Robinhood's Quarterly Report Thrills Investors

Expectations for Robinhood's Quarterly Report

Robinhood (HOOD) is set to announce its stock earnings after the market closes on Wednesday. Wall Street expects this famous trading platform to report impressive results as the top-performing stock of the S&P 500 index this year.

Analysts expect Robinhood’s adjusted earnings per share for the third quarter to be $0.53 and its revenue to be $1.2 billion. This figure represents nearly a doubling of the $637 million revenue reported in the same period last year.

The company's stocks, based in Menlo Park, California, have nearly risen by 40% since joining the S&P 500 index in September, demonstrating a 280% increase since the beginning of the year, making it the best performer in the index. Robinhood shares rose by 4% on Wednesday ahead of this announcement.

This gain in share price is supported by the launch of new products throughout the year, including tokenized stocks, prediction markets, and crypto staking. Robinhood aims to increase its customer wallet share.

Paul Brody, EY's global blockchain leader, stated on Wednesday, "I see many companies copying Robinhood," expressing that the integration of these services is particularly noteworthy in terms of user experience.

Compass Point analyst Ed Engel and his team noted that they expect the company's fourth-quarter expectations to be well above the trends of October. Increased revenue will be generated through high options and stock volumes, and analysts also emphasize the explosive growth of prediction markets within this year.

Prediction markets allow investors to bet on the outcomes of various events, from football matches to Nvidia's earnings results, the duration of government shutdowns, and the year-end price target of Bitcoin. Engel forecasts that revenues from prediction markets will reach around $20 million in the third quarter, expecting this figure to show more than 100% quarter-over-quarter growth.

Robinhood's CEO Vlad Tenev stated in October that there were over 4 billion prediction contracts, with more than 2 billion of these in just the third quarter. Analysts suggest that due to the platform earning $0.01 per contract, these revenues could be around $40 million.

Additionally, the crypto revenue is expected to rise due to high fees and staking services. Staking allows token holders to lock their digital assets to earn rewards. Engel noted that investors might not be accurately predicting Robinhood’s crypto revenue for the second half of 2025 or 2026.