revenue (up 41% to $314 million) and equities revenue (up 54% to $94 million), while cryptocurrency revenue decreased by 38% to $221 million [3] - Net interest revenues increased by 39% year-over-year to $411 million, primarily due to growth in interest-earning assets [3] - Other revenues surged 109% year-over-year to $96 million, largely from Robinhood Gold subscription revenue, which grew by 56% to $50 million [3] Operating Expenses - Total operating expenses increased by 25% year-over-year to $2.38 billion, with adjusted operating expenses and share-based compensation rising 17% to $2.27 billion [8][3] - The increase in operating expenses was mainly attributed to marketing and growth investments, as well as acquisition-related expenses [3] Strategic Initiatives - Robinhood expanded its product offerings, particularly in Prediction Markets, with over 12 billion event contracts traded in 2025 [4] - The company established a joint venture, Rothera, LLC, to develop an independent, CFTC-licensed exchange and clearinghouse [4] - Robinhood's international expansion included launching a stocks and shares ISA in the UK and acquiring a brokerage and crypto firm in Indonesia [6] Market Position - Robinhood is positioned as the 1 platform for active traders, with significant growth in trading volumes and product offerings [4] - The company aims to deepen customer adoption of its retirement, advisory, and banking services, enhancing its share of wallet among long-term investors [5]