Robinhood posted a blowout quarter on Wednesday, pushing Q3 revenue to $1.27 billion, doubling from last year, and crushing analyst forecasts.
Wall Street had expected $1.19 billion, but the company overshot, driven by surging crypto trades and higher user engagement. Earnings per share hit 61 cents, up from 17 cents a year ago, and above the 53 cents analysts had penciled in.
Net income jumped 271% to $556 million, compared to $150 million during the same stretch in 2024.
This latest report adds more fuel to Robinhood’s 2025 run as one of the top-performing U.S. large-cap tech stocks. But the beat wasn’t flawless. Transaction-based revenue, which shows how active users really are, came in at $730 million, a bit short of the $739 million estimate from StreetAccount.
Still, crypto trading alone hit $268 million, up over 300% year-over-year. Add that to options revenue of $304 million (up 50%) and equities at $86 million (up 132%), and it’s clear what’s keeping the lights blazing.
Robinhood adds new lines, pushes wealth strategy
Robinhood didn’t just sit back and count crypto fees. It expanded its business with two new arms, Prediction Markets and Bitstamp, which are already churning out $100 million+ annually, according to CFO Jason Warnick.
“Q3 was another strong quarter of profitable growth,” Warnick said in the statement. “And Q4 is off to a strong start in October, with record monthly trading volumes across equities, options, prediction markets, and futures, and new highs for margin balances.”
CEO Vlad Tenev confirmed the company is pushing past its retail-only identity. “Our team’s relentless product velocity drove record business results in Q3, and we’re not slowing down—Prediction Markets are growing rapidly, Robinhood Banking is starting to roll out, and Robinhood Ventures is coming,” Vlad said.
The company is aggressively chasing wealth management, and it’s gunning for clients from Fidelity and Schwab, offering deposit matches and using its TradePMR acquisition to bulk up. Total platform assets hit $333 billion, a 119% increase year-over-year, helped by net deposits and higher equity and crypto prices. Net deposits were $20.4 billion for the quarter and $68.3 billion over the past year, with annualized growth rates of 29% and 45% respectively.
Expenses rise with growth, Gold subs jump 77%
Operating costs went up too. Total expenses reached $639 million, a 31% increase, fueled by marketing, expansion costs, and acquisition-related charges.
Adjusted operating expenses including share-based compensation grew 29% to $613 million. Still, adjusted EBITDA hit $742 million, a 177% rise year-over-year.
The user base also grew. Funded customers jumped 10% to 26.8 million, and investment accounts rose 11% to 27.9 million. People are clearly putting more money into the platform. ARPU hit $191, up 82%, while Robinhood Gold subscribers soared by 77% to 3.9 million.
Cash on hand fell slightly to $4.3 billion, down from $4.6 billion a year ago. But share buybacks kept going.
Robinhood repurchased 1 million shares in Q3 for $107 million, averaging $104.95 per share. Since Q3 last year, it has bought back 22 million shares for $810 million, at an average of $37.58 each.
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