Executive summary
Robinhood (HOOD) is positioning itself as a digital-first retail brokerage with trading, crypto, subscription and wealth ambitions. In Q2 2025, it posted revenue of $989M, net income of $386M, and diluted EPS of $0.42, backed by strong net deposits and growth in Gold subscriptions. (Robinhood Investors)
Coinbase (COIN) remains the leading U.S. crypto exchange, with Q2 2025 total revenue of $1.5B, net income of $1.43B, adjusted EBITDA of $512M, though much of the net profit came from strategic investment gains, not core operations. (Q4 Holdings)
Charles Schwab (SCHW) is a legacy full-service broker / custodian / bank with scale in assets and retail wealth. In Q2 2025, Schwab reported revenue growth ~25%, net income of ~$2.1B, adjusted EPS of $1.14, and record client assets of $10.76T. (Schwab Content)
These three appeal to overlapping audiences (retail investors, crypto users, trading/wealth clients) but operate different business models: minimal fixed costs + scale (Robinhood), transaction + subscription + investment gains (Coinbase), and integrated banking + custody + advisory (Schwab). The strategic question is which model wins share and monetization – and at what margins.
Fundamental metrics
Revenue growth and scale
- Robinhood: Q2 2025 revenue $989M, up ~45% YoY. (Robinhood Investors)
- Coinbase: Q2 2025 total revenue $1,497.2M, up ~3.3% YoY (but down sequentially) (Nasdaq)
- Schwab: Q2 2025 revenue $5.85B (or net revenues reported ~$5.9B), +24.8% YoY growth. (Yahoo Finance)
Profitability, margins & EPS
- Robinhood: Q2 net income $386M, diluted EPS $0.42. (Robinhood Investors)
- Coinbase: GAAP net income $1.43B (boosted by gains on strategic investments and crypto holdings); Adjusted Net Income ~$33M; Adjusted EBITDA $512M. (Q4 Holdings)
- Schwab: Q2 2025 net income ~$2.1B, GAAP EPS $1.08, adjusted EPS $1.14. (MLQ)
Leverage / balance sheet & liquidity
- Robinhood: Not publicly disclosed debt load in the press release; its model is relatively light on physical infrastructure.
- Coinbase: At end of Q2, “USD resources” (cash + equivalents + USDC) amounting to $9.3B. (Q4 Holdings)
- Schwab: As a bank + brokerage, Schwab carries substantial balance sheet, deposit funding, and credit operations; outflows in off-platform CDs in Q2 2025 included $6.7B. (Charles Schwab Press Room)
Valuation multiples (market context)
- Robinhood: public data shows high multiples given growth expectations (P/S and P/E premiums).
- Coinbase: trades at multiples reflecting crypto optionality + subscription growth.
- Schwab: trading at lower multiples consistent with financial institutions; valuation more tied to net interest margins, scale, and capital returns.
Momentum indicators (RSI, MACD, moving averages, relative strength)
- Robinhood: technical screens (TipRanks, IBD, etc.) show that its stock has had strong 2025 performance, often flagged as extending past buy points in the brokerage sector. (Investors)
- Coinbase: volatile given crypto sentiment; after Q2 results, shares dropped ~7% on revenue miss despite earnings strength. (CoinDesk)
- Schwab: more stable trend, but often less explosive moves; recent Q2 record results lifted sentiment and price. (Investopedia)
Relative strength vs Nasdaq: Robinhood and Coinbase have been more volatile and higher beta, with sharper upward moves in strong risk environments; Schwab’s performance more tethered to financial sector cycles.
Peer comparison (other relevant players)
- Interactive Brokers (IBKR): a more advanced/trader-oriented commission broker, competing with Robinhood’s active trading users, especially for derivatives, margin and global products.
- Fidelity / Vanguard / Charles Schwab competitors: for retail wealth management / custodial services, advisory, and integrated services.
Robinhood competes more with IBKR in active trading; Coinbase competes with Binance, Kraken, and other crypto exchanges; Schwab competes with Fidelity, Vanguard, wealth platforms.
Most recent earnings highlights & guidance
Robinhood (Q2 2025)
Revenue $989M; net income $386M; EPS $0.42; net deposits $13.8B; strength in Gold adoption and trading volumes. (Robinhood Investors)
Guidance: the company expects continued growth in deposits and trading; management comments emphasize international expansion, product launches, and monetization of user base.
Coinbase (Q2 2025)
Revenue $1.497B; net income $1.43B (including gains); Adjusted Net Income $33M; Adjusted EBITDA $512M. Transaction revenue $764M (down ~39% Q/Q), subscription & services $656M (down 6%). (Q4 Holdings)
They disclosed costs from a data theft incident (~$307M) contributing to operating expense growth. (Q4 Holdings)
Guidance: subscription & services revenue expected between $665M and $745M; July transaction revenue projected ~$360M. (Q4 Holdings)
Schwab (Q2 2025)
Revenue ~ $5.85B; net income ~$2.1B; EPS $1.08 (GAAP), adjusted $1.14. (Schwab Content)
Assets under custody – 10.76T (client assets) grew 14% YoY. (Schwab Content)
New accounts opened in Q2: 1.1 million. (Schwab Content)
Expense growth guidance: management expects expense growth ~4.75%–5.25% in 2025. (Morningstar)
Strategic moves, catalysts, and risks
Robinhood
Strategic moves / catalysts
- Expansion into wealth management via acquisition of TradePMR (RIA custody) to compete in advisory/custody space. (Barron’s)
- Emphasis on consumer services (Gold subscription, margin/interest, crypto, new products) to diversify revenue beyond trading commissions.
- International expansion and product diversification (expectation of banking services, etc.).
Risks
- Regulatory scrutiny: Robinhood has paid $45M to settle SEC charges regarding recordkeeping and compliance lapses. (Reuters)
- Volatility in transaction volume: trading revenue is sensitive to market sentiment, volatility and crypto cycles.
- Competitive pricing pressure from zero-commission brokers and asset managers.
Coinbase
Strategic moves / catalysts
- Expanding subscription and services revenue (staking, custody, institutional products) to reduce dependency on transaction volume. (Q4 Holdings)
- Investments in “everything exchange” roadmap, listing more assets, global expansion, partnerships with banks. (Q4 Holdings)
- Acquisition of Deribit (derivatives platform) to broaden offering (though transaction revenue volatility still a challenge).
Risks
- Regulatory risk in crypto (SEC, stablecoin regulation, taxation).
- Transaction revenue volatility: Q2 transaction revenue fell sharply (~39% Q/Q). (CoinDesk)
- Operational costs, security / data breach risk (data theft incident in Q2). (Q4 Holdings)
Schwab
Strategic moves / catalysts
- Monetizing deposit base, interest margins, advisory / managed solution inflows, and scaling digital / platform efficiencies.
- Potential entry into crypto trading (Schwab reportedly considering launching Bitcoin / Ether access). (Crypto Briefing)
- Growth in advisory, managed accounts, net new assets, cross-selling services.
Risks
- Margin compression or interest rate shifts affecting net interest income.
- Competition from fintech/neo-broker platforms like Robinhood encroaching on retail trading share.
- Regulatory / compliance costs, especially in integrating crypto or new asset classes.
Valuation & technical considerations
Valuation
- Robinhood’s valuation reflects growth and future monetization; P/S and forward margins are priced steeply due to high growth.
- Coinbase trades on crypto optionality plus its subscription revenue base; valuation is volatile based on crypto cycles.
- Schwab trades as a financial institution; valuations more tied to earnings yield, dividend yield, and interest margin stability.
Technical / market risk
- Robinhood and Coinbase are higher beta – large moves on earnings, volatility, or regulatory news.
- Schwab is more stable but could lag in upside capture if investors favor growth/fintech names.
- Event risks: earnings surprises, regulatory developments in crypto, interest rate shifts, market volatility impacting transaction volumes.
Bottom-line synthesis
Robinhood, Coinbase, and Charles Schwab serve overlapping audiences of retail investors, but with distinct business models and risk/return profiles.
- Robinhood is the lean, digital-native growth play. Its strengths lie in user acquisition, monetization (Gold, margin, crypto), and expansion into custody/advisory. If it sustains deposit and trading growth while controlling costs and navigating regulation, its model scales. But its fortunes remain tied to transaction volume and sentiment risk.
- Coinbase is the crypto-native platform with deeper exposure to digital assets. Its challenge is to de-risk reliance on volatile transaction revenues by growing subscription/holding-based income and capitalizing on tokenization. Its profitability in Q2 was heavily driven by investment gains, making core operating performance the real test going forward.
- Schwab is the incumbency play – scale, diversified revenue, deposit/liquidity advantage, and cross-selling across wealth, banking, investing. It cannot grow as aggressively but is lower-risk. Its potential move into crypto could pressure Robinhood and Coinbase’s pricing.
For investors, the trade is between growth vs stability. Robinhood offers high upside but high execution risk; Coinbase is a high volatility play tied to crypto markets; Schwab is the safer core financial anchor. In aggregate, the “same audience” thesis holds in part – but monetization and economics differ materially.
