Combining the product declines with high interest rates, a rise in cryptocurrencies and a leaner cost base, Robinhood is reporting record profits.

Third-quarter revenue rose 36% year-over-year to $637 million. Net income improved significantly to $150 million, compared to a loss of $85 million a year ago.

Average revenue per user increased 31% to $105. The number of Gold subscribers reached 2.2 million. The total number of financed customers reached 24.3 million, one million more than last year.

In the nine months ended September 30, total revenue rose 39% to $1.9 billion. Net income fluctuated from a loss of $571 million to a profit of $495 million.

“Their account growth was much higher, and when I look at the pace of the increase, it really felt like it was increasing towards the end of last year… It was in January when it somehow increased (even) higher.” said Barclays analyst Ben Budish, who rates the stock a “Hold.”

The account growth is a sign that Robinhood is gaining market share from legacy trading platforms like Interactive Brokers and Charles Schwab, experts tell Yahoo Finance.

For Tenev and his team, the next year lies ahead – then the next decade.

Robinhood said at its investor day that it is focused on holding two more product events in 2025, including a crypto-themed one in France.

“We’re going to be able to bring some pretty innovative things to market that we’re excited about,” Tenev said.

Crypto could be a key tailwind if a pro-crypto Trump administration arrives. The Biden administration and outgoing SEC Chairman Gary Gensler are widely seen as anti-crypto or neutral at best.

Trump’s election of SEC Chairman Paul Atkins and the appointment of tech venture capitalist David Sacks as crypto czar has the crypto community in turmoil. Bitcoin rose to over $100,000 after the election.

“We are excited to have Paul Atkins take the reins and point the agency in the right direction,” said Tenev. “We also look forward to the end of the regulation-by-enforcement approach.”

According to Tenev, Robinhood’s business could grow 10-fold over the next decade if it expands its product reach. The above-mentioned futures trading, which is scheduled to start in early 2025, is estimated by the company to be worth a three-digit amount.

In addition, the business with event contracts is being expanded. Tenev did not rule out a possible entry into the sports betting industry.

“We will expand the (event business),” Tenev added. “There are all kinds of contracts and events that are permissible that we want to enable people to trade.”

“Bull is the new base case (for Robinhood),” Wolfe Research analyst Steven Chubak said after the investor day. “We are confident in management’s ability to execute growth initiatives and gain share among active traders and cryptocurrencies.”

Chubak maintained his outperform rating on Robinhood stocks.

Robinhood will have a much higher hurdle to overcome to keep investors happy.

Lower interest rates could weigh on interest-bearing assets. Trump could end up being less crypto-friendly than expected or not moving as quickly as crypto markets have priced him in. And it’s hard to believe that Charles Schwab will continue to lose retail investors to Robinhood under new CEO Rick Wurster.

The stock’s valuation leaves little room for error and trades at a forward P/E multiple of 32, according to data from Yahoo Finance. Charles Schwab and Interactive Brokers trade at 22x and 28x, respectively. The broader S&P 500 trades at 23 times earnings.

More than 70% of Wall Street analysts covering Robinhood rate it a Buy or Strong Buy, with an average price target of $43 (approximately 9% upside potential), according to data from Yahoo Finance.

Mizuho Securities analyst and Robinhood bull Dan Dolev told me at Yahoo Finance’s opener that he has a $60 price target for Robinhood and is betting on a record 2025 based on strength in crypto and stock trading.

“So the other side of Robinhood is that it was an ideal environment (this year),” Budish said. For next year, “it feels like everything depends on what happens with crypto.”

Whatever the case, Tenev claims he will focus on preventing complacency among the base.

“There are a lot of things we could do better and we are learning a lot of things. “So even though we’re getting a lot of positive reinforcement, it’s definitely not time to declare victory or take our foot off the gas in any manner,” Tenev said.

Brian Sozzi is Editor-in-Chief of Yahoo Finance. Follow Sozzi on X @BrianSozzi and further LinkedIn. Tips on deals, mergers, activist situations, or anything else? Email [email protected].

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