- Adjusted expenses increased only 1% sequentially, supporting 270 basis points of positive operating leverage.
- Adjusted non-interest income increased 9.9% sequentially to over $1.5 billion, driven by investment banking, trading, and wealth management income.
- Average deposit balances declined 1% sequentially due to withdrawal of $10.9 billion in M&A-related client deposits, but excluding this, deposits increased.
- Average loan balances increased 2.5% sequentially, driven by growth in both wholesale and consumer segments.
- Net charge-offs declined both sequentially and year-over-year, reflecting strong asset quality.
- Reported net income available to common shareholders of $1.3 billion, or $1.04 per share, including $0.02 per share of restructuring charges.
- Returned $1.2 billion to shareholders via dividends and $500 million in share repurchases during the quarter.
- ROTCE improved 130 basis points sequentially to 13.6%, with a target of 15% ROTCE by 2027.
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- Annualized recurring revenue (ARR) grew 9% to $2.9 billion.
- Capital Access Platforms revenue grew 9% with 6% ARR growth; Financial Technology revenue grew 10% with 11% ARR growth; Market Services net revenue grew 21%.
- Expenses increased just under 8%, primarily due to timing of annual compensation.
- Financial Crime Management Technology revenue grew 20% with 19% ARR growth; Regulatory Technology revenue grew 11% with 10% ARR growth; Capital Markets Technology revenue grew 8% with 9% ARR growth.
- Free cash flow was $467 million; dividends paid were $155 million; $400 million debt was paid down; share repurchases totaled $100 million.
- Gross leverage ratio improved to 3.2x, ahead of target milestones.
- Index revenue increased 17%, driven by a 25% increase in average ETP AUM to $663 billion.
- Nasdaq delivered $1.3 billion in net revenue, a 12% year-over-year increase, with Solutions revenues at $991 million, up 10%.
- Operating income was $721 million, up 16%, and EPS grew 24%.
- Operating margins improved: overall operating margin at 55%, EBITDA margin at 58%, Market Services margin at 63%, Financial Technology margin at 47%.
- Adjusted operating expenses plus stock-based compensation increased only 6% year-over-year, leading to 56% adjusted EBITDA margins and 81% incremental adjusted EBITDA margins.
- Assets under custody doubled year-over-year to more than $0.25 trillion, with average assets per funded customer surpassing $10,000 for the first time.
- Bitstamp acquisition closed, adding a growing institutional business and over 600,000 international customers.
- Earnings per share doubled from a year ago.
- Interest-earning assets increased over 50%, driven by cash sweep, margin, and securities lending activities, with Gold cash sweep balances crossing $30 billion.
- Net deposits remained strong with the third highest quarter ever, exceeding $10 billion for six consecutive quarters and continuing momentum into July with around $6 billion in net deposits.
- Retirement assets exceeded $20 billion, more than doubling in the past year.
- Revenue grew 45% year-over-year to nearly $1 billion in Q2 2025, driven by strong business growth and record trading volumes across equities, options, prediction markets, index options, and futures.
- Robinhood Gold subscribers reached a record 3.5 million, representing 13% adoption overall and over 35% adoption among new customers in Q2.
- Robinhood Strategies grew to over 100,000 funded customers and $0.5 billion in assets shortly after launch.
- Controllable expenses decreased 3.7% year-over-year and were flat year-to-date, driven by lower marketing, administrative, and repairs and maintenance costs.
- Net debt-to-EBITDA was 11.3x trailing 12 months, not reflecting recent asset sales and contracts.
- Net income available to common shareholders was $0.12 per fully diluted share in Q2 versus $0.03 prior year and a net loss of $0.12 in Q1.
- Non-controllable expenses were down 3.2% year-over-year and 2.6% year-to-date due to lower insurance and real estate tax expenses.
- Same Store NOI grew 5.6% in the quarter and 4.4% year-to-date.
- Same Store rental revenue was up 2.5% for the quarter, or 3.8% excluding Liberty Towers and other income recognized last year.
- Second quarter Core FFO was $0.17 per share, up $0.01 from the first quarter, including $0.01 of nonrecurring other income and property management expense savings.
- Weighted average effective interest rate was 4.86%, a reduction of over 20 basis points prior to the credit facility amendment.
- Year-to-date Core FFO was $0.33 per share versus $0.32 last year.
- Declared quarterly cash dividend of $0.27 per share payable September 15.
- Effective tax rate was 23.5% and expected to remain between 22% and 24%.
- Net income for Q2 2025 was $18.3 million or $0.67 per diluted share.
- Net interest income increased 3.6% quarter-over-quarter to $59.8 million.
- Net interest margin expanded by 13 basis points to 3.44%, driven by higher loan yields and lower deposit costs.
- Repurchased approximately 103,000 shares at $25 per share for $2.6 million; $25.3 million share repurchase authorization remains.
- Return on average assets was 1.00% and return on average equity was 13.04%.
- Total other operating expense was $43.9 million, up $1.9 million quarter-over-quarter due to deferred compensation and software expenses.
- Total other operating income was $13.0 million, up $1.9 million quarter-over-quarter due to higher BOLI income.
- Market conditions created an excellent window for TRTX to capitalize on widening loan spreads, especially as banks continued their reluctance to engage in direct lending.
- TRTX executed 7 new loans totaling $696 million during the quarter, with a weighted average loan-to-value ratio of 68%.
- The market backdrop allowed TRTX to leverage its dry powder and stable liability structure for attractive risk-adjusted returns.
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