Robinhood (NASDAQ:HOOD) delivered stellar Q4 results, highlighting significant growth and profitability in 2024. Quarterly revenue surpassed the $1 billion milestone for the first time, driven by triple-digit year-over-year growth in key metrics such as trading volumes across equities and crypto, as well as Average Revenue Per User (ARPU). The company continues to expand its product offerings at a rapid pace, introducing a desktop trading platform, derivatives trading—including event contracts—and announced advisory services will be available for Gold subscribers.
However, this growth comes at a cost. Q4 saw negative free cash flow, likely due to investments in infrastructure, product development, and aggressive promotional campaigns aimed at attracting new users and assets. Additionally, the introduction of event contracts blurs the line between financial services and gaming/gambling—a potentially uncomfortable association for a company positioning itself as a trusted financial institution. For more details, key highlights, and commentary, check out the high-level earnings summary.
