Robinhood Rockets Ahead Q2 2025 Earnings Report

Ray Marce

Alright, welcome back to Market & Earnings Digest. I’m Ray Marce, here with Mark Dalli, and today we’re diving into Robinhood’s Q2 2025 results. Mark, I mean, these numbers are just—well, they’re kind of wild, aren’t they?

Mark Dalli

Yeah, Ray, absolutely. I don’t think anyone expected quite this level of outperformance. Robinhood’s revenue hit $989 million, that’s up 45% year-over-year. And EPS doubled to $0.42. That’s not a typo—doubled. Net income up 105%. It’s a blockbuster quarter by any measure.

Ray Marce

And it’s not just the headline numbers, right? If you look at the segments, crypto trading revenue was up 98%. Options up 46%. Even equities, which, let’s be honest, have been a bit sleepy for some platforms, were up 65%. And subscriptions—this is the bit that really caught my eye—Robinhood Gold now has 3.5 million subscribers, up 76% year-on-year. That’s a huge jump in recurring revenue.

Mark Dalli

Yeah, and that’s a real sign of maturity for the business. They’re not just relying on trading volumes anymore. Subscriptions, net interest income, other revenue lines—they’re all growing. Net interest revenue was up 25% to $357 million. And, you know, the Gold product is now at 13% adoption overall, and over a third of new customers in Q2 went for Gold. That’s sticky revenue, which investors love.

Ray Marce

It’s interesting, because we’ve talked about this shift before—like with Netflix, when they pivoted to ad-supported tiers and recurring revenue. Robinhood’s doing something similar, but in finance. And the market’s rewarding them for it. Shares are up 185% year-to-date, and 420% over the past year. That’s, uh, that’s not normal. I mean, it’s impressive, but it does make you wonder how much of this is sustainable.

Mark Dalli

Yeah, and the margin story is just as strong. Adjusted EBITDA was $549 million, up 82% year-on-year, with margins at 56%. And they managed to keep adjusted OpEx growth to just 6%. That’s real operating leverage. I mean, you don’t see that often, especially in fintech where costs can spiral with growth.

Ray Marce

And, Mark, I think it’s worth mentioning—this wasn’t just a one-off. CFO Jason Warnick said July’s already off to a strong start, with $6 billion in net deposits and record trading volumes continuing. So, the momentum’s still there, at least for now.

Mark Dalli

Right, and that brings us to the strategy side. CEO Vlad Tenev’s vision is, well, ambitious. He’s talking about building a global financial ecosystem—tokenization, AI, international expansion, the works. They’re not just a U.S. brokerage anymore.

Ray Marce

Yeah, the Bitstamp acquisition is a big part of that. It’s not just about retail crypto trading anymore—they’re going after institutional business. And with Bitstamp, they get a foothold in Europe, plus a platform that’s already trusted by institutions. That’s a different game than just letting people buy a bit of Bitcoin on their phones.

Mark Dalli

Exactly. And they’re not stopping there. They’ve got Robinhood Banking launching this autumn, aiming for a digital private banking experience. There’s also the WonderFi integration coming, which should expand their crypto and DeFi offerings. And, Ray, did you catch the bit about tokenization? They’re rolling out stock tokens in 30 European countries, and they’ve launched a layer two blockchain—Robinhood Chain—for real-world assets. That’s, uh, that’s a lot of innovation in a short time.

Ray Marce

It is. And, you know, we’ve seen other fintechs talk about tokenization—like, I think we mentioned this with JP Morgan’s Onyx platform a few episodes back—but Robinhood’s pushing it to the retail crowd, not just institutions. They’re making it accessible, and that’s a big differentiator. But, I mean, there’s always the question of whether the market’s ready for it, or if it’s just hype for now.

Mark Dalli

Yeah, and there’s the AI angle too. They’re investing in AI for both engineering and customer service. It’s a bit of a trend—Meta, Alphabet, Tesla, all the big names we’ve covered recently are leaning into AI. Robinhood’s using it to improve mobile tooling, and they’ve got this Cortex feature for Gold members. It’s all about making the platform stickier and more efficient.

Ray Marce

And let’s not forget the international push. Over 600,000 international customers now, including Bitstamp. They’re not just talking about global expansion—they’re actually doing it. But, Mark, I do wonder how much of this is going to move the needle in the next year or two, versus being a longer-term play.

Mark Dalli

That’s the big question, isn’t it? The vision is there, but execution’s always the hard part. And, as we’ve seen with other companies—Meta’s AI bets, Tesla’s robotaxis—sometimes the market gets ahead of itself. But for now, Robinhood’s got the wind at its back.

Ray Marce

So, let’s talk about the user base and the challenges ahead. Funded customers are up to 26.5 million, that’s a 10% jump. Assets under custody nearly doubled to $279 billion, and the average assets per user is now over $10,000. That’s a big shift from the meme-stock days, isn’t it?

Mark Dalli

Yeah, it’s a sign they’re attracting more serious investors, not just day traders. And margins are expanding—adjusted OpEx only up 6%, but EBITDA margins at 56%. That’s best-in-class for fintech. But, and there’s always a but, the Bitstamp integration is going to add $65 million in expenses next year. So, cost discipline will be tested.

Ray Marce

And there’s the competitive landscape. I mean, everyone’s gunning for the same customers—Coinbase, traditional banks, even new fintechs. Plus, regulation is always lurking, especially as they expand internationally and push into crypto. And let’s not forget crypto volatility—great when it’s up, but it cuts both ways.

Mark Dalli

Yeah, and after a 420% stock price run in a year, expectations are sky-high. Investors are going to be looking for signals that this pace can continue. I’d say watch for continued growth in Gold subscribers, how well they manage expenses with Bitstamp and WonderFi, and whether they can keep up the pace in net deposits and trading volumes. If any of those falter, the market could turn quickly.

Ray Marce

I agree. And, you know, as we’ve seen with other high-flyers—Tesla, Meta, even Netflix—eventually the market wants to see durable, profitable growth, not just flashy numbers. Robinhood’s got a lot going for it, but the next year will be a real test.

Mark Dalli

Absolutely. Well, that’s all for today’s episode. We’ll be watching Robinhood closely as they roll out these new products and integrations. Make sure to follow us in order to stay informed for your weekly market updates and earnings reports. Take care, Ray.

Ray Marce

Thanks, Mark. And thanks to all our listeners, remember The information provided on this podcast is for informational purposes only and should not be considered financial advice. You should consult with a qualified financial advisor before making any investment decisions. We look forward to seeing you next time on Market & Earnings Digest.