Editing Robinhood Markets, Inc. (section)

== Recent Financial Performance (Q2 2025 as a snapshot) ==
The Q2 2025 results show several encouraging signs in terms of growth, profitability and scale, though also flag some caution areas.

=== Summary of Q2 2025 results: ===

* Total net revenues: '''$989 million''' (up ~45% vs Q2 2024)<ref name=":0">investors.robinhood.com</ref>
* Transaction-based revenues: ~$539 million (up ~65% Y/Y)<ref name=":0">investors.robinhood.com</ref>
* Net interest revenues: ~$357 million (up ~25% Y/Y)<ref name=":0">investors.robinhood.com</ref>
* Other revenues: ~$93 million (up ~33% Y/Y)<ref name=":0">investors.robinhood.com</ref>
* Net Income (GAAP): ~$386 million (up ~105% Y/Y) (GuruFocus)
* EPS (diluted): $0.42 (versus ~$0.21 a year ago) — up ~100% Y/Y.<ref name=":0">investors.robinhood.com</ref>
* Operating Expenses: ~$550 million (up ~12% Y/Y) (GuruFocus)
* Adjusted EBITDA (non-GAAP): ~$549 million (up ~82% Y/Y)<ref name=":3" />
* ARPU: ~$151 (up ~34% Y/Y)<ref name=":3" />

=== Key observations: ===

# '''Strong growth''' – 45% revenue growth is robust for a company of this scale. Growth is being driven by multiple engines (transaction volume, interest income, new products).
# '''Profitability emerging''' – Net income up ~105% Y/Y; suggests operating leverage is improving (expenses are growing much more slowly than revenues).
# '''Expense discipline''' – Operating expenses up only ~12%, compared with revenue up ~45%, suggests economies of scale are benefiting the business.
# '''Platform scale''' – Platform assets doubled Y/Y, funding/deposits remain strong, user base continues to grow, ARPU improving – all positive signs of monetisation of scale.
# '''Acquisitions and product expansion''' – The Q2 results reflect acquisition of Bitstamp and expansion internationally and into new product categories (tokenized shares, futures, prediction markets). These provide optionality for growth, but also come with costs and integration risks.<ref name=":0">investors.robinhood.com</ref>

=== Potential caution flags in the results: ===

* While net interest revenue grew 25%, that growth is more moderate than transaction‐based growth. If interest rates fall or margin balances shrink, this engine could weaken.
* The net deposit growth rate appears to be decelerating (from prior ~41% Y/Y to ~25% annualised in Q2) which could signal slower growth headwinds ahead.<ref name=":3" />
* Transaction‐based revenues remain sensitive to trading volumes and volatility across asset classes, which can be cyclical.
* The company mentions that its full‐year 2025 expense outlook is impacted by acquisition costs (e.g., Bitstamp) and unresolved factors like credit losses, regulatory costs etc.<ref name=":1" />