Core Viewpoint - Robinhood is evolving from a simple trading app to a comprehensive money management platform, despite recent revenue falling short of analyst expectations, leading to a significant drop in stock price [1][2]. Group 1: Financial Performance - Robinhood reported year-over-year growth in key metrics, including net deposits, Gold subscriptions, and total platform assets [1]. - The company's total platform assets increased by 68% year over year, reaching $324 billion [6]. Group 2: Product Development and Revenue Generation - Robinhood has 11 products generating over $100 million in annualized revenue, with a credit card expected to bring the total to 12 this year [4]. - The introduction of Robinhood Banking has begun, with 25,000 customers depositing $400 million, indicating strong initial uptake [5]. - The company is actively rolling out new products to enhance long-term revenue potential, including features that leverage artificial intelligence [6]. Group 3: Market Position and Strategy - The management's strategy focuses on broadening the service offerings to transform Robinhood into a long-term growth machine [2]. - The diversification of revenue streams, including trading, subscriptions, and fee-based offerings, positions the company for sustained growth [4][5].

Financial Data and Key Metrics Changes - In 2025, revenues reached a record $4.5 billion, up 52% year-over-year, and over three times the revenue from three years ago [17][12] - Adjusted EBITDA was also a record at $2.5 billion, up 76%, with adjusted EBITDA margins reaching a new high of 56% [17][18] - Total platform assets grew nearly 70% year-over-year to $324 billion, with net deposits at a record $68 billion, reflecting a 35% growth rate [12][18] Business Line Data and Key Metrics Changes - The prediction markets segment saw volumes more than double, with over $12 billion in contracts traded in 2025 [7] - The equities offering expanded with the launch of shorting, resulting in over $11 billion of equity notional volume in the initial months [8] - Robinhood Gold subscribers grew nearly 60% year-over-year to 4.2 million, with annualized spend exceeding $10 billion [12][19] Market Data and Key Metrics Changes - The company reported strong double-digit year-over-year market share gains across equities, options, crypto, and margin [11] - Internationally, Robinhood has 750,000 customers outside the U.S., with ongoing expansion efforts [10] Company Strategy and Development Direction - The company focuses on a three-part strategy: leading in active traders, increasing wallet share, and building a global financial ecosystem [6][7] - Plans for 2026 include ramping up product velocity, achieving over 20% net deposit growth, and maintaining profitable growth while investing in new products [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business inputs, citing record net deposits and a strong pipeline of new products [42][44] - The company remains optimistic about the long-term integration of crypto into traditional financial services, viewing it as a foundational technology [49] Other Important Information - The company has initiated a billion-dollar share repurchase program to support stock price stability during market volatility [44] - AI integration is a key focus, with significant progress in automating customer support and enhancing software engineering processes [36][82] Q&A Session Summary Question: Updates on Robinhood Social - Management confirmed that Robinhood Social is in internal testing and will soon be publicly launched, emphasizing its potential for asset discovery and engagement [41] Question: Reasons for HOOD's share price drop - Management highlighted strong business fundamentals, including record net deposits and market share gains, while focusing on long-term performance over short-term stock price fluctuations [42][44] Question: Navigating the crypto downturn - Management discussed the long-term bullish outlook on crypto and the ongoing diversification of prediction markets beyond sports [49][52] Question: International expansion plans - Management outlined plans for deeper market penetration in the U.K. and E.U., as well as launching in new markets in Southeast Asia [68][72] Question: AI's impact on the company - Management expressed confidence in AI's transformative potential across financial services, with ongoing developments in customer advisory tools and operational efficiencies [81][82]

Financial Data and Key Metrics Changes - Total platform assets grew nearly 70% year-over-year to $324 billion [12] - Revenues increased to a record $4.5 billion in 2025, up 52% year-over-year [17] - Adjusted EBITDA reached a record of $2.5 billion, up 76% with adjusted EBITDA margins at a new high of 56% [17] - Record EPS of $2.05 was achieved, reflecting effective share count management [18] - Q4 revenues grew 27% to a record $1.3 billion, with net deposits over $16 billion [18] Business Line Data and Key Metrics Changes - Active traders saw significant growth, with prediction markets volumes more than doubling to over $12 billion in 2025 [7] - The launch of shorting in equities led to over $11 billion of equity notional volume in the initial months [8] - Robinhood Gold subscribers grew nearly 60% year-over-year to 4.2 million, with annualized spend exceeding $10 billion [12][19] - Robinhood Banking had over 25,000 funded customers bringing in over $400 million in balances [9] Market Data and Key Metrics Changes - The company expanded internationally, now serving 750,000 customers outside the U.S. [10] - Trading volumes across equities, options, futures, and event contracts reached new highs, contributing to market share gains [18] Company Strategy and Development Direction - The company focuses on a three-part strategy: leading in active traders, increasing wallet share, and building a global financial ecosystem [6] - Plans to accelerate product velocity and diversify offerings, with 11 businesses generating over $100 million in annualized revenue [16] - Emphasis on tokenization and private markets as key growth areas, with initiatives like Robinhood Ventures to invest in private assets [32][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's inputs, citing strong customer trust and engagement [42] - The company is optimistic about the long-term potential of crypto and prediction markets, despite short-term fluctuations [50] - Plans for 2026 include continued investment in product development while maintaining profitable growth [20][21] Other Important Information - The company has a billion-dollar share repurchase program to support stock price during volatility [44] - AI integration is a priority, with significant progress in customer support and software engineering [36] Q&A Session Summary Question: Updates on Robinhood Social - Management confirmed that Robinhood Social is in internal testing and will enhance asset discovery and engagement [41] Question: Reasons for the drop in HOOD's share price - Management highlighted strong business performance and market share gains, emphasizing a focus on long-term growth [42] Question: Navigating the crypto downturn and end of football season - Management noted that crypto is becoming foundational technology and prediction markets are diversifying beyond sports [50][52] Question: International expansion plans - Management discussed ongoing efforts in the U.K. and E.U., with plans to introduce market-specific functionalities [69][70] Question: AI's impact on the company - Management believes AI will transform financial services, with ongoing developments in customer advisory tools [82]

Financial Data and Key Metrics Changes - Total platform assets grew nearly 70% year-over-year to $324 billion [10] - Revenues increased to a record $4.5 billion in 2025, up 52% year-over-year [14] - Adjusted EBITDA reached a record of $2.5 billion, up 76% with adjusted EBITDA margins at a new high of 56% [14][15] - Record EPS of $2.05 was achieved, reflecting effective share count management [15] Business Line Data and Key Metrics Changes - Active trading saw significant growth with prediction markets volumes more than doubling, reaching over $12 billion in contracts traded in 2025 [5][6] - Robinhood Gold subscribers grew nearly 60% year-over-year to 4.2 million, with annualized spend exceeding $10 billion [10][16] - Interest-earning assets increased by 39%, driven by growth in cash suite programs and margin [16] Market Data and Key Metrics Changes - The company reported strong double-digit year-over-year market share gains across equities, options, crypto, and margin [9] - Net deposits reached a record $68 billion for the year, with Q4 net deposits exceeding $16 billion [15][20] - The international customer base expanded to 750,000, with ongoing efforts to scale in new markets [8] Company Strategy and Development Direction - The company is focused on becoming the number one global financial ecosystem, emphasizing product velocity and diversification across 11 business lines with over $100 million in annualized revenue [13][14] - Plans for 2026 include accelerating product velocity, achieving over 20% net deposit growth, and maintaining profitable growth while investing in new initiatives [17][18] - The strategy includes expanding into private markets and enhancing tokenization efforts, aiming to leverage the $100 trillion generational wealth transfer [27][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's inputs, highlighting continued market share gains and customer trust [39] - The company remains focused on long-term growth despite short-term market fluctuations, particularly in crypto and prediction markets [46] - Management anticipates significant opportunities in international markets and believes the business will scale faster than initially predicted [69] Other Important Information - The company is integrating AI into various operations, with over 75% of customer support cases now resolved by AI [32] - The launch of Robinhood Social is expected to enhance customer engagement and discovery of new assets [38][98] Q&A Session All Questions and Answers Question: Any additional updates on Robinhood Social? - Management confirmed that Robinhood Social is in internal testing and will soon be available to the public, enhancing asset discovery and engagement [38] Question: What could be the reasons for the more than 40% drop in HOOD's share price? - Management emphasized the focus on business inputs and long-term performance, noting that stock price tends to follow business performance over time [39][40] Question: What is your plan on navigating the rough seas during this crypto downturn? - Management highlighted the long-term potential of crypto as a foundational technology and the ongoing diversification of prediction markets beyond sports [46][48] Question: Can you expand on international expansion plans? - Management indicated that 2026 will be a significant year for international expansion, with plans to introduce market-specific functionalities and accelerate tokenization efforts [66][68]

Robinhood Markets, Inc. Earnings Presentation Fourth Quarter 2025 February 10, 2026 investors.robinhood.com Robinhood Markets, Inc. Earnings Presentation Fourth Quarter 2025 February 10, 2026 Robinhood Earnings Presentation Q4 2025 Disclaimers This Presentation Relates to Robinhood's Broader Earnings Announcement Disclosures This presentation accompanies the fourth quarter and full year 2025 earnings announcement webcast of Robinhood Markets, Inc. (including its consolidated subsidiaries, "we," "Robinhood," ...

Record Revenues of $4.5 billion in 2025, including a record $1.28 billion in Q4Record Diluted EPS of $2.05 in 2025, including $0.66 in Q4Record Net Deposits of $68 billion in 2025, including $16 billion in Q4Robinhood Gold Subscribers reached a record 4.2 million MENLO PARK, Calif., Feb. 10, 2026 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced financial results for the fourth quarter and full year of 2025, which ended December 31, 2025. “Our vision hasn’t changed: we ...

Core Insights - Cathie Wood's ARK Investment Management has invested over $30 million in Robinhood shares during a period of stock price decline, viewing it as a buying opportunity [1][4] - Despite a recent 11% drop in value over the past month and a 14% decline in the past week, Robinhood's year-to-date performance shows a remarkable 217% gain [2] - The recent sluggishness in Robinhood's stock is attributed to decreased trading volumes and assets under custody, indicating reduced user activity [2] Company Performance - Robinhood reported record Q3 sales of $1.27 billion, a 100% increase year-over-year, with a net income of $556 million, marking its best quarter ever [6] - The earnings snapshot for the last four quarters shows consistent growth, with Q3 2025 EPS at $0.61 and revenue at $1.27 billion, both exceeding expectations [7] Investment Strategy - Wood's investment in Robinhood aligns with her broader strategy focused on digital infrastructure, software, and automation, which are seen as key areas for future growth [4] - The recent purchases of Robinhood shares reflect Wood's long-term conviction in the company's potential as a major disruptor in the finance industry, despite short-term market fluctuations [3][4]

Investment Rating - The report maintains a "Buy" rating for Robinhood Markets with a target price of $150.00, representing a 23% upside from the previous closing price [3][48]. Core Insights - Robinhood's financial performance in Q3 2025 showed significant growth, with total revenue reaching $1.274 billion, doubling year-over-year and increasing nearly 30% quarter-over-quarter. Net profit surged 271% to $556 million, with diluted earnings per share (EPS) of $0.61, up 259% year-over-year [2][10][11]. - The trading business emerged as the primary growth driver, with trading revenue of $730 million, including a more than 300% increase in cryptocurrency revenue to $268 million. Interest income also grew by 66% to $456 million [2][11][12]. - The company is expanding its market share in various sectors, including stocks, options, and cryptocurrencies, while also launching new products aimed at professional traders and international clients [3][18]. Financial Performance Summary - Total revenue for Q3 2025 was $1.274 billion, a 100% increase year-over-year and a 29% increase quarter-over-quarter, exceeding market expectations by 5% [10]. - Net profit reached $556 million, reflecting a 271% year-over-year increase and a 44% quarter-over-quarter increase [10]. - Adjusted EBITDA was $742 million, with a profit margin of 58%, marking a 177% year-over-year growth [10]. - The average revenue per user increased to $191, an 82% year-over-year growth, indicating improved user quality [17]. Business Segments and Growth Drivers - Trading revenue totaled $730 million, a 129% year-over-year increase, driven by significant growth in cryptocurrency, options, and stock trading [11][12]. - Cryptocurrency revenue alone reached $268 million, more than tripling year-over-year, supported by increased market activity and the acquisition of Bitstamp [11][12]. - Net interest income grew to $456 million, a 66% increase, primarily due to the expansion of interest-earning assets [11][12]. Strategic Developments - Robinhood is set to launch new products and services, including features for professional traders and banking services for Gold users, while also expanding its international presence [3][18]. - The company completed the acquisition of Bitstamp and plans to acquire WonderFi, enhancing its global footprint in the cryptocurrency sector [3][18]. - The prediction market business is rapidly growing, with an annualized revenue nearing $300 million as of October 2025 [3][7].

Market Overview - The equity markets experienced an upward rally in Q3 2025, with the S&P 500 Index increasing by 8.12% due to improved economic conditions, strong corporate earnings, and expectations of monetary easing [1] - The Class A shares of the Alger Mid Cap Growth Fund outperformed the Russell Midcap Growth Index during the same period [1] Company Performance: Robinhood Markets, Inc. - Robinhood Markets, Inc. (NASDAQ:HOOD) reported a one-month return of 1.17% and a remarkable 312.73% increase in share value over the last 52 weeks, closing at $132.98 per share with a market capitalization of $119.574 billion on November 12, 2025 [2] - The company achieved revenues of $1.3 billion in Q3 2025, reflecting over 100% year-over-year growth, and its shares positively contributed to the fund's relative performance after strong operating results [4] Business Model and Market Position - Robinhood is a consumer-focused financial platform offering commission-free trading in various assets, including stocks, options, and cryptocurrencies, and has expanded into wealth management and banking services [3] - The platform has over 25 million accounts, holding approximately 15-20% market share among brokerage accounts, but only about 0.3% of the $70 trillion in U.S. household investable assets [3] Hedge Fund Interest - As of the end of Q2 2025, 85 hedge fund portfolios held Robinhood Markets, Inc., an increase from 76 in the previous quarter, indicating growing interest among institutional investors [4]

Summary of Robinhood Markets Inc. (HOOD) Earnings Call Company Overview - **Company**: Robinhood Markets Inc. (HOOD) - **Industry**: Financial Services, specifically in trading and investment platforms Key Financial Metrics - **3Q25 Adjusted EPS**: 68¢, exceeding estimates by 7% and 15% compared to Goldman Sachs estimates (GSe) and Visible Alpha Consensus Data (63¢/59¢) [1] - **Total Revenue**: $1.3 billion, a 6% beat over consensus and up 100% YoY, driven by: - 10% stronger net interest income (NII) - 2% higher transaction revenue - 37% increase in other revenue [2][4] - **Net Deposits**: $9.2 billion in September, up approximately 92% MoM [4] - **Customer Growth**: Monthly Active Users (MAU) increased by 8% QoQ and 25% YoY [1] Revenue Growth Drivers - **Prediction Markets Revenue**: Significant acceleration noted in October, with annualized revenue rising from $115 million in 3Q to nearly $300 million as of October. If growth continues, 2026E prediction market revenue could reach $400-450 million, representing a potential 5-6% upside in total revenue and 5-7% EPS upside [1][5][6] - **Transaction-Based Revenue**: Increased to $730 million, with equity, options, and other transaction revenues exceeding consensus by 7%, 2%, and 37% respectively [4][6] Expense and Margin Outlook - **Adjusted Operating Expenses**: Reported at $561 million, 11% above consensus, driven by higher G&A, marketing, and technology expenses [6] - **2025 Expense Guidance**: Increased to $2.28 billion from a previous range of $2.15-$2.25 billion, reflecting a 23% YoY growth [6] - **Pre-Tax Margins**: Adjusted pre-tax margins increased to 54.9% for 2025E, with expectations for continued margin expansion through robust revenue growth [1][6] Future Outlook - **Revenue Estimates**: Increased for 2025E/26E/27E by 6%/9%/9% respectively, with adjusted EPS estimates also raised by 8%/9%/8% [2][9] - **Price Target**: Increased by 6% to $181 from $170, with a current price of $142.48, indicating a 27% upside potential [11] Risks Identified - Potential risks include lower retail engagement levels, lower interest rates impacting NII growth, and regulatory challenges related to payment for order flow [10] Additional Insights - **Customer Trends**: Notable month-over-month increases in trading volumes across equities, options, and crypto, with margin balances rising 19% MoM to over $16 billion [1][6] - **Product Development**: Continued focus on launching new products such as Robinhood Banking, tokenization, and prediction markets [1] This summary encapsulates the key points from the earnings call, highlighting Robinhood's strong performance, growth potential, and the associated risks in the current market environment.