Robinhood Markets, Inc.

Thank you to everyone for joining Robinhood's Q2 2025 earnings call, whether you're tuning into the live stream at home or here with us in person. With us today are Chairman and CEO Vlad Tenev, CFO Jason Warnick, and VP of Corporate Finance and Investor Relations Chris Cagle. Vlad and Jason will offer opening remarks and then open the call to Q&A. During the Q&A portion of the call, we will answer questions from institutional research analysts, and we will also answer questions from finance content creators who may hold an ownership position in Robinhood. As a reminder, today's call will contain forward-looking statements. Actual results could differ materially from our current expectations and we may not provide updates unless legally required. Potential risk factors that could cause differences, including regulatory developments that we continue to monitor, are described in the press release we issued today, the earnings presentation, and in our SEC filings, all of which can be found at investors.robinhood.com. Today's discussion will also include non-GAAP financial measures. Reconciliations to the GAAP measures we consider most directly comparable can be found in the earnings presentation. With that, please welcome Vlad and Jason.

Thank you. All right. Greetings and salutations. Hey, Jason. Hey, Vlad. It's great to see everyone today. We're actually back in New York City at the NASDAQ where we had Investor Day in December. I see some familiar faces. Also great to have institutional analysts and some finance content creators. I see some finance content creators as well with us today. So that's Robin with live audience for the first time, always innovating across every aspect of the business, and the earnings is no exception, right? So let's get right into it. Second quarter, I think we really kept raising the bar with industry-leading product velocity across our three focus areas. Number one in active traders, number one in wallet share for the next generation, and the number one global financial ecosystem. So why don't we dive in a little bit? Our active trader offering just keeps leveling up. Record trading volumes in Q2 across equities, options, prediction markets, index options, and futures. And by the way, pretty awesome that index options volumes grew 60% from Q1. And event contracts more than doubled from Q1 to nearly a billion in Q2. I think these results were driven by relentless innovation, including in Q2 new tooling capabilities for mobile. Legend, the team's rapidly shipping updates. Cortex for Gold members, starting with Stock Digest, which have been used by hundreds of thousands of our customers. And the best is yet to come. After three great product events so far this year, we're hosting the second annual Hood Summit for Active Traders. That's going to be an event in Las Vegas in just a few weeks. And it's going to be much bigger than last year. Last year's event was pretty big, but this one should be twice as big. So that's very exciting. We're also working to serve far more of our customers' assets, which have doubled year over year to more than a quarter trillion. How amazing is that? A few highlights there. Average assets per funded customer was over $10,000 for the first time, nearly doubling from a year ago. So a lot of people thought, you know, Robinhood's always going to be in the low single-digit thousands per account, but we just keep compounding and that assets per customer keeps marching upward. Robinhood Strategies, we've grown that by multiples, now over 100,000 funded customers and over half a billion in assets, so just a few months after launch there. We've tripled Robinhood Gold cardholders year-to-date, so over 300,000 cardholders. We continue to like what we're seeing, and we're going to keep accelerating the rollout from here. Retirement assets are now over $20 billion, over $20 billion in assets. So this is customers entrusting us with their most long-term serious money, and that's more than doubled in the past year. And we're excited to launch Robinhood Banking in the fall so customers can bring even more of their assets into Robinhood. Now, actually, with banking, we just rolled this out internally to the full employee base. It's really good. I think we're putting the finishing touches on it. I think you're really going to like it. And very innovative offering. So plenty more there. Global financial ecosystem, we've been pushing even harder there. So I'm sure many of you saw our crypto event in France to catch a token. We expanded our European offering to 30 countries, serving over 400 million people, including stock tokens, which I think tokenization is the biggest innovation in capital markets in over a decade. Stock tokens will do for stocks what stablecoin did for fiat currencies. Benefits to users, including 24-7 trading, instant settlement, the power of self-custody, etc., And also gives us the ability to expand to other assets, make all sorts of assets that previously weren't inaccessible to retail tradable 24-7, just like any crypto asset. So that includes, of course, private markets and lots of other real-world assets. Perpetual futures coming soon in Europe, and that's been very, very well received, actually, when we announced that. So very excited to roll that out. The U.S. is not far behind. A ton of legislative progress. You guys know the Genius Act just passed. We've launched staking in the U.S. with over 750 million staked in just the first month. So pretty incredible progress for staking in the U.S., Bitstamp Exchange by Robinhood, that acquisition closed, so we now have a growing institutional business, and we think that's going to be a big one over time. And, of course, the Robinhood chain. To my knowledge, the first Layer 2 blockchain that's optimized and built with real-world assets in mind. So... Wrapping it up, as a result of this strong product velocity, great business results, revenues up 45% year over year to nearly a billion, the third highest quarter of net deposits ever, sixth straight quarter, over $10 billion, actually, for net deposits. And that's continued through July. The strong July for net deposits puts us on track to exceed last year's total, which was $50 billion in net deposits, which was, again, a record. Gold subscribers up to a record 3.5 million. The gold team's been doing a very, very nice job. That's 13% adoption when you look at our overall customer base. But if you look at new customers that joined in quarter, north of 35% adoption. So that's been really good to see. And we now have over 600,000 international customers when you fold in the customers we get via Bitstamp. So that's becoming a bigger and bigger part of the business. So we feel great about Q2 product velocity and results. I'll turn it over to you, Jason, to talk about financials before taking some Q&A.

Sounds good. Thanks, Vlad. Q2 was another great quarter as we drove market share gains, closed the acquisition of Bitstamp, and remained disciplined on expenses. As a result, we grew revenues 45% year over year, drove 81% incremental adjusted EBITDA margins, and doubled EPS from a year ago. Let's take a closer look at Q2 compared to last year. Revenues were $989 million. It's driven by strong year-over-year business growth. Trading volumes were up double to triple digits across all categories. Looking at some of our newer products, Q2 contract volumes were $11 million for futures, $17 million for index options, and nearly $1 billion for prediction markets. So a lot of good momentum there on the new products. Interest-earning assets were up over 50%, driven by cash sweep, margin, and strong securities lending activity. And it's great to see our gold cash sweep balances have crossed $30 billion, up more than 10 times since we started the high-yield offer less than three years ago. And for Robinhood Gold, we grew it to 3.5 million subscribers. That's up over 75% year over year as we continue to broaden the value proposition. We also stayed disciplined on expenses in Q2. Adjusted OPEX and SBC was up just 6% year-over-year, leading to 56% adjusted EBITDA margins. Now, for Bitstamp, as I've said previously, we expect about $65 million of costs in 2025, so we're layering that onto our full-year outlook for adjusted OPEX and SBC, bringing it to $2.15 to $2.25 billion. As a reminder, this outlook does not include costs from our anticipated acquisition of WonderFi or provisions for credit losses. As we enter Q3, we're off to a fast start in July. Net deposits are around $6 billion. It's a really nice pickup from May and June. Equity and options trading volumes are setting new monthly records. And crypto volumes for both Robinhood and for Bitstamp are at six-month highs. So really great start to Q3. And we continue to see customers responding to our great margin rates, with margin balances now around $11 billion. So our momentum is strong entering the second half of the year, and we remain focused on driving another year of profitable growth in 2025. With that, Chris, let's turn to Q&A.