HOOD Earnings Prediction
The chart below shows how HOOD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HOOD sees a -1.75% change in stock price 10 days leading up to the earnings, and a +4.69% change 10 days following the report. On the earnings day itself, the stock moves by -0.06%. This data can give you a slight idea of what to expect for the next quarter's release.
HOOD Key Earning Data
HOOD Earnings Analysis
Positive
Strong Revenue Growth: Revenues increased by 50% year over year, indicating strong business growth.
Trading Volume Surge: Trading volumes saw double-digit growth across all categories, including record options trading.
Record Net Deposits: Net deposits reached a record $18 billion in the quarter, showcasing customer trust and engagement.
Gold Subscriber Growth: Gold subscribers nearly doubled year over year, reaching 3.3 million, reflecting strong customer adoption.
Retirement Asset Growth: Retirement assets grew to $16 billion, up 20% since the start of the year, indicating increased customer investment in retirement products.
Product Launch Success: The launch of new products like Robinhood Strategies and Robinhood Cortex has attracted over 40,000 customers and $100 million in assets.
Gold Cardholder Growth: The company successfully doubled the number of gold cardholders to 200,000 in a short period, demonstrating strong demand for the credit card.
Acquisition Impact on Assets: The acquisition of TradePMR added $40 billion in platform assets, enhancing the company's wallet share.
International Expansion Strategy: The company is expanding its international presence, with over 50,000 international customers and plans to launch in Asia.
Bitstamp Acquisition Impact: The Bitstamp acquisition is on track to close mid-year, which will enhance Robinhood's crypto offerings and market position.
Negative
Operational Cost Increase: Q1 saw a significant increase in operational costs, with adjusted OpEx and SBC reaching $533 million, which is in the middle of the updated full-year outlook range, indicating potential financial strain.
Acquisition Cost Impact: The anticipated acquisition of Bitstamp and TradePMR is expected to incur additional costs, with TradePMR alone adding approximately $85 million in costs for 2025, which could impact profitability.
Sustainable Revenue Growth Concerns: Despite strong revenue growth of 50% year-over-year, there are concerns about the sustainability of this growth, especially in the context of market volatility and changing customer behaviors.
Revenue Diversification Challenges: The company is facing challenges in diversifying its revenue streams, as it remains heavily reliant on trading volumes, particularly in the crypto sector, which can be volatile and unpredictable.
Regulatory Uncertainty in Crypto: There is uncertainty regarding the regulatory environment for crypto, which could impact future growth and operational strategies, particularly in relation to staking and listing crypto asset securities.
Security Legislation Impact on Growth: The company has acknowledged the need for comprehensive security legislation in the U.S. to unlock potential in private equity investments, indicating a lack of current offerings in this area that could limit growth opportunities.
HOOD FAQs
How does HOOD typically perform around its earnings report dates?
HOOD's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -1.75% change leading up to the report and a +4.69% change in the 10 days following the release.
Is Robinhood Markets Inc (HOOD) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
HOOD Earning Call Sentiment
Earnings call transcript: Robinhood Q1 2025 sees mixed results, stock rises
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