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SummaryCompaniesProfit nearly quadruples in Q3Longtime CFO Warnick to retireQ4 off to strong start Nov 5 (Reuters) - Robinhood Markets (HOOD.O), opens new tab topped third-quarter profit estimates on Wednesday as retail traders shrugged off bubble fears, and the online brokerage announced the retirement of its longtime finance chief. The results suggest that small investors seized opportunities presented by the momentum in the markets, and drove up trading volumes in crypto, options and equities. "Our customers tend to be younger, and have long time horizons. They're naturally drawn to more growth-type names, but they are also being pretty prudent," Chief Financial Officer Jason Warnick, who will step down next year, said in an interview. Advertisement · Scroll to continueReport Ad The Menlo Park, California-based company's profit nearly quadrupled to $556 million, or 61 cents per share, in the third quarter ended September 30. Analysts were expecting a per-share profit of 53 cents, according to estimates compiled by LSEG. The company raised its forecast for 2025 adjusted operating expenses, including stock-based compensation, to about $2.28 billion from $2.15 billion to $2.25 billion earlier. Shares dipped nearly 1% in extended trading. They have gained nearly 270% in value this year. PANDEMIC TRADERS WHO NEVER LEFT The surge in retail investor engagement, once written off as a pandemic-era fad, has become a dominant force shaping markets. Advertisement · Scroll to continue Robinhood's transaction-based revenue more than doubled to $730 million. Equities revenue rose 132% while crypto and options climbed 300% and 50%, respectively. "This company's turning into a fintech juggernaut. They're firing on every cylinder imaginable," said David Bartosiak, stock strategist at Zacks Investment Research. Warnick also said the fourth quarter was off to a strong start in October, with record monthly trading volumes across equities, options, prediction markets and futures. CFO SUCCESSION Warnick will retire from the CFO position in 2026, the company said, after more than seven years in the role. The former Amazon executive will transition out of the role in the first quarter and serve as a strategic adviser until September 1, 2026. The company has named longtime insider Shiv Verma as his successor. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV2139381526 About ConnatixV2139381526 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE In an interview, Verma said he was bullish on Robinhood's prediction markets business, which it launched in March. "It's a new asset class, and we want to be at the forefront of it. It's one of the areas we are heavily investing in," he said. Reporting by Niket Nishant and Pritam Biswas in Bengaluru; Editing by Sriraj Kalluvila Purchase Licensing Rights Niket NishantThomson ReutersNiket Nishant reports on breaking news and the quarterly earnings of Wall Street's largest banks, card companies, financial technology upstarts and asset managers. He also covers the biggest IPOs on U.S. exchanges, and late-stage venture capital funding alongside news and regulatory developments in the cryptocurrency industry. His writing appears on the finance, business, markets and future of money sections of the website. He did his post-graduation from the Indian Institute of Journalism and New Media (IIJNM) in Bengaluru. EmailXLinkedin
