Published
# Robinhood Markets, Inc. (HOOD) — Narrative
## 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.