T. Rowe Price Group (TROW) Q2 2025 Earnings Call August 01, 2025 08:00 AM ET Company ParticipantsLinsley Carruth - VP & Director - IRRobert Sharps - President, CEO & Chair of the BoardJennifer Dardis - CFOBrian Bedell - DirectorMichael Cyprys - Managing DirectorEric Veiel - Head of Global Investments & CIOBen Budish - DirectorAlex Blostein - Managing DirectorConference Call ParticipantsGlenn Schorr - Senior MD & Senior Research AnalystDan Fannon - MD - Research AnalystIvory Gao - AnalystPatrick Davitt - Sen ...

T. Rowe Price Group (TROW) Q2 2025 Earnings Call August 01, 2025 08:00 AM ET Speaker0Good morning. My name is Daniel and I will be your conference facilitator today. Welcome to T. Rowe Price's Second Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode until the question and answer period.I will give you instructions on how to ask questions at that time. As a reminder, this call is being recorded and will be available for replay on T. Rowe Price's website shortly ...

"At a large enough scale, tokens would in effect turn private firms into public ones" - The EconomistBecause of this (and other reasons) "the view that crypto has not produced any innovations of note can be consigned to the past"- The Economist concludes.TLDR: We Won.Joe Weisenthal (@TheStalwart):If tokenization of private stock (a la Robinhood's efforts) takes off, I wonder if we're even going to talk about public vs. private companies in the future. May just be kind of a spectrum of various levels of liqu ...

Tokenize everything.Solana (@solana):Stocks. Bonds. Lending. Money markets. Foreign exchange. Commodities. Derivatives. Private equity. Venture capital. Hedge funds. Real estate investment trusts. Asset-backed securities. Municipal bonds. Treasury securities. Corporate bonds. Convertible bonds. Preferred stocks. https://t.co/6V3MQ8obLR ...

“Tokenization may be the answer. Zero chance anyone in crypto would fail to use an auction to price something.”Bill Gurley (@bgurley):With $FIG we have another massive "POP" highlighting the gross inefficiency in the modern IPO process. It's very simple. They REFUSE to match supply/demand (that happened today). They brag about the mis-match - "30X oversubscribed." The outcome is expected & fully intentional. ...

Why Robinhood’s CEO Touted Tokenization 11 Times on Its Q2 Earning Call► https://t.co/Xelv97Horv https://t.co/Xelv97Horv ...

RT Moonit (@moonit)when memes go viral on 9GAG, they automatically get tokenized on SOLANAthere is no dev, just pure memetic energy and a fair opportunity to trade culture in real-time https://t.co/JOHl6PiK85 ...

The company is investing heavily in infrastructure and services to support institutional credibility and long-term customer value — despite potentially looming regulatory challenges.$160 million in crypto revenue (up 98% YoY) and $35 billion in trading volume — boosted by the Bitstamp acquisition — show Robinhood’s successful transition to institutional-grade crypto services, including staking and stock tokenization.Robinhood reported a 45% YoY revenue increase to $989 million and doubled EPS to $0.42 in Q2 ...

Financial Data and Key Metrics Changes - Revenues increased by 45% year over year to $989 million, driven by strong business growth and record trading volumes across all categories [18][19] - Adjusted EBITDA margins were 81%, and earnings per share (EPS) doubled from a year ago [18] - Interest-earning assets rose over 50%, with cash sweep balances exceeding $30 billion, up more than 10 times since the high-yield offer began [19][20] Business Line Data and Key Metrics Changes - Record trading volumes in Q2 across equities, options, prediction markets, index options, and futures, with index options volumes growing 60% from Q1 [8] - Robinhood Gold subscribers reached a record 3.5 million, representing a 75% year-over-year increase [20][16] - Retirement assets surpassed $20 billion, more than doubling in the past year [10] Market Data and Key Metrics Changes - The company now has over 600,000 international customers, including those acquired through Bitstamp [16] - Crypto volumes for both Robinhood and Bitstamp reached six-month highs, indicating strong market engagement [22] Company Strategy and Development Direction - The company aims to enhance its global financial ecosystem, focusing on product velocity and innovation, including the launch of Robinhood Banking [10][12] - Plans to expand into private markets and tokenization of real-world assets, with a focus on regulatory clarity and customer demand [12][44] - The company is exploring lending opportunities, including personal loans and mortgages, through partnerships [26][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory of net deposits, driven by customer engagement and new product offerings [36] - The company is optimistic about the impact of recent product launches and market conditions on future performance [22][60] - Management highlighted the importance of maintaining a disciplined approach to expenses while pursuing growth opportunities [20][121] Other Important Information - The company closed the acquisition of Bitstamp, enhancing its institutional business capabilities [18][14] - The launch of staking in the U.S. saw over $750 million staked in the first month, indicating strong customer interest [14][113] Q&A Session Summary Question: When will Robinhood Banking be broadly available for customers? - Management confirmed that Robinhood Banking is on track for rollout later in the quarter, having made good progress in internal testing [25] Question: Does Robinhood have plans to step more heavily into lending? - Management indicated that they are already providing some forms of credit and are exploring further lending opportunities through partnerships [26][27] Question: Can you discuss net deposit momentum and promotional activity? - Management acknowledged the volatility in net deposits but emphasized a strong long-term trend and the effectiveness of promotional activities [31][36] Question: What are the long-term strategic opportunities with private tokenization of assets? - Management highlighted the positive reception of their recent tokenization event and the potential for expanding access to private markets [40][44] Question: How does the company view the regulatory landscape for tokenization in the U.S.? - Management is actively working with regulators to unlock opportunities for tokenizing previously inaccessible assets [68] Question: Can you elaborate on the growth of securities lending? - Management reported strong growth in securities lending, with record volumes and a growing customer base [71][72] Question: What is the outlook for crypto monetization and pricing? - Management noted that they are experimenting with pricing and have seen positive trends in revenue per trader [78][79] Question: What are the plans for the Robinhood chain and its advantages? - Management emphasized the unique opportunity to tokenize real-world assets and the competitive advantages of their platform [86][88] Question: How does the company plan to ensure low execution costs for tokenized equities? - Management stated that they aim to keep execution costs competitive and have received positive feedback on pricing from customers [102][103]

Financial Data and Key Metrics Changes - Revenues increased by 45% year over year to nearly $1 billion, marking the third highest quarter of net deposits ever [16][19] - Adjusted EBITDA margins were 81%, and EPS doubled from a year ago [19] - Interest earning assets rose over 50%, driven by cash sweep, margin, and strong securities lending activity [21] Business Line Data and Key Metrics Changes - Record trading volumes were reported across equities, options, prediction markets, index options, and futures, with index options volumes growing 60% from Q1 [8][20] - Average assets per funded customer exceeded $10,000 for the first time, nearly doubling from a year ago [10] - Robinhood Gold subscribers reached a record 3.5 million, representing a 75% year-over-year increase [22][17] Market Data and Key Metrics Changes - The company now has over 600,000 international customers, bolstered by the Bitstamp acquisition [18] - Net deposits in July were around $6 billion, indicating a strong start to Q3 [23] - Crypto trading volumes for both Robinhood and Bitstamp reached six-month highs [24] Company Strategy and Development Direction - The company aims to enhance its global financial ecosystem, focusing on innovations like stock tokens and perpetual futures [13][14] - Plans to launch Robinhood Banking in the fall, which is expected to integrate various financial services for customers [11][27] - The company is exploring lending opportunities, including partnerships for mortgage offerings [28][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory of net deposits, driven by customer engagement and new product expansions [40] - The company is optimistic about the potential of tokenization and its ability to democratize access to private markets [46][47] - Management emphasized a disciplined approach to expenses, maintaining strong margins while pursuing growth [22][19] Other Important Information - The Bitstamp acquisition is expected to contribute significantly to the company's institutional business [15] - The company has seen a strong response to its staking offerings, with over $750 million staked in the first month [16][113] - The Robinhood chain is positioned as a unique opportunity for tokenizing real-world assets, leveraging the existing customer base [88][89] Q&A Session Summary Question: When will Robinhood Banking be broadly available for customers? - Management confirmed that Robinhood Banking is on track for rollout later in the quarter, following successful internal testing [27] Question: Does Robinhood plan to step more heavily into lending products? - Management indicated that they are already providing some forms of credit and are exploring further lending opportunities through partnerships [28][30] Question: How is the strategy evolving around net deposits and promotional activity? - Management stated that promotions are a key part of their strategy and have shown strong customer response, with plans to continue leveraging them [36][38] Question: Can you discuss the long-term strategic opportunities with private tokenization of assets? - Management highlighted the positive reception of their tokenization efforts in Europe and the potential for similar offerings in the U.S. [46][47] Question: What are the advantages of the Robinhood chain for real-world assets? - Management emphasized the unique position of Robinhood in the market, with a large customer base and a focus on tokenizing real-world assets [88][89] Question: How does the company view the competitive landscape for tokenized stocks? - Management noted that their model minimizes risks associated with price discrepancies, providing a competitive edge in the market [96] Question: What is the outlook for securities lending as the IPO market turns on? - Management reported strong performance in securities lending, with record numbers in June and July, indicating potential for continued growth [74][75]