(HOOD) Robin Hood Markets Crushing It Again. Revenue Jumps 50% And Earnings Soar.

Robinhood Markets kicked off 2025 with a stellar first-quarter earnings report, handily beating Wall Street forecasts for both revenue and earnings per share (EPS). The popular trading platform posted revenue of $927 million, a robust 50% jump year-over-year, outpacing analyst expectations by 1.1%.

The company’s profitability was even more impressive. Net income surged to $336 million, representing a 114% increase compared to Q1 2024. EPS landed at $0.38, up from $0.18 last year, exceeding projections by a solid 13%.

Profit margins also expanded significantly, climbing to 36%, up from 25% in the prior-year period, a clear reflection of strong top-line growth and improved operational efficiency.

Record Asset Growth and Momentum

Robinhood’s platform continues to see explosive growth in user engagement and asset inflows. Total assets under custody soared 70% year-over-year, reaching $221 billion. This marks the eighth time in nine quarters the company has exceeded analyst EPS expectations.

CFO Jason Warnick pointed to sustained momentum beyond Q1, noting during the earnings call that trading volumes and net deposits remained strong into April.

The company’s stock has more than doubled over the past six months, gaining 105%, pushing Robinhood’s market cap to $43.33 billion. Investor Sentiment and Share Buybacks

Despite the blowout quarter, Robinhood’s stock rose just 1.57% in after-hours trading, suggesting some of the strong performance may have been priced in. Still, Wall Street remains bullish. The stock holds a “Moderate Buy” consensus, based on 13 Buy and 6 Hold ratings over the last three months. The average 12-month price target of $61.82 implies nearly 26% upside potential from current levels.

Demonstrating confidence in its long-term outlook, Robinhood expanded its share buyback program by $500 million, bringing the total to $1.5 billion. Warnick revealed that over $650 million in stock has already been repurchased, including $300 million in Q1 alone, effectively offsetting dilution from employee stock issuance, all without adding debt.

Robinhood Gold Drives User Monetization

The company’s premium offering, Robinhood Gold, has become a standout revenue driver. Subscriptions grew 90% year-over-year, reaching 3.2 million in Q1. The $5 monthly fee helped boost average revenue per user (ARPU) by 39%, climbing to $145.

One major attraction for Gold subscribers has been Robinhood’s 3% IRA Match, which has gained popularity among long-term investors.

Crypto Revenue Remains Strong

Cryptocurrency trading also remained a bright spot, despite relatively stable Bitcoin prices in early 2025. Robinhood generated $260 million in crypto-related revenue, marking one of its best quarters for the segment.

CEO Vlad Tenev addressed the company’s evolving crypto strategy, emphasizing plans to diversify revenue streams and reduce reliance on transaction volumes. “We’re building a business that’s more resilient by expanding beyond crypto transactions,” he said.

Outlook: Continued Growth Ahead

Looking forward, Robinhood expects its revenue to grow at an average annual rate of 11% over the next three years, significantly outpacing the broader U.S. Capital Markets industry average of 5.2%.

As the company approaches its fourth anniversary as a public entity, its commission-free, mobile-first model continues to disrupt the brokerage space. Q1 results affirm that Robinhood remains a fast-growing force, winning over new users and assets while continuing to innovate for the retail investor.