Robinhood Markets, Inc.
Financial Technology & Online BrokerageFounded 2013- Updated June 2025
Reviewed by Swet Parvadiya
Last reviewed: June 2025
CorpDigest
Robinhood Markets, Inc.
Financial Performance
Last reviewed: June 2025 · By Swet Parvadiya
Revenue
$2.97B
Market Cap
$28.0B
Net Income
$1.3B
Employees
3,600
Net income of $1.3 billion on $2.97 billion in revenue in 2024 — a margin of roughly 24 percent — is the financial statement that proves Robinhood's business model works at scale. Revenue of $1.35 billion in 2022 growing to $2.97 billion in 2024 is a 120 percent increase over two years, driven by rising interest rates expanding the Net Interest Income opportunity and by user base growth continuing past the GameStop volatility. The NII segment is the most structurally interesting financial story: $1.33 billion generated by the spread between what Robinhood earns on $85 billion in uninvested cash (5.0 percent) and what it pays users (0.5 to 3.5 percent). That 450-basis-point spread exists because most users keep cash in their accounts without actively sweeping it to higher-yield alternatives. The segment's performance is directly tied to the federal funds rate — if rates fall significantly, NII compresses regardless of customer base growth. The PFOF segment — $1.2 billion in transaction-based revenue in 2024 — functions as a volume business. Processing over $400 billion in annualized trading volume at 10 to 15 cents per share in rebates from market makers produces economics that scale with trading activity rather than with account balances. The proprietary smart order routing algorithms that achieve rebate rates 15 percent above industry average are the technical differentiation that makes PFOF more valuable at Robinhood than at competitors routing the same order flow. Customer acquisition cost under $40 — compared to Charles Schwab's $200-plus — reflects the virality of the referral-driven growth model and the relatively young demographic of the Robinhood user base, who are more likely to recruit friends through social sharing than older investors using traditional brokerages.
Revenue Trend Analysis
YoY Change
+59.7%
2-Year CAGR
+48.3%
Peak Year
2024
Trend
Consistent Growth
Robinhood Markets, Inc. has reported revenue across 3 fiscal years, compounding at +48.3% annually over 2 years. The most recent year saw a 59.7% increase versus the prior year. Revenue peaked in 2024 at $3.0B. Out of 2 reported periods, 2 showed growth and 0 showed a decline.
| Fiscal Year | Revenue | Net Income | YoY Change |
|---|---|---|---|
| FY2024 | $3.0B | $1.3B | +59.7% |
| FY2023 | $1.9B | — | +37.8% |
| FY2022 | $1.4B | — | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
Robinhood reported full-year 2024 net revenues of $2.95 billion, an increase of 58 percent over $1.87 billion in 2023 and the highest annual figure in the company's history. The growth was led by transaction-based revenues, which rose to $1.66 billion from $785 million as cryptocurrency and options activity rebounded, and by net interest revenues of $1.11 billion. GAAP net income for the year was $1.41 billion compared with a net loss of $541 million in 2023 and a net loss of $1.03 billion in 2022, making 2024 Robinhood's first full year of GAAP profitability. Diluted earnings per share were $1.56. Adjusted EBITDA reached $1.43 billion at a 49 percent margin. Operating expenses excluding share-based compensation declined modestly even as revenues nearly doubled, reflecting the cost discipline implemented during the 2022 and 2023 layoff cycles. Robinhood ended 2024 with $4.6 billion of corporate cash and equivalents, no long-term debt, total platform assets under custody of $193 billion, and a fourth-quarter average revenue per user of $164, more than double the $64 reported in the fourth quarter of 2023. The company also resumed share buybacks under a $1 billion authorization issued in May 2024.
Net interest revenue earns money on customer balances and on Robinhood's own corporate cash, and it has grown into the second-largest revenue line at Robinhood since the Federal Reserve began raising rates in March 2022. The line includes interest on margin loans, securities lending fees, interest on segregated cash held at partner banks under Robinhood's cash sweep program, and interest on corporate cash. With the federal funds rate above 5 percent from mid-2023 through late 2024, Robinhood's net interest revenue rose from $108 million in 2021 to $929 million in 2023 and $1.11 billion in 2024. The cash sweep program, which pays customers a portion of the interest while Robinhood retains the spread, contributed the largest dollar increase. Margin lending balances also expanded as equity markets rallied in 2024. The reliance on rates introduces the principal risk: if the Federal Reserve cuts rates in 2025 and 2026, Robinhood's net interest line will compress unless customer cash and margin balances grow fast enough to offset lower yields. Management has guided that every 100 basis points of rate movement is worth roughly $200 million to $250 million in net interest revenue depending on customer balance mix.
Robinhood reported 25.2 million funded customer accounts at the end of 2024, up from 23.4 million at the end of 2023 and 23 million at the end of 2022. Monthly active users reached 11 million in the fourth quarter of 2024 versus 10.9 million a year earlier. Assets under custody on the platform grew to $193 billion at year-end 2024 from $103 billion a year earlier, an 87 percent increase driven by both equity-market appreciation and net deposits of roughly $50 billion across the year. The customer base is concentrated in millennials and Gen Z; the median account age has historically been in the early thirties. Compared with peers, Charles Schwab reports about 36 million active brokerage accounts and roughly $9.4 trillion in client assets, while Fidelity reports about 50 million retail brokerage accounts and roughly $14 trillion in client assets. Robinhood's account count is smaller and its assets per account are far lower, but its account growth rate and engagement among younger investors are higher. Robinhood's strategic objective through 2025 is to lift average account size by attracting the customer's primary financial relationship rather than the small secondary account that historically defined the platform.
Robinhood priced its July 2021 IPO at $38 per share, hit an intraday high of $85 a week later, and traded below $10 by mid-2022 in a roughly 90 percent peak-to-trough drawdown. The stock spent most of 2022 and the first half of 2023 between $7 and $11 as the company executed two rounds of layoffs and reported a 2022 GAAP net loss exceeding $1 billion. The recovery began in late 2023 and accelerated through 2024 as the company posted its first full year of profitability and reported sharply higher net interest income and crypto trading revenue. HOOD shares closed 2024 above $40, returning more than 200 percent during the calendar year and outperforming most consumer fintech peers. By early 2025 the market capitalization had reached roughly $28 to $40 billion depending on the day, up from a $7 billion trough. The reset valuation places Robinhood on a price-to-earnings multiple in the high twenties to low thirties and a price-to-sales ratio of roughly 10 to 13, in line with growth fintechs such as Block but well below pure-play exchanges such as Coinbase or Interactive Brokers.
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CorpDigest. "Robinhood Markets, Inc. Revenue & Financials." CorpDigest, https://corpdigest.com/company/robinhood-markets/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>Robinhood Markets, Inc. reported $3B in revenue (FY2024).</strong><br>Source: <a href="https://corpdigest.com/company/robinhood-markets/financials" target="_blank" rel="noopener">CorpDigest — Robinhood Markets, Inc. financials</a></div>