Robinhood Markets, Inc. (HOOD)

Business

From the fiscal year 2025 Form 10-K, accession 0001783879-26-000023.

Robinhood Markets operates commission-free, mobile-first brokerage and cryptocurrency platforms for retail investors, and earns its revenue in three streams: transaction-based revenues, net interest revenues, and subscription and other revenues. Transaction-based revenue is consideration received from market makers for routing customer orders, payment for order flow ("PFOF") on equities and options, "Transaction Rebates" on cryptocurrencies, plus commissions charged as agent on event contracts and futures. Net interest revenue comes from margin lending to customers, segregated cash and securities, deposits with clearing organizations, corporate cash and investments, the Cash Sweep program, securities lending, and carried credit card balances, less interest expense on credit facilities and the Credit Card Funding Trust. Other revenue is chiefly Robinhood Gold subscription fees, plus proxy revenues, digital asset listing fees, selling concessions, advertising, and ACATS transfer fees. For fiscal year 2025 the company reported total net revenues of $4.47 billion, of which transaction-based revenues were $2.63 billion (59% of net revenues) and net interest revenues were $1.51 billion (34%). It is a Delaware corporation headquartered in Menlo Park, California, listed on Nasdaq, with approximately 2,900 full-time employees as of December 31, 2025.

The product set is built around a vertically integrated platform. Robinhood is a licensed introducing broker-dealer, a licensed clearing broker-dealer (it self-clears equities, ETFs and options without a third-party clearing firm), a licensed money transmitter, and a registered futures commission merchant. The mobile app is the primary interface; Robinhood Legend is a browser-based desktop platform for active traders, offered at no additional cost to U.S. and U.K. customers and now supporting all major asset classes.

Brokerage. Commission-free investing in U.S.-listed stocks, ETFs, related options and ADRs; tiered options approval (Level 2 basic strategies, Level 3 fixed-risk spreads and advanced strategies), with index options on benchmarks such as the S&P 500 and VIX opened to all customers in 2025; fractional trading from as little as $1; recurring investments and dividend reinvestment; margin investing on a tiered structure with a single rate set by total margin balance; Fully-Paid Securities Lending, in which customers share interest earned on their lent stock; Cash Sweep of uninvested brokerage cash to FDIC-eligible partner banks; fee-based instant withdrawals; Robinhood Retirement (traditional and Roth IRAs with a percentage match on eligible contributions subject to a five-year holding period); 24 Hour Market trading of individual stocks and ETFs five days a week; joint investing accounts; futures across equity indices, energy, currencies, cryptocurrencies, metals and other commodities; and short selling, launched on mobile, web and Legend in the fourth quarter of 2025.

Prediction Markets. Customers trade event contracts on a regulated exchange through the Prediction Markets Hub, with Robinhood charging a commission per contract. Event contracts are offered through the company's CFTC-regulated FCM license and span sports, politics, economics and culture. In November 2025 Robinhood formed Rothera, a joint venture with Susquehanna International Group (SIG), which acquired 90% of MIAXdx in January 2026 and renamed it Rothera E&C, to build out an independent CFTC-licensed exchange and clearinghouse.

Robinhood Crypto. Cryptocurrency trading in every U.S. state, the U.S. Virgin Islands, Puerto Rico and the District of Columbia through RHC, supporting 58 cryptocurrencies, with orders routed either commission-free to market makers or, for a fee, to partner exchanges via smart exchange routing. RHC acts only as agent and never as counterparty. The offering also includes recurring crypto investments, Crypto Transfers, the Robinhood Connect fiat-to-crypto on-ramp, a Crypto Trading API, and staking on selected assets. In the EU, RHEU supports 74 cryptocurrencies, staking, Crypto Transfers and perpetual futures; Bitstamp, acquired in 2025, adds a globally-scaled exchange with retail and institutional customers. Robinhood Wallet, a self-custody web3 wallet offered in over 150 countries through a Cayman Islands subsidiary, supports the Ethereum, Bitcoin, Solana, Dogecoin, Arbitrum, Polygon, Optimism and Base networks. Customer cryptocurrencies are held in hot and cold omnibus wallets, the overwhelming majority in cold storage; the company does not lend customer crypto, does not trade proprietarily, and does not commingle its own small operational holdings with users'.

Subscription, credit and banking. Robinhood Gold is a flat-rate subscription granting a higher Cash Sweep rate, a 3% IRA contribution match, larger instant deposits, no interest on the first $1,000 of margin, lower index-option and futures fees, a cap on Robinhood Strategies management fees, Morningstar research and Nasdaq Level II market data. The Robinhood Gold Card, issued by Coastal Bank under a program agreement with Robinhood Credit, carries no annual or foreign transaction fees and pays rewards redeemable into the brokerage account. Robinhood Banking, offered by RHY with banking services from Coastal Bank, brings high-yield checking and savings, on-demand cash delivery and 24/7 support to Gold Subscribers.

Wealth management and other. Robinhood Strategies is a managed portfolio service charging a 0.25% annual management fee capped at $250 per year for Gold Subscribers. The acquisition of TradePMR added a scaled RIA custodial and portfolio management platform. Robinhood Cortex is an AI investment tool providing stock and portfolio digests. Robinhood Ventures Fund I ("RVI") is a listed closed-end fund launched to give retail investors exposure to private companies. Sherwood Media and Robinhood Snacks supply editorial and market news, alongside Robinhood Learn and in-app education.

Geography and strategy. Beyond the U.S., Robinhood offers most brokerage services in the U.K. through RHUK (including U.S. stocks and ADRs, options, futures, fractional shares, margin, securities lending, Cash Sweep, 24 Hour Market, multi-currency GBP wallets and recently launched stocks and shares ISAs), cryptocurrency services in the EU through RHEU under MiCA and MiFID licenses issued and supervised out of Lithuania, and stock tokens giving eligible EU customers price exposure to U.S. equities and ETPs. Singapore has been opened as an APAC headquarters and RHSG was applying for a Capital Markets Services license. Management frames growth around three priorities: becoming the number one platform for active traders; becoming number one in wallet share for the next generation; and building the number one global financial ecosystem. As disclosed in the annual report, agreements were pending to acquire PT Buana Capital Sekuritas, an Indonesian brokerage, and PT Pedagang Aset Kripto, a licensed Indonesian digital financial asset trader, both entered into in December 2025 and subject to customary closing conditions including regulatory approvals.

The business is regulated at nearly every layer: SEC and FINRA net capital rules for the broker-dealers (RHS, RHF, TradePMR), CFTC Regulation 1.17 and NFA rules for the FCM (RHD), state money-transmitter regimes and FinCEN registration for RHC, CFPB and federal banking oversight of Robinhood Credit's card program, FCA authorization for RHUK, MiCA/MiFID for RHEU and Bitstamp Financial Services, SEC registration for the investment advisers RAM and RHV, plus AML/counter-terrorist-financing, anti-bribery (FCPA and U.K. Bribery Act) and emerging AI regimes. Results are seasonal to the extent retail interest, trading volumes, trading-day counts and proxy season vary, though management notes market and macroeconomic events can override seasonal patterns.

Risk factors

From the fiscal year 2025 Form 10-K, accession 0001783879-26-000023, as updated in the Form 10-Q for the quarter ended June 30, 2026, accession 0001783879-26-000114.

Growth may not continue at historical rates. Robinhood has grown rapidly since founding, but the conditions that drove that growth may not persist. Revenue growth has decelerated before, and the company warns that no prior quarterly or annual metric should be read as an indicator of future periods. Intended benefits of acquisitions and investments may not be realized.

Rapid expansion into new products, lines and geographies. Continuous product introduction and geographic expansion make the business hard to model and strain resources. The 10-Q names two concrete new business lines with heightened risk: the Trump Accounts initiative, where Robinhood serves as brokerage and initial trustee, exposing it to political and public scrutiny, federal contracting requirements and the operational challenge of building to government specification, and RHS's June 2026 FINRA approval to engage in underwriting, which brings underwriter liability for misstatements in offering documents, the risk of losses on unsold securities, and real or perceived conflicts with the retail brokerage. The company has previously undertaken multiple restructurings and workforce reductions, most recently in June 2026.

Quarter-to-quarter volatility. Results depend on trading activity and Net Deposits, both outside management's control. Named drivers of fluctuation include market volatility and "meme" trading episodes, interest rates, cryptocurrency prices and volumes, the mix of customers and pricing tiers in crypto, delisting of cryptocurrencies asserted or determined to be securities, system outages or trading restrictions, security and privacy incidents, tariffs and trade policy shifts, geopolitical conflict and banking instability, and changes in tax law. The company generated positive full-year GAAP net income for the first time in 2024 and again in 2025, but warns it may not sustain profitability.

Transaction-based revenue and PFOF regulation. A large share of revenue depends on routing orders to Liquidity Providers. Tightening spreads reduce PFOF. The SEC's September 2024 Final Rules on tick sizes, access fee caps and quote transparency, whose compliance dates for the minimum pricing increment and access fee cap rules were extended to November 2027 on June 11, 2026, are expected to compress spreads on smaller orders and reduce PFOF. The Rule 605 Order Execution Disclosure Rules apply to RHF and RHS beginning August 1, 2026, making execution-quality comparisons public. PFOF arrangements with equities and options Liquidity Providers are generally not documented under binding contracts, leaving little recourse if a provider withdraws; overnight Robinhood 24 Hour Market trades are routed primarily through only two Liquidity Providers.

Interest rate exposure. Net interest revenues are directly exposed to floating rates. Management states explicitly that future Federal Reserve rate cuts would negatively affect net interest revenues and customers' returns on cash deposits. The company models 50, 100 and 150 basis point shifts, excluding Cash Sweep balances on the reasoning that it can adjust the rate passed to users.

Regulatory proceedings, investigations and litigation. Robinhood describes itself as subject to extensive and changing regulation and to continuing investigations and settlements. Disclosed matters include the New York Attorney General's investigation into brokerage execution quality and price collaring (ongoing since July 2023); state examinations covering complaint supervision, the August 4–5, 2024 overnight trading disruptions, and presidential-election and sports event contract offerings; FINRA investigations into the same overnight disruptions; an FDIC investigation into Electronic Fund Transfer Act compliance; ongoing arbitrations, subpoenas and investigations arising from the Early 2021 Trading Restrictions in GameStop and AMC; IPO securities and derivative litigation; Cash Sweep and pay-transparency class actions; and a consolidated PFOF/best-execution class action settled with court approval in June 2026.

Event contracts are the sharpest live legal exposure. Robinhood faces suits from state gambling-recovery entities in Georgia, Illinois, Kentucky, Massachusetts, Ohio and South Carolina; from the Blue Lake Rancheria, Chicken Ranch Rancheria and Picayune Rancheria tribes; from the Ho-Chunk Nation; from the States of Wisconsin and Kentucky; and from multiple consumer class actions filed in April and June 2026. RHD has filed its own suits seeking injunctive relief against Nevada, New Jersey, Massachusetts, Michigan and Washington gaming enforcement, with mixed results, it agreed to cease offering new sports-related event contracts in Nevada as of December 1, 2025 pending appeal, and its Michigan preliminary injunction was denied in June 2026. The CFTC withdrew a proposed rule amendment that would likely have prohibited sports and election event contracts on February 4, 2026 and has proposed new, not-yet-final amendments. An adverse outcome could force Robinhood to stop offering some or all event contracts in one or more jurisdictions, potentially with minimal notice.

Cryptocurrency regulatory uncertainty. Whether a given cryptocurrency is a "security" and a given transaction an "investment contract" remains unsettled in the U.S.; a mischaracterization could bring scrutiny, investigations, fines and penalties. Staking and onchain lending carry the risk of being alleged to involve unregistered securities offerings or unregistered broker-dealer activity. Stock Tokens, Classic Stock Tokens, EEA perpetual futures, and Wallet access to Stock Tokens and decentralized perpetual futures via a third-party decentralized exchange are flagged as carrying significant regulatory, litigation, contractual, operational and reputational risk.

Rothera is consolidated but not majority-owned or operationally controlled. The joint venture with SIG operates a futures and derivatives exchange and clearinghouse through Rothera E&C. Robinhood neither wholly owns nor operationally controls it, and actions taken there could damage Robinhood's business and reputation. Although Robinhood does not own a majority of Rothera's equity interests and Rothera's day-to-day operations are conducted by its own management team, Robinhood designates a majority of the members of Rothera's board of directors, which exercises governance control over Rothera, and therefore consolidates the financial results of Rothera and its subsidiaries into its own consolidated financial statements.

Other named risks. Brand and reputation damage from unfavorable media coverage; systemic market events; dependence on key employees and competition for skilled personnel; international expansion; intense competition from legacy financial institutions, large technology companies and fintech entrants; failure to retain or attract customers or to monetize new products; reliance on third parties for key functions; business, compliance, legal and reputational risk from incorporating AI; cybersecurity and data breaches; failure to maintain required net capital; and compliance and risk-management programs that may not be fully effective. The multi-class share structure concentrates voting power with the founders, and the Founders' Voting Agreement together with any future Class C issuance could prolong that control.

Management's discussion, fiscal year 2025

From the fiscal year 2025 Form 10-K, accession 0001783879-26-000023.

For the year ended December 31, 2025 against 2024, total net revenues rose 52% to $4.47 billion from $2.95 billion, net income rose 33% to $1.88 billion from $1.41 billion, and diluted EPS rose 31% to $2.05 from $1.56. Total operating expenses rose 25% to $2.38 billion from $1.90 billion. Adjusted EBITDA, a non-GAAP measure, rose 76% to $2.52 billion from $1.43 billion.

On the operating metrics, Funded Customers grew 1.8 million, or 7%, to 27.0 million, and Investment Accounts grew 2.2 million, or 8%, to 28.4 million. The Funded Customer bridge shows 2.5 million new customers, 0.4 million resurrected and 0.6 million acquired, against 1.7 million churned. Total Platform Assets rose 67% to $322.1 billion from $192.9 billion, $212.0 billion equities, $38.2 billion cryptocurrencies, $2.8 billion options and futures, and the balance in other asset types, driven by Net Deposits, acquired assets and higher equity valuations. Net Deposits were $68.1 billion, a 35% growth rate against year-end 2024 platform assets, versus $50.5 billion and 49% the prior year. ARPU rose 40% to $171 from $122, and Robinhood Gold Subscribers rose 58% to 4.18 million from 2.64 million. December 2025 Total Platform Assets were revised after the February 10, 2026 preliminary earnings release to reflect final crypto pricing data.

Transaction-based revenues rose 60% to $2,628 million from $1,647 million, an increase of $981 million: options up $363 million to $1,123 million, cryptocurrencies up $275 million to $901 million, equities up $125 million to $302 million, and other transaction-based revenues up $218 million to $302 million on Prediction Markets activity and instant withdrawals. Options benefited from higher rebate rates driven by the mix of ticker symbols traded, a 12% increase in contracts traded per trader and a 16% increase in users placing option trades, offset by a $55 million increase in match incentives paid to customers. Cryptocurrency revenue rose on higher rebate rates from crypto market makers and a 6% increase in users placing crypto trades, partly offset by a 9% decline in average notional volume per trader and $18 million of incentives, and benefited from the Bitstamp acquisition. Equities revenue rose on a 65% increase in average notional volume per trader and a 12% increase in users placing equity trades, offset by lower equity rebate rates and $14 million of match incentives.

Net interest revenues rose 37% to $1,514 million from $1,109 million, an increase of $405 million on growth in interest-earning asset balances and securities lending, partly offset by lower interest on corporate cash and investments in a lower short-term rate environment. Within the line, margin interest rose 80% to $573 million, securities lending rose 102% to $190 million, credit card net interest rose 167% to $64 million, and interest on corporate cash and investments fell 35% to $167 million. Total interest-earning assets averaged $55.2 billion for the year at a 2.45% annual yield; the margin book stood at $16,823 million at year end against $7,909 million a year earlier. Other revenues rose $136 million, of which $70 million came from Gold subscription growth and $63 million from more digital assets listed, acquired businesses and increased IPO offerings.

On the expense side, general and administrative costs rose $173 million, $78 million of employee compensation, benefits and overhead on higher headcount, payroll taxes on vesting Market-Based RSUs and shares granted in connection with acquisitions; $73 million of other G&A, largely because the prior year included a $55 million reversal of a regulatory settlement accrual; and $17 million of professional fees. Technology and development rose $79 million ($33 million software and tools, $22 million cloud infrastructure, $18 million other). Brokerage and transaction costs rose $47 million. Provision for credit losses rose $38 million, of which $31 million was credit-card related on higher purchased receivable balances. Operations costs rose $18 million. Provision for income taxes rose $572 million, primarily because the prior year benefited from the release of the valuation allowance on U.S. federal and certain state deferred tax assets in the fourth quarter of 2024, and because of business growth.

Liquidity at December 31, 2025 comprised $4.3 billion of cash and cash equivalents and $152 million of stablecoin, against committed revolving credit facilities totaling $3.775 billion and Credit Card Funding Trust capacity of up to $950 million, with no borrowings outstanding under the uncommitted revolvers. The off-balance sheet amount funded under the Coastal Bank Program Agreement was $200 million. Under the repurchase authorization then in place, $1 billion approved May 28, 2024 and increased by $500 million on April 30, 2025 to $1.5 billion, the company repurchased $653 million of Class A common stock during 2025. All regulated subsidiaries (RHS, RHF, RHD and TradePMR) complied with their capital requirements. Management identified allowance for credit losses, business combinations, goodwill, income taxes and share-based compensation as its critical accounting estimates; all Market-Based RSUs were fully vested as of December 31, 2025.

Current quarter, three and six months ended June 30, 2026

From the Form 10-Q for the quarter ended June 30, 2026, accession 0001783879-26-000114, and the results release furnished with the Form 8-K of July 29, 2026, accession 0001783879-26-000113.

Total net revenues for the second quarter of 2026 rose 32% year over year to a record $1,308 million from $989 million. Net income was $573 million, of which $561 million was attributable to Robinhood, against $386 million a year earlier; diluted EPS rose 48% to $0.62 from $0.42. Total operating expenses rose 33% to $734 million from $550 million. Adjusted EBITDA, a non-GAAP measure, rose to $741 million from $549 million. For the six months, net revenues were $2,375 million against $1,916 million, and net income attributable to Robinhood was $911 million against $722 million.

The revenue mix shifted sharply. Transaction-based revenues rose 44% to $776 million from $539 million, a $237 million increase in which event contracts contributed $146 million, options $77 million and equities $63 million, partially offset by a $60 million decline in cryptocurrencies. Event contracts revenue was $156 million against $10 million a year earlier, now 12% of total net revenues against 1%, on an acceleration in the prediction markets business from an offering that was still early-stage in mid-2025. Options revenue rose 29% to $342 million on a 43% increase in options contracts traded per trader, partly offset by lower rebate rates from the mix of ticker symbols traded. Equities revenue rose 95% to $129 million on a 56% increase in average notional volume per trader, a 13% increase in users placing equity trades, and higher rebate rates. Cryptocurrency revenue fell 38% to $100 million on lower rebate rates from crypto market makers, a 16% decline in users placing crypto trades and a 20% decline in average notional volume per trader, partly offset by Bitstamp; crypto fell from 16% to 8% of total net revenues. For the six months, cryptocurrency revenue fell 43% to $234 million while event contracts rose to $260 million from $13 million.

Net interest revenues rose $32 million in the quarter (and $101 million for the six months) to $389 million, driven by higher margin interest, up 89% to $215 million, and net credit card interest, up 208% to $40 million, together with higher accretion income on investments. Those gains were partly offset by securities lending net interest falling 81% to $10 million on an unfavorable average rate against higher stock loan balances, and by declines in Cash Sweep (down 32% to $41 million), interest on segregated cash (down 22% to $60 million) and interest on corporate cash and investments (down 33% to $31 million) in a lower short-term rate environment. Management repeats that future Federal Reserve rate cuts would hurt net interest revenues. At June 30, 2026 the off-balance sheet amount funded under the Coastal Bank Program Agreement was $214 million and the on-balance sheet amount was $1,243 million. Other revenues rose $50 million to $143 million on Gold subscription growth, service revenues earned from Trump Accounts, and coin listing revenues.

Operating expense growth was concentrated in general and administrative, up $67 million to $199 million, of which $29 million was employee compensation, benefits and overhead driven by increased share-based compensation from the modification of executive awards tied to senior leadership transitions, with other G&A up $22 million and legal expenses up $7 million for new product offerings and legal reserves. Chief among those transitions was the chief financial officer transition: Shiv Verma, previously senior vice president of finance and strategy and treasurer, succeeded Jason Warnick effective February 6, 2026, with Warnick moving to an advisory role. Technology and development rose $42 million to $256 million on $30 million of compensation from recent acquisitions and new product launches and $12 million of software and tools. Operations rose $28 million to $57 million, including $13 million of customer experience costs to support Trump Accounts. Provision for credit losses rose $28 million to $56 million, driven by a $32 million increase in credit-card provisioning on higher purchased receivable balances, partly offset by lower reserve rates on improved recoveries, with brokerage-related provision down $4 million. Brokerage and transaction costs rose $14 million to $62 million and marketing rose $5 million to $104 million, the latter on prediction markets and credit card spend against lower brand campaign spend. Total share-based compensation was $105 million in the quarter against $78 million. Other income, net rose $132 million to $135 million, driven by a $106 million gain on the deconsolidation of RVI and a $23 million gain on equity securities primarily related to RVI holdings. Provision for income taxes rose $80 million to $136 million on business growth and lower excess tax benefits from share-based compensation.

Operating metrics set records. Funded Customers rose 1.9 million, or 7%, to 28.4 million; Investment Accounts rose 2.5 million, or 9%, to 29.9 million. Total Platform Assets rose 32% to $368.7 billion, driven by Net Deposits and higher equity valuations and partly offset by lower cryptocurrency valuations. Net Deposits were $21.7 billion, a 28% annualized growth rate against Q1 2026 platform assets; trailing-twelve-month Net Deposits were $75.7 billion, a 27% growth rate. ARPU rose 24% to $187 and Robinhood Gold Subscribers rose 39% to 4.84 million. The release adds that Robinhood Retirement assets under custody rose 82% to $34.5 billion, the margin book rose 127% to $21.6 billion, equity notional trading volumes rose 85% to $956 billion, options contracts traded rose 50% to 774 million, event contracts traded rose more than tenfold to 13.6 billion, and Cash Sweep fell 9% to $29.7 billion after a February 2026 change to the brokerage High-Yield Cash program moved over $6 billion of Cash Sweep balances into customer free credit balances. Management also reported that thirteen business lines have reached $100 million or more in annualized revenues, newly including Robinhood Legend and the credit card business, and that the Gold Card passed 1 million customers with over $17 billion of annualized purchase volume while Robinhood Banking held over $3 billion of deposits from over 240 thousand Funded Customers.

Four corporate actions shaped the quarter:

• WonderFi closed. On June 1, 2026, Robinhood acquired all outstanding equity of WonderFi, a Canadian digital asset products and services company, for approximately $178 million in cash, recorded as $120 million of goodwill and $50 million of intangibles (customer relationships $22 million over 14 years, licenses $21 million, developed technology $7 million). The purchase price allocation remains preliminary.
• $2.2 billion of convertible notes. On June 25, 2026 the company issued $2.2 billion aggregate principal of 0.00% convertible senior notes due October 1, 2029 in a Rule 144A private offering, including $200 million from the initial purchasers' option exercised in full on June 23. The notes bear no regular interest and do not accrete; the effective interest rate is 0.43% after $30.6 million of issuance costs, and the net carrying amount was $2.17 billion at June 30. The initial conversion rate of 5.7332 shares per $1,000 implies a conversion price of about $174.42, a 65% premium to the $105.71 closing price on June 22, 2026, and represents 12.6 million potential Class A shares. Capped calls purchased on June 22 and 23 for $123.2 million carry an initial cap price of approximately $237.85. Approximately $290 million of the proceeds was used to repurchase about 2.7 million Class A shares at $105.71 in privately negotiated transactions.
• RVI deconsolidated. On June 25, 2026 Robinhood sold part of its interest in Robinhood Ventures Fund I, losing control and deconsolidating the fund. It derecognized $673 million of net assets and $322 million of non-controlling interest, received $22 million of cash, and remeasured its retained interest to a fair value of $435 million, producing the $106 million gain. The retained interest was carried at $437 million at June 30 under the fair value option. RHV remains RVI's adviser at a 2% management fee on net asset value.
• Workforce reduction. The reduction in force announced in June 2026 affected approximately 10% of full-time employees, and $23 million of associated restructuring charges was accrued in the second quarter, contributing to the year-over-year rise in operating expenses.

Liquidity at June 30, 2026 was $5.4 billion of cash and cash equivalents plus $155 million of stablecoin, with committed revolving credit facilities of up to $4.875 billion and Credit Card Funding Trust capacity of up to $1.550 billion, and no borrowings outstanding under the revolvers. The Trust purchased $6.2 billion of credit card receivables in the six months, carried $1.1 billion net of provision at June 30 against $959 million of borrowing principal and interest, at a weighted-average rate of 5.06%. Share repurchases in the quarter were $414 million, or 4.4 million Class A shares at an average of roughly $94, including the $290 million convertible-related buyback executed outside the existing authorization; cumulative repurchases since the program began in Q3 2024 reached $1.3 billion, or 27 million shares at an average of about $47. Total assets grew to $56.6 billion from $38.1 billion at year-end 2025, with long-term borrowings of $2.17 billion where there had been none.

Subsequent events

Neither the fiscal year 2025 Form 10-K nor the Form 10-Q for the quarter ended June 30, 2026 presents a separate subsequent-events note. The post-period items below are disclosed within the Form 10-Q for the quarter ended June 30, 2026, accession 0001783879-26-000114, and in the results release furnished with the Form 8-K of July 29, 2026, accession 0001783879-26-000113.

• July 1, 2026, Singapore license. Robinhood Singapore received its capital markets services license from the Monetary Authority of Singapore, a step toward offering brokerage services to Singapore customers.
• July 4, 2026, Trump Accounts launched. The program, in which Robinhood acts as brokerage and initial trustee, had reached over 7 million account sign-ups with nearly $1.5 billion deposited as of the July 29, 2026 release. Service revenues from Trump Accounts already contributed to second-quarter other revenues and to operations expense.
• July 2026, Robinhood Chain public mainnet. The company launched Robinhood Chain, a permissionless, Ethereum-compatible Layer 2 blockchain built for financial services and tokenized real-world assets, unveiled at its "The World is Flat" event in London.
• July 2026, Stock Tokens expanded. Stock Tokens, tokenized debt securities issued by Robinhood Assets (Jersey) Limited that give economic exposure to underlying securities without legal or beneficial ownership of them, became available to eligible users in more than 120 countries via the Robinhood Wallet.
• July 2026, Robinhood Earn launched. The company launched Robinhood Earn, its first decentralized lending product available directly in the Robinhood app, alongside the introduction of perpetual futures in the EU and stated plans to launch crypto offerings in the U.K.
• July 23, 2026, $500 million asset-backed notes. The Credit Card Funding Trust completed an inaugural issuance of $500 million of Series 2026-1 asset-backed notes secured primarily by a pool of credit card receivables originated by Coastal Bank. The offering comprised four classes of fixed-rate notes sold to qualified institutional buyers under Rule 144A and Regulation S, with a weighted average coupon of approximately 4.86%, a revolving period ending in June 2029 and a final maturity in July 2031.
• July 29, 2026, 2026 expense outlook lowered and tightened. Management reduced its 2026 outlook for Adjusted Operating Expenses and share-based compensation, a non-GAAP measure, to a range of $2.675 billion to $2.775 billion from the $2.7 billion to $2.825 billion range given at the Q1 2026 earnings release on April 28, 2026, citing captured efficiencies part of which fund costs at two new businesses, Rothera and WonderFi. The prior range excluded Rothera and WonderFi costs; the new range excludes provision for credit losses, costs of pending acquisitions, costs from equity modifications of restructuring and executive awards connected with the CFO transition, potential significant regulatory matters, and other significant items such as impairments and restructuring charges. No 2026 outlook for total operating expenses on a GAAP basis was provided.
• August 1, 2026, Rule 605 disclosures begin. The SEC's Order Execution Disclosure Rules apply to RHF and RHS for the first time, requiring publicly available execution-quality disclosures that allow direct comparison between brokers.

Filings that contain financial statements

• 8-K filed July 29, 2026 (accession 0001783879-26-000113), Exhibit 99.1: condensed consolidated balance sheets, statements of operations, and statements of cash flows for the quarter ended June 30, 2026 (Q2 2026), with comparative prior-year periods.
• 8-K filed April 28, 2026 (accession 0001783879-26-000061), Exhibit 99.1: condensed consolidated balance sheets, statements of operations, and statements of cash flows for the quarter ended March 31, 2026 (Q1 2026), with comparative prior-year periods.
• 8-K filed February 10, 2026 (accession 0001783879-26-000013), Exhibit 99.1: condensed consolidated balance sheets, statements of operations, and statements of cash flows for the quarter and full year ended December 31, 2025 (Q4 2025 / FY2025), with comparative prior-year periods.
• 8-K filed November 5, 2025 (accession 0001783879-25-000309), Exhibit 99.1: condensed consolidated balance sheets, statements of operations, and statements of cash flows for the quarter ended September 30, 2025 (Q3 2025), with comparative prior-year periods.
• 8-K filed July 30, 2025 (accession 0001783879-25-000250), Exhibit 99.1: condensed consolidated balance sheets, statements of operations, and statements of cash flows for the quarter ended June 30, 2025 (Q2 2025), with comparative prior-year periods.

Earnings and results

Q2 2026 (period ended June 30, 2026), reported July 29, 2026 (accession 0001783879-26-000113). Total net revenue rose 32% year-over-year to $1.31 billion, a record, driven by transaction-based revenue up 44% to $776 million (event contracts revenue up over 10x to $156 million, options up 29% to $342 million, equities up 95% to $129 million, partially offset by cryptocurrencies down 38% to $100 million). Net income rose 48% to $573 million, including $129 million of gains primarily tied to the deconsolidation of Robinhood Ventures Fund I. Diluted EPS rose 48% to $0.62. Total operating expenses rose 33% to $734 million, reflecting marketing and growth investment, one-time restructuring charges from the June 2026 workforce reduction, and costs tied to Trump Accounts and Rothera. Adjusted EBITDA (non-GAAP) rose 35% to $741 million. Net Deposits were a record $22 billion; Robinhood Gold Subscribers reached a record 4.8 million. The company lowered and tightened its full-year 2026 outlook for Adjusted Operating Expenses and SBC (non-GAAP) to $2.675–$2.775 billion, down from the $2.7–$2.825 billion range given at Q1 2026 earnings.

Q1 2026 (period ended March 31, 2026), reported April 28, 2026 (accession 0001783879-26-000061). Total net revenue rose 15% year-over-year to $1.07 billion. Net income rose 3% to $346 million; diluted EPS rose 3% to $0.38. Total operating expenses rose 18% to $656 million, driven by marketing and acquisition-related expenses. Net Deposits were $17.7 billion (22% annualized growth rate). Robinhood Gold Subscribers rose 36% to a record 4.3 million. The company raised its full-year 2026 Adjusted Operating Expenses and SBC outlook to $2.7–$2.825 billion, from $2.6–$2.725 billion given at Q4 2025 earnings, to reflect an additional $100 million for Trump Accounts infrastructure.

Q4 2025 and full-year 2025 (period ended December 31, 2025), reported February 10, 2026 (accession 0001783879-26-000013). Q4 total net revenue rose 27% year-over-year to a record $1.28 billion; full-year revenue rose 52% to a record $4.5 billion. Q4 net income was $605 million versus $916 million in Q4 2024 (the prior-year quarter included a $424 million tax benefit and regulatory accrual reversal); full-year net income was $1.9 billion versus $1.4 billion in 2024. Full-year diluted EPS was a record $2.05, versus $1.56 in 2024. Full-year share repurchases were $653 million (12 million shares at an average price of $54.30).

Q3 2025 (period ended September 30, 2025), reported November 5, 2025 (accession 0001783879-25-000309). Total net revenue rose 100% year-over-year to a record $1.27 billion. Net income rose 271% to $556 million; diluted EPS rose 259% to $0.61. Net Deposits were a record $20 billion; Robinhood Gold Subscribers reached a record 3.9 million.

Q2 2025 (period ended June 30, 2025), reported July 30, 2025 (accession 0001783879-25-000250). Total net revenue rose 45% year-over-year to $989 million. Net income rose 105% to $386 million; diluted EPS rose 100% to $0.42. Net Deposits were $13.8 billion; Robinhood Gold Subscribers reached a record 3.5 million. The company closed its acquisition of Bitstamp Ltd. during the quarter (June 2025) and disclosed a signed agreement to acquire WonderFi, a Canadian digital-asset firm, expected to close in the second half of 2025 subject to regulatory approvals.

Mergers and acquisitions

• Bitstamp Ltd., Robinhood closed its acquisition of Bitstamp, a cryptocurrency exchange with more than 50 active licenses and registrations globally, in June 2025, as disclosed in the Q2 2025 earnings release (accession 0001783879-25-000250).
• WonderFi Technologies Inc., Robinhood disclosed a signed agreement to acquire WonderFi, a Canadian digital-asset firm, in its Q2 2025 earnings release, at the time expecting to close in the second half of 2025. The deal took longer than first indicated: Robinhood's Q2 2026 earnings release (accession 0001783879-26-000113) states that Robinhood "closed its acquisition of WonderFi" during the quarter, marking the company's official entry into the Canadian market. Per the Q2 2026 10-Q (accession 0001783879-26-000114, Note 3 Business Combinations), Robinhood acquired all outstanding equity of WonderFi on June 1, 2026; the acquisition-date fair value of consideration transferred was approximately $178 million, paid entirely in cash.
• MIAXdx, Rothera, LLC, Robinhood's prediction-markets joint venture with Susquehanna International Group, acquired MIAXdx in January 2026 to build out an independent, CFTC-licensed exchange and clearinghouse, as disclosed in the Q4 2025 earnings release (accession 0001783879-26-000013). Per the Q2 2026 10-Q (accession 0001783879-26-000114, Note 3 Business Combinations), Rothera acquired 90% of the issued and outstanding equity of MIAXdx on January 20, 2026 for approximately $79 million in cash, of which SIG contributed $41 million toward the purchase price and related expenses; Rothera has the ability to purchase half of the remaining 10% held by Miami International Holdings, Inc. within three years of closing, subject to certain conditions. This is an acquisition by the joint venture rather than directly by Robinhood Markets, Inc.; however, Robinhood designates a majority of Rothera's board and consolidates Rothera's financial results into its own consolidated financial statements, which is why the transaction is recorded in Robinhood's own Note 3 Business Combinations with a $9 million non-controlling interest.
• Indonesia brokerage and crypto firm, During the fourth quarter of 2025, Robinhood announced agreements to acquire a brokerage and crypto firm in Indonesia, expanding its reach in Asia, as disclosed in the Q4 2025 earnings release (accession 0001783879-26-000013). Subsequent 8-K filings through July 2026 do not describe this transaction as closed; its status should be treated as pending.

Capital actions

• Convertible notes offering, closed June 25, 2026 (accession 0001783879-26-000077; related pricing/launch 8-K dated June 23, 2026, accession 0001783879-26-000074). Robinhood completed a private offering of $2.2 billion aggregate principal amount of 0.00% convertible senior notes due 2029, including full exercise of a $200 million initial-purchaser option. Net proceeds were approximately $2.169 billion. The notes carry an initial conversion price of approximately $174.42 per share (a roughly 65% premium to the June 22, 2026 closing price) and mature October 1, 2029. In connection with the offering, Robinhood entered into capped call transactions (initial cap price approximately $237.85 per share) intended to limit dilution, and used approximately $290 million of net proceeds to repurchase 2.743 million shares of Class A common stock at $105.71 per share, outside its existing buyback authorization.
• Share repurchase authorization, announced March 24, 2026 (accession 0001783879-26-000045). Robinhood's board approved a new $1.5 billion share repurchase program, replacing and rolling over the prior authorization, representing more than $1.1 billion of incremental capacity. Management expects to execute the program over approximately three years beginning in Q1 2026.
• Fifth Amended and Restated Credit Agreement, dated March 20, 2026 (accession 0001783879-26-000045). Robinhood Securities, LLC amended and restated its 364-day senior secured revolving credit facility, increasing total commitment to $3.25 billion (with an option to increase to $4.875 billion), up from the $2.65 billion facility entered into in March 2025.

Restructuring

• Workforce reduction, announced June 16, 2026 (accession 0001783879-26-000071). Robinhood announced a reduction in force affecting approximately 10% of its full-time employees, plus closure of a small number of open roles, described as taken from a position of strength given record June trading volumes. The company estimated approximately $20 million in cash severance and benefits charges and approximately $8 million in share-based compensation charges, to be recognized in Q2 2026.

Management and governance changes

• CFO transition. On October 30, 2025, then-CFO Jason Warnick disclosed his planned retirement (accession 0001783879-25-000309); Shiv Verma, previously SVP of Finance and Strategy and Treasurer, was appointed CFO effective February 6, 2026 (accession 0001783879-26-000013), with related compensation terms detailed in an amended filing dated March 24, 2026 (accession 0001783879-26-000047). Warnick moved to an advisory role and remains employed through September 1, 2026.
• Principal accounting officer appointment, June 25, 2026 (accession 0001783879-26-000083). The board appointed Dara Bazzano, previously Robinhood's Chief Accounting Officer since April 2026, as principal accounting officer, succeeding Verma in that specific capacity; Verma continues as CFO and principal financial officer.
• Chief Technology Officer departure, May 7, 2026 (accession 0001783879-26-000065). Jeffrey Pinner separated from his role as CTO effective the same day.
• 2026 Annual Meeting, held June 2, 2026 (accession 0001783879-26-000068). All ten director nominees were re-elected; stockholders approved, on an advisory basis, 2025 named-executive-officer compensation; and stockholders ratified Ernst & Young LLP as independent auditor for fiscal year 2026.

Other filings

Robinhood furnished routine SEC Rule 606(a) order-routing reports for its broker-dealer subsidiaries for Q3 2025 (accession 0001783879-25-000305) and Q4 2025 (accession 0001783879-26-000007); these are unaudited subsidiary-level disclosures that do not present consolidated results and are administrative rather than material events.

About this file

HOOD annual income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

HOOD quarterly income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

HOOD year-to-date income statement and cash flow

Taken from the SEC filings and normalized to actual dollars.

HOOD trailing twelve month income statement and cash flow

Derived by AI from the figures the filings report. No filing prints these, so none of them is linked.

Adjustments

Prior year to date

Taken from the SEC filings and normalized to actual dollars.

Notes

• Two filings are behind every figure here: the FY2025 Form 10-K (accession 0001783879-26-000023, filed February 18, 2026) and the second-quarter 2026 Form 10-Q (accession 0001783879-26-000114, filed July 30, 2026). Robinhood's fiscal year is the calendar year.
• Periods reported: the three fiscal years the 10-K puts on the face of its income statement and cash flow statement (2023, 2024 and 2025); the two discrete quarters the 10-Q prints side by side (three months ended June 30, 2025 and June 30, 2026); the six-month year-to-date columns; and a trailing-twelve-month view ended June 30, 2026. The 10-K's balance sheet presents only December 31, 2024 and December 31, 2025, so fiscal 2023 carries an income statement and a cash flow statement but no balance sheet.
• Robinhood is a retail brokerage, so the record is built on the line items its own statements use rather than a revenue/cost-of-goods frame: net revenues split into transaction-based revenues, net interest revenues and other revenues; operating expenses by function; a balance sheet dominated by customer margin receivables, payables to users and securities lending; and cash flow with capital expenditures and free cash flow.
• Robinhood's income statement does not print an operating-income subtotal, so 'operating_income' in this record is total net revenues less total operating expenses, exactly as the two printed lines stand. 'Other income, net' sits below it and is therefore excluded from it, which is how the filing orders the statement.
• Capital expenditures are the sum of two investing lines the company prints separately, 'Purchases of property, software, and equipment' and 'Capitalization of internally developed software'. Those two components and 'capex' are stated as positive cash outflows; free cash flow is operating cash flow less capital expenditures. Investing and financing cash flow keep the sign the filing prints.
• Operating cash flow at a broker moves with customer-driven balance-sheet items rather than with earnings: securities borrowed and loaned, receivables from users and payables to users swing it by billions from period to period. Fiscal 2024's negative $157 million of operating cash flow sits alongside $1.41 billion of net income for that reason, and the same items explain why the six months to June 30, 2026 produced $2.76 billion of operating cash flow against $919 million of net income.
• The 10-Q presents its cash flow statement for the six months only, with no three-month column, so neither quarter in this record carries cash flow figures. The six-month cash flows are in the year-to-date and prior-year-to-date blocks.
• 'net_income' is the consolidated figure including non-controlling interests, as the income statement prints it. 'net_income_attributable_to_robinhood' removes those interests, and is the figure per-share amounts are struck on; the filing shows the same amount as income attributable to common stockholders for both basic and diluted earnings per share.
• Robinhood reports no borrowings caption on its balance sheet before 2026. 'total_borrowings' here is long-term borrowings plus the outstanding borrowings of the Credit Card Funding Trust, which the company includes within other current liabilities and discloses in its financing-activities note: $131 million at December 31, 2024, $602 million at December 31, 2025 and $959 million at June 30, 2026 (principal and interest). There were no borrowings outstanding under the revolving credit facilities at any of those three dates.
• Long-term borrowings appear for the first time at June 30, 2026: on June 25, 2026 the company issued $2.2 billion aggregate principal amount of 0.00% convertible senior notes due 2029, carried at $2.17 billion net of issuance costs. In connection with the offering it bought capped calls for $123.2 million and repurchased about 2.7 million Class A shares for roughly $290 million.
• Other income, net of $135 million in the second quarter of 2026 includes a $106 million gain on the deconsolidation of RVI. On June 25, 2026 Robinhood sold part of its interest in RVI and lost control of it; the gain is the remeasurement of the retained interest to fair value, and the retained interest of $437 million sits in other current assets at June 30, 2026.
• Non-controlling interests rose from $11 million at December 31, 2025 to $61 million at June 30, 2026. The statement of stockholders' equity attributes the move to RVI's initial public offering in March 2026 ($312 million), interests recognised in a business combination ($9 million), capital contributions from a partner ($41 million) and $8 million of six-month income attributable to those interests, less $320 million removed on the deconsolidation of RVI.
• The trailing-twelve-month block is derived, not filed: fiscal 2025 plus the six months ended June 30, 2026 less the six months ended June 30, 2025, applied line by line to the income statement and the cash flow statement. It is cited to both filings because it draws on both.
• Share counts and per-share amounts are as reported and cover Class A and Class B common stock together; the 10-K states weighted-average shares in whole shares and the 10-Q states them in millions, and both are recorded here in whole shares. Robinhood has had no stock split, pays no dividend, and there are no American depositary shares or currency conversions involved.
• The December 31, 2025 balance-sheet column printed in the 10-Q matches the 10-K's audited December 31, 2025 column line for line, and the 2025 income-statement and cash-flow figures are unchanged from the 10-K, so no period in this record has been restated.

Uncertainties

• No cash flow figures are reported for either discrete quarter. The 10-Q's cash flow statement has a six-month column only, and a three-month cash flow cannot be obtained by differencing without a first-quarter statement, which neither filing contains.
• The Credit Card Funding Trust borrowings used in 'total_borrowings' are the outstanding balance of borrowing principal and interest as disclosed in the financing-activities note, not a separate balance-sheet caption; the company reports them inside other current liabilities and does not split principal from accrued interest.
• 'operating_income' is not a subtotal Robinhood publishes. It is stated here as total net revenues less total operating expenses to make the operating picture comparable across periods, and it will not match any figure printed in the filings.
• Quarterly weighted-average share counts are recorded as the 10-Q prints them, rounded to the nearest million (899 million basic and 912 million diluted for the second quarter of 2026), so per-share amounts recomputed from them will differ from the reported amounts in the last cent. The annual figures are whole-share counts from the 10-K and carry no such rounding.
• Fiscal 2023 carries no balance sheet because the 10-K's balance sheet presents only December 31, 2024 and December 31, 2025. Fiscal 2023's total assets, borrowings and equity are therefore absent rather than zero.

Company details

Fiscal period

Source filings