Robinhood (HOOD) Stock: How a Trading App Turned a $1.4 Billion Profit

TLDR

• Robinhood stock has surged over 400% in the past year and joined the S&P 500 in September 2025
• The company turned profitable with $1.4 billion in profit for 2024, reversing a $541 million loss from 2023
• Q3 2025 revenue hit $1.19 billion with EPS of $0.48, meeting analyst expectations
• Robinhood is expanding beyond trading into banking services, savings accounts, debit cards, and crypto trading
• The platform now serves over 26 million users with a diversified revenue mix beyond payment for order flow

Robinhood reported third quarter earnings that met Wall Street expectations. The company posted revenue of $1.19 billion and earnings per share of $0.48.

The results mark another quarter of profitability for the trading platform. Just two years ago, this seemed unlikely to many observers.

The stock has jumped over 400% in the past year. That run-up reflects a complete turnaround in the company’s financial picture.

Robinhood lost $541 million in 2023. By 2024, it flipped to a profit of $1.4 billion.

Robinhood Markets, Inc., HOOD

The shift happened faster than most analysts predicted. The company now operates with positive margins across most of its business lines.

In the second quarter of 2025, revenue rose 45% year over year to $989 million. Net profit more than doubled to $386 million during that period.

The company joined the S&P 500 in September 2025. That inclusion brings automatic inflows from index funds and ETFs.

It also represents institutional validation for a company that faced intense scrutiny during the meme stock frenzy. The index addition puts Robinhood alongside established financial institutions.

From Trading to Banking

The business model has changed drastically from its early days. Robinhood started as a zero-commission trading app aimed at young investors.

Now it offers savings accounts and debit cards. The company announced plans to deliver cash at home for customer withdrawals.

These banking features push Robinhood beyond its brokerage roots. The platform now serves 26 million users with multiple financial products.

Cryptocurrency trading has become a major growth driver. Digital asset volumes surged as crypto markets recovered in 2024 and 2025.

Robinhood is exploring tokenized stock offerings in Europe. The company views blockchain technology as a long-term opportunity rather than a passing trend.

Payment for order flow used to dominate revenue. That’s no longer the case.

Interest income, subscription fees from Robinhood Gold, and crypto activity now contribute substantially. This diversification makes revenue more stable and predictable.

The company’s gross margin sits at 88.35%. That’s high for a financial services firm and suggests pricing power.

Third Quarter Details

Market orders accounted for 41.30% of non-directed orders in S&P 500 stocks for July 2025. Non-marketable limit orders represented 37.11% of those same orders.

Robinhood received $473,850.75 from Virtu Americas for market orders in July. The company took in $241,987.42 for marketable limit orders during the same period.

The stock trades at $146.78 with a market cap of $130 billion. The 52-week range runs from $23.54 to $153.86.

Trading volume remains strong. The platform continues to attract retail investors looking for accessible financial services.

The company’s Q3 revenue of $1.19 billion came in exactly at analyst estimates. EPS of $0.48 also matched expectations.

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