Robinhood revenue soars 50% to $927 million in Q1

Robinhood reported a strong first quarter, surpassing Wall Street estimates with a 50% year-over-year revenue jump to $927 million and a 114% surge in net income to $336 million.

The trading platform saw net deposits reach a record $18 billion as its user base and assets under management continued to expand, as per Covers report. Funded customer accounts rose to 25.8 million, up 1.9 million from the previous year, while investment accounts grew 11% to 27 million. 

Additionally, average revenue per user (ARPU) jumped 39% to $145. Premium subscription service Robinhood Gold hit a record 3.2 million members, helping to lift “other revenues” by 54% year-over-year to $54 million.

Transaction-based revenues were a major growth driver, increasing 77% to $583 million. Cryptocurrency trading also played a significant role, generating $252 million—doubling year-over-year, though down 30% from a record-breaking Q4 2024. Options revenue also rose sharply by 56% to $240 million, while equities revenue climbed 44% to $56 million.

According to a report by Market Watch, the company has been focused on driving Gold sign-ups and has introduced new offerings, including private-banking services and managed investing strategies, which come with lower fees for Gold members. To promote these products, Robinhood increased its marketing spend, contributing to a 21% rise in operating expenses, which totaled $557 million. 

Market volatility in Q1 2025 benefited Robinhood, CEO Vlad Tenev said. He noted that the company’s shift toward active traders has made it more resilient. 

Tenev explained that three years ago, Robinhood focused on novice investors but has since launched futures, which saw significant growth in April with over 4.5 million contracts traded. “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,” Tenev added.

Robinhood Strategies—its new managed investing service—is already serving over 40,000 customers and managing more than $100 million in assets. All three services are expected to roll out to the wider customer base in the coming weeks.

In February, the company also completed its acquisition of TradePMR, bringing roughly $41 billion in assets under RIA management into its ecosystem.

“We started the year off strong, driving market share gains, closing the acquisition of TradePMR, and remaining disciplined on expenses,” said CFO Jason Warnick. 

He added that strong customer engagement has continued into the second quarter. Additionally, the company increased its share repurchase authorization by $500 million to $1.5 billion, reflecting management and the board's confidence in Robinhood’s financial strength and future growth prospects.