Robinhood (NASDAQ: HOOD) just delivered one of its strongest quarters to date — not just in growth, but in profitability and user monetization. For Q2 2025, total net revenues jumped 45% year-over-year to $989 million, while net income surged 105% to $386 million. Diluted EPS doubled to $0.42, marking Robinhood’s most profitable quarter ever.

Platform engagement continues to strengthen. Net Deposits were $13.8 billion, and over the last twelve months, deposits reached $57.9 billion, equivalent to 41% of asset growth. Platform assets nearly doubled year-over-year to $279 billion, helped by crypto recovery, equities appreciation, and the recent Bitstamp acquisition.

But the headline moment? Robinhood launched tokenization of traditional assets, a move CEO Vlad Tenev calls “the biggest innovation our industry has seen in a decade.”

Trading, Crypto, and Interest Income All Hit Records

Transaction-based revenue grew 65% YoY to $539 million, with:

Options revenue: $265M (+46%)
Crypto revenue: $160M (+98%)
Equities revenue: $66M (+65%)

Net interest revenue climbed 25% to $357 million, driven by margin lending, idle cash balances, and securities lending. Average revenue per user (ARPU) rose 34% to $151, reflecting stronger trading activity and premium subscribers.

Robinhood Gold — its subscription tier priced at $5–$10 per month — reached 3.5 million members, up 76% year-over-year. Subscription growth helped “Other Revenues” increase 33% to $93 million.

Funded accounts now total 26.5 million, while total investment accounts reached 27.4 million.

Expert Insight: Profitability Is Real — But Not Risk-Free

According to Dat Ngo, CPA at Vetted Prop Firms, Robinhood is proving skeptics wrong by turning product velocity into real profitability. However, he believes the company still operates in a structurally volatile environment where revenue is heavily correlated to investor sentiment, interest rates, and crypto cycles.

Ngo notes that Robinhood’s tokenization move — converting real-world assets like stocks or bonds into blockchain-based digital tokens — could unlock new revenue streams and 24/7 trading capabilities. But it also introduces higher regulatory scrutiny, custody risk, and capital requirements, especially as financial regulators tighten rules on digital asset settlement.

He emphasizes that while ARPU is rising, Robinhood’s revenues are still largely transaction-dependent, unlike legacy brokers like Schwab or Interactive Brokers which rely more on advisory fees, interest income, and wealth management.

Cost Discipline + Bitstamp Acquisition = Stronger Infrastructure

One impressive part of the quarter: Operating expenses only grew 12% YoY, while revenue grew 45%. Adjusted operating expenses rose just 6%, even with the acquisition of Bitstamp.

Bitstamp — one of the world’s oldest regulated crypto exchanges — gives Robinhood global exchange infrastructure, EU licensing, institutional custody services, and deeper liquidity. This makes Robinhood more competitive internationally and better equipped for tokenized trading.

Despite these investments, adjusted EBITDA jumped 82% to $549 million, highlighting operational leverage at scale.

Is the Growth Sustainable?

Robinhood’s turnaround story has three key tailwinds: ✔ Surging net deposits — indicating users are no longer just “trading,” but actually parking wealth on the platform. ✔ Rapid subscription monetization — Gold members now make up 13%+ of all funded accounts. ✔ Expansion into crypto infrastructure and tokenization — positioning itself beyond a stock-trading app.

But risks remain:

Trading volumes are tied to market volatility — if sentiment cools, activity could stagnate.
Tokenization invites regulatory tension from SEC, FINRA, and global agencies.
Interest income could decline if rates fall in late 2025–2026.
Robinhood still lacks high-net-worth client adoption versus Fidelity or Schwab.

Ngo highlights a critical point — Robinhood’s model works best when markets are active. The challenge is transitioning into a long-term wealth and investment platform rather than a “trade-and-leave” environment.

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