Robinhood Markets, Inc. Q3 FY2025 earnings call

• Active Traders: Focus on making active traders feel at a disadvantage elsewhere. Rolled out new products like shorting multiple brokerage accounts, AI-driven custom indicators, and Robinhood Social. Q3 had record equity and option volumes, with October breaking records.
• Wallet Share: Assets over 1/3 of $1 trillion, retirement assets over $25B (doubled in a year), Robinhood Gold at 3.9M subscribers. Robinhood Banking rolling out with customers direct depositing and earning interest. Robinhood Strategies has over $1B in assets.
• Global Financial Ecosystem: Progress in tokenization with over 400+ public companies in EU, Robinhood Ventures offering exposure to non-accredited retail in private companies, Bitstamp growing with 60%+ QoQ volume growth as the first scaled institutional business.

In Q3, Robinhood saw strong financial performance across segments. Revenues doubled to a record nearly $1.3 billion. Trading volumes were up double to triple digits in equities, options, and crypto. Prediction Markets volume was remarkable, with October alone at 2.5 billion contracts, up from 2.3 billion in Q3. Interest-earning assets were up over 50%. Robinhood Gold had 3.9 million subscribers. New businesses like Prediction Markets and Bitstamp each surpassed $100 million in annualized revenue. Net deposits in Q3 were over $20 billion, exceeding last year's record. Revenue contribution from newer products like prediction markets, index options, and futures was significant, with interest-earning assets driven by margin and cash sweep growth.

• Full year 2025 adjusted OpEx plus SBC expected around $2.28B, tracking to top end of prior range with investments in new growth areas like Prediction Markets and Robinhood Ventures.
• Q4 strong momentum: October saw continued growth in net deposits, equities, options, prediction markets, margin, and crypto volumes.
• Jason Warnick retiring, Shiv Verma stepping into CFO role, with confidence in his leadership.

• AWS outage led to degraded app performance; need to strengthen platform resiliency.
• Regulatory developments that could materially impact results.
• Competition in new segments like Prediction Markets and challenges in international expansion.

Q: How quickly is Robinhood expected to roll out Robinhood Banking?

A: Relatively fast, governed by customer feedback, with early results good and plans to scale further.

Q: How is Robinhood strengthening platform resiliency after the AWS outage?

A: Using outages as opportunities to improve, investing in infrastructure and working with partners to enhance resilience.

Q: What is Robinhood's strategy for Prediction Markets in the long term?

A: Leveraging distribution advantage, multi-asset ecosystem, with competition expected but confident in continuing to evolve the product and gain market share.