First Shanghai Securities·2025-11-14 08:13Financial Performance - Robinhood Markets reported total revenue of $1.274 billion for Q3 2025, doubling year-over-year and increasing nearly 30% quarter-over-quarter[5] - Net profit reached $556 million, a significant increase of 271% year-over-year and 44% quarter-over-quarter[5] - Adjusted EBITDA was $742 million, up 177% year-over-year, with a profit margin of 58%[5] Revenue Breakdown - Trading revenue amounted to $730 million, with cryptocurrency revenue tripling year-over-year to $268 million; options and stock revenues increased by 50% and 132%, respectively[6] - Net interest income grew by 66% to $456 million, while securities lending income surged by 193%[6] User Metrics - Average revenue per user increased to $191, an 82% year-over-year rise[6] - Retirement account assets grew by 144% to $24.2 billion, with adoption rates 2.5 times higher than regular accounts[6] Market Expansion and Product Development - The company is on track for annualized revenue of nearly $300 million by October 2025, a significant acceleration from $115 million in Q3[7] - New features targeting professional traders and international clients are being rolled out, with nearly 700,000 international customers[7] Financial Guidance and Valuation - The adjusted operating expense guidance for 2025 is raised to approximately $2.28 billion, reflecting ongoing investments in products and technology[8] - The target price for Robinhood is set at $150.00, representing a 23% upside from the previous closing price, with a PE ratio of 65x[9] Risks - Potential decline in retail user engagement and regulatory changes affecting payment for order flow (PFOF) could impact future performance[10]