Robinhood Markets Inc (HOOD) Q1 2025 Earnings Call Highlights: Record Revenue Growth and ...

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

Negative Points

Q & A Highlights

Q : What is Robinhood doing to accelerate credit cards and checking accounts to their Gold members? A : Jason Warnick, CFO, mentioned that the number of Gold cardholders increased from 100,000 to over 200,000 in Q1. They plan to continue increasing cardholders throughout the year while being measured in the near term. Vlad Tenev, CEO, added that Robinhood Banking aims to provide a compelling digital banking experience for high-net-worth individuals, with a public rollout expected in Q3.

Q : When will users be able to invest in private companies such as SpaceX? A : Vlad Tenev, CEO, stated that allowing customers to invest in private companies is a top policy priority. He emphasized the need for comprehensive security legislation in the U.S. and a rethinking of accredited investor rules. Robinhood is actively discussing these issues with lawmakers and believes progress will be made.

Q : When will Robinhood offer 401(k) plans to businesses? A : Vlad Tenev, CEO, explained that Robinhood's long-term goal is to build a global financial ecosystem, expanding from retail to serving businesses and institutions. While 401(k) administration is a sizable opportunity, the current focus is on integrating TradePMR to serve registered investment advisors.

Q : How is Robinhood Gold performing, and what is the growth trajectory? A : Vlad Tenev, CEO, expressed that Robinhood Gold is the best deal in financial services and aims to be on par with top membership loyalty programs like Costco and Amazon Prime. The improvements in Q1 attach rate are just the beginning, with continued rollout of the credit card and banking products expected to enhance Gold's value.

Q : What is the status of Robinhood's crypto initiatives, and how is customer engagement? A : Vlad Tenev, CEO, reported that crypto had a strong quarter with $260 million in revenue. While trading volumes fluctuate, market share is increasing. Robinhood is diversifying its crypto business and plans to unveil more products and features at the upcoming June event.

Q : Can you provide insights on the adoption of Robinhood Strategies? A : Vlad Tenev, CEO, shared that Robinhood Strategies has over 40,000 customers and $100 million in assets. Customer engagement has been positive, with users sharing their portfolios and experiences on social media. The product continues to grow with more features being added based on demand.

Q : How is the futures offering performing, and where is the volume coming from? A : Vlad Tenev, CEO, noted that futures trading saw 4.5 million contracts in April, indicating strong adoption. The volumes are incremental, with many futures traders also engaging in equities and other assets. Futures provide easy short positions and 24-hour trading, appealing to active traders.

Q : What are the plans for Robinhood Cortex, and will it be a paid product? A : Vlad Tenev, CEO, stated that Cortex will be available to Gold subscribers without additional fees. The product aims to enhance the trading experience with features like Stock Digest and Trade Builder. The team is working to integrate Cortex more deeply into the Robinhood platform.

Q : What is the impact of the Bitstamp acquisition on Robinhood's crypto strategy? A : Vlad Tenev, CEO, expressed excitement about the Bitstamp acquisition, which positions Robinhood as the oldest continuously running crypto exchange. The acquisition will enhance customer execution quality and provide opportunities in institutional and international markets.

Q : How is Robinhood managing credit risk with the Gold Card, and what are the expectations for credit loss provisioning? A : Jason Warnick, CFO, reported low delinquency rates and write-offs, with tight underwriting standards in place. The provision for credit losses increased due to brokerage-related losses, not credit card issues. The company expects gradual increases in provisions as more cards are rolled out.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

This article first appeared on GuruFocus .