{"id":37644,"date":"2025-08-18T23:56:00","date_gmt":"2025-08-18T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=37644"},"modified":"2025-11-25T11:53:11","modified_gmt":"2025-11-25T03:53:11","slug":"how-robinhood-makes-money","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/","title":{"rendered":"How Robinhood makes money?"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Company_Introduction\" >Company Introduction<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Founders\" >Founders<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Origins_of_the_Company\" >Origins of the Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#How_did_Robinhood_rise\" >How did Robinhood rise?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Overview_of_Services\" >Overview of Services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Initial_Public_Offering\" >Initial Public Offering<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Key_Operating_Statistics\" >Key Operating Statistics<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#2024_Annual_Result\" >2024 Annual Result<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Number_of_Accounts_and_Customers\" >Number of Accounts and Customers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Asset_Size\" >Asset Size<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Robinhoods_Scope_of_Operations\" >Robinhood&#8217;s Scope of Operations<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Service_Overview\" >Service Overview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Current_Services\" >Current Services<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Recent_Operational_Expansion\" >Recent Operational Expansion<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#From_Zero_Commission_to_On-Chain_Exchange\" >From Zero Commission to On-Chain Exchange<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Stock_Tokenization\" >Stock Tokenization<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#New_Services\" >New Services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Banking\" >Banking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Global_Expansion\" >Global Expansion<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Q2_2025_Financial_Results\" >Q2 2025 Financial Results<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Key_Financial_Figures\" >Key Financial Figures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Key_Segment_Performance\" >Key Segment Performance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Balance_Sheet\" >Balance Sheet<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Key_Operating_Metrics\" >Key Operating Metrics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Sources_of_Revenue\" >Sources of Revenue<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Business_prospect\" >Business prospect<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Client_Assets_Still_Small\" >Client Assets Still Small<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Continuously_Expanding_New_Services\" >Continuously Expanding New Services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Bigger_Scale_is_expected\" >Bigger Scale is expected<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Capital_Market_Performance\" >Capital Market Performance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Stock_Price_Performance\" >Stock Price Performance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Market_Valuation\" >Market Valuation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Competitors\" >Competitors<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Company_Introduction\"><\/span>Company Introduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Founders\"><\/span>Founders<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><a href=\"https:\/\/robinhood.com\/\" target=\"_blank\" rel=\"noopener\">Robinhood Markets (ticker: HOOD) <\/a>was founded in April 2013 by Vladimir Tenev and Baiju Bhatt. Their goal was to design a free, easy-to-use, and addictive mobile app.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Origins_of_the_Company\"><\/span>Origins of the Company<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The company is named after Robin Hood, inspired by its mission to make financial markets accessible to everyone, not just the wealthy. The company is considered an innovator in zero-commission stock trading because it relies on other sources of income. Its target customers are millennials; as of March 2025, the average age of its customers was 35.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_did_Robinhood_rise\"><\/span>How did Robinhood rise?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The founders launched their business as a protest against Wall Street&#8217;s financial monopoly, advocating for the democratization of finance and access to it for all, which garnered support. Ironically, Robinhood has now become the very thing it opposed, becoming no different from Wall Street itself. It now appears to have strayed significantly from its original purpose.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overview_of_Services\"><\/span>Overview of Services<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Robinhood provides an electronic trading platform that facilitates trading in stocks, exchange-traded funds, options, index options, futures contracts, prediction market outcomes, and cryptocurrencies. It also offers cryptocurrency wallets, wealth management, credit cards, and other banking services.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Initial_Public_Offering\"><\/span>Initial Public Offering<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Robinhood conducted a direct listing on the Nasdaq Stock Exchange on July 29, 2021, under the ticker symbol HOOD. IPO Price: $38 per share, IPO Valuation: Approximately $32 billion.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Operating_Statistics\"><\/span>Key Operating Statistics<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2024_Annual_Result\"><\/span>2024 Annual Result<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In 2024, Robinhood&#8217;s revenue was nearly $3 billion and its profit was $1.4 billion.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Number_of_Accounts_and_Customers\"><\/span>Number of Accounts and Customers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In terms of the number of active or funded accounts, Robinhood, with 26 million, is rapidly approaching Charles Schwab&#8217;s 37 million. It is also three times the number of Morgan Stanley&#8217;s E-Trade and six times that of Merrill Lynch.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Asset_Size\"><\/span>Asset Size<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Robinhood Strategies&#8217; digital advisory service reaches $500 million in assets under management (AUM)<\/li>\n\n\n\n<li>Retirement account assets reach $20 billion<\/li>\n\n\n\n<li>Assets under custody reached $255 billion, with net deposit growth of 44% over the past year<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Robinhoods_Scope_of_Operations\"><\/span>Robinhood&#8217;s Scope of Operations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Service_Overview\"><\/span>Service Overview<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Robinhood has evolved from a zero-commission broker to a comprehensive financial services company encompassing brokerage, wealth management, banking, credit, AI insights, and innovative cryptocurrencies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Current_Services\"><\/span>Current Services<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Brokerage: Stocks, ETFs, Options, Cryptocurrencies, Futures; Fractional Investing; Commission-Free<\/li>\n\n\n\n<li>Premium Subscription: Gold members receive additional benefits, fee waivers, and new services<\/li>\n\n\n\n<li>Wealth Management: Robinhood Strategies robo-advisor for investing in stocks and ETFs<\/li>\n\n\n\n<li>Banking: High-yield deposits, FDIC-insured accounts, concierge banking<\/li>\n\n\n\n<li>Credit Card: Cashback rewards Visa card with no fees<\/li>\n\n\n\n<li>AI &amp; Tokenization: Cortex AI Advisor, tokenized asset deposits and withdrawals, prediction markets<\/li>\n\n\n\n<li>Global Access: Limited crypto\/tokenization support in the US, UK, and Europe<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recent_Operational_Expansion\"><\/span>Recent Operational Expansion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"From_Zero_Commission_to_On-Chain_Exchange\"><\/span>From Zero Commission to On-Chain Exchange<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Robinhood is aiming to become a future financial hub, aiming to capitalize on the growing trend of tokenizing real-world assets (RWAs) such as stocks and bonds onto blockchains. This development is seen as inevitable, addressing issues such as limited trading hours and slow settlement times (e.g., T+1) in traditional markets. Robinhood is striving to become a market leader in this area.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stock_Tokenization\"><\/span>Stock Tokenization<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Robinhood recently officially launched its stock tokenization service in the EU market. The platform, which launched in France on June 30, 2025, allows non-US investors to trade over 200 tokenized US stocks and ETFs, including tech giants like Nvidia, Apple, and Microsoft.<\/p>\n\n\n\n<p>For Stock Tokenization, please see my post of &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/11\/24\/tokenised-stock\/\">Tokenised stocks is disrupting  markets<\/a>&#8220;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"New_Services\"><\/span>New Services<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Robinhood is gradually building its own financial supermarket. For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Individual Retirement Accounts (IRAs)<\/li>\n\n\n\n<li>High-Yield Savings Accounts<\/li>\n\n\n\n<li>Gold Credit Card Reaches 300,000 Users: A Credit Card Offering 3% Rebates<\/li>\n\n\n\n<li>Detailed Introduction to Private Banking Services for Cash<\/li>\n\n\n\n<li>Complex Options Tools Specifically for Institutional Investors<\/li>\n\n\n\n<li>Robinhood Strategies, a collaborative robo-advisory product, targets the $60 trillion US wealth management market with an annual management fee of just 0.25%.<\/li>\n\n\n\n<li>Mortgage lending business<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Banking\"><\/span>Banking<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>RobinHood&#8217;s new banking service, slated to launch in fall 2025, underscores its popularity among younger investors. RobinHood Banking will offer clients high-end financial services such as estate planning and professional tax advice, among other benefits. This will accelerate RobinHood&#8217;s goal of becoming the go-to platform for all its customers&#8217; financial needs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Global_Expansion\"><\/span>Global Expansion<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Completed the acquisition of Bitstamp, a long-established European exchange; obtained over 50 crypto compliance licenses and launched crypto services in 30 European countries; and launched stock token products.<\/li>\n\n\n\n<li>Launch crypto staking in the US.<\/li>\n\n\n\n<li>Plans to complete the acquisition of Canada&#8217;s WonderFi in the second half of 2025.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q2_2025_Financial_Results\"><\/span>Q2 2025 Financial Results<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Financial_Figures\"><\/span>Key Financial Figures<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Revenue reached $989 million, a 45% year-over-year increase.<\/li>\n\n\n\n<li>Net profit reached $386 million, doubling year-over-year and setting a new record.<\/li>\n\n\n\n<li>Adjusted EBITDA reached $549 million, with a profit margin of 56%. This growth was driven by a strong rebound in crypto trading and options trading.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Segment_Performance\"><\/span>Key Segment Performance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Options trading revenue reached $265 million, a 46% year-over-year increase, remaining the core revenue source.<\/li>\n\n\n\n<li>Crypto trading revenue reached $160 million, a 98% year-over-year increase, becoming a new growth driver.<\/li>\n\n\n\n<li>Stock trading revenue also reached $66 million, a 65% year-over-year increase.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Balance_Sheet\"><\/span>Balance Sheet<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>At the end of the second quarter of 2025, the company held $4.2 billion in cash and cash equivalents on its balance sheet, providing ample funding for global expansion and new business trials.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Operating_Metrics\"><\/span>Key Operating Metrics<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Robinhood&#8217;s platform now has 26.5 million funded accounts, a 10% increase year-over-year.<\/li>\n\n\n\n<li>Active investing accounts reached 27.4 million, a 10% increase year-over-year.<\/li>\n\n\n\n<li>High-value users subscribing to Robinhood Gold grew 76% to 3.5 million.<\/li>\n\n\n\n<li>Average revenue per user (ARPU) reached $151, a 34% year-over-year increase, reflecting the platform&#8217;s continued improvement in user monetization.<\/li>\n\n\n\n<li>Total platform assets exceeded $279 billion, nearly doubling.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sources_of_Revenue\"><\/span>Sources of Revenue<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The company&#8217;s second-quarter revenue was broken down as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>From trading (including payment for order flow and cryptocurrency markups; 54% of Q2 2025 revenue)<\/li>\n\n\n\n<li>Net interest income (primarily from interest earned on margin loans, customer cash balances, and credit cards; 36% of Q2 2025 revenue)<\/li>\n\n\n\n<li>Other sources (Sherwood.News) Subscription fees and advertising revenue)<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Business_prospect\"><\/span>Business prospect<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Client_Assets_Still_Small\"><\/span>Client Assets Still Small<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Compared to other financial services competitors, Robinhood&#8217;s client assets remain very small; Charles Schwab, for example, has over $10 trillion in client assets.<\/p>\n\n\n\n<p>Robinhood&#8217;s platform assets are projected to grow from $89 billion in the second quarter of 2023 to $279 billion in the second quarter of 2025. Second-quarter revenue increased 45% year-over-year to $989 million, driven by the continued popularity of fee-based services like Robinhood Gold.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Continuously_Expanding_New_Services\"><\/span>Continuously Expanding New Services<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Robinhood&#8217;s pace of new product launches is impressive. In the first quarter, it launched index options to all clients, and in the second quarter, it launched stock tokens in Europe, allowing clients to trade over 200 US stocks as tokenized contracts on a blockchain.<\/p>\n\n\n\n<p>Robinhood plans to launch new banking services by the end of the third quarter. These are just a few of the company&#8217;s recent announcements. As Robinhood continues to roll out new trading products, including the Cortex AI-powered trading tool later this year, its platform assets are expected to continue to grow.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bigger_Scale_is_expected\"><\/span>Bigger Scale is expected<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>However, the more services Robinhood provides to its clients, the faster it will grow. Robinhood could eventually leverage a wider range of products, including fixed-income securities, to further support its growth.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Capital_Market_Performance\"><\/span>Capital Market Performance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stock_Price_Performance\"><\/span>Stock Price Performance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As of August 4, 2025, the company&#8217;s stock price has risen 202.62% since its IPO and 547.81% over the past year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market_Valuation\"><\/span>Market Valuation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Market capitalization: $94.53 billion, price-to-earnings ratio: 54.22.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Competitors\"><\/span>Competitors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Due to Robinhood&#8217;s broad business scope, it has numerous competitors, including Charles Schwab, Webull, E*Trade, Fidelity, and SoFi.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"164\" height=\"100\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2025\/08\/hood-Custom.jpg\" alt=\"Robinhood\" class=\"wp-image-37645\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/18\/how-robinhood-makes-money\/\">How Robinhood makes money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/11\/24\/tokenised-stock\/\">Tokenised stocks is disrupting  markets<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/07\/16\/bitcoin-monopolizes\/\">Why Bitcoin monopolizes the cryptocurrency market<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/02\/stablecoins-accepted\/\">Stablecoins are rapidly being accepted by the market<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/28\/coinbase-and-binance\/\" target=\"_blank\" rel=\"noreferrer noopener\">How do Coinbase and Binance make money? Advantages comparison<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/11\/26\/Strategy-bitcoin\/\">Strategy, slack off in original business, makes huge fortune from Bitcoin<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/07\/24\/top-vendors-and-uses-of-gpu\/\" target=\"_blank\" rel=\"noreferrer noopener\">Top vendors and uses of GPU<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/02\/bitcoin-etf-spot\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bitcoin ETF spot trading approval has far-reaching impact<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/12\/enlightenment-of-bitcoin\/\" target=\"_blank\" rel=\"noreferrer noopener\">Enlightenment of Bitcoin reaching new heights<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/01\/04\/cryptocurrency-etfs\/\" target=\"_blank\" rel=\"noreferrer noopener\">Cryptocurrency ETFs drive surge in related companies<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/07\/14\/invest-cryptocurrency\/\" target=\"_blank\" rel=\"noreferrer noopener\">Investing in cryptocurrency is not as good as investing in related companies<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/06\/jack-dorsey-bitcoin\/\" target=\"_blank\" rel=\"noreferrer noopener\">Incredible Bitcoin fanatical supporter, Jack Dorsey<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/16\/paypal-cryptocurrencies\/\" target=\"_blank\" rel=\"noreferrer noopener\">PayPal to buy cryptocurrencies is it not a good idea<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/09\/12\/you-should-know-the-company-square\/\">You should know the company Square (rebraned to Block)<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Robinhood provides an electronic trading platform that facilitates trading in stocks, exchange-traded funds, options, index options, futures contracts, prediction market outcomes, and cryptocurrencies. It also offers cryptocurrency wallets, wealth management, credit cards, and other banking services.<\/p>\n","protected":false},"author":1,"featured_media":37645,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[126,87,542,148],"tags":[143,760,145,146],"class_list":["post-37644","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fintech","category-cryptocurrency","category-scurities-broker","category-us-online-brokerage","tag-hood","tag-ms","tag-schw","tag-sofi"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/37644","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=37644"}],"version-history":[{"count":16,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/37644\/revisions"}],"predecessor-version":[{"id":40242,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/37644\/revisions\/40242"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/37645"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=37644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=37644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=37644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}