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The Cryptocurrency Giant Robinhood's Critical Earnings Report Has Been Released! Here Are the Important Results for the Market
Robinhood announced its financial results for the first quarter of 2025.
The company achieved a 50% year-on-year increase in revenue of $927 million, surpassing the analyst expectation of $921.7 million. Earnings per share (EPS) rose by 106% to $0.37, exceeding the estimated $0.36.
Robinhood, which generated a total of $583 million in transaction-based revenue, saw its strongest segments in cryptocurrency transactions at (252 million dollars) and options trading at (240 million dollars). Cryptocurrency revenues increased by 100% year-on-year, while options revenues rose by 56%. Stock revenues also saw a 44% increase, reaching $56 million.
The company's adjusted EBITDA ( figure rose by 90% to 470 million dollars. However, this figure fell short of the market expectation of 486.3 million dollars. Operating expenses reached 460 million dollars, increasing by 16% year-on-year.
Robinhood's total customer investments reached $221 billion, showing a 70% annual increase. The platform achieved an all-time high with a net deposit inflow of $18 billion. The number of customers rose to 25.8 million, while the total number of investment accounts increased to 27 million.
The number of users subscribing to the company's premium service Robinhood Gold has reached 3.2 million, a 90% increase. The average revenue per user )ARPU( was recorded at $145.
Robinhood increased its share buyback authorization by $500 million, bringing the total to $1.5 billion. In the first quarter of 2025, a share buyback of $322 million was executed, while a total of $667 million in buybacks has been completed so far.
CFO Jason Warnick said, "We had a strong start to the year with 50% revenue and 106% EPS growth. Together with disciplined expense management, we are reflecting our confidence in long-term growth through expanded share buybacks."