In the second quarter performance report of 2025, Robinhood showcased significant progress in product innovation and market expansion. The company not only maintained its leadership position in the active trader market, but also achieved record trading volumes, especially in stocks, options, prediction markets, index options, and futures. Additionally, Robinhood enhanced user experience by launching new tools and improving mobile app functionality, increasing average asset size, and attracting more international users. Of note, the company also announced upcoming Robinhood banking services, as well as innovative initiatives in cryptocurrency and the global financial ecosystem, such as stock tokens and 24/7 trading services, aimed at further expanding its market influence and customer base.

The company achieved significant performance growth in the second quarter, with a 45% year-on-year increase in revenue, achieving an 81% increase in adjusted EBITDA profit margin, and doubling earnings per share (EPS). With the successful acquisition of Bitstamp and the promotion of new products including futures, index options, and prediction market trading, trading volumes in new business areas have significantly increased, demonstrating strong momentum. In addition, the company maintained strict cost control, with adjusted operating expenses and stock compensation costs increasing by only 6% year-on-year, resulting in a 56% adjusted EBITDA profit margin. With significant growth in net deposits, equity and options trading volumes, and cryptocurrency trading volumes, the company continues to maintain rapid performance growth in the third quarter, demonstrating strong market competitiveness and profitability.

Robinhood announced the launch of Robinhood Bank business in the Lost City of Gold event a few months ago, aiming to provide the general public with a private banking experience that was previously exclusive to high-net-worth clients in digital form. The service includes high yield rates, wealth management, seamless account integration, and innovative features such as cash delivery. Currently, Robinhood Bank business is undergoing internal testing and progressing well, with plans to launch it to customers later in this quarter.

Robin Hood has expressed its intention to further enter the lending market, including providing personal loans, car loans, mortgages, and other financial services. Through a partnership with Sage Home Loans, its gold members can now enjoy discounted mortgage rates. Additionally, the company has revealed ambitions to expand in all types of transactions, including the services already provided such as credit cards and margin trading.

Discussed the company's adjustment in net deposit trends in the second quarter, including changes in promotional activities and promotions introduced during the cryptocurrency event. Mentioned the reacceleration of net deposits in July, exploring the evolution of this strategy and the role of promotional activities in it.

The company has successfully attracted more customer deposits through the implementation of promotional activities, especially in the promotion of cryptocurrency deposits, which has achieved significant results. The community engagement has increased, prompting the company to further optimize its marketing strategy, including integrating promotional and performance marketing tools to achieve sustained profit growth. At the same time, the company also pays attention to the impact of market fluctuations on deposits, emphasizing long-term growth trends. It aims to maintain and enhance customer engagement and deposit growth through the development of new products, expansion of banking services, and in-depth exploration of various asset classes.

Recently, Robinhood held an event in the south of France, showcasing the potential of encrypted assets within a clear regulatory framework, especially the tokenization of private assets. The event attracted over 25 million participants, demonstrating the possibilities of cryptocurrency technology in giving real-world assets fundamental value. Robinhood is actively developing products to meet the demand for tokenization of private stocks from European and American customers, while addressing the inequality issues caused by companies remaining private for long periods of time. Since the event, Robinhood's business in Europe has been growing rapidly, showing the strength of cryptocurrency technology and the fast pace of the company's product development.

The conversation discussed the strategic considerations of financial technology companies applying for bank licenses, emphasizing the advantages of offering high-yield products and FDIC protection through partnerships with traditional banks, and that in the current situation, the benefits and drawbacks of partnership models seem to be better than directly obtaining a bank license. At the same time, the company expressed an open attitude towards obtaining a bank license in the future, especially when it comes to more lending products.

Financial content creators discussed the protective measures for their business, which has 3.5 million gold subscribers, in the face of market volatility and decreasing net interest income due to rate cuts. The focus was on how to sustain this growth, particularly in terms of the stability and continuity of their SaaS annual subscription model.

Robin company has responded to criticism of its over-reliance on a single business by diversifying its business strategy, especially in the field of cryptocurrencies, such as launching staking products and internationalizing tokens for US stocks. The company currently has nine businesses with annual revenues exceeding $1 billion, showing strong growth momentum. Robin company emphasizes its discipline in market cycle fluctuations, allowing the company to not make significant adjustments to its strategy when facing changes in market cycles. Despite facing market uncertainty, the company continues to focus on significant market opportunities, avoiding overreactions to short-term market fluctuations and emphasizing sustained focus on the huge total addressable market (TAM).

Since its listing in 2021, Robinhood has experienced a transition from a booming retail industry to a high-interest rate environment, diversifying its business lines to address the natural hedging effect of decreasing trading revenue and rising interest income. Currently, the company has 9 business lines with annual revenues exceeding 1 billion, as well as more at the 500 million level and new projects in the pipeline, demonstrating its strong momentum in product development and business expansion. Compared to its initial fragility at the time of listing, Robinhood is now more stable and diversified.

The dialogue discussed the opportunities and challenges of equity tokenization in the American market, especially considering the impact of regulatory environment. It mentioned the benefits of 24/7 trading, self-custody, on-chain operations, and how reducing costs can enhance customer value. At the same time, it emphasized the differences between the American market and overseas markets, as well as the application of stablecoins in the retail sector. Finally, it pointed out that collaborating with regulatory agencies to promote asset tokenization, especially targeting previously inaccessible private markets and real-world assets, is the future direction of development.

Securities lending business set a record of $54 million in June, a year-on-year increase of 160%, making it an important source of income. With the IPO market picking up, business performance in July became even stronger. The team successfully attracted a large number of clients and increased the asset size. At the same time, the improvement in market conditions also promoted the growth of securities lending business inventory.

Discussed Robinhood's strategies and profits in cryptocurrency trading and smart routing. Mentioned two ways for customers to participate in cryptocurrency trading: through market maker method and direct trading with exchanges, and the impact of adjusted rebate rates and trading volume discounts on revenue and customer attractiveness. Also highlighted that Robinhood is becoming more appealing to high-volume traders, with increasing revenue as well.

The company discussed the growth of its credit card business, pointing out that although the number of credit card holders has tripled, the balance has only increased by about 45%. The company expressed satisfaction with the current economic performance, believing that the usage and return rate of credit cards meet expectations, and that the credit portfolio has performed well in the initial stages. At the same time, the company also mentioned that balance growth typically lags behind the growth in the number of cardholders.

With its large user base and asset scale, Robinhood Chain has significant advantages in the blockchainization of real-world assets, attracting a lot of developer attention. Its uniqueness lies in its focus on the blockchainization of real-world assets, rather than just cryptocurrency transactions. The company currently has multiple businesses growing rapidly, including prediction markets, index options, etc., and it is expected that the annual revenue of some businesses will reach $50 million within the next one to two years.

In the discussion, the advantages of the SBV contract model compared to competitors were discussed, as well as the three implementation stages of stock tokenized products. The first stage ensures that each transaction is closely linked to the traditional market, reducing price deviation risks and boosting customer confidence. The second stage plans to achieve 24/7 trading, unlocked through the Bitstamp platform, allowing trading even when traditional markets are closed. The final stage will fully enable DeFi functionality, allowing holders to engage in non-custodial transactions on-chain, while emphasizing the importance of technical capabilities and regulatory processes to promote widespread adoption of the product among users.

The discussion is centered around the launch of the stock token trading service by Robinhood in Europe, particularly regarding how to maintain low execution costs and tight spreads. Robinhood has stated that the only fee for its European stock token trading is a 10 basis points foreign exchange fee, and customer feedback shows a high level of satisfaction with the prices and service value. The company emphasizes that its goal is to pass on the majority of the value to customers, with no other fees apart from the highly competitive foreign exchange fee.

The conversation discussed the integration of cryptocurrency and traditional stock markets, especially on whether and how to achieve a price mechanism for crypto assets similar to the stock market. The spokesperson emphasized that customers are not concerned about the technical mechanisms behind the assets, but focus on the simplicity and convenience of acquiring the assets. In addition, the discussion also mentioned how to maintain competitiveness and expand market share in different asset categories, as well as the impact of price sensitivity on different groups of investors.

The discussion on the pledging of crypto assets in the dialogue mentioned that approximately 6 billion assets have been pledged, with the majority in regions where pledging is allowed. At the same time, the pricing strategy of crypto assets was discussed, with the current pricing considered satisfactory and expected to remain stable in the short term. In addition, the possibility of accelerating product capabilities and geographical expansion through mergers and acquisitions (M&A) was also explored, emphasizing the strict selection criteria for M&A targets to ensure the acceleration of company development and value creation for shareholders.

The conversation discussed the growth goals and current growth rate of the Robinhood Gold subscription service, emphasizing the goal of naturally turning Robinhood customers into Gold members. They mentioned attracting more users by increasing value propositions and launching new products (such as banking services and Gold Card Cortex), while maintaining the high-end nature of the service and accessibility to the mass market. They also mentioned comparisons with industry-leading subscription products, as well as their determination to continue investing and improving the product.

Robinhood is actively expanding its base of active traders, with strong market performance, especially in all trading asset categories such as stocks, options, futures, and cryptocurrencies, its market share continues to grow. The company is increasing its market share through product innovation and focusing on improving customer satisfaction, with a net promoter score reaching a new high in four years, showing that customer satisfaction with its services is constantly improving. Robinhood is confident in the future business growth, expecting customers to increase their assets on the platform and become subscribing users.

Robinhood has processed a total of 2 billion contracts in the predicted market, nearly 1 billion of which were reached this quarter, and most of the trades are related to sports. The company views sports contracts as important opportunities and is actively investing in and planning to expand contract categories to cover various cultural elements. At the same time, Legend's trading volume continues to grow during nighttime hours, product experience is continuously improving, and customer feedback is positive.

Robinhood has successfully attracted high-volume cryptocurrency investors by introducing smart trading routing and tiered pricing strategies, boosting its competitiveness and market share. With further integration with Bitstamp, Robinhood expects to provide a better service experience for high-volume cryptocurrency traders, further solidifying its pricing advantage.

In the conversation, it was mentioned that although large traditional brokerage competitors have not officially entered the cryptocurrency field yet, their focus is mainly on innovation of their own products and market performance, emphasizing that in the cryptocurrency industry, the speed of innovation is an important competitive advantage. The discussion also highlighted the launch of new products, such as cryptocurrency collateral services, and the team's high speed in innovation. Lastly, it mentioned the continuous focus on the cryptocurrency market and vigilance towards competitors' movements.

The company has achieved cost reduction or even decrease by optimizing processes and utilizing technology to improve efficiency and productivity of existing businesses, thereby achieving a 56% adjusted EBITDA profit margin while maintaining high growth. This strategy not only saves costs in existing businesses but also provides more funding for new business development and marketing investment, especially in marketing, which has become a key investment area due to its good return on investment and short payback period. Internal discussions mainly focus on how to further improve efficiency rather than relaxing cost control, even though this sometimes triggers internal debates about increasing manpower. Overall, this strategy has not hindered business growth.

The company has achieved significant performance results by relying on lean and disciplined principles in its DNA and culture. In the key business areas of engineering and customer service, the company made early and proactive investments in artificial intelligence (AI), a strategy that not only enhanced its innovation capabilities but also accelerated the market acceptance of its products. This use of AI allowed the company to achieve significant business growth while maintaining relatively stable operational expenses, demonstrating its leading position globally.

The spokesperson thanked the audience for their participation, including retail shareholders, institutional analysts, and financial content creators, emphasizing that the conference was informative and entertaining. He previewed that the company's innovation will not stop, and invited everyone to pay attention to the upcoming Hood's summit in Las Vegas, indicating that the company's development momentum is not slowing down.