(MENAFN- AsiaNet News)

• Robinhood said Q3 was another strong quarter of profitable growth and that it continued to diversify its business.
• Key functional metrics for October showed a strong start to the fourth quarter.
• HOOD stock has soared by more than 280% this year.

Robinhood Markets, Inc. (HOOD) shares slipped nearly 2% in extended trading on Wednesday, even after the retail brokerage posted better-than-expected results that received the backing of a Wall Street analyst and boosted retail-trader sentiment toward the fintech company.

The company also announced that CFO Jason Warnick has decided to retire next year, and that long-time finance executive Shiv Verma will succeed him, effective in the first quarter. 

HOOD's Q3 Earnings Snapshot

Robinhood CEO Vlad Tenev attributed the performance for the third quarter of 2025 to the“team's relentless product velocity.” He noted that Predictions Markets grew rapidly, Robinhood Banking is beginning to roll out, and Robinhood Ventures is in the pipeline. 

Here's how the headline numbers compare to estimates:

-Earnings per share (EPS): $0.61 (up 259%) vs. $0.54 consensus (provided by Fiscal)

-Revenue: $1.27 billion (up 129% YoY) vs. $1.22 billion consensus

The company noted that transaction-based revenue climbed 127% to $730 million (57% of total), driven by a 300% YoY jump in crypto revenue. Equities and options revenue also rose sharply. Analyst Bolu, however, stated that crypto revenue was a touch soft due to the softer crypto prices.

Helped by interest-earnings asset growth and securities lending activity, net interest revenue climbed 66% to $456 million.

CFO Warnick said,“Q3 was another strong quarter of profitable growth, and we continued to diversify our business, adding two more business lines-Prediction Markets and Bitstamp-that are generating approximately $100 million or more in annualized revenues.”

The trading app noted that subscriptions for its Robinhood Gold, a premium service providing advanced trading and investing features to clients for a monthly or annual fee, rose 77% to 1.7 million, and the average revenue per user increased 82% to $191.

Analyst Upbeat On HOOD

“It's a pretty solid print,” said Autonomous Research analyst Christian Bolu in an interview with Yahoo Finance. The analyst views the post-earnings dip as a result of the stock's strong gains this year.“If you look at all the numbers investors really care about, obviously top and bottom-line beat, and it seems like very strong acceleration of net deposits.” High expectations and the news about the CFO's retirement have all played into the after-hours reaction, Bolu said.

Strong Start To Q4

Announcing select preliminary data for October, the company said net deposits were about $5.5 billion, the margin book climbed 150% YoY, and crypto and equity notional trading values climbed solidly.

What Retail Feels About HOOD's Stock After Q3 Print

Robinhood was among the top five trending equity tickers on Stocktwits late Wednesday. Retail sentiment toward the stock improved to 'extremely bullish' as of late Wednesday from 'bullish' a day ago. The message volume increased to 'extremely high' levels, with the chatter over the 24 hours rising about 430%.

HOOD sentiment and message volume as of 9:10 p.m. ET, Nov. 5 | source: Stocktwits

A bullish user awaited upgrades and institutional buying from here on.

Another user stated that the stock would start to rise on Thursday.

Robinhood stock ended Wednesday's session up 4.15% at $142.48. The average price target for the stock is $147.85, according to Koyfin, implying about 4% upside from Wednesday's closing price. Robinhood's stock has soared over 280% this year.

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