July has been full of glory, $Robinhood(HOOD.US)$ due to its announcement of launching stock tokens, which has attracted considerable attention. The market interprets this development as a progress that could redefine the global trading landscape, with stock prices having accumulated a rise of over 18% in three days. Several major investment banks have raised their ratings, with target prices ranging from $96 to $110.

For investors, $Robinhood(HOOD.US)$ what kind of company is it, and is it worth long-term tracking? This week, the opportunity speed will share with everyone.

Development history

In the past decade, Robinhood has been committed to 'financial democratization', attracting young investors through zero commissions and innovative products, and achieving explosive growth during the crypto bull market. It has also faced multiple challenges such as regulatory compliance, market volatility, and international expansion, with stock prices fluctuating significantly with policy changes.

Establishment of a zero-commission model (2013-2015)

Robinhood was co-founded by Vladimir Tenev and Baiju Bhatt, initially disrupting traditional brokerages with a 'zero-commission' trading model, eliminating minimum account balance requirements, which attracted many young investors, especially millennials and Generation Z.

Product innovation and user growth (2015-2020)

Introducing gamification elements, a streamlined interface, and a stock rewards mechanism has improved user experience and reputation. At the same time, odd lot trading has been launched, further lowering the investment threshold.

Meme stock craze and the rise of crypto business (2020-2021)

During the meme stock wave, became the core platform for trading meme stocks like GameStop and AMC, as well as cryptocurrencies like Dogecoin. In 2021, the number of users skyrocketed, with new users in a single quarter exceeding the total of all traditional brokers, becoming the focus of the market.

International expansion and diversified development (2021-present)

Expanded into the EU and United Kingdom markets, focusing on the crypto business. In Q4 2024, cryptocurrency trading revenue reached a new high of $0.358 billion, accounting for 35% of total revenue. In May 2025, acquired the Canadian crypto platform WonderFi, continuing to promote the healthy development of the crypto business.

From several significant development phases of Robinhood, it can be seen that as a practitioner of "financial democratization," it has put in substantial efforts in product design, trading categories, and marketing methods, not only tapping into the needs of young users but also capitalizing on the opportunities brought by favorable market conditions. Until recently, Robinhood has taken a step ahead in US stock tokenization, becoming a core player under the wave of tokenization, with the potential to make digital assets a daily trading tool accessible to global investors.

For more information on tokenized trading, you can click here to learn > >Igniting the financial revolution! Robinhood's "Stock Tokenization Trading" sparks the market.

Core Business

Robinhood's current main products and services cover various fields including Stocks, ETFs, options, and Cryptos.

Its main Business can be divided into three major parts: Trading income, interest income, and other income. Among them, Trading income includes Stocks, options, and Cryptos; interest income comes from financing interest, earnings from own funds, customer idle funds, Cash Sweep interest margin, etc.; other income includes Gold membership subscription income, agency income, and so on.

Overall revenue growth rate is rising, but with significant fluctuations

Looking at the income situation over the past three years, Robinhood has achieved continuous positive growth since Q4 2022, with a growth rate of 115% in Q4 2024, reaching revenue of $1.014 billion and a net profit of $0.916 billion. However, the company's quarterly revenue fluctuates significantly, with a notable decline in Q1 2025, dropping to $0.927 billion.

Looking at the income structure, the main contribution to the overall revenue growth is the increase in trading income, which exceeded 66% in Q4 2024; in addition, most of the revenue comes from interest income, accounting for about 30%. Other income accounts for a relatively limited share, having little impact on overall performance fluctuations.

The potential for Cryptos in trading income is enormous, while the options business serves as a stable pillar.

Looking at trading income alone, the growth rate has significantly accelerated since Q1 2024, with a year-on-year growth rate of 236% in Q4 2024, reaching USD 0.678 billion, setting a historical high. Although Q1 2025 maintained a high growth rate of 77.2%, it clearly declined compared to the previous quarter, with trading income dropping to USD 0.583 billion.

Breaking down the analysis of trading income, the factors driving the surge in trading income are mainly attributed to the significant growth in revenue from Cryptos.

Cryptocurrency Business: In Q4 2024, the Bitcoin price broke through the $0.1 million threshold, combined with the Bullish policies after Trump's inauguration, the cryptocurrency market was booming, stimulating a year-on-year revenue surge of 733% to $0.358 billion, accounting for 53% of trading revenue. However, in Q1 2025, with the market adjustment, the growth rate of crypto trading volume slowed, and revenue fell to $0.252 billion, with the proportion of trading revenue dropping from 53% to 43%, but it still contributed 30% of total revenue, remaining one of the major sources of Robinhood's income.

Options Business: As the most stable pillar of trading revenue, the options business has consistently performed well, maintaining a share of around 50%. Benefiting from market volatility and user leverage preferences, Q1 2025 revenue increased by 8% quarter-on-quarter to $0.24 billion, making it the only business among the three major pillars of trading (cryptocurrency/options/stocks) to see a positive quarter-on-quarter growth.

Stock Trading: The monetization rate continues to decline, with Q1 2025 revenue at only $0.056 billion, showing a quarter-on-quarter decline compared to Q4 2024, reflecting $Robinhood(HOOD.US)$ the profit limits of the payment for order flow (PFOF) model.

Interest income is affected by declining interest rates, leading to slowed growth.

Total interest income for Q1 2025 is $0.29 billion, a year-on-year increase of 14%; however, due to the downward trend in market interest rates, the growth rate of interest income has visibly slowed.

The main components of interest income include financing interest, idle funds interest, self-owned funds interest, and Cash Sweep interest income.

The financing interest income for Q1 2025 reached 0.11 billion USD, showing significant growth compared to previous quarters, mainly due to active options and cryptos trading driving the expansion of financing balances, which partly offset the downward pressure from interest rates, achieving positive quarter-on-quarter income growth.

In contrast, the other interest income items all showed a quarter-on-quarter decline, primarily due to the decrease in the Federal Reserve's benchmark rate, which lowered short-term fixed income and cash income returns.

Combining profit analysis, the company achieved a profit of 0.336 billion USD in Q1 2025, an increase of 114% year-on-year; Q1 net margin was 36%, an increase of 11% year-on-year. Since Q4 2023, benefiting from increased trading in cryptos and options business, the company's net profit has continually increased, and the net margin level has been continuously enhanced, maintaining above 20% for the entire year of 2024.

Overall, the company has benefited from active Cryptos and Options Trading this year, resulting in significant improvements in revenue and profit levels. However, investors should also note that the Cryptos market is highly volatile, and trading income is not stable enough. Moreover, expectations for interest rate cuts by the Federal Reserve may still strengthen, which will likely limit the growth of its interest income. Key focus should be on the Q2 earnings report at the end of July and monitoring changes in key Indicators to assess trading opportunities.

Technical Analysis

Referring to the EMA12 and 50-day moving average, Robinhood is still in a strong upward trend, with the short-term reference of the EMA50 moving average at $70 as important support.

Combining with RSI, an RSI > 70 indicates an overbought state, suggesting a risk of price pullback; additionally, during the price's new high process, MACD did not rise simultaneously, showing signs of divergence, which could be a potential Put signal and worth investors' attention to related risks.

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This content discusses technical analysis; other methods, including Fundamental Analysis, may provide different perspectives. The examples provided are for illustrative purposes only and do not reflect expected results.