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Robinhood posted strong numbers in Q1 2025, reflecting sharp growth in revenue and trading activity. The platform made clear progress in both innovation and user engagement, even as after-hours trading dipped slightly.
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Robinhood closed the first quarter with revenue of $927 million, marking a 50% increase from the same period in 2024. Net income more than doubled to $336 million, and diluted earnings per share rose to $0.37, up 106% year-over-year.
Customer activity was strong across the board. Robinhood Gold reached a new high of 3.2 million subscribers, while the platform saw net deposits hit a record $18 billion in Q1. Funded accounts increased to 25.8 million, rising by 1.9 million from the previous year. Investment accounts also grew by 2.6 million, totaling 27 million.
CEO Vlad Tenev highlighted product innovation as a core driver of the results. “This quarter, we significantly accelerated product innovation across our key initiatives, highlighted by the announcement of Robinhood Strategies, Banking, and Cortex,” he said. “Customers have clearly responded – demonstrated by record-breaking net deposits, Robinhood Gold subscriptions, and options volume, as well as robust year-over-year growth in trading across all asset classes.”
The company also finalized its acquisition of TradePMR, a registered investment adviser (RIA) custodial platform managing about $41 billion in client assets. CFO Jason Warnick commented on the momentum: “We started the year off strong, driving market share gains, closing the acquisition of TradePMR, and remaining disciplined on expenses.”
Robinhood’s transaction-based revenue reached $583 million, a 77% increase from Q1 2024. Crypto alone brought in $252 million, double the amount from the same quarter last year, though that figure still came in about 30% below Q4 levels. “It’s going to go up and down in terms of trading volumes,” said Tenev. “We’re diversifying the business outside of the crypto business, which will make us less reliant on crypto transaction volumes.”
Options trading generated $240 million, a 56% increase, while equities contributed $56 million, up 44%. Other revenues climbed to $54 million, up 54% year-over-year, largely supported by rising Gold subscriptions.
The platform’s ARPU (average revenue per user) jumped to $145, a 39% rise compared to Q1 last year. The board also raised Robinhood’s share repurchase authorization by $500 million, bringing the total to $1.5 billion.
March saw the launch of new services including Robinhood Strategies, Robinhood Banking, and Robinhood Cortex, with plans to roll them out platform-wide soon. Robinhood Strategies is already serving over 40,000 users and managing more than $100 million in assets.
Despite strong numbers, share prices saw a slight drop after earnings were released. The stock closed at $49.37 and dipped 1.08% in after-hours trading to $48.58.
Warnick expressed confidence about the months ahead: “As a result, in Q1 we grew revenues by 50% year-over-year and EPS by over 100%. It is also great to see strong customer engagement to start Q2. Additionally, we continue to return capital to shareholders and increased our share repurchase authorization by $500 million to $1.5 billion, reflecting management and the board’s confidence in our financial strength and future growth prospects.”