The Robinhood prediction market continued its successful start to 2025 in the second quarter, with the company’s financial results exceeding Wall Street forecasts. Strategic acquisitions and international expansion are helping Robinhood gain momentum. Record net deposits ensured success in the first quarter, despite the unstable situation at the beginning of the year.
Revenue from cryptocurrency trading grew by 98%
On July 30, the company published its financial results, reporting total revenue of $989 million. $160 million of the revenue is related to cryptocurrencies. The profit figure exceeds the 2024 result by 45%, and revenue from cryptocurrency trading grew by 98%.
Net income increased by 105% compared to last year to $386 million, and adjusted EBITDA grew by 82% to $549 million.
The number of Robinhood’s funded customers increased by 2.3 million to 26.5 million, representing 10% growth. Average revenue per user (ARPU) increased by 34% compared to last year to $151.
Robinhood’s expansion and update
Among its priority strategies, the company’s management has identified global expansion and a focus on product release speed. Customers in the UK showed interest in Robinhood Legend in the second quarter. Active traders on the platform welcomed that expansion positively.
Robinhood is also actively expanding its cryptocurrency business. Its services are now available in 30 European countries and in legitimate US markets. Additionally, it has launched sales of stock tokens for over 200 US companies and ETFs on the European market.
New acquisitions played an essential role in achieving strong results in the second quarter. In June, the company completed the acquisition of Bitstamp, a cryptocurrency exchange with 50 active licenses and registrations. Shortly, it plans to acquire Canadian digital asset provider WonderFi.
The company’s additional projects also showed growth in the second quarter of 2025. Launched in March this year, Robinhood Strategies’ advisory offering already manages $0.5 billion in assets on behalf of clients. The Robinhood Gold platform reached a record 3.5 million subscribers, with 10.5% of them signing up for the branded credit card. The company now intends to increase its market share through further expansion.
Second-quarter results reflected in share price
The 2025 achievements reflect a 177% increase in Robinhood’s share price. After the company announced second-quarter results, the shares rose an additional 2.69% during regular trading and 0.64% after the close of trading.
Robinhood CEO and Chairman Vlad Tenev highlighted the company’s second-quarter business results, which he attributed to steady growth in product sales velocity. He also called the launch of tokenisation “the biggest innovation in the industry in the last decade.”
The second quarter was another excellent quarter, as the company increased its market share and completed the acquisition of Bitstamp. Additionally, the company maintained discipline in expenses, according to Jason Varnik, Robinhood’s Chief Financial Officer. “The third quarter started just as well in July, as customers increased their net deposits to approximately $6 billion and demonstrated active trading across all categories,” Warnick concluded.
California tribes file another lawsuit against event contracts
On July 25, shortly before the release of second-quarter results, news broke of a lawsuit by California tribes against Kalshi and Robinhood. Three federally recognised tribes from California filed a lawsuit against the companies in federal court. The plaintiffs claim that these companies offer illegal sports betting under the guise of event contracts.
Tribes filed the lawsuit in the US District Court for the Northern District of California, focusing on Kalshi’s contracts. The prediction market enables users to bet on real-world events, such as sports outcomes. According to the tribes, such contracts constitute unregulated gambling. The Robinhood platform distributes them to users located on tribal lands.
The Indian Gaming Regulatory Act of 1988 divided gambling on tribal lands into three classes. Class III includes 바카라s and sports betting, which require formal agreements between tribes and state authorities. The tribes claim that Kalshi’s offer falls under Class III without the necessary approvals.
This article was first published in Russian on 31 July 2025.
