Record 2025 revenue of $4.5 billion and net income of $1.9 billion... Revenue diversification through prediction markets, AI, and banking
Robinhood (HOOD) will report Q1 2026 earnings on the 28th. This marks the first quarterly report following the company's strongest annual performance since inception in 2025. The stock surged 197% in 2025 alone, reaching a current market cap of approximately $76.4 billion (around 105 trillion won).
The 2025 annual results set records across all metrics. Total revenue increased 52% year-over-year to $4.5 billion, net income reached $1.9 billion, and diluted EPS hit $2.05. Net customer deposits totaled $68 billion, while Robinhood Gold subscribers reached a record 4.2 million. Total platform assets expanded 36% year-over-year to $314 billion.
Revenue Structure Shifts Away from Trading Fee Dependence
Historically, Robinhood's revenue was heavily concentrated in options and crypto trading fees. However, in 2025, interest income (margin lending and deposits), subscription revenue (Gold), and trading fees each established themselves as independent revenue streams generating over $100 million annually.
Transaction-based revenue surged 129% year-over-year to $730 million in Q3. Crypto revenue contributed $268 million with over 300% growth, while options revenue increased 50% to $304 million. However, Q4 saw crypto revenue fall short of expectations as Bitcoin prices declined sharply from October highs, causing shares to drop 6.3% in after-hours trading.
Four New Business Segments Drive Growth
Market attention for this Q1 report centers on the growth trajectory of new business segments.
Prediction Markets represents the fastest-growing new service in Robinhood's history. Since launching in March 2025, cumulative contract volume reached 11 billion transactions with over 1 million users by Q3. In November, the company established its own futures and derivatives exchange with clearing capabilities, elevating the business to independent infrastructure status.
The Bitstamp acquisition also serves as a major growth driver. Acquired for approximately $200 million in June 2025, this established European exchange contributed over $100 million in annualized revenue by Q3. It serves as Robinhood's gateway for expansion into European, UK, and Asian markets.
AI investment analysis tool Robinhood Cortex announced a comprehensive overhaul in December. Featuring AI-powered custom indicators, scanners, and personalized portfolio digest functions, it's expected to boost Gold subscription retention and customer asset growth.
Robinhood Banking services officially launched in Q3. Deposits exceeded $400 million with direct deposit adoption reaching 50%. Robinhood Ventures, which will enable retail investor access to previously institutional-only private assets through tokenization, is also set to launch.
Global Expansion Accelerates
In 2025, Robinhood established Singapore as its Asia-Pacific headquarters and entered Asian markets by acquiring local securities and crypto businesses in Indonesia. Indonesia alone has over 10 million capital markets and crypto community members, with the broader Asia-Pacific region estimated to have 250 million potential crypto users.
Wall Street analyst consensus from 34 analysts rates the stock a Strong Buy, with price targets ranging from $97.50 to $130, suggesting up to 54% upside potential from the current price of $84.75.
