The stock dropped 6.6% as investors reacted negatively to what appears to be margin compression despite strong revenue growth and record net deposits, signaling concerns about profitability sustainability and cautious underlying fundamentals.
- Revenues reached a record $1.3 billion, up 32% year-over-year, driven by multiple product verticals including equities, options, and prediction markets.
- Net deposits hit a record $22 billion, reflecting a 28% annualized growth rate and continued strong customer trust and platform engagement.
- Gold subscribers grew to 4.8 million, representing a 17% attach rate relative to funded accounts, contributing to revenue diversification.
- Adjusted EBITDA margin declined to 57%, indicating margin compression and suggesting growing cost pressures or investments impacting profitability.
- The company continues global expansion, notably acquiring WonderFi in Canada and launching products such as Robinhood Chain, but market reaction implies reservations about scaling costs or future outlook.
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