Robinhood’s Hot Streak Hits Overdrive With Record-Breaking Earnings
Trading platforms don’t usually quintuple shareholder wealth in under a year, but Robinhood isn’t a typical brokerage. The retail trading app crushed Q3 expectations after revenue doubled year-over-year to a record $1.27B. Since Trump’s election victory last November, shares have soared over 470% this past year thanks to a “casino-like” environment that benefits speculation-hungry traders.
- Robinhood’s transaction-based revenue saw broad gains, with equities up 132%, crypto trading soaring 300%, and options activity rising 50% YoY.
- CFO Jason Warnick said Robinhood’s expansion push is paying off, with new ventures like Prediction Markets and the Bitstamp acquisition each generating $100M in annualized revenue.
Valuation hangover: Despite the upbeat results, Robinhood now trades at roughly 72x future earnings compared with an average of 22x among peers, prompting Accuvest Global Advisors’ Eric Clark to warn the stock has “pulled forward a metric ton of good news.” With Trump administration policies fueling crypto enthusiasm and market volatility, Robinhood’s next test will be proving it can sustain this momentum once the trading frenzy cools.
