Robinhood Markets (HOOD) Up 0.6% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Robinhood Markets, Inc. (HOOD). Shares have added about 0.6% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Robinhood Markets due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Robinhood Markets, Inc. before we dive into how investors and analysts have reacted as of late.Robinhood Q2 Earnings Beat on Trading Surge & Higher NIRRobinhood’s second-quarter 2025 earnings per share of 42 cents handily surpassed the Zacks Consensus Estimate of 31 cents. Moreover, the figure compared favorably with earnings of 21 cents in the prior-year quarter.Results benefited substantially from solid trading activity across all asset classes amid heightened volatility, which led to a jump in transaction-based revenues. Further, higher net interest revenues, a surge in Gold subscribers and an improvement in Monthly Active Users (MAU) were tailwinds. However, a rise in expenses was an undermining factor.Net income (GAAP) was $386 million, jumping significantly from $188 million in the year-ago quarter.Revenues Soar, Expenses RiseQuarterly total net revenues soared 45% year over year to $989 million. Moreover, the top line beat the Zacks Consensus Estimate of $922.1 million.During the quarter, average revenue per user (ARPU) increased 34% year over year to $151.Transaction-based revenues of $539 million grew 65% from the prior-year quarter. This was primarily driven by an improvement in options, equities and cryptocurrencies revenues, which jumped 46%, 65% and 98%, respectively.NIR rose 25% to $357 million. This was mainly attributable to a higher interest-earning assets balance and securities lending activity, partially offset by lower short-term interest rates.Other revenues increased 33% to $93 million, primarily due to a rise in Gold subscription revenues. During the reported quarter, its Gold subscribers jumped 76% year over year to 3.5 million.Total operating expenses were $550 million, up 12%. The increase was primarily due to a rise in all the components except general and administrative costs. Adjusted operating expenses increased 9% to $444 million.During the reported quarter, adjusted EBITDA jumped to $549 million from $301 million in the year-ago period.Other Business ActivitiesAs of June 30, 2025, total platform assets soared 99% year over year to $279 billion. The rise was driven by continued net deposits, acquired assets and higher equity and cryptocurrency valuations.Equity Notional Trading Volumes surged significantly in the quarter to a record $517 billion. Likewise, Options Contracts Traded rose 32% to 515 million, while Crypto Notional Trading Volumes (which includes Robinhood App and Bitstamp Exchange) were $35 billion.Further, the company reported MAU of 12.8 million, up 8% year over year.Share Repurchase UpdateIn the reported quarter, the company repurchased nearly 3 million shares for $124 million.Outlook for 2025Robinhood anticipates combined adjusted operating expenses and share-based compensation for 2025 to be in the range of $2.15-$2.25 billion, including Bitstamp-related costs.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.The consensus estimate has shifted 26.69% due to these changes.VGM ScoresAt this time, Robinhood Markets has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock has a score of F on the value side, putting it in the lowest quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Robinhood Markets has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.Performance of an Industry PlayerRobinhood Markets belongs to the Zacks Financial - Investment Bank industry. Another stock from the same industry, Goldman Sachs (GS), has gained 3.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.Goldman reported revenues of $14.58 billion in the last reported quarter, representing a year-over-year change of +14.5%. EPS of $10.91 for the same period compares with $8.62 a year ago.Goldman is expected to post earnings of $10.27 per share for the current quarter, representing a year-over-year change of +22.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.Goldman has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks