TLDR:
- Robinhood reported Q1 2025 revenue of $927 million (up 50% year-over-year) and EPS of $0.38 (up from $0.18)
- Total platform assets surged 70% year-over-year to $221 billion
- Profit margin increased to 36% (up from 25% in Q1 2024)
- Robinhood Gold subscribers grew by 90% to 3.2 million users
- The company expanded its share buyback program by $500 million to $1.5 billion total
Robinhood Markets delivered impressive first-quarter 2025 results that beat Wall Street expectations on both revenue and earnings per share. The trading platform reported revenue of $927 million, marking a 50% increase from the same period last year and exceeding analyst estimates by 1.1%.
The company’s performance was even more striking on the bottom line. Net income reached $336 million, more than doubling with a 114% increase from Q1 2024.
Earnings per share hit $0.38, up from $0.18 in the previous year and surpassing analyst forecasts by 13%.
Profit margins expanded to 36%, up from 25% in Q1 2024. This improvement was largely driven by the company’s strong revenue growth.
The trading platform continued to attract assets at an impressive rate. Total platform assets jumped 70% year-over-year to $221 billion.
Growth Across Multiple Fronts
The strong results mark the eighth time in the last nine quarters that Robinhood has beaten analysts’ EPS forecasts.
CFO Jason Warnick highlighted the momentum extending beyond the reported quarter. “Trading volumes and net deposits were incredibly strong for the quarter and in April,” he noted on a conference call with analysts.
The company’s stock has performed well over a longer timeframe, rising 105% over the past six months. Robinhood’s market capitalization now stands at $43.33 billion.
Despite these strong results, the stock’s reaction was somewhat muted after the earnings announcement. Shares moved just 1.57% in after-hours trading following the report.
Wall Street remains mostly positive on the stock. Robinhood carries a “Moderate Buy” consensus rating based on 13 Buy and 6 Hold ratings over the past three months.
The average price target stands at $61.82, suggesting almost 26% upside potential over the next twelve months.
Shareholder-Friendly Capital Returns
Robinhood is demonstrating confidence in its business through an expanded share repurchase program.
The company announced it’s adding $500 million to its previously announced buyback plan, bringing the total to $1.5 billion.
Management has been executing buybacks faster than initially planned. “Since then, we’ve moved faster and have deployed over $650 million at an average price of $33 per share,” Warnick explained.
This includes over $300 million of buybacks in Q1 alone, which more than offset share issuance related to corporate activities.
The company’s strong balance sheet supports these shareholder returns without taking on debt.
Robinhood Gold, the company’s premium subscription service, has become a major growth driver. Subscribers surged by 1.5 million (90%) to reach 3.2 million in the first quarter.
The $5 monthly subscription fee is contributing to higher revenue per user. Average revenue per user increased 39% year-over-year to $145.
The platform’s 3% IRA Match offering has been a key factor in attracting Gold subscribers.
Cryptocurrency trading remained a bright spot despite relatively flat bitcoin prices in early 2025. Robinhood posted $260 million in cryptocurrency revenue in Q1, representing its second-best quarter in recent memory.
CEO Vlad Tenev addressed the company’s crypto strategy on the earnings call: “We’re diversifying the business outside of the crypto business, which will make us less reliant on crypto transaction volumes.”
He added that crypto itself will diversify over time and become less dependent on transaction volumes in the future.
Looking ahead, Robinhood’s revenue is forecast to grow 11% per year on average during the next three years. This compares favorably to the 5.2% growth forecast for the U.S. Capital Markets industry overall.
The company is approaching its fourth anniversary as a public company, having established itself as a disruptive force in the brokerage industry with its low-fee model aimed at retail investors.
Robinhood’s latest quarterly results show the company’s business model remains resilient and continues to attract new assets and users.
