Robinhood HOOD stock jumped more than 15% on Monday on the news that it will soon join the S&P 500, as quoted on Yahoo Finance. The move strengthened Robinhood’s position among the largest publicly traded companies in the United States. Robinhood shares have outperformed the broader industry over the past year. HOOD stock has skyrocketed about 519% over the past year.
In late July, Robinhood Markets, Inc. reported second-quarter 2025 earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.31. This marked a 35.48% earnings surprise and nearly doubled earnings from the same period last year ($0.21).
This was not a one-off performance. Over the last four quarters, Robinhood surpassed consensus EPS estimates thrice. Revenues for the second quarter of 2025 came in at $989 million, beating expectations by 7.26% and rising from $682 million a year ago.
Its quarterly results were driven by solid trading activity from retail investors, growth in net interest revenues (NIR), product diversification efforts targeting active traders, and vertical integration, which accelerates product innovation. With higher retail participation in the markets, trading revenues are expected to remain strong.
Robinhood’s popularity rose during the pandemic as retail trading surged. Between the first and second quarters of 2020, the platform nearly doubled its trading revenues. With lockdowns leaving Americans at home and with more disposable time and efforts for cash generation, Robinhood became the go-to app for retail investors, the above-mentioned Yahoo Finance article pointed out.
The frenzy accelerated during the meme-stock rally of 2020–2021. The brokerage also focused on cryptocurrency early, offering bitcoin trading during the crypto rally of the early 2020s, as quoted in the above-mentioned Yahoo Finance article.
Ever since Coinbase Global COIN became a part of the S&P 500 index in May 2025, market participants have been anticipating HOOD’s inclusion. COIN shares gained momentum since May. On Aug. 28, Robinhood’s another competitor, Interactive Brokers IBKR, also joined the S&P 500 index. Post joining, IBKR shares saw a surge, though the momentum cooled in September, probably due to profit booking.
This Zacks Rank #1 (Strong Buy) company has been engaged in opportunistic acquisitions to deepen its footprint within the United States and globally. In June 2025, Robinhood completed the purchase of global cryptocurrency exchange Bitstamp, strengthening its position in the crypto business. In May 2025, it agreed to acquire WonderFi to solidify its presence in Canada’s crypto market. In February 2025, the company acquired TradePMR, thus foraying into the RIA custody market.