Original title: "Robinhood's second-quarter net profit of $386 million is a big win for cryptocurrency trading"

Original author: ChandlerZ, Foresight News

On July 30, the US fintech platform Robinhood released its second quarter 2025 financial report. The overall business continued its strong growth momentum, especially in the expansion of the cryptocurrency field.

The company's total net revenue reached $989 million, a 45% year-over-year increase, and net income was $386 million, a 105% increase compared to the same period last year. Diluted earnings per share doubled from $0.21 in the same period last year to $0.42. This quarter, Robinhood delivered solid results in terms of revenue, profit, and user growth.

Strong quarterly financial performance and continued growth in platform activity

The platform's active funding accounts reached 26.5 million, a year-on-year increase of 2.3 million, including 27.4 million investment accounts. This growth in user numbers has been accompanied by a significant expansion in platform assets. By the end of June 2025, the total assets under custody on the Robinhood platform reached $279 billion, representing a nearly doubling annual growth rate. This growth was primarily driven by continued net customer deposits and a rebound in overall market valuations.

User activity also showed positive trends. Average revenue per user (ARPU) was $151, a 34% year-over-year increase. Net deposits reached $13.8 billion this quarter, bringing the total to $57.9 billion over the past twelve months, a 41% year-over-year increase. This data demonstrates increased customer stickiness and stronger fund retention. Robinhood Gold subscription service users reached 3.5 million, a 76% year-over-year increase. Gold is priced on a membership basis at $5 per month, generating $176 million in annualized subscription revenue, providing a stable source of cash flow.

In terms of trading activity, options volume reached 515 million contracts, and the notional value of equity traded reached $517 billion, both record highs. Robinhood continues to strengthen its support for active traders, including product iterations such as charting tools, simulated returns displays, and options analysis modules, helping the company further attract high-frequency traders.

Cryptocurrency business is growing rapidly, with the acquisition of Bitstamp bringing incremental growth

The most closely watched segment this quarter was Robinhood's crypto assets business. The company disclosed that cryptocurrency trading revenue was $160 million, a 98% year-over-year increase. Notional cryptocurrency trading volume within the Robinhood app reached $28 billion, a 32% year-over-year increase. Furthermore, Bitstamp, acquired in June, contributed $7 billion in trading volume and was consolidated for the first time. This brought Robinhood's crypto trading volume for the entire quarter to $35 billion, making it the fastest-growing segment of its trading business.

The consolidation of Bitstamp not only expanded trading volume but, more importantly, provided Robinhood with institutional trading access and global regulatory approvals. Bitstamp holds over 50 global crypto licenses, and 90% of its trading volume comes from institutional users. With an average fee of 5 basis points per trade, Bitstamp has become a key component of Robinhood's emerging revenue stream.

In addition to Bitstamp, Robinhood also plans to complete the acquisition of Canadian platform WonderFi, with the transaction expected to close in the second half of 2025. Through this acquisition, the company will expand its digital asset service capabilities in Canada and further enter markets outside of North America.

Robinhood continues to iterate its products in the crypto sector. In the second quarter of 2025, the company expanded its service to 30 European countries, up significantly from just four countries in the same period last year. Robinhood also launched a "Stock Token" product, allowing users to trade tokenized versions of over 200 US stocks and ETFs in Europe. In the US market, the company has launched staking services for ETH and SOL and plans to launch crypto perpetual contracts.

The company is also developing Robinhood Chain, the underlying technology platform that will support future on-chain trading and asset management. These initiatives not only expand Robinhood's technical capabilities in the digital asset space, but also enhance its compliance coverage and product diversity across multiple regions.

Business boundaries are expanding, and financial services are becoming increasingly diverse.

In addition to its trading and crypto businesses, Robinhood is gradually developing a product ecosystem centered around account management and wealth management tools. In the second quarter of 2025, Robinhood Retirement account assets reached $19 billion, a year-on-year increase of 118%. The growth of this long-term capital enhances the stability of the platform's assets and the lifetime value of its users.

Robinhood Strategies, launched earlier this year, is also beginning to gain traction. This digital asset allocation service currently manages over $500 million in assets and serves over 100,000 users, establishing a pool of passively managed user assets. The company is also gradually rolling out the Robinhood Gold Card. As of this quarter, 300,000 customers have activated the card and linked their trading accounts and spending scenarios, increasing the proportion of users' funds on the platform.

Looking at its revenue structure, the company's total operating expenses in the second quarter were $550 million, a 12% year-over-year increase. Adjusted operating expenses were $444 million, a growth rate within 9%. The company updated its full-year operating expense forecast in its financial report. Taking into account the Bitstamp acquisition, it projects adjusted operating expenses and share-based compensation costs to be between $2.15 billion and $2.25 billion, slightly above the target set at the beginning of the year.

As of the end of the quarter, Robinhood held $4.2 billion in cash and equivalents, providing a strong financial foundation for future business expansion and repurchase plans. Regarding shareholder returns, the company has repurchased a total of $703 million of its common stock over the past 12 months and stated that it will continue to exercise the remaining authorization, with the repurchase pace flexibly adjusted based on market conditions.

Future Roadmap

Robinhood listed its future development directions in its financial report, which are divided into three core areas: deepening trading tools, expanding customer assets, and expanding into international markets.

Regarding trading tools, Robinhood will continue to iterate features tailored to active traders. Robinhood Legend will add new features such as a prediction market module, simulated return tools, and cross-asset chart analysis to strengthen technical support for high-frequency users. The Cortex intelligent analysis system will also be rolled out in more scenarios to assist users in making more nuanced investment decisions.

Regarding account systems and fund coverage, Robinhood plans to launch Robinhood Banking in the fall of 2025, integrating checking, savings, and wealth management to create a closed asset custody and payment platform. The company will also expand the issuance of the Robinhood Gold Card and integrate it with its trading rewards system to strengthen user engagement.

International business is a key expansion focus for the company through 2025. Robinhood has fully expanded into 30 European countries and launched localized trading services in the UK. The company plans to enter the Asia-Pacific market in the coming quarters and has already initiated the application process for financial licenses in multiple regions.

In the crypto ecosystem, the company will continue to expand its product offerings, launching crypto perpetual contracts in the European market and promoting the development of Robinhood Chain to build on-chain infrastructure for its services. Upon the integration of Bitstamp and WonderFi, the company will possess both institutional and retail crypto capabilities in Europe and the US, laying the foundation for a global business model.

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