Sentences and paragraphs of HOOD's Risk Factors and MD&A, 10-K 2026-02-18 against 10-K 2025-02-18.
Each links to the text at sec.gov.
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AddedRisk Factors
RHEU and Bitstamp Europe S.A. are subject to mandatory capital requirements that vary based on the services we provide. Failure to meet these capital requirements or any future increases to these requirements could limit our ability to obtain or maintain authorization, constrain operational flexibility, or result in penalties or sanctions.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedRisk Factors
conditions might cause individuals to be less proactive in seeking ways to improve the returns on their trading or investment decisions and, thus, decrease the demand for our products and services.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedRisk Factors
Rothera, owned and operated as a joint venture with SIG, operates a futures and derivatives exchange and clearinghouse through its subsidiary, Rothera E&C. We do not wholly own or operationally control Rothera and its subsidiaries, and actions taken by Rothera and its subsidiaries could adversely affect our business, financial condition, results of operations, and reputation.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedRisk Factors
On November 19, 2025, Robinhood invested in Rothera, a joint venture established to operate an independent and institutional-grade futures and derivatives exchange and clearinghouse. On January 20, 2026, Rothera acquired 90% of the issued and outstanding equity of Rothera E&C, a CFTC-licensed DCM, DCO, and SEF to accelerate delivery of futures and derivative product offerings, including prediction markets.
Read it in 10-K 2026-02-18 at sec.gov ↗
RemovedRisk Factors
•the timing and amount of non-cash expenses, such as share-based compensation (“SBC”) and asset impairments;
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
A large portion of our revenue is transaction-based, in that we receive consideration in exchange for routing our users’ equity, option, and cryptocurrency trade orders to market makers for execution. With respect to equities and options trading, such fees are known as payment for order flow, or “PFOF.” With respect to cryptocurrency trading, currently we receive “Transaction Rebates.” Our transaction-based revenue is sensitive to and dependent on trading volumes and therefore tends to decline during periods in
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
We operate in a highly regulated industry and, despite our efforts to comply with applicable legal requirements, like all companies in our industry, we must adapt to frequent changes in laws and regulations, and face complexity in interpreting and applying evolving laws and regulations to our business, heightened scrutiny of the conduct of financial services firms and increasing penalties for violations of applicable laws and regulations. We might fail to establish and enforce procedures that comply with applicable legal requirements and regulations. We might be adversely affected by new laws or regulations, changes in the interpretation of existing laws or regulations, or more rigorous enforcement. For instance, since we began to offer event contracts, the CFTC has been in the process of appealing the U.S. District Court for the District of Columbia’s decision in KalshiEx LLC v. Commodity Futures Trading Commission, and should the CFTC succeed on appeal, we may not be able to continue to offer certain event contracts and potentially could be subject to adverse litigation and regulatory actions for doing so. In addition, the CFTC has proposed a rule amendment that has not been finalized—if adopted by the CFTC as proposed, we would likely be prohibited from offering election event contracts (similar to the ones we offered in November 2024) in the future. Our ability to offer certain products may also be impacted by actions taken by government regulators. There is a risk that regulators could request or require us to cease offering specific products or services. Such regulatory actions could lead to the suspension or termination of product offerings, which may result in increased compliance costs, financial losses and negative publicity. For example, in February 2025, the CFTC formally requested that RHD “not permit customers to access” sports event contracts “until staff can complete a review,” leading us to suspend the rollout of this product. We also might be adversely affected by other regulatory changes related to our obligations with regard to suitability of financial products, supervision, sales practices, application of fiduciary or best interest standards (including the interpretation of what constitutes an “investment recommendation” for the purposes of the SEC’s “Regulation Best Interest” and state securities laws) and best execution in the context of our business and market structure, any of which could limit our business, increase our costs and damage our reputation.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
We rely on technology, including the internet and mobile services, to conduct much of our business activity and allow our customers to conduct financial transactions on our platforms. Our systems and operations, including our cloud-based operations and disaster recovery operations, as well as those of the third parties on which we rely to conduct certain key functions, are vulnerable to disruptions from natural disasters, power and service outages, interruptions or losses, computer and telecommunications failures,
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
to expand our business. For example, EU’s AI Act, which became effective on August 1, 2024, governs the development, marketing and use of AI in the EU and could impose significant additional costs on us to comply or significant fines for failing to comply.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
totaling $8 million and agreeing to complete an internal audit review of electronic communications retention.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
In addition, as a clearing member firm of securities and derivatives clearinghouses in the United States, we are also exposed to clearing member credit risk. Securities and derivatives clearinghouses
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
We currently facilitate customer trades for certain cryptocurrencies that we have analyzed under applicable internal policies and procedures and, for cryptocurrencies supported on our the RHC platform, that we believe are not securities under U.S. federal and state securities laws. Determining whether any given cryptocurrency is a security is a highly complex, fact-driven analysis, the outcome of which is difficult to predict and may evolve over time based on changes in the cryptocurrency and its related ecosystem. Different parties may reach different conclusions about the outcome of this analysis based on the same facts. The analysis may become clearer depending on the outcome in certain cases currently pending in varying stages of litigation. The SEC Staff has indicated that the determination of whether or not a cryptocurrency is a security depends on the characteristics and use of that particular asset. The SEC and the SEC Staff have taken positions that certain cryptocurrencies are “securities” in the context of settled or litigated enforcement actions. Otherwise, the SEC has not historically provided advance confirmation on the status of any particular cryptocurrency as a security and the current presidential administration and control of Congress in the U.S. present considerable uncertainty as to cryptocurrency regulations. While prior public statements by senior officials at the SEC indicated that the SEC does not intend to take the position that Bitcoin or Ethereum are securities (in their current forms), Bitcoin and Ethereum were the only specific cryptocurrencies as to which senior officials at the SEC had publicly expressed such a view. Moreover, such statements are not official policy statements by the SEC and reflect only the speakers’ views, which are not binding on the SEC or any other agency or court, cannot be generalized to any other cryptocurrency, and might evolve. With respect to all other cryptocurrencies, there is currently no certainty under the applicable legal test that such assets are not securities, and U.S. regulators have expressed concerns about cryptocurrency platforms adding multiple new coins, some of which the regulators question might be unregistered securities. Although our policies and procedures are intended to enable us to make risk-based assessments regarding the likelihood that a particular cryptocurrency could be deemed a security under applicable laws, including federal securities laws, our assessments are not definitive legal determinations as to whether a particular digital asset is a security under such laws. Accordingly, regardless of our conclusions, we could be subject to legal or regulatory action in the event the SEC or a court were to assert or determine that a cryptocurrency supported by our RHC platform is a “security” under U.S. law. In June 2023, the SEC charged Binance Holdings Ltd., and its affiliated U.S. entity, among others (collectively, “Binance”) and, separately, Coinbase Global, Inc., and Coinbase, Inc. (collectively, “Coinbase”) with operating their respective cryptocurrency trading platforms as unregistered national securities exchanges, brokers, and clearing agencies, also alleging that certain cryptocurrencies supported on their respective platforms are securities. The charges also implicated Coinbase’s staking-as-a-service program and its non-custodial wallet. Although we have since ceased support for certain cryptocurrencies, including Polygon, we do support Cardano and Solana on our RHC platform and offer the Robinhood Wallet, which is a self-custodial crypto wallet. While the SEC’s September 2024 memorandum of law in support of motion for leave to amend the complaint against Binance states that the SEC’s prior use of “crypto asset securities” when referring to cryptocurrency assets did not mean that the SEC was referring to the “crypto asset itself as the security” but that the cryptocurrencies at issue were offered and sold as investment contracts (and therefore are securities), the SEC’s approach going forward remains unclear in light of this memorandum of law in support of motion for leave to amend the complaint as well as the August 2024 decision in the SEC’s case against Payward, Inc. and Payward Ventures, Inc. that the cryptocurrencies at issue were not themselves securities but were offered as, or sold as, investment contracts (and therefore were securities). The outcome of these matters and decisions by regulators not to bring enforcement actions provides, and any other action, settlement, or related investigation by regulators, might provide, additional guidance on the legal status of cryptocurrencies as securities more generally, which has affected and might significantly affect the actual or perceived regulatory status and value of cryptocurrencies we currently support or might support in the future. On January 21, 2025, the SEC announced that SEC Acting Chairman Mark Uyeda “launched a crypto task force dedicated to developing a comprehensive and clear regulatory framework for crypto assets.” The task force will be focused on helping the SEC “draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously.” While the SEC has formed the Crypto Task Force to provide clarity on the application of the federal securities laws to the crypto asset market and to recommend practical policy measures that aim to
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
In January 2023, the Bankruptcy Court for the Southern District of New York issued a ruling in In re Celsius Network LLC, that certain crypto assets held by Celsius customer accounts were the property of
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
we experience a high volume of such staking requests from RHEU customers on an ongoing basis, we could incur significant costs. The technological complexity of staking mechanisms also introduces operational challenges both to us and our third-party provider, which could result in the loss of RHEU customer assets. Any of these risks could negatively impact our reputation, business, financial condition, and results of operations and discourage existing and future customers from utilizing our products and services.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
certain community members might take actions that adversely impact the use, adoption and price of Bitcoin, Ethereum or any of their forked alternatives.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
harm our business and could help third parties, including our competitors, develop products and services that are similar to or better than ours.
Read it in 10-K 2025-02-18 at sec.gov ↗
RewordedRisk Factors
As we are a financial services company, our business, results of operations, and reputation are directly and indirectly affected by elements beyond our control, such as financial market volatility (such as we previously experienced during the COVID-19 pandemic or have experienced and may experience in the future due to trade policy shifts and the imposition or escalation of tariffs implemented by the U.S. and other countries or blocs, including China, Canada, and the EU, and those countries’ or blocs’ responses to such shifts and tariffs), economic and political conditions including unemployment rates, inflation, tax and interest rates, geopolitical conflicts, such as the Russian invasion of Ukraine and ongoing events in the Middle East, financial market volatility (such as we previously experienced during the COVID-19 pandemic or may experience due to recent trade policy shifts such as the potential imposition or escalation of tariffs implemented by the United States, Canada or other governments), significant increases in the volatility or trading volume of particular securities, cryptocurrencies, or Futures (such as we experienced during the meme stock events of early 2021 and the Dogecoin surge of mid-2021), broad trends in business and finance, actual events or concerns involving liquidity, defaults, or non-performance by third-party financial institutions or transactional counterparties (such as the 2023 Banking Events), changes in volume of securities, cryptocurrencies, or Futures trading generally and changes in the markets in which such transactions occur (such as following the 2022 Crypto Bankruptcies), occur, and changes in how such transactions are processed.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
During our discussions with the SEC Staff in the fourth quarter of 2023, the Staff asserted that they are considering whether, and may recommend that the SEC find that, certain cryptocurrencies supported by our RHC platform are securities, and in the second quarter of 2024, we received a “Wells Notice” stating that the May 2024 Wells Notice (as defined in Note 16 - Commitments & Contingencies SEC Staff made a “preliminary determination” to our consolidated financial statements in this Annual Report). recommend that the SEC file an enforcement action against RHC alleging violations of Sections 15(a) and 17A of the Exchange Act.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
By permitting customers to purchase securities on margin, we are subject to risks inherent Rapid changes in extending credit, especially during periods of rapidly declining markets (including rapid declines market conditions or in the trading price of individual securities) securities may cause the value of collateral to fluctuate, potentially resulting in which the value of the collateral held by us could fall falling below the amount of a customer’s indebtedness.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
The quote transparency rules will make the information about smaller-sized orders publicly available and result in the contraction of spreads across several securities, which we expect will could lead to a decrease in the PFOF earned from such orders once the rules go into effect in November 2025. securities information processors (“SIPs”) begin dissemination of information incorporating the new round lot and odd-lot definitions (starting on May 1, 2026), followed by an August 1, 2026 compliance date for the Rule 605 execution quality report amendments.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
From time to time, we have been and currently are subject, and, given the highly regulated nature of the industries in which we operate, we expect that we will be subject in the future, to a number of legal and regulatory examinations and investigations arising out of our business practices and operations, conducted by the DOJ, SEC, FINRA, the CFTC and The National Futures Association the NFA or other SROs or federal agencies such as OFAC, FinCEN, the FDIC or CFPB, and state regulatory agencies, such as the MSD, the California Attorney General’s Office, CAGO, the NYDFS, and NYDFS, international regulatory agencies, such as the U.K.’s FCA, Luxembourg’s Commission de Surveillance du Secteur Financier, Slovenia’s Agencija za trg vrednostnih papirjev, the MAS, and the Bank of Lithuania, among other authorities.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Our international expansion continued efforts to expand our business internationally also subjects subject us to additional laws, regulations, or other government or regulatory scrutiny as discussed in “—Risks “-Risks Related to Our Business—We Business-We currently operate in certain international markets and plan to further expand our international operations, which exposes us to significant new risks, and our international expansion efforts might not succeed. succeed” and “-Risks Related to Regulation and Litigation-Our business is subject to extensive, complex and changing laws and regulations, and related regulatory proceedings and investigations.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Further pursuant to the equity exchange right agreements entered into between us and each of our founders in connection with our IPO, each of our founders has a right (but not an obligation) to require us to exchange, for shares of Class B common stock, any shares of Class A common stock received by them upon the vesting and settlement of pre-IPO RSUs (the “Equity Equity Exchange Rights”). Rights.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Beginning in November 2025, May 2026, as a result of the Tick Size amended round lot and Access Fee Cap Rules odd-lot definitions, the SIPs will make begin making information about smaller-sized orders publicly available and is likely to available, which will result in the contraction of spreads across many securities, which and we expect will may lead to a decrease in the PFOF earned from such orders.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
We rely on certain third-party computer systems or third-party service providers, including several cloud technology providers such as Amazon Web Services AWS (on which we primarily rely to deliver our services to customers on our platforms), internet service providers, payment services providers, market and third-party data providers, regulatory services providers, clearing systems, market makers, Liquidity Providers, securities and cryptocurrency exchanges, facilitators of cryptocurrency staking services for RHEU customers, services, alternative trading systems (such as Blue Oceans ATS, LLC (“BOATS”) BOATS with respect to Robinhood 24 Hour Market), exchange systems, systems (such as ForecastEx, LLC and KalshiEx LLC, with respect to certain event contracts), banking systems, payment gateways that link us to the payment card and bank clearing networks to process transactions, co-location facilities, communications facilities, and other third-party facilities to run our platforms, facilitate trades by our customers, customers (such as Wells Fargo Clearing Services, LLC for TradePMR customers), provide the technology we use to manage some of our cryptocurrency custody, transfer, and settlement operations and support or carry out some regulatory obligations.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
In July 2024, Robinhood began to execute on the Repurchase Program and as on April 30, 2025, we announced that the board of December 31, 2024, directors has made share repurchases of $257 million under authorized an additional $500 million, bringing the Repurchase Program. Program authorization to a total of $1.5 billion.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
In addition, given our public profile, any unanticipated system disruptions, outages, technical or security-related incidents, or other performance problems relating to our platforms, such as platforms have in the November 2021 Data Security Incident (as defined in Note 16 - Commitments & Contingencies to our consolidated financial statements in this Annual Report) past and are likely in the future to receive extensive media attention.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
The need to obtain or maintain Maintaining and renewing any of these licenses, certifications, or other regulatory qualifications and approvals could impose substantial additional costs, delay or preclude planned transactions, product launches or improvements, expansions of business activities, require significant and costly operational changes, impose restrictions, limitations, limitation or additional requirements on our business, products, products and services, or prevent us from providing our products or services in a any given market.
Read it in 10-K 2026-02-18 at sec.gov ↗
Quiet changesRisk Factors
However, if as market conditions improve, we also face a risk that renewed business growth could strain our existing resources, or that we are not able to effectively scale up in response, and we could experience ongoing operating difficulties in managing our business across numerous jurisdictions, including difficulties in hiring, training, and managing a dispersed employee base.
Read it in 10-K 2026-02-18 at sec.gov ↗
Quiet changesRisk Factors
Additionally, there is no definitive guidance on whether or how these rules may apply to most cryptocurrencies, and we might be adversely affected in the future if the SEC determines that they do.
Read it in 10-K 2026-02-18 at sec.gov ↗
Quiet changesRisk Factors
The independent consultant completed its evaluation and made recommendations to implement enhancements in certain areas identified in the settlement, which will require required significant effort to implement.
Read it in 10-K 2026-02-18 at sec.gov ↗
Quiet changesRisk Factors
Furthermore, to the extent the operation of our systems relies on our third-party service providers, through either a connection to, or an integration with, third parties’ systems, the risk of cybersecurity attacks and loss, corruption, or unauthorized access to or publication of our information or the confidential information and personal data of customers and employees might increase. is increased.
Read it in 10-K 2026-02-18 at sec.gov ↗
Quiet changesRisk Factors
Third-party risks might include insufficient security measures, data location uncertainty, vulnerabilities and the possibility of data storage in inappropriate jurisdictions where laws or security measures might be inadequate.
Read it in 10-K 2026-02-18 at sec.gov ↗
Quiet changesRisk Factors
Our employee headcount has increased significantly in the past few years, so the amount of dilution due to awards of equity-based compensation to our employees could be substantial.
Read it in 10-K 2026-02-18 at sec.gov ↗
Quiet changesRisk Factors
Furthermore, the timing and amount of any repurchases, if any, will be subject to liquidity, market and economic conditions, compliance with applicable legal requirements and other relevant factors.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
Overview Robinhood was founded on the belief that everyone should be welcome to participate in our financial system. We are creating modern financial services platforms for everyone, regardless of their wealth, income, or background.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
Our mission is to democratize finance for all. We use technology to provide access to the financial system in a way that is simple and convenient for our customers. We believe investing should be familiar and welcoming, with a simple design and an intuitive interface, so that customers are empowered to achieve their goals. We started with a revolutionary, bold brand and design in the Robinhood app which makes investing approachable for millions. Over the last decade, we have disrupted and changed the industry, becoming the first U.S. retail broker to offer commission-free stock trading with no account minimums, which was subsequently adopted by the rest of the industry. In recent years, we have continued to build relationships with our customers by introducing new products and diversifying our services that further expand access to the financial system, including focusing on products and tools for more seasoned investors. Through these efforts, we believe we have made investing culturally relevant and understandable, and that our platforms are enabling our customers to become long-term investors and take greater control of their finances.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
(1) Subsequent to the release of our preliminary earnings results for the fourth quarter and full year 2025 on February 10, 2026, December 2025 Total Platform Assets were revised to reflect final crypto pricing data.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
In November 2025, we established a joint venture, Rothera, in partnership with SIG, that acquired 90% of the issued and outstanding equity of MIAXdx in January 2026. Following closing, Rothera renamed MIAXdx to Rothera E&C.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
In December 2025, we entered into agreements to acquire PT Buana Capital Sekuritas, an Indonesian brokerage, and PT Pedagang Aset Kripto, a licensed Indonesian digital financial asset trader. Both pending acquisitions are subject to customary closing conditions, including regulatory approvals.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
Year Ended December 31, 2024 2025 Funded Customers(1) (in millions) 25.2 27.0 Total Platform Assets (2) (in billions) $ 192.9 $ 322.1 Net Deposits (in billions) $ 50.5 $ 68.1 Growth Rate with respect to Net Deposits 49% 35% ARPU (in dollars) $ 122 $ 171 Robinhood Gold Subscribers (in millions) 2.64 4.18
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
(2) The following table sets out the components of Total Platform Assets by type of asset:
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
Year Ended December 31, (in billions) 2024 2025 Equities $ 130.6 $ 212.0 Cryptocurrencies 35.2 38.2 Options and futures 1.8 2.8 RIA assets — 42.5 Cash held by Customers 33.3 43.4 Receivables from Customers (primarily margin balances) (8.0) (16.8) Total Platform Assets $ 192.9 $ 322.1
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
Year Ended December 31, (in billions) 2024 2025 Beginning Total Platform Assets $ 102.6 $ 192.9 Acquired assets — 51.8 Net Deposits 50.5 68.1 Net market gains 39.8 9.3 Ending Total Platform Assets $ 192.9 $ 322.1
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
Subsequent to the release of our preliminary earnings results for the fourth quarter and full year 2025 on February 10, 2026, December 2025 Total Platform Assets were revised to reflect final crypto pricing data.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
(2) For the year ended December 31, 2025, unrealized gains in non-marketable equity securities primarily related to investments held by Robinhood Ventures Fund I.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
We also earn transaction-based revenues from commissions. Acting as an agent, we facilitate purchases and sales of event contracts and futures on behalf of users. Commissions are recognized on a trade-date basis as this is when the performance obligation is satisfied.
Read it in 10-K 2026-02-18 at sec.gov ↗
RemovedMD&A
In addition to the measures presented in our consolidated financial statements, we use the following key performance metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
•Funded Customers: We define a Funded Customer as a unique person who has at least one account with a Robinhood entity and, within the past 45 calendar days (a) had an account balance that was greater than zero (excluding amounts that are deposited into a Funded Customer account by the Company with no action taken by the unique person) or (b) completed a transaction using any such account. Individuals who share a funded joint investing account (which launched in July 2024) are each considered to be a Funded Customer.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
•Assets Under Custody (“AUC”): We define AUC as the sum of the fair value of all equities, options, cryptocurrency, futures (including options on futures, swaps, and event contracts), and cash held by users in their accounts, net of receivables from users, as of a stated date or period end on a trade date basis. Net Deposits and net market gains (losses) drive the change in AUC in any given period.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
•Net Deposits: We define Net Deposits as all cash deposits and asset transfers from customers, as well as dividends, interest, and cash or assets earned in connection with Company promotions (such as account transfer and retirement match incentives and free stock bonuses) received by customers, net of reversals, customer cash withdrawals, margin interest, Gold subscription fees, and assets transferred off of our platforms for a stated period. Prior to the second quarter of 2024, Net Deposits did not include inflows from cash or assets earned in connection with Company promotions and prior to January 2024, Net Deposits did not include inflows from dividends and interest or outflows from Robinhood Gold subscription fees and margin interest, although we have not restated amounts in prior periods as the impact to those figures was immaterial.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
•Average Revenue Per User (“ARPU”): We define ARPU as total revenue for a given period divided by the average number of Funded Customers on the last day of that period and the last day of the immediately preceding period.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
•Gold Subscribers: We define a Gold Subscriber as a unique person who has at least one account with a Robinhood entity and who, as of the end of the relevant period (a) is subscribed to Robinhood Gold and (b) has made at least one Robinhood Gold subscription fee payment.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
•Automated Customer Account Transfer Service (“ACATS”): A system that automates and standardizes procedures for the transfer of assets in a customer account from one brokerage firm and/or bank to another.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
•Cash Sweep: We define Cash Sweep as the period-end total amount of participating users’ uninvested brokerage cash that has been automatically “swept” or moved from their brokerage accounts into deposits for their benefit at a network of program banks. This is an off-balance-sheet amount. Robinhood earns a net interest spread on Cash Sweep balances based on the interest rate offered by the banks less the interest rate given to users as stated in our program terms.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
•Churned Customers: A Funded Customer is considered “Churned” if it was ever a New Funded Customer whose account balance (measured as the fair value of assets in the account less any amount due from the user and excluding amounts that are deposited into a Funded Customer account by the Company with no action taken by the unique person) drops to or below zero and has not completed a transaction using any account with a Robinhood entity for at least 45 consecutive calendar days. Negative balances typically result from Fraudulent Deposit Transactions (which occur when users initiate deposits into their accounts, make trades on our platforms using a short-term extension of credit from us, and then repatriate or reverse the deposits, resulting in a loss to us of the credited amount) and unauthorized debit card use, and less often, from margin loans.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
•Growth Rate with respect to Net Deposits: Growth rate is calculated as aggregate Net Deposits over a specified 12 month period, divided by AUC for the fiscal quarter that immediately precedes such 12 month period.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
•Investment Accounts: We define an Investment Account as a funded individual brokerage account, a funded joint investing account, or a funded individual retirement account (“IRA”). As of December 31, 2024, a Funded Customer can have up to four Investment Accounts - individual brokerage account, joint investing account (which launched in July 2024), traditional IRA, and Roth IRA.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
•Margin Book: We define Margin Book as our period-end aggregate outstanding margin loan balances receivable (i.e., the period-end total amount we are owed by customers on loans made for the purchase of securities, supported by a pledge of assets in their margin-enabled brokerage accounts).
Read it in 10-K 2025-02-18 at sec.gov ↗
RewordedMD&A
Transaction-based revenues $ 814 $ 785 $ 1,647 Net interest revenues 424 929 1,109 Other revenues 120 151 195 Total net revenues 1,358 1,865 2,951 Operating expenses:(1) Brokerage and transaction 179 146 164 211 Technology and development 878 805 818 897 Operations 249 116 112 130 Provision for credit losses 36 43 76 114 Marketing 103 122 272 399 General and administrative 924 1,169 455 628 Total operating expenses 2,369 2,401 1,897 2,379 Other income (expense), income, net (16) 3 10 14 Income (loss) before income taxes (1,027) (533) 1,064 2,108 Provision for (benefit from) income taxes 1 8 (347) 225 Net income $ 1,411 $ 1,883 Net income (loss) $ (1,028) $ (541) attributable to non-controlling interest — — Net income attributable to Robinhood $ 1,411 $ 1,883
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Brokerage and transaction $ 179 164 $ 146 $ 164 (18)% 12% 211 29% Technology and development 878 805 818 (8)% 2% 897 10% Operations 249 116 112 (53)% (3)% 130 16% Provision for credit losses 36 43 76 19% 77% 114 50% Marketing 103 122 272 18% 123% 399 47% General and administrative 924 1,169 455 27% (61)% 628 38% Total operating expenses $ 2,369 1,897 $ 2,401 $ 1,897 Percent of total net revenues: 2,379
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Year Ended December 31, (in millions) 2022 2023 2024 2022 2025 2024 to 2023 2023 to 2024 % Change 2025 % Change Provision for credit losses - credit card related $ — $21 $55 NM 162% 55 $ 86 56% Provision for credit losses - brokerage related 36 22 21 (39)% (5)% 28 33% Total $ 36 $43 $76 19% 77% 76 $ 114 50% Percent of total net revenues: 3 % 3 %
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Payments Due by Period (in millions) Total 2025-2026 2026 2027-2028 2029 2029-2030 Thereafter Operating lease commitments commitments(1) $ 189 334 $ 56 35 $ 50 90 $ 23 83 $ 60 126 Purchase commitments(1) 637 601 35 1 commitments(2) 512 398 110 4 — Robinhood match incentives commitments(2) 142 142 commitments(3) 39 39 — — — Credit Card Funding Trust borrowing principal and interest 131 131 602 602 — — — Total $ 1,099 1,487 $ 930 1,074 $ 85 200 $ 24 87 $ 60 126
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Technology and development costs primarily consist of costs related to compensation and benefits, for engineering, data science, and design personnel, as well as allocated overhead, costs incurred to support and improve our platforms and develop new products, and costs associated with computer hardware and software, including amortization of internally developed software, and compensation and benefits, including SBC, for engineering, data science, and design personnel, as well as allocated overhead. software.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Technology and development costs increased by $13 $79 million primarily due to increases of $40 $33 million in software and tools and $22 million in cloud infrastructure expenses primarily driven by acquisitions and $9 million in software the continued growth and tools to meet increased capacity requirements for expansion of our platforms to support higher trading volumes. business.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Benefit from Provision for income taxes increased by $355 $572 million primarily due to a $369 million deferred tax benefit, primarily the benefits from the valuation allowance release on of the U.S. federal and certain state deferred tax assets. assets in the fourth quarter of 2024 and the growth of the business.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Year Ended December 31, (in millions) 2022 2023 2024 2025 Brokerage and transaction $ 5 $ 7 $ 9 10 Technology and development 212 211 192 159 Operations 7 6 Marketing 8 8 7 Marketing 4 5 8 General and administrative 425 640 88 122 Total SBC expense $ 654 304 $ 871 $ 304 305
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
As of December 31, 2024, 2025, we had a total of $3.00 billion in committed revolving credit facilities with a total borrowing capacity of $3.775 billion and a borrowing amount up to $300 million capacity for our Credit Card Funding Trust. Trust of up to $950 million.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Additionally, Brokerage and transaction costs increased by $47 million primarily driven by an increase of $15 million in employee compensation, benefits, and overhead increased by $5 million due to increased average headcount to continue to support the growth and expansion of our brokerage business.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Brokerage and transaction costs primarily consist of cash compensation and employee benefits, SBC, as well as allocated overhead for employees engaged in clearing and brokerage functions, market data expenses, expenses related to our instant withdrawals feature, fees paid to centralized clearinghouses and regulatory fees, customer statement-related costs, and other brokerage and transaction costs such as costs related to our Cash Sweep and securities lending programs. programs, customer statement-related costs, regulatory fees and fees paid to centralized clearinghouses.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Options In addition, options revenues increased due to a 29% 12% increase in Options Contracts Traded per trader and a 16% increase in the number of users placing option trades and a 43% increase in Options Contracts Traded. trades.
Read it in 10-K 2026-02-18 at sec.gov ↗
