Robinhood Soars to New Highs After Blowout Q4 Earnings
3min read Robinhood (NASDAQ: HOOD) delivered a blockbuster fourth-quarter earnings report, crushing analyst expectations and propelling its stock to fresh all-time highs. The company posted EPS of $1.01, far exceeding the $0.52 consensus estimate, while revenue of $1.01 billion also surpassed the forecast of $951.79 million. These results marked a staggering 3,200% year-over-year increase in earnings and 115% growth in revenue, underscoring the company’s sharp turnaround from its early struggles as a public company.
Key Metrics Show Explosive Growth
Robinhood's strong performance was fueled by broad-based growth across all of its business segments. Transaction-based revenues skyrocketed 200% year-over-year to $672 million, with options trading generating $222 million (versus $209.8 million expected) and equities trading bringing in $61 million (above the $58.4 million estimate). Crypto trading was a major highlight, soaring over 700% to $358 million, making it one of the company's biggest revenue drivers.
Net interest revenue also rose 25% to $296 million, exceeding expectations of $278.7 million. Meanwhile, assets under custody (AUC) surged 88% year-over-year to $193 billion, reflecting both higher net deposits and rising equity and crypto valuations. Net deposits for the quarter totaled $16.1 billion, representing a 42% annualized growth rate relative to Q3’s ending AUC.
Robinhood also demonstrated strong user engagement, adding 850,000 funded accounts in Q4, a sharp acceleration from the prior quarter’s 160,000 net additions. The number of Robinhood Gold subscribers grew to 2.64 million, representing a 10%+ attach rate among active users.
Analyst Reactions: Bullish Sentiment Across the Board
Following the stellar earnings report, at least ten analysts raised their price targets on Robinhood stock, with no downgrades.
- Needham raised its price target from $52 to $70, citing Robinhood’s 60% EBITDA margins, revenue growth across all transaction segments, and strong expense discipline. The firm now projects FY2025 revenue of $3.8 billion, up from its prior estimate of $3.5 billion.
- Mizuho lifted its price target from $65 to $80, highlighting a 27% sequential increase in AUC, a sevenfold increase in retirement AUC, and Robinhood’s ambitious plan to 10x its business over the next decade.
- Deutsche Bank upgraded its price target to $73, emphasizing Robinhood’s strong execution, robust product pipeline, and accelerating platform growth.
- JMP Securities increased its price target to $77, reiterating its Market Outperform rating and stating that Robinhood has tremendous momentum across all aspects of its business.
- KeyBanc raised its target to $75 from $57, noting Robinhood’s strong trading volume, better-than-expected operating expense guidance for 2025, and continued platform expansion.
Valuation: Is the Rally Justified?
Robinhood’s stock soared over 13% premarket following the report, adding to an already impressive 365% gain over the past year. With shares breaking out to new highs, investors are closely scrutinizing the company’s valuation.
At $1.56 EPS for FY2024, Robinhood is now trading at approximately 44 times trailing earnings. However, FY2025 EPS is expected to decline 14% to $1.34, largely due to tough comparisons following the massive growth in 2024. While this could weigh on sentiment, analysts believe Robinhood’s expanding product suite, upcoming Bitstamp acquisition, and potential sports betting initiatives could help sustain long-term revenue growth.
Despite the rally, many bulls argue that Robinhood is still undervalued compared to legacy brokerage firms like Charles Schwab and Interactive Brokers, particularly given its rapid user growth and improving profitability metrics.
Future Growth Drivers: Crypto, ETFs, and Beyond
Robinhood’s crypto segment was the clear star of the quarter, but some analysts are cautious about near-term growth in this area. Needham expects weaker crypto trading volumes in Q1 and Q2 2025, though it anticipates a 40% volume boost in the second half of the year from the Bitstamp acquisition.
Looking ahead, Robinhood is exploring new revenue streams beyond trading, including sports betting integration, which was highlighted in a recent Mizuho survey showing strong demand among Robinhood users. Additionally, analysts point to President Trump’s pro-crypto stance and the rise of Bitcoin ETFs as potential catalysts for further user and revenue growth.
Technical Analysis: Breakout to All-Time Highs
Robinhood stock gapped up nearly 15% post-earnings, pushing it to new all-time highs. The stock had already rebounded twice from its 10-week moving average, signaling strong institutional demand. With the relative strength (RS) line surging to new highs, Robinhood continues to outperform the S&P 500 and has firmly re-entered the leaderboard of high-growth tech stocks.
Final Thoughts: Can Robinhood Sustain Its Momentum?
Robinhood’s Q4 earnings report confirmed what many investors had already suspected—the company is firing on all cylinders. Explosive revenue growth, record user engagement, and disciplined cost control have positioned the company as a top player in the online brokerage space.
While valuation concerns and a potential slowdown in crypto trading remain risks, analysts overwhelmingly believe Robinhood’s long-term trajectory remains intact. With new markets, expanded product offerings, and strong operating leverage, Robinhood appears well-positioned for continued success in 2025 and beyond.
For investors, the big question now is whether the stock can hold these gains and sustain its breakout. If Robinhood continues to execute at this level, the path to even higher highs may still be ahead.
