TLDR
- Robinhood reports Q2 2025 earnings on July 30, with analysts expecting EPS of $0.31-$0.33 and revenue around $912-914 million
- The company likely benefited from increased trading activity and crypto surge during Q2, with Bitcoin up 26% this year
- HOOD stock has gained 415% over the past 12 months and 186% year-to-date, significantly outperforming the S&P 500
- Analysts are watching for growth in user accounts, Gold subscriptions, and net deposits following Q1’s record $18 billion in deposits
- Options traders expect a 9.65% price swing in either direction following the earnings announcement
Robinhood prepares to release its second-quarter earnings results after Wednesday’s market close. Wall Street analysts are forecasting solid numbers for the trading platform.
The consensus estimate calls for earnings per share of $0.31 to $0.33. Revenue projections range from $912 million to $914 million according to analyst surveys.
These numbers would represent strong year-over-year growth. In Q2 2024, Robinhood posted EPS of $0.21 and revenue of $682 million.
The second quarter presented unique market conditions that likely boosted trading activity. It began with a sharp stock selloff triggered by President Trump’s tariff announcements.
The period ended with a market rebound after Trump paused some tariff implementations. Investors bought the dip and increasingly used margin trading to purchase stocks.
Other brokerage firms reported earnings benefits from increased trading volumes during this volatile period. Robinhood appears positioned to show similar gains.
Cryptocurrency Trading Drives Revenue Growth
The crypto market surge likely provided another earnings boost for Robinhood. Bitcoin currently trades at $117,500, up 26% year-to-date.
Investors flocked to both individual cryptocurrencies and crypto exchange-traded products. This activity generates transaction revenue for the platform.
David Bartosiak from Zacks Investment Research notes that crypto trading helps diversify Robinhood’s revenue streams. He points out that many still view Robinhood as the “meme-stock casino from 2021,” but digital assets now drive much of the action.
The company has worked to expand beyond its original trading app model. CEO Vlad Tenev aims to create a one-stop financial services shop for customers.
New offerings include banking services and wealth management products. These additions target increased customer engagement and higher revenue per user.
Strong User Growth Metrics Expected
Analysts will examine key growth metrics in the earnings report. Gold subscription numbers serve as one important indicator of customer engagement.
In Q1 2025, Gold subscriptions reached a record 3.2 million users. The service provides trading discounts and additional perks to paying customers.
Net deposits hit a record $18 billion in the first quarter. Total funded customer accounts grew 8% year-over-year to 25.8 million.
Main Street Data reported 14.4 million monthly active users in Q1, showing 5% year-over-year growth. Investors want to see if this user base expansion continued into Q2.
The company’s growth story has driven impressive stock performance. HOOD shares gained 415% over the past 12 months compared to the S&P 500’s 17% return.
Year-to-date gains reach 186%, making it one of the top-performing stocks in the financial sector. This rapid appreciation has pushed the stock’s valuation higher.
Robinhood’s trailing price-to-earnings ratio sits at 60.94 as of Monday. The S&P 500’s trailing P/E ratio stands at 28.13 for comparison.
Raymond James analyst Patrick O’Shaughnessy maintains a Hold rating on the stock. He acknowledges the company’s momentum but believes current valuations reflect much of the positive outlook.
Options traders expect volatility following the earnings announcement. The expected move calculation shows a potential 9.65% price swing in either direction.
TipRanks consensus rating shows Moderate Buy with 14 Buy ratings, five Holds, and one Sell. The average price target of $88.37 suggests 17.23% downside from current levels.
Robinhood has beaten earnings estimates in eight of the past nine quarters. This track record suggests potential for another positive surprise when results are released Wednesday evening.
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