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Robinhood shares take a hit after reporting earnings beat, new CFO
11/5/2025, 9:45:38 PM
Economic Summary
- Robinhood (HOOD) reported quarterly EPS of $0.61 and revenue of $1.27B, beating analyst estimates, with net interest income driving upside despite weaker transaction revenue.
- Transaction-based revenue was $730M, light relative to expectations even though equities and options trading volumes were at record levels, implying mix or fee-pressure dynamics within trading revenue.
- Prediction markets showed explosive growth — contract volume doubled Q3 vs Q2 and October trading exceeded the prior quarter — suggesting a new, rapidly expanding revenue stream and positive momentum into Q4.
Bullish
- Beat EPS ($0.61 vs $0.53) and revenue ($1.27B vs $1.19B) estimates.
- Strong net interest income offset transaction revenue shortfall.
- Prediction markets are the fastest-growing business; contract volume doubled Q3 vs Q2.
- Record customer deposits and high activity, with momentum heading into Q4.
Bearish
- Transaction-based revenue was light at $730M despite record equities and options volume.
- Funded accounts slightly missed expectations at 26.8 million, signaling slower user growth.
- Shares dropped over 4.5% after-hours, indicating negative investor reaction to mixed results and a CFO change.
- C-suite shakeup (new CFO) could raise governance or execution concerns among investors.
Bullish tickers
HOOD
Bearish tickers
HOOD
HOOD
Bullish
Company beat EPS and revenue estimates driven by strong net interest income; prediction markets grew rapidly (contract volume doubled Q3 vs Q2) with record deposits and momentum into Q4.
Bearish
Transaction-based revenue missed at $730M despite record trading activity, funded accounts slightly missed at 26.8M, and shares fell amid a CFO transition, implying investor concern over growth and execution.
People mentioned
Shiv VermaJason Wernick