Shares of Robinhood (HOOD) gained in after-hours trading after the financial services platform reported earnings for its second quarter of Fiscal Year 2025. Earnings per share came in at $0.42, which smashed analysts’ consensus estimate of $0.31 per share.
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Furthermore, sales increased by 45% year-over-year, with revenue hitting $989 million. This also beat analysts’ expectations of $914.6 million. The jump was primarily driven by growth in interest-earning assets and an increase in transactions. Specifically, the recent hype around cryptocurrencies like Bitcoin brought in $160 million for the company, a 98% increase compared to Q2 2024, while options revenue grew by 46% to $265 million.
In addition, the number of Funded Customers increased by 10% year-over-year to 26.5 million, with average revenue per user jumping 34% to $151. As we can see from the image below, the average revenue per user is currently much higher than it has been most of the time during the past five years. In fact, this is the second-highest print during the timeframe, with the highest value coming in at $164 during the fourth quarter of 2024.
Is HOOD a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on HOOD stock based on 14 Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average HOOD price target of $88.37 per share implies 16.8% downside risk. However, it’s worth noting that estimates will likely change following today’s earnings report.
