Robinhood’s third quarter results surpassed Wall Street’s revenue and earnings expectations, but the market responded negatively, reflecting concerns around future sustainability despite strong headline growth. Management highlighted robust trading activity in equities and options, as well as rapid adoption of new offerings such as prediction markets and the Robinhood Gold Card. CEO Vlad Tenev described the quarter as showcasing “relentless product velocity,” citing record trading volumes and expanding asset categories as key performance drivers. CFO Jason Warnick also pointed to increased contributions from newer revenue streams and tighter operational discipline, though he acknowledged a rise in expenses due to higher bonus accruals and stock-based compensation.
Is now the time to buy HOOD? Find out in our full research report (it’s free for active Edge members).
Robinhood (HOOD) Q3 CY2025 Highlights:
- Revenue: $1.27 billion vs analyst estimates of $1.20 billion (100% year-on-year growth, 6% beat)
- Adjusted EPS: $0.68 vs analyst estimates of $0.61 (10.9% beat)
- Adjusted EBITDA: $742 million vs analyst estimates of $741.4 million (58.2% margin, in line)
- Operating Margin: 49.8%, up from 23.7% in the same quarter last year
- Funded Customers: 26.8 million, up 2.5 million year on year
- Market Capitalization: $118.6 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Robinhood’s Q3 Earnings Call
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Patrick Moley (Piper Sandler) asked about Robinhood’s long-term strategy in prediction markets as competition intensifies. CEO Vlad Tenev emphasized their advantage in customer distribution and integration across financial products, projecting continued rapid product evolution.
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Alexander Markgraff (KeyBanc) questioned the impact of smart exchange routing on crypto trading metrics. CFO Jason Warnick explained the take rate remains stable and highlighted increased trading volume from active, high-frequency traders using new routing tools.
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Devin Ryan (Citizens) inquired about Robinhood’s ambitions in private markets and potential for broader access. Tenev and incoming CFO Shiv Verma said customer demand for private market access is strong and outlined ongoing efforts to enable participation for non-accredited investors.
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Brian Bedell (Deutsche Bank) pressed for insight into growth in prediction markets, specifically whether rising volumes were driven by new or existing users. Tenev noted adoption from both groups, with expanded contract variety boosting engagement among traders and new customers alike.
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Brett Knoblauch (Cantor) asked about the rollout and financial impact of Robinhood Social. Tenev described the product as a long-term engagement driver, with monetization expected from increased trading activity rather than immediate direct revenue.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be tracking (1) the rate at which Robinhood scales its banking and prediction market offerings, (2) progress in international expansion and integration of Bitstamp’s institutional business, and (3) regulatory developments affecting crypto and tokenized assets. Execution on these fronts, as well as the rollout of new family and advisory products, will be crucial indicators of Robinhood’s ability to broaden its financial ecosystem.
Robinhood currently trades at $132.15, down from $142.72 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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