Robinhood reported a more than doubled profit in Q1 2023, exceeding analysts’ expectations, fueled by increased trading volumes as clients sought to hedge amid market volatility. Transaction-based revenue surged 77%, with crypto trading activity doubling. CEO Vladimir Tenev noted efforts to diversify beyond crypto reliance, with options and equity trading revenue climbing 56% and 44%, respectively. Net income reached $336 million, or 37 cents per share, compared to $157 million last year. Total revenue rose 50% to $927 million, and premium membership subscribers nearly doubled. Robinhood also increased its share repurchase program by $500 million.
Written by Pritam Biswas
(Reuters) – The retail trading platform Robinhood reported that its profit for the first quarter more than doubled, surpassing analysts’ expectations on Wednesday, thanks to a significant increase in trading volumes as clients sought to hedge their investments amid volatile markets.
The firm’s revenue from transactions, which includes fees for trading in options, cryptocurrency, and stocks, surged by 77% during the quarter.
The majority of the increase stemmed from a 100% rise in cryptocurrency trading, as bitcoin experienced fluctuations throughout the quarter.
The unpredictable trade policies of U.S. President Donald Trump caused volatility across various asset classes during the initial three months of the year, which in turn boosted trading activity on platforms like Robinhood.
“We are expanding our business beyond cryptocurrency, reducing our future dependence on crypto transaction volumes,” stated CEO Vladimir Tenev during a conference call.
Revenue from options trading increased by 56%, while equity revenue skyrocketed by 44% during the quarter. Additionally, net interest revenue—primarily from margin investments—rose by 14% to $290 million.
Total assets on the platform soared 70% year-over-year to $221 billion, accompanied by record net deposits amounting to $18 billion.
“Our customers are not only trading more with us but are also placing greater trust in us by increasing their asset holdings,” Tenev remarked.
In the three-month period ending March 31, net income for common stockholders reached $336 million, or 37 cents a share, compared to a profit of $157 million, or 18 cents a share, during the same period the previous year.
Analysts had projected earnings of 33 cents per share, as per data gathered by LSEG.
The company’s total net revenue, which has recently announced the introduction of wealth management and private banking services, increased by 50% to $927 million.
Robinhood Gold—its premium membership program—saw its subscribers nearly double to 3.2 million.
Shares of the California-based company, which have appreciated nearly 32% in 2025, were up 1.5% in erratic post-market trading.
Additionally, Robinhood has raised its share repurchase authorization by $500 million to reach a total of $1.5 billion.
(Reporting by Pritam Biswas in Bengaluru; Editing by Sriraj Kalluvila)