Editing Robinhood Markets, Inc. (section)

== Business Model & Revenue Streams ==

=== How Robinhood makes money ===
Robinhood’s revenue model can be broken down into a few key segments:

=== (A) Transaction-Based Revenues ===
These are revenues tied to trading activity: equity trades, options trades, cryptocurrency trades, and potentially futures/event contracts. In Q2 2025, transaction-based revenue hit '''$539 million''', up ~65% year-over-year.<ref name=":0">investors.robinhood.com</ref>

Breakdown (from Q2 2025):

* Options revenue: ~$265 million (up ~46% Y/Y)<ref name=":0" />
* Crypto revenue: ~$160 million (up ~98%)<ref name=":0" />
* Equities revenue: ~$66 million (up ~65%)<ref name=":2">Investing.com UK</ref> This shows that while equity trading still matters, large growth is coming from crypto and options/futures.

Transaction-based revenue is sensitive to volume, volatility and order-flow economics (including PFOF — payment for order flow).

=== (B) Net Interest Revenue ===
This comes from interest on customer cash balances, margin loans, securities lending, cash-sweep programs. In Q2 2025 net interest revenue was ~$357 million (up ~25% Y/Y) per the Q2 release.<ref name=":0" />

Interest revenue is less volatile (though still sensitive to interest-rate levels, customer balances, margin growth and securities lending). Notably, Robinhood’s “cash sweep” balances (customer cash parked and earning interest) and margin book are important drivers.<ref name=":0" />

=== (C) Other and Subscription/Service-Revenue ===
“Other” revenues include subscription fees (Robinhood Gold), services, credit-card-linked products, retirement products, managed portfolio fees, and newer business lines like tokenization, event contracts, futures. For Q2 2025 this “other” bucket was ~$93 million (up ~33% Y/Y) per the Q2 release.<ref name=":0" />

Robinhood Gold: Q2 2025 subscriber count reached 3.5 million (up ~76% Y/Y) and average revenue per user (ARPU) grew to ~$151 (up ~34% Y/Y) in that quarter.<ref name=":3">Stock Titan</ref>

=== (D) Platform & Asset Growth Metrics ===
Key metrics to watch:

* Funded customers: 26.5 million in Q2 2025 (up ~10% Y/Y)<ref name=":3" />
* Total Platform Assets: ~$279 billion at end of Q2 2025, up ~99% Y/Y (driven by net deposits, acquisitions and asset appreciation)<ref name=":2" />
* Net Deposits in Q2: ~$13.8 billion; over the prior 12 months net deposits were ~$57.9 billion (growth rate ~41%) but annualised growth relative to platform assets fell to ~25% in Q2.<ref name=":3" />

These metrics suggest that user acquisition remains good, but as platform assets scale, maintaining growth rate becomes more challenging.