Financial services platform company Robinhood Markets (NASDAQ:HOOD) could show investors how expansion into new areas is helping with customer acquisition and revenue growth when it reports third-quarter financial results Wednesday after market close.
Here are the earnings estimates, what analysts are saying ahead of the report and the key items to watch.
Earnings Estimates: Analysts expect Robinhood to report third-quarter revenue of $1.19 billion, up from $637.0 million in last year's third quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in three straight quarters and in nine of the last 10 quarters overall.
The estimated $1.19 billion would mark a company record if hit. The previous record set was $1.01 billion in the fourth quarter of fiscal 2024. Robinhood has reached $900 million in revenue in each of the first two quarters of fiscal 2025 with $927.0 million and $989.0 million respectively.
Analysts expect Robinhood to report third-quarter earnings per share of 53 cents, up from 17 cents per share in last year's third quarter.
The company has beaten analyst estimates for earnings per share in three straight quarters and in eight of the last 10 quarters overall.
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What Analysts Are Saying: Goldman Sachs analysts James Yaro highlighted Robinhood's new product launches after the second annual HOOD Summit.
The analyst maintained a Buy rating on Robinhood with a $130 price target in September.
Yaro said the new launches of short-selling and social trading platforms could help the company with user acquisition and retention.
“In our view, short selling and social trading are likely the most impactful product rollouts of what was announced at the Summit,” Yaro said.
The analyst said Robinhood’s introduction of short sellers could make the company more comparable with other brokers.
Adding short-selling marks “significant infrastructure enhancements,” the analyst added.
Yaro said the introduction of a social trading platform could increase engagement.
“The platform enables tracking traders, while allowing direct trading across multiple asset classes from the social feed.”
Piper Sandler analyst Patrick Moley also highlighted new product launches that could help the company attract more active traders after the HOOD Summit.
The analyst maintained an Overweight rating with a $120 price target in September.
The introduction of short selling and Robinhood Social are the "most important" announcements, according to Moley.
“Short selling has been a glaring product gap for HOOD and has kept more sophisticated active traders away from HOOD’s offering up to this point," he says.
Robinhood Social will allow users to see the performance of other traders, discuss strategies, and see trades from others live. Moley calls it an “interesting concept” that could help with customer acquisition.
“We applaud the continued product innovation and focus on active traders,” Moley added.
Here are other recent analyst ratings on Robinhood and their price targets:
- JMP Securities: Maintained Market Outperform rating, raised price target from $130 to $170
- Bank of America: Maintained Buy rating, raised price target from $139 to $157
- Morgan Stanley: Maintained Equal-Weight rating, raised price target from $110 to $146
Key Items to Watch: One item that might receive increased attention during Robinhood's earnings results and conference call is the rise of prediction markets.
Robinhood CEO Vlad Tenev recently said the company has reached 4 billion milestone for event contract volume, highlighting the market’s rapid growth.
“Robinhood Prediction Markets just crossed 4 billion event contracts traded all-time, with over 2 billion in Q3 alone. And we’re just getting started,” Tenev announced in a post on X.
Prediction markets are one area where Robinhood is hoping to diversify from stock and crypto trading and adding features that might bring new users to the platform. A Robinhood executive also signaled that the company was open to potential deals to acquire companies in the prediction markets space.
Earlier this week, Robinhood announced a partnership with Sage Home Loans to democratize access to homeownership. The company will offer discounted mortgage rates to its Robinhood Gold subscribers, along with a $500 credit towards closing costs for a new home purchase or the refinancing of an existing home.
Robinhood previously reported that Funded Customers were 26.7 million at the end of August with Total Platform Assets of $304 billion, up 112% year-over-year.
Analysts and investors will be closely watching the company's transaction-based revenue in the third quarter, which includes options, cryptocurrencies and equities. Of the three, cryptocurrency saw the largest year-over-year growth in the second quarter.
Robinhood Gold subscribers are another area that will get attention, with the company ending the second quarter with 3.5 million members.
HOOD Price Action: Robinhood stock was down 3.1% to $142.46 versus a 52-week trading range of $424.42 to $153.86. Robinhood stock is up 261.8% year-to-date in 2025.
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