Robinhood delivered a stellar third-quarter performance, with revenue surging to $1.27 billion, doubling from the previous year and exceeding analyst expectations of $1.19 billion. Earnings per share hit 61 cents, up from 17 cents a year ago and beating the forecast of 53 cents. Net income jumped 271% to $556 million, compared to $150 million in Q3 2024.
Crypto trading was a major driver, with revenue from digital assets reaching $268 million, a over 300% year-over-year increase. Other segments also showed strong growth: options revenue rose 50% to $304 million, and equities revenue increased 132% to $86 million. However, transaction-based revenue slightly missed estimates at $730 million versus $739 million.
The company expanded its business with new arms like Prediction Markets and Bitstamp, which are already generating over $100 million annually. CFO Jason Warnick stated, "Q3 was another strong quarter of profitable growth, and Q4 is off to a strong start in October, with record monthly trading volumes across equities, options, prediction markets, and futures." CEO Vlad Tenev emphasized ongoing innovation, including the rollout of Robinhood Banking and upcoming Robinhood Ventures.
Total platform assets grew 119% to $333 billion, supported by net deposits of $20.4 billion for the quarter and $68.3 billion over the past year. User metrics improved, with funded customers up 10% to 26.8 million and investment accounts rising 11% to 27.9 million. Average revenue per user (ARPU) hit $191, up 82%, and Robinhood Gold subscribers soared 77% to 3.9 million.
Operating expenses increased 31% to $639 million, but adjusted EBITDA surged 177% to $742 million. The company repurchased 1 million shares in Q3 for $107 million, continuing its buyback program.
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