Trading platform Robinhood recorded substantial growth in the first quarter of this year, beating Wall Street estimates in what has been a volatile period for the company.
Key Takeaways
- Revenue rises 50% year-over-year to $927 million.
- Net deposits grow to a record $18 billion.
- Robinhood Gold subscribers reach record 3.2 million.
Results revealed a revenue jump of 50% year-over-year, to $927 million, and growth in net deposits to a record $18 billion in the first three months of 2025.
The company’s premium subscription service Robinhood Gold reached a record 3.2 million subscribers. The quarter also saw net income rise by 114% YoY, to $336 million.
“This quarter, we significantly accelerated product innovation across our key initiatives, highlighted by the announcement of Robinhood Strategies, Banking, and Cortex,” said Vlad Tenev, chair and CEO of Robinhood.
“Customers have clearly responded – demonstrated by record-breaking net deposits, Robinhood Gold subscriptions, and options volume, as well as robust year-over-year growth in trading across all asset classes.”
Crypto revenue doubles as trading volumes surge
Transaction-based revenues rose by 77% YoY to $583 million, a figure primarily driven by Robinhood’s $252 million growth in cryptocurrency revenue (up 100%).
But let’s not forget, the company broke crypto revenue records last quarter – so while this is double the figure recorded in Q1 2024, it also represents a 30% reduction when compared to the crypto revenue of Q4 last year.
“It’s going to go up and down in terms of trading volumes,” said Tenev. “We’re diversifying the business outside of the crypto business, which will make us less reliant on crypto transaction volumes.”
Options revenue was recorded at $240 million, up 56%, while equities revenue was up 44%, at $56 million. The considerable rise in Robinhood Gold subscribers seen this quarter drove growth in other revenues, too; these increased by 54% year-over-year to $54 million.
Funded customers rose to 25.8 million in the first quarter (1.9 million YoY) with assets also rising significantly. That’s a rise of 8%, when compared to the same period in 2024. Investment accounts also increased by 2.6 million, or 11%, YoY, to 27 million.
Slight dip in share prices after hours
Declines in a few financial metrics led to a modest dip in share prices following the publication of Robinhood’s Q1 results. Stock closed at $49.37 yesterday, but after-hours trading saw a slight reduction, down 1.08% to $48.58.
The quarter saw Robinhood’s net income rise by 114% year-over-year to $336 million, while diluted EPS was up 106% year-over-year to $0.37. The company’s board of directors increased share repurchase authorization by $500 million to $1.5 billion.
New advisory, banking and AI offerings rolling out this quarter
Robinhood has seen a hefty rise in its recorded revenue per user so far this year. In the first quarter, average revenue per user (ARPU) increased by 39% YoY to $145.
The company’s latest strategies look likely to keep that momentum going, too. March saw Robinhood unveil new advisory, banking, and AI offerings: Robinhood Strategies, Robinhood Banking, and Robinhood Cortex.
The company plans to roll these out to all customers within the next few weeks. Robinhood Strategies is already serving more than 40,000 customers and managing more than $100 million in customer assets.
Warnick optimistic about continuation of market share gains in 2025
In February, Robinhood closed its acquisition of RIA custodial platform TradePMR, with roughly $41 billion in assets managed by RIAs.
“We started the year off strong, driving market share gains, closing the acquisition of TradePMR, and remaining disciplined on expenses,” said CFO Jason Warnick.
“As a result, in Q1 we grew revenues by 50% year-over-year and EPS by over 100%. It's also great to see strong customer engagement to start Q2. Additionally, we continue to return capital to shareholders and increased our share repurchase authorization by $500 million to $1.5 billion, reflecting management and the board's confidence in our financial strength and future growth prospects.”
