Robinhood Markets (HOOD) saw its shares surge over 15% in premarket trading Thursday after reporting fourth-quarter earnings and revenue that far exceeded analyst expectations.
The trading platform posted adjusted earnings per share (EPS) of $1.01, more than tripling Wall Street’s consensus estimate of $0.32. Revenue for the quarter reached $1.01 billion, surpassing the expected $849.06 million.
Total net revenues jumped 115% year-over-year (YoY) to a record-breaking $1.01 billion, fueled by a significant rise in transaction-based revenues, which surged over 200% YoY to $672 million. Cryptocurrency trading played a major role in the company’s growth, with revenue from digital assets skyrocketing more than 700% to $358 million.
Robinhood’s net income soared to $916 million, more than ten times higher than the previous year’s quarter, benefiting from a $369 million deferred tax gain and a $55 million regulatory settlement reversal.
“Q4 was a record-breaking quarter that caps off a record-setting year in 2024,” said Jason Warnick, Robinhood’s CFO. “We’re entering 2025 with strong momentum as we remain focused on delivering another year of profitable growth.”
The company also reported strong user and asset growth, with Assets Under Custody increasing 88% YoY to $193 billion and Net Deposits hitting a record $16.1 billion. Robinhood Gold subscribers climbed 86% YoY to 2.6 million.
Following the results, Mizuho analysts raised their price target on HOOD from $65 to $80, noting that the company’s ambitious plans to expand its business tenfold over the next decade are increasingly within reach. With Robinhood eyeing a $600 billion+ total addressable market, analysts believe continued strong execution could make this goal a reality.
You might like this article:CVS Surges 8% After Beating Q4 Earnings Expectations
