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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

5 Must-Read Analyst Questions From Robinhood’s Q1 Earnings Call

HOOD Cover Image

Robinhood’s first quarter saw revenue growth ahead of Wall Street’s expectations, but the market responded negatively to the results. Management attributed the performance to robust product expansion, including the launch of futures and prediction markets, as well as continued momentum in options trading. CEO Vlad Tenev emphasized the rapid uptake of new offerings like Robinhood Strategies and strong growth in Gold subscriptions, noting, "Customers are not only trading more with us, but they're entrusting us with more of their assets." Despite these successes, expenses related to recent acquisitions and continued investment in platform enhancements weighed on margins, contributing to the cautious market response.

Is now the time to buy HOOD? Find out in our full research report (it’s free).

Robinhood (HOOD) Q1 CY2025 Highlights:

  • Revenue: $927 million vs analyst estimates of $915.7 million (50% year-on-year growth, 1.2% beat)
  • Adjusted EBITDA: $470 million vs analyst estimates of $490.5 million (50.7% margin, 4.2% miss)
  • Operating Margin: 39.9%, up from 25.6% in the same quarter last year
  • Funded Customers: 25.8 million, up 1.9 million year on year
  • Market Capitalization: $66.14 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Robinhood’s Q1 Earnings Call

  • Christopher Allen (Citi) asked about the source of strong net deposit growth; CFO Jason Warnick explained it was broad-based across new and existing customers, with active traders driving resilience.
  • Dan Dolev (Mizuho) pressed for detail on Gold subscriber growth; CEO Vlad Tenev said improvements to the program and upcoming features like banking will sustain momentum.
  • Devin Ryan (Citizens) inquired about crypto engagement amid lower industry volumes; Tenev noted Robinhood’s market share gains and ongoing diversification within crypto products.
  • Ben Budish (Barclays) sought guidance on credit loss provisioning and cardholder behavior; Warnick said delinquency rates remain low, and credit card usage patterns align with expectations, adding that provisioning should rise gradually as card adoption grows.
  • Kyle Voigt (KBW) asked about regulatory clarity for crypto staking; Tenev said clarity on listing crypto asset securities is the main policy objective and sees no current regulatory obstacles to the broader crypto business.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will monitor (1) the pace of adoption and monetization for new products like Robinhood Banking and Legend, (2) regulatory developments impacting crypto expansion and tokenization initiatives, and (3) the integration of TradePMR and Bitstamp to evaluate their effect on advisory growth and international reach. Execution on these fronts will be critical to sustaining revenue momentum and achieving management’s diversification goals.

Robinhood currently trades at $75.15, up from $49.16 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).

The Best Stocks for High-Quality Investors

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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