Robinhood reported third‑quarter 2025 results that surpassed consensus expectations, with total revenue climbing to $1.27 billion—an increase of 100 % from $637 million in Q3 2024. Earnings per share rose to $0.61, beating the consensus estimate of $0.51 by $0.10, or 20 %. The upside was driven by a 129 % jump in transaction‑based revenue to $730 million and a 66 % rise in net interest income to $456 million, reflecting higher interest rates and a larger loan portfolio.
The company’s diversified model continued to pay off. In addition to the core brokerage business, two new verticals—prediction markets and the Bitstamp cryptocurrency exchange—each generated more than $100 million in annualized revenue, underscoring the firm’s shift toward higher‑margin fintech services. Transaction‑based revenue accounted for 57 % of total revenue, while interest income contributed 36 %, and the remaining 7 % came from subscription and other fees.
Adjusted EBITDA reached $742 million, up from $549 million in Q2 2025, and operating margin settled at 49.8 %—a 20‑percentage‑point improvement over the 23.7 % margin reported a year earlier. The margin expansion was largely a result of the higher mix of high‑margin crypto and prediction‑market revenue, combined with disciplined cost management that offset the 31 % year‑over‑year rise in operating expenses to $639 million. The expense increase was driven by marketing, growth investments, and acquisition‑related costs, which management said were necessary to sustain momentum.
CFO Jason Warnick will step down as chief financial officer in the first quarter of 2026 and will remain an advisor until September 1, 2026, with Shiv Verma slated to take over. Robinhood also reiterated its full‑year 2025 guidance, projecting adjusted operating expenses and share‑based compensation of approximately $2.28 billion, a slight uptick from the prior outlook. The company’s Q2 2025 revenue of $989 million and EPS of $0.42 provide a sequential benchmark that highlights the acceleration in top‑line growth.
Investors reacted cautiously, citing the higher operating expenses and the fact that Q3 adjusted operating expenses and share‑based compensation were $40 million above the midpoint of the prior outlook range. Management also acknowledged an AWS‑related outage that temporarily degraded app performance, a headwind that could impact user experience in the short term. Despite these concerns, the company’s strong earnings beat and expanding high‑margin segments suggest a resilient growth trajectory.
Vlad Tenev, CEO, said the quarter “demonstrated the power of our product velocity and the rapid adoption of new business lines.” CFO Jason Warnick added that “Q3 was another strong quarter of profitable growth, and the momentum we see in prediction markets and Bitstamp is a clear sign of our expanding ecosystem.” Together, the comments reinforce confidence in the firm’s ability to scale while managing costs and navigating operational challenges.
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