Here’s a breakdown of the provided text, focusing on the financial performance and future plans of Robinhood:
Revenue:
Net revenue was $357 million, significantly outperforming the expectation of $306 million.
EBITDA:
Custom EBITDA grew by 82% to $549 million, exceeding the $448 million mark.
Average Revenue Per User (ARPU):
ARPU increased by 34% to $151, surpassing the consensus of $142.
Robinhood Gold Subscribers:
Increased by 1.5 million (76%) to 3.5 million users. These subscribers benefit from higher money sweep rates, immediate deposit limits, and advanced research tools.
Missed Estimates:
The text mentions missed estimates for something at $160 million compared to $168 million, and shares missed the $66 million estimate of StreetAtCount compared to $69 million. (The specific metric for these missed estimates isn’t explicitly stated in this snippet, but it implies a comparison to analyst expectations).
Future Plans and Initiatives:
Retirement Accounts:
The company is seeing significant growth in retirement accounts, with pension accounts reaching over $20 billion (up from $19 billion at the end of Q2). They beleive there’s a substantial opportunity to attract more customers to set up retirement accounts and consolidate benefits.
Betting and forecasting Markets:
Robinhood’s new betting and forecasting markets are performing well. Customers traded nearly $1 billion in contracts last quarter and over $2 billion cumulatively since thier launch.
Engagement is strongest in sports betting, and the company plans to expand into broader cultural and news-related markets.
Robinhood Banking:
This new product is set to launch this fall and is expected to allow customers to “bring even more of their assets” onto the platform. It’s described as a “very innovative offer.”
Acquisitions:
Bitstamp: The cost of acquiring bitstamp is estimated to be around $65 million in 2025.This acquisition will impact full-year adjusted operating expenses and compensation costs, which are projected to be between $2.15 billion and $2.25 billion. This projection excludes the cost of the upcoming Wonderfi purchase and credit loss provisions.
Wonderfi: The cost of this acquisition is not included in the current expense projections.
Stock Performance and Market Context:
Year-to-Date Stock Performance: Robinhood’s stock has increased by over 180% this year, outperforming all other technology companies worth $5 billion or more. This follows a 192% increase in 2024.
S&P 500 Exclusion: Despite its strong growth, Robinhood was excluded from the S&P 500 last month, which surprised some investors, especially given that competitor Block was added.
Crypto Infrastructure and Synthetic Stock Markers: Investors are closely watching Robinhood’s developments in crypto infrastructure and its “synthetic stock markers” (like those for OpenAI and SpaceX).The introduction of these synthetic markers in Europe faced immediate resistance, with OpenAI publicly rejecting the offer and warning users that the tokens were not company capital and were issued without approval. Robinhood defended the move as a way to expand access to pre-IPO markets and is creating a programme to comply with regulations.
Key Quotes:
CFO Jason Warnick: Highlights progress in “more passive, long-term areas” like retirement accounts and the potential for growth.
* CEO Vlad Tenev: Sees a “great opportunity” in sports betting and plans to expand its contract offerings. He also teases the innovative nature of Robinhood banking.
