Robinhood Earnings: Record Quarter for HOOD Stock — While Retail Investors Sold Stocks at a Record Pace

Two facts landed within a day of each other that shouldn't fit together — and the space between them says everything about what everyday investors are doing right now.

Fact one: Robinhood (HOOD stock) just reported the best quarter since its IPO. Revenue rose 32% to a record $1.31 billion, net income jumped 48% to $573 million, and net deposits hit an all-time high of $21.7 billion, with a million new funded customers added.

Fact two: retail investors just sold individual stocks at the fastest one-day pace since the COVID crash — a net $243 million out of single stocks in one session, according to Vanda Research data reported this week.

Money is pouring onto the platforms while pouring out of single stocks. That's not a contradiction. It's a portrait of retail investors doing something the "dumb money" caricature says they never do: adapting.

Robinhood's quarter, decoded

The numbers describe a company — and a customer base — that has changed shape:

• Total platform assets: $369 billion, up 32%. Gold subscribers (the paid tier) up 39% to 4.8 million, with average revenue per user up 24% to $187.
• The business is diversifying beyond trading. Thirteen separate business lines now generate over $100 million in annualized revenue each, per the earnings call — banking, retirement accounts, a credit card with a million holders — while crypto trading revenue actually declined.
• Deposits at records during a selloff. Cash arriving on the platform isn't all being bet on stocks; a growing share sits in yield-bearing accounts and banking products.

That last point connects the two facts. This month's selloff — Korea's halts, the chip rout, the AI repricing — didn't send retail investors to the exits. It sent them down the risk ladder: out of single stocks (the Vanda outflow), into cash yields, diversified funds, and paid financial products. They're not leaving the market. They're repositioning inside it.