Summary of Robinhood's Earnings Call Company Overview - **Company**: Robinhood - **Date of Call**: August 1, 2025 Key Financial Performance - Adjusted EBITDA margin reached **81%** with earnings per share doubling year-over-year [2][3] - Revenue increased by **45%** year-over-year, totaling **$989 million** [3] - Trading volumes hit record highs with **11 million** futures contracts and **17 million** index options traded, predicting market trading volume close to **$1 billion** [2][3] - Interest-earning assets grew over **50%** year-over-year, primarily due to cash arbitrage [2][3] Membership and Customer Growth - Robinhood Gold membership increased to **3.5 million**, a growth of over **75%** year-over-year, representing **13%** of total customers and over **35%** of new customers [2][8] - The company plans to launch its banking services in the fall, aiming to provide high-quality services typically reserved for high-net-worth individuals [6] International Expansion and Innovations - Expanded European operations to **30 countries**, serving over **400 million** people, introducing stock tokenization, and planning to launch perpetual futures in Europe [2][7] - Acquisition of Bitstamp enhances institutional capabilities with over **$750 million** in staking services [2][9] Market Trends and Strategic Initiatives - Strong start to Q3 with net deposits around **$6 billion** and record trading volumes in stocks, options, and cryptocurrencies [10] - The company has diversified into **9** business lines with annual revenues exceeding **$100 million** each, adapting to a high-interest rate environment [4][18] - SEC lending business saw a historical high of **$54 million** in June, a **160%** year-over-year increase [20] Product Development and Technology - Innovations in active trader products and enhancements in cryptocurrency trading, with rebate rates increasing to **85 basis points** [4][21] - Introduction of new mobile tools and features for Gold members, including the Cortex function [5] Future Outlook and Strategic Goals - The acquisition of Bitstamp is expected to add **$65 million** to costs in 2025, with adjusted operating expenses projected between **$2.15 billion** and **$2.25 billion** [9] - The company aims to maintain a disciplined approach to cost management, targeting single-digit growth in expenses while driving revenue growth [39][42] - Plans to further explore loan products and expand credit services, including partnerships for favorable mortgage rates [11][15] Competitive Landscape - Robinhood remains confident in its competitive position, focusing on product enhancements and customer experience to fend off competition from larger brokers entering the cryptocurrency space [37][38] Conclusion - Robinhood's strategic initiatives, strong financial performance, and innovative product offerings position the company for continued growth and resilience in a competitive market environment. The focus on international expansion and diversification into new business lines is expected to drive long-term sustainability and profitability.