Core Insights - Robinhood Markets reported strong Q2 2025 earnings, exceeding expectations in both GAAP earnings and revenue, driven by growth in transaction-based and net interest income [1][2] Financial Performance - EPS (GAAP) was $0.42, beating the estimate of $0.31 and up 100% from $0.21 in Q2 2024 [2] - Revenue (GAAP) reached $989 million, surpassing the estimate of $914.6 million and reflecting a 45% increase from $682 million in the prior year [2] - Net income (GAAP) was $386 million, a 105% increase from $188 million year-over-year [2] - Adjusted EBITDA (Non-GAAP) rose to $549 million, an 82.4% increase from $301 million [2] - Total operating expenses were $550 million, up 12% year-over-year, with adjusted operating expenses and share-based compensation at $522 million, a 6% increase [10] Business Overview - Robinhood is recognized for its mobile-first investing app, providing commission-free trading in various asset classes [3] - The company is focusing on innovation and product expansion, including new trading tools and international market entry [4] Revenue Drivers - Transaction-based revenues increased by 65% year-over-year to $539 million, with options trading revenue at $265 million (up 46%) and cryptocurrency trading revenue nearly doubling to $160 million [5] - Net interest revenues climbed 25% to $357 million, driven by higher interest-earning assets [5] Customer Metrics - Funded customer accounts reached 26.5 million, a 10% increase year-over-year [6] - Average revenue per user (ARPU) was $151, a 34% increase from the previous year [6] - Total platform assets grew 99% year-over-year to $279 billion [6] Product Innovation - The Robinhood Gold subscription service saw a 76% year-over-year increase in subscribers, reaching 3.5 million [7] - The company launched new features, including Stock Tokens for over 200 U.S. stocks and ETFs in Europe [8] International Expansion - The Legend trading platform was made available to UK customers, and crypto services expanded to 30 European countries [9] - The acquisition of Bitstamp contributed to a significant increase in crypto trading volume [9] Future Guidance - Management updated full-year 2025 guidance for adjusted operating expenses to $2.15–2.25 billion, accounting for integration costs related to Bitstamp [11] - Continued strong trends were noted in July 2025, with approximately $6 billion in net deposits [11]