Robinhood Markets Inc. (NASDAQ: HOOD), a prominent retail trading platform, released its first quarter 2025 earnings, which beat Wall Street estimates. The company reported an earnings per share (EPS) of 37 cents compared to an estimate of 36 cents.
Robinhood reported a revenue of $927 million compared to an estimate of $921.7 million, which increased 50 percent YoY. As a result, Robinhood authorized a $500 million raise in its stock buyback program to $1.5 billion.
Robinhood Segment Breakdown and Market Outlook
During the first quarter, Robinhood recorded a 77 percent YoY growth in transaction-based revenue to $583 million. The company’s crypto segment recorded 100 percent YoY growth in revenue to about $252 million. Furthermore, Robinhood recorded a trading volume of about $48 billion in the first quarter of 2025, up 28 percent YoY.
In a bid to evolve and compete with global exchanges, Robinhood intends to further diversify its offerings in the future.
“We are diversifying the business outside of crypto, which will make us less reliant on crypto transaction volume in the future,” Vladimir Tenev, Robinhood CEO, noted.
The company’s options revenue for the first quarter was about $240 million, up 56 percent YoY. Meanwhile, Robinhood recorded a 44 percent surge in YoY revenue for equities to $56 million.
“Customers are not only trading more with us, but they are entrusting us with more of their assets,” Tenev added. ”We significantly accelerated product innovation across key initiatives including Robinhood Strategies, Banking, and Cortex. Customers responded with record-breaking net deposits, Gold subscriptions, and trading volume across all asset classes.”
Following the announcement, HOOD shares gained 2 percent to trade at about $50 on Wednesday, April 30 during the late North American session.
