Key Takeaways Robinhood's expansion into crypto, AI trading and global markets drives strong investor enthusiasm.Schwab's $11T asset base and higher ROE highlight its strength, with valuation remaining lower than HOOD's.HOOD's growth momentum and digital edge give it an advantage over conservative SCHW.As the investing landscape evolves at breakneck speed, two online brokerages, Robinhood Markets (HOOD) and Charles Schwab (SCHW) , stand at the forefront of a financial transformation, offering retail investo ...

MENLO PARK, Calif., Oct. 01, 2025 (GLOBE NEWSWIRE) -- Today, Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) announced that it will release its third quarter 2025 financial results on Wednesday, November 5, 2025, after market close. Robinhood will host a video call to discuss its results at 2:00 PM PT / 5:00 PM ET on the same day. The video call and supporting materials will be available at investors.robinhood.com. The event will also be live streamed to YouTube and X.com via Robinhood’s official chann ...

Key Takeaways Robinhood has surged 229.2% YTD, making it the S&P 500's best-performing stock.The company is diversifying with banking, wealth tools and crypto expansion.Acquisitions and buybacks highlight Robinhood's global ambitions and strong cash reserves.Robinhood Markets (HOOD) joined the S&P 500 Index on Sept. 22 as part of the index’s quarterly rebalancing. The stock is now the index's best year-to-date performer, with a whopping 229.2% surge.In comparison, HOOD’s close peers, Charles Schwab (SCHW) a ...

Core Insights - Robinhood Markets, Inc. reported select monthly operating data for August 2025, highlighting growth in funded customers and total platform assets while experiencing fluctuations in trading volumes and net deposits [1][3]. Customer Metrics - Funded customers remained stable at 26.7 million in August 2025, with a year-over-year increase of approximately 10% from 24.3 million in August 2024 [2][3]. - The growth in funded customers was impacted by the escheatment of around 180 thousand low-balance accounts [3]. Asset Growth - Total platform assets reached $304 billion, reflecting a 2% increase from July 2025 and a significant 112% increase year-over-year [2][3]. - Net deposits for August 2025 were $4.8 billion, showing a 19% annualized growth rate compared to July 2025 [3]. Trading Activity - Equity notional trading volumes were $199.2 billion, down 5% from July 2025 but up 107% year-over-year [2][3]. - Options contracts traded were 195.5 million, remaining roughly flat compared to July 2025 and up 33% year-over-year [2][3]. - Crypto trading volumes on the Robinhood app were $13.7 billion, down 18% from July 2025 but up 154% year-over-year [2][3]. Margin and Cash Sweep - Margin balances at the end of August were $12.5 billion, up 10% from July 2025 and up 127% year-over-year [3]. - Total cash sweep balances were $34.1 billion, reflecting a 1% increase from July 2025 and a 50% increase year-over-year [3]. Revenue Metrics - Total securities lending revenue for August was $53 million, down 13% from July 2025 but up 165% year-over-year [3].

Core Insights - Interactive Brokers (IBKR) experienced a significant growth in customer accounts, with a 32% year-over-year increase in August 2025, reaching 4.05 million accounts [1][8] - The company reported a 44% year-over-year rise in net new accounts for August, totaling 96,100, alongside a 29% increase in Daily Average Revenue Trades (DARTs) compared to August 2024 [1][8] - Client equity reached $713.2 billion, marking a 38% year-over-year growth, while margin loans increased by 31% to $71.8 billion [7][8] Customer Accounts and Trading Activity - The rise in customer accounts was driven by heightened market volatility, increased client participation, targeted product innovations, efficient onboarding, and global expansion [2] - Total client DARTs were reported at 3,488,000, reflecting a 29% increase from August 2024, although there was a slight decline from July 2025 [1][6] Financial Performance and Revenue Growth - Over the past five years, IBKR's total net revenues have shown a compound annual growth rate of 21.8%, with continued upward momentum in the first half of 2025 [3] - The Zacks Consensus Estimate projects revenues of $5.68 billion for 2025 and $6.03 billion for 2026, indicating year-over-year growth of 8.8% and 6.2%, respectively [4][5] Key Metrics and Comparisons - Cleared average DARTs per customer account on an annualized basis were 187, which represents a 6% decline year-over-year [6] - Total options contracts reached 135.8 million in August 2025, up 22% year-over-year, while futures contracts saw a 14% decline year-over-year but a 4% increase from the previous month [6] Competitive Landscape - IBKR's competitors, such as TradeWeb Markets Inc. and Robinhood Markets, are also expanding their product offerings to enhance market share [9][10] Stock Performance and Valuation - IBKR shares have increased by 30.1% over the past six months, outperforming the industry growth of 20.9% [11] - The company currently trades at a forward price-to-earnings (P/E) ratio of 31.37, significantly above the industry average of 14.70 [12] Earnings Estimates - The Zacks Consensus Estimate for IBKR's earnings indicates year-over-year growth of 11.4% for 2025 and 6.2% for 2026, with upward revisions in earnings estimates over the past 30 days [14][15]

Core Insights - Robinhood Markets' shares have surged 405.4% over the past year, significantly outperforming its industry and peers [1][7] - The company's growth is attributed to strong financial results, aggressive product and market expansion, and a favorable operating environment [2][3] Group 1: Business Transformation and Expansion - Robinhood is transitioning from a retail brokerage to a comprehensive financial services ecosystem, aiming to become a global player in wealth management [4][7] - The company has launched several new products, including tokenized U.S. stocks and ETFs for EU investors, and an advanced desktop platform, Robinhood Legend, in the U.K. [5] - Recent acquisitions, such as WonderFi Technologies and Bitstamp, enhance Robinhood's position in the rapidly growing crypto market and provide necessary regulatory approvals for expansion [8][16] Group 2: Revenue Diversification - Robinhood's reliance on transaction-based revenues has decreased from nearly 75% in 2021 to about 54% in the first half of 2025, indicating a shift towards a more diversified revenue model [9] - The introduction of new services like Robinhood Banking and Robinhood Strategies aims to enhance wealth management options for users [10] Group 3: Cryptocurrency Focus - The company's strategy includes a strong focus on cryptocurrencies, with plans to obtain Markets in Crypto-Assets Regulation (MiCA) licenses to offer services across the European Economic Area [14] - Robinhood supports major cryptocurrencies and aims to expand its crypto product suite through acquisitions and enhanced platform capabilities [17] Group 4: Financial Health and Shareholder Returns - As of June 30, 2025, Robinhood reported cash and cash equivalents of $4.2 billion, indicating solid financial health [19] - The company announced a share buyback plan of up to $1.5 billion, reflecting confidence in its financial position and commitment to returning value to shareholders [18] Group 5: Analyst Sentiment and Valuation - Analysts have revised upward the Zacks Consensus Estimate for Robinhood's earnings for 2025 and 2026, indicating bullish sentiment [23] - Despite its strong performance, Robinhood's shares trade at a significant premium compared to the industry average, with a price/book ratio of 11.88X [26] Group 6: Regulatory Challenges - Robinhood faces ongoing regulatory scrutiny, including investigations related to its crypto operations and past fines for securities law violations [20][22]

Industry Overview - The robo-advisory industry is gaining popularity among investors, with a projected asset management of $1.26 trillion by the end of 2024, reflecting a 16% increase from the previous year [1] - The market size for robo-advisors is expected to grow from $8.3 billion in 2024 to $33.6 billion by 2030 [1] Key Players - SoFi's robo-advisor ranks highest this year, expanding its services from student loan refinancing to a wide range of financial products [1] - Fidelity Go, launched by Fidelity Investments, offers a low-cost robo-advisory service with no account minimum and no management fees for accounts under $25,000 [2] - Vanguard Personal Advisor provides a combination of AI and human advisor services for clients with investments over $50,000 [3] Performance Insights - Condor Capital Wealth Management highlights that international market investments have been beneficial this year, with Interactive Advisors achieving a 46% allocation in international assets, outperforming the industry average of 32% [5] - Vanguard's robo-advisor manages over $360 billion in assets, with a stock allocation of approximately 40% international and 60% U.S. [5] Investment Strategies - Historical data suggests that international stocks often outperform single-economy markets, emphasizing the importance of diversified portfolios that include international investments [6] - Robinhood's new digital advisory product is shifting its equity allocation from 77% U.S. to 85% U.S., indicating a focus on domestic investment opportunities [6]

Core Insights - Interactive Brokers (IBKR) has launched a new feature called Connections to help investors discover trading opportunities and evaluate investments by linking related ideas across global markets [1][8] - The company has diversified its product offerings, including the introduction of zero-commission U.S. stock trading in Singapore, which supports its global expansion efforts [2][8] - IBKR's total net revenues have experienced a compound annual growth rate of 21.8% from 2019 to 2024, with continued growth expected in the first half of 2025 [3][4] Financial Performance - The Zacks Consensus Estimate projects IBKR's revenues for 2025 and 2026 to be $5.68 billion and $6.03 billion, reflecting year-over-year growth of 8.8% and 6.2% respectively [4][10] - IBKR's earnings estimates for 2025 and 2026 indicate year-over-year growth of 11.4% and 6.1%, with upward revisions in estimates over the past 30 days [10] Market Position - IBKR's shares have increased by 41.4% year-to-date, significantly outperforming the industry growth of 20.7% [7][8] - The company trades at a forward price-to-earnings (P/E) ratio of 30.7, which is above the industry average [9] Competitive Landscape - Competitors such as TradeWeb Markets Inc. and Robinhood Markets, Inc. are also expanding their product offerings to enhance market share [5][6]

Core Insights - Robinhood Markets, Inc. (HOOD) reported significant year-over-year growth in Daily Average Revenue Trades (DARTs) for equity, options, and crypto in July 2025, with equity DARTs increasing by 29% to 2.7 million, options DARTs rising by 22% to 1.1 million, and crypto DARTs soaring by 133% to 0.7 million [1][11] Group 1: Financial Performance - Total platform assets reached $298 billion, a 106% increase year-over-year [6] - Net deposits amounted to $6.4 billion, up 52% from the previous year [6] - Funded customers grew to 26.7 million, reflecting a 10% increase from July 2024 [6] - Equity notional trading volumes were $209.1 billion, up 100% year-over-year [7] - Option contracts traded increased by 22% to 195.8 million [7] - Crypto notional trading volumes reached $16.8 billion, a 217% increase from the prior-year month [7] - Margin balances surged to $11.4 billion, up 111% year-over-year [8] - Total cash sweep balances were $33.6 billion, a 54% increase from July 2024 [8] - Total securities lending revenues grew by 190% to $61 million [8] Group 2: Strategic Initiatives - Robinhood has launched several initiatives to attract clients and enhance market share, including U.S. stock and ETF tokens for EU investors and Crypto Staking for eligible U.S. investors [3][4] - New product offerings include Robinhood Legend (desktop trading platform), Robinhood Strategies, Robinhood Banking, Robinhood Cortex, a prediction markets hub, and a credit card to expand consumer finance [4] - The company is focusing on rapid product innovation through vertical integration to expand its client base and improve transaction-based revenues, which have a five-year compound annual growth rate (CAGR) of 36.7% [5] Group 3: Competitive Landscape - Key competitors like Interactive Brokers (IBKR) and Tradeweb Markets Inc. (TW) are also enhancing their product offerings to challenge Robinhood's market position [9] - Interactive Brokers has launched the IBKR Lite plan in Singapore and expanded trading hours for various products, while Tradeweb is focusing on the electronification of bond markets and investing in blockchain technology [10][12]

Core Insights - Robinhood Markets, Inc. reported significant growth in key operational metrics for July 2025, indicating a strong performance compared to previous months and the same period last year [1][3]. Customer Growth - Funded customers reached 26.7 million in July 2025, a 1% increase from June 2025 and a 10% increase year-over-year [2][3]. Asset Growth - Total platform assets grew to $298 billion, marking a 7% increase from June 2025 and a remarkable 106% increase year-over-year [2][3]. - Net deposits for July 2025 were $6.4 billion, reflecting a significant annualized growth rate of 28% compared to June 2025 [3]. Trading Activity - Equity trading volumes amounted to $209.1 billion, up 17% from June 2025 and 100% year-over-year [2][3]. - Options contracts traded reached 195.8 million, a 16% increase from June 2025 and a 22% increase year-over-year [2][3]. - Crypto trading volumes on the Robinhood app were $16.8 billion, a 110% increase from June 2025 and a 217% increase year-over-year [2][3]. Margin and Cash Sweep - Margin balances at the end of July were $11.4 billion, up 20% from June 2025 and 111% year-over-year [3]. - Total cash sweep balances were $33.6 billion, reflecting a 3% increase from June 2025 and a 54% increase year-over-year [3]. Revenue Generation - Total securities lending revenue for July was $61 million, a 13% increase from June 2025 and a substantial 190% increase year-over-year [2][3].