Robinhood (HOOD) Stock: Earnings Surge Drives Over 200% YTD Explosion

TLDRs;

• Robinhood soars more than 200% YTD as profits and revenue surge.
• Q3 earnings ignite rally with revenue doubling and net income tripling.
• Prediction markets expansion becomes a major new growth driver for HOOD.
• Crypto-linked volatility still influences daily price swings despite strong fundamentals.

Robinhood Markets Inc. (NASDAQ: HOOD) has become one of 2025’s standout market stories, staging a dramatic comeback after years of post-IPO turbulence.

Fueled by soaring profits, accelerating user growth, and a bold push into prediction markets, the online brokerage has firmly repositioned itself at the center of the fintech conversation. With shares now trading around $131.95 and clocking in at more than 200% gains year to date, Robinhood enters December as one of the S&P 500’s strongest performers.

The company’s market valuation now hovers near $127 billion, reflecting renewed investor confidence and a price-to-earnings ratio close to 58 on trailing results. But while enthusiasm is high, recent sessions have brought renewed volatility, with HOOD pulling back roughly 3.7% on the latest day of trading following a dip in broader crypto markets. That sensitivity to digital-asset sentiment remains part of Robinhood’s DNA, even as the company scales into a far more diversified financial platform.

Robinhood Markets, Inc., HOOD

Stock Surges to New Heights

The momentum powering Robinhood’s breakout year is hard to ignore. Its share price, though off slightly from recent highs, remains up dramatically compared to early 2025 levels.

Analysts point to a combination of stronger-than-expected earnings, rapid expansion into high-margin products, and increasing adoption of its credit and wealth-management tools.

New offerings like the Gold credit card and its automated robo-advisor have helped the company break away from its “meme stock” era identity, supporting a steady rise in assets under custody and strengthening core engagement metrics. Meanwhile, net interest income continues climbing as cash sweep balances and margin loan usage expand across the platform.

Q3 Report Rewrites Outlook

Robinhood’s third-quarter 2025 results, released November 5, served as the catalyst for its latest rally. Revenue for the quarter doubled year-over-year to $1.27 billion, propelled by a 129% leap in transaction-based revenue and a 66% jump in net interest income. Net income skyrocketed to $556 million, a stunning 271% increase from the same period a year earlier.

The company’s year-to-date numbers tell an equally compelling story with $3.19 billion in net revenue over the first nine months and more than $1.28 billion in net profit, both sharply higher than 2024 levels.

Operationally, the business is also scaling at a breakneck pace. Retirement assets under custody have grown 144% year-over-year, margin loan balances have surged 153% to $13.9 billion, and combined crypto trading volume hit $80 billion. Robinhood now serves nearly 27 million funded accounts, managing more than $300 billion in customer assets.

Prediction Markets Bet Big

Beyond earnings, Robinhood’s bet on prediction markets has emerged as its most transformative 2025 storyline. A joint venture with Susquehanna International Group will give Robinhood a 90% stake in LedgerX, a CFTC-regulated exchange that will serve as the backbone for a new prediction-focused futures marketplace.

This expansion supports Robinhood’s fast-growing YES/NO prediction hub, where users trade event contracts tied to elections, sports, economic releases, and more. Over 1 million customers have engaged with these markets already, trading over 9 billion contracts in the past year. Q3 alone saw 2.3 billion event contracts change hands,  a signal of rising demand for alternative, retail-friendly derivatives.

Investors have rewarded this growth move: shares jumped roughly 10% following the announcement of the LedgerX partnership.

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