Robinhood Reports Third Quarter 2026
Diluted EPS down 16% year-over-year to $0.51; Adjusted EPS down 3% year-over- year to $0.60
Net Deposits were $16 billion, and Robinhood Gold Subscribers reached a record 5.2 million
Robinhood now up to 14 business lines that have reached $100 million or more in annualized revenues MENLO PARK, Calif. – October 27, 2026 – Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced financial results for the third quarter of 2026, which ended September 30, 2026.
"Our vision is to make everyone an owner, because broad ownership is essential to a free, stable, and prosperous society," said
"Customers are trusting us with more of their assets as we deliver on our product roadmap, leading to our highest quarter ever for revenues," said Shiv Verma, Chief Financial Officer of Robinhood. "We also added a new business cylinder with over $100 million in annualized revenues this quarter as Rothera scaled rapidly. And we're entering Q4 with strong momentum, as October Net Deposits have already topped $13 billion month-to-date, including $6 billion from the Dell family's contribution to Trump Accounts."
increased 19% year-over-year to $867 million , primarily driven by event contracts revenue of $173 million, up over 6x , op tions revenue of $399 million , up 31%, and equities revenue o f $121 million, up 41%, partially offset by cryptocurrencies revenue of $120 million, down 55%.
decreased 9% year-over-year to $415 million , primarily driven by lower securities lending activity and short-term interest rates, partially offset by growth in interest-earning assets. ◦
increased 61% year-over-year to $142 million, primarily driven by Trump Account service revenues and increased Robinhood Gold subscription revenues. •
◦ Net income included $67 million, or $0.07 of diluted EPS, of unrealized losses primarily related to the mark-to-market of Robinhood Ventures Fund I ("RVI").
◦ Adjusted Net Income and Adjusted EPS are new non-GAAP financial measures introduced this quarter to provide a view of profitability before certain non- operating items; refer to page 13 for more information.
increased 16% year-over-year to $739 million. The year-over-year increase was primarily driven by higher provisions for credit losses as we grow the credit card loan book, expenses related to Trump Accounts and Rothera, and marketing and growth investments.
increased 19% year-over-year to $396 billion, primarily driven by continued Net Deposits and higher equity valuations, partially offset by lower cryptocurrency valuations.
were $15.7 billion, an annualized growth rate of 17% relative to Total Platform Assets at the end of Q2 2026. Over the past twelve months, Net Deposits were $71.0 billion, a growth rate of 21% relative to Total Platform Assets at the end of Q3 2025.
were $25 million, representing 0.2 million shares of our Class A common stock at an average price per share of approximately $105.
◦ Through Q3 2026, cumulative repurchases under our program since Q3 2024 total $1.3 billion, representing 27 million of our Class A shares at an average price per share of approximately $48. 1
Robinhood Delivers Growth Across the Business as It Expands Global Access to Financial Markets
• Market share gains drove active trader engagement to new highs in Q3, with record volumes for equities, options, and prediction markets, and record margin balances.
• In September, Robinhood hosted its third annual HOOD Summit in Houston, with about 1,500 in-person attendees and more than 50 million livestream viewers. At the event, the company announced 17 new products and features aimed at making it the best platform for active traders, including Robinhood Agents and Agent Apps, 24/7 trading of select U.S. equities, perpetual futures for eligible U.S. customers, and earnings contracts in the prediction markets hub.
• To date, approximately 200 thousand customers have opened Agentic Trading Accounts, driving over $1.6 billion in notional trading volume.
• Rothera reached over $100 million in annualized revenues in its first full quarter of operation, with over 6.4 billion contracts traded since launch.
• Trump Accounts reached another major milestone as the U.S. Treasury launched automatic enrollment, establishing accounts for nearly 70 million children nationwide. Additionally, 25 million children have $250 invested thanks to Susan and Michael Dell's $6.25 billion pledge.
• In Q3, Gold subscribers grew to a record 5.2 million, representing an 18 percent overall adoption rate and approximately 40 percent adoption rate among new customers.
• Robinhood Gold Card grew to 1.3 million customers with over $19 billion in total annualized payment volume in Q3.
• Robinhood Banking continued to drive momentum, with nearly $5 billion in deposits from over 350 thousand Funded Customers and approximately 40 percent of customers signed up for direct deposit to date.
• Robinhood Strategies grew to 350 thousand Funded Customers with over $2 billion in assets under management in Q3.
• Trust Accounts are over $300 million in assets with an average account size of over $400 thousand to date.
• Robinhood continued to grow its global footprint, launching crypto trading in the UK and announcing it has received authorization from the Dubai Financial Services Authority ("DFSA") to launch in the region. The authorization covers trading and custody across all ten DFSA-approved asset classes, including equities, crypto, ETFs, and investment tokens. Robinhood plans to begin rolling out its product suite in the area in 2027.
• In its first quarter on Mainnet, Robinhood Chain became a top-five chain by revenue and volume, generating over $80 billion in DEX volume and over $50 million of chain fees. 2
decreased 38% year-over-year to $50 billion, including Robinhood App Notional Volumes which decreased 48% year-over-year to $21 billion, and Bitstamp Notional Volumes which decreased 28% year-over-year to $29 billion.
Robinhood will host a video call to discuss its results at 2 p.m. PT / 5 p.m. ET today, October 27, 2026. The video call can be accessed at investors.robinhood.com, along with the earnings press release and accompanying slide presentation. The event will also be live streamed to YouTube and X.com via Robinhood’s official channels, @RobinhoodApp, on Vlad Tenev’s X.com account, @vladtenev, as well as in the Robinhood App. Following the call, a replay and transcript will also be available at investors.robinhood.com.
The paragraph below provides information on our 2026 expense plan and outlook. We are not providing a 2026 outlook for total operating expenses and have not reconciled our 2026 outlook for Adjusted Operating Expenses and SBC to the most directly comparable GAAP financial measure, total operating expenses, because we are unable to predict with reasonable certainty the impact of certain items without unreasonable effort. These items include, but are not limited to, provision for credit losses and significant regulatory expenses which may be material and could have a significant impact on total operating expenses for 2026.
Our prior outlook for 2026 Adjusted Operating Expenses and SBC provided at Q2 2026 Earnings (July 29, 2026) was $2.675 to $2.775 billion. As we look ahead to the rest of the year, we are lowering the top end of our prior outlook by $25 million to a range of $2.675 to $2.75 billion to reflect ongoing efficiency gains across our business. This expense outlook does not include provision for credit losses, costs related to our pending acquisitions, costs from equity modifications of restructuring and executive awards in connection with our CFO transition, interest expenses classified as operating expenses, potential significant regulatory matters, or other significant expenses (such as impairments, restructuring charges, and other business acquisition- or disposition-related expenses) that may arise or accruals we may determine in the future are required, as we are unable to accurately predict the size or timing of such matters, expenses or accruals at this time.
Actual results might differ materially from our outlook due to several factors, including the rate of growth in Funded Customers and our effectiveness to cross- sell products which affects variable marketing costs, the degree to which we are successful in managing credit losses and preventing fraud, and our ability to manage web-hosting expenses efficiently, among other factors. See “Non-GAAP Financial Measures” for more information on Adjusted Operating Expenses and SBC, including significant items that we believe are not indicative of our ongoing expenses that would be adjusted out of total operating expenses (GAAP) to get to Adjusted Operating Expenses and SBC (non-GAAP) should they occur.
Robinhood Markets, Inc. (NASDAQ: HOOD) is a global leader in financial services offering retail brokerage, crypto, advisory, digital banking services, and private markets access to a new generation of investors. Additional information about Robinhood can be found at www.robinhood.com.
Robinhood uses the “Overview” tab of its Investor Relations website (accessible at investors.robinhood.com/overview) and its Newsroom (accessible at newsroom.aboutrobinhood.com), as means of disclosing information to the public in a broad, non-exclusionary manner for purposes of the U.S. Securities and Exchange Commission’s (“SEC”) Regulation Fair Disclosure (Reg. FD). Investors should routinely monitor those web pages, in addition to Robinhood’s press releases, SEC filings, and public conference calls and webcasts, as information posted on them could be deemed to be material information.
“Robinhood” and the Robinhood feather logo are registered trademarks of Robinhood Markets, Inc. All other names are trademarks and/or registered trademarks of their respective owners.
(in millions, except per share data) Assets December 31, September 30, Current assets: 2025 2026 ────────────────────────────────────────────────────────────────────────────── Cash and cash equivalents $ 4,261 $ 5,829 Cash, cash equivalents, and securities segregated under federal 5,749 13,443 and other regulations Receivables from brokers, dealers, and 426 537 clearing organizations Receivables from users, net 17,994 23,598 Securities borrowed 2,408 4,781 Deposits with clearing 702 1,125 organizations User-held fractional shares 3,782 5,123 Deferred customer match 185 226 incentives Other current assets, including current prepaid expenses of $127 as of December 798 1,616 31, 2025 and $182 as of September 30, 2026 Total current assets 36,305 56,278 Property, software, and 154 187 equipment, net Goodwill 385 515 Intangible assets, net 168 231 Non-current deferred customer match 428 578 incentives Other non-current assets, including non-current prepaid expenses of $11 as 697 482 of December 31, 2025 and $22 as of September 30, 2026 Total assets $ 38,137 $ 58,271 Liabilities and stockholders’ equity Current liabilities: Accounts payable and $ 463 $ 658 accrued expenses Payables to users 11,986 18,473 Securities loaned 11,626 19,480 Fractional shares 3,782 5,123 repurchase obligation Other current liabilities 914 1,509 Total current liabilities 28,771 45,243 Long-term borrowings — 2,660 Other non-current 215 290 liabilities Total liabilities 28,986 48,193 Commitments and contingencies Stockholders’ equity: Preferred stock, $0.0001 par value. 210 million shares authorized, no shares — — issued and outstanding as of December 31, 2025 and September 30, 2026. Class A common stock, $0.0001 par value. 21 billion shares authorized, 790 million shares issued and outstanding as of December 31, 2025; 21 — — billion shares authorized, 793 million shares issued and outstanding as of September 30, 2026. Class B common stock, $0.0001 par value. 700 million shares authorized, 111 million shares issued and outstanding as of December 31, 2025; 700 — — million shares authorized, 108 million shares issued and outstanding as of September 30, 2026. Class C common stock, $0.0001 par value. 7 billion shares authorized, no shares — — issued and outstanding as of December 31, 2025 and September 30, 2026. Additional paid-in capital 11,284 10,783 Accumulated other comprehensive income 8 -9 (loss) Accumulated deficit -2,152 -773 Non-controlling interests 11 77 Total stockholders’ equity 9,151 10,078 Total liabilities and stockholders’ $ 38,137 $ 58,271 equity
ROBINHOOD MARKETS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
ROBINHOOD MARKETS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in millions, except per share and Nine Months percentage Ended data) September 30, Revenues: 2025 2026 YOY% Change ────────────────────────────────────────────────────────────────────────────── Transaction… $ 1,852 $ 2,266 22 % revenues Net interest 1,103 1,163 5 % revenues Other 235 370 57 % revenues Total net 3,190 3,799 19 % revenues Operating expenses(1)… Brokerage and 154 190 23 % transaction Technology and 665 751 13 % development Operations 93 174 87 % Provision for credit 78 163 109 % losses Marketing 306 315 3 % General and 450 536 19 % administrat… Total operating 1,746 2,129 22 % expenses Other 3 75 NM income, net Income before 1,447 1,745 21 % income taxes Provision for income 169 350 107 % taxes Net income $ 1,278 $ 1,395 9 % Less: Net income (loss) attributable — 16 NM to non-control… interests Net income attributable $ 1,278 $ 1,379 8 % to Robinhood Net income attributable to Robinhood common stockholder… Basic $ 1,278 $ 1,379 Diluted $ 1,278 $ 1,379 Net income per share attributable to Robinhood common stockholder… Basic $ 1.44 $ 1.53 Diluted $ 1.39 $ 1.51 Weighted-av… shares used to compute net income per share attributable to Robinhood common stockholder… Basic 885 899 Diluted 919 913
ROBINHOOD MARKETS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(1) The following table presents operating expenses as a percent of total net revenues:
(2) The following table presents the SBC on our unaudited condensed consolidated statements of operations for the periods indicated:
Three Nine Months Months (in Ended Ended milli… Septem… Septem… Opera… 30, 30, activ… 2025 2026 2025 2026 ────────────────────────────────────────────────────────────────────────────── Net $ 556 $ 476 $ 1,278 $ 1,395 income Adjus… to recon… net income to net cash provi… by (used in) opera… activ… Depre… and 22 26 63 72 amort… Provi… for 26 71 78 163 credit losses Defer… income — 61 — 63 taxes Share… 78 80 229 277 compe… Gain on — -1 — -107 decon… Unrea… and reali… (gain) loss — 69 — 46 on equity secur… net Other 5 22 13 26 Chang… in opera… assets and liabi… Secur… segre… under feder… -1,392 -787 -1,193 -4,360 and other regul… Recei… from broke… deale… -93 139 19 -111 and clear… organ… Recei… from -4,514 -463 -5,814 -4,939 users, net Secur… -448 1,255 -3,371 -2,373 borro… Depos… with -720 115 -951 -423 clear… organ… Curre… and non-c… defer… -130 -4 -226 -190 custo… match incen… Other curre… and non-c… 68 -336 395 -328 assets and prepa… expen… Accou… payab… and 37 49 -75 47 accru… expen… Payab… to 1,806 1,251 3,754 6,447 users Secur… 3,026 -1,056 8,203 7,854 loaned Other curre… and 97 258 173 424 non-c… liabi… Net cash (used in) -1,576 1,225 2,575 3,983 provi… by opera… activ… Inves… activ… Purch… of prope… -3 -10 -13 -31 softw… and equip… Capit… of inter… -9 -11 -28 -32 devel… softw… Consi… trans… for busin… — — -399 -249 acqui… and asset acqui… Cash, cash equiv… and segre… cash acqui… — — 1,193 95 in busin… acqui… and asset acqui… Purch… of — -2 -8 -230 non-m… secur… Proce… from matur… 81 — 347 — of held-… inves… Purch… of credit card recei… -1,389 -4,682 -2,917 -10,8… by Credit Card Fundi… Trust Colle… of purch… 1,180 4,247 2,526 9,961 credit card recei… Proce… from sales — 12 — 40 of inves… in RVI Cash derec… — -5 — -225 upon decon… Other -2 -28 -2 -28 Net cash (used in) -142 -479 699 -1,533 provi… by inves… activ… Finan… activ… Proce… from issua… — 500 — 2,700 of long-… borro… Proce… from exerc… 3 1 14 4 of stock optio… Proce… from issua… of RVI common stock in conne… — — — 312 with initi… public offer… net of offer… costs Proce… from issua… of common stock — — 15 17 under the Emplo… Share Purch… Plan Taxes paid relat… to net share -41 -11 -413 -34 settl… of equity awards Repur… of Class -107 -25 -553 -689 A common stock Draws on 2,700 — 2,701 2,511 credit facil… Repay… on -2,700 — -2,701 -2,511 credit facil… Borro… by the Credit 141 375 245 757 Card Fundi… Trust Repay… on borro… by the — -498 — -523 Credit Card Fundi… Trust Payme… of debt — -2 -16 -33 issua… costs Purch… of — — — -123 Capped Calls Contr… from — 8 — 49 nonco… inter… Other -1 5 — 2 Net cash (used in) -5 353 -708 2,439 provi… by finan… activ… Effect of forei… excha… rate chang… — -19 8 -28 on cash and cash equiv… Net incre… in cash, cash equiv… -1,723 1,080 2,574 4,861 segre… cash, and restr… cash Cash, cash equiv… segre… cash, and 12,992 13,674 8,695 9,893 restr… cash, begin… of the period Cash, cash equiv… segre… cash, and $ 11,269 $ 14,754 $ 11,269 $ 14,754 restr… cash, end of the period
Reconciliation of cash, cash equivalents, segregated cash and restricted cash, end of the period:
────────────────────────────────────────────────────────────────────────────── Cash and cash equivalents, end of the $ 4,331 $ 5,829 $ 4,331 $ 5,829 period Segregated cash and cash equivalents, 6,853 8,883 6,853 8,883 end of the period Restricted cash in other current assets, 68 28 68 28 end of the period Restricted cash in other non-current 17 14 17 14 assets, end of the period Cash, cash equivalents, segregated cash $ 11,269 $ 14,754 $ 11,269 $ 14,754 and restricted cash, end of the period Supplemental disclosures: Cash paid for interest $ 8 $ 21 $ 20 $ 46 Cash paid for income taxes, net of $ 1 $ 59 $ 83 $ 230 refund received Derecognized assets and liabilities $ — $ 25 $ — $ 376 (net) Retained RVI and RVII interest at fair $ — $ 26 $ — $ 461 value
(1) For the three and nine months ended September 30, 2026, primarily related to investments in Robinhood Ventures funds.
(1) For the three and nine months ended September 30, 2026, primarily related to interest expense amortization of convertible notes. 11
(1) For the three and nine months ended September 30, 2026, primarily related to interest expense amortization of convertible notes. 12
(1) For the three and nine months ended September 30, 2026, primarily related to investments in Robinhood Ventures funds. 13 Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding the expected financial performance of Robinhood Markets, Inc. and its consolidated subsidiaries (“we,” “Robinhood,” or the “Company”) and our strategic and operational plans, including (among others) statements regarding that customers are trusting us with more of their assets as we deliver on our product roadmap; we're entering Q4 with strong momentum; Robinhood announced it has received authorization from the DFSA and plans to begin rolling out its product suite in the area in 2027; and all statements and information under the heading “Financial Outlook”. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “believe,” “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Our forward-looking statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause our actual future results, performance, or achievements to differ materially from any future results expressed or implied in this press release. Reported results should not be considered an indication of future performance. Factors that contribute to the uncertain nature of our forward-looking statements include, among others: our rapid and continuing expansion, including continuing to introduce new products and services on our platforms as well as geographic expansion; the difficulty of managing our business effectively, including the size of our workforce, and the risk of declining or negative growth; the fluctuations in our financial results and key metrics from quarter to quarter; our reliance on transaction-based revenue, including payment for order flow (“PFOF”), the risk of new regulation or bans on PFOF and similar practices, and the addition of our new fee-based model for cryptocurrency; our exposure to fluctuations in interest rates and rapidly changing interest rate environments; the difficulty of raising additional capital (to provide liquidity needs and support business growth and objectives) on reasonable terms, if at all; the need to maintain capital levels required by regulators and self-regulatory organizations; the risk that we might mishandle the cash, securities, and cryptocurrencies we hold on behalf of customers, and our exposure to liability for processing, operational, or technical errors in clearing functions; the impact of negative publicity on our brand and reputation; the risk that changes in business, economic, or political conditions that impact the global financial markets, or a systemic market event, might harm our business; our dependence on key employees and a skilled workforce; the fact that we do not wholly own or operationally control Rothera, our joint venture with Susquehanna International Group, and its subsidiaries; operational and regulatory risks and expenditures prior to and following closing of our acquisitions and investments; the difficulty of complying with an extensive, complex, and changing regulatory environment, the risk of monetary and other penalties for noncompliance, and the need to adjust our business model in response to new or modified laws and regulations; the possibility of adverse developments in pending litigation and regulatory investigations; the risk that the outcome of currently ongoing and potential future regulatory enforcement actions and litigation, as well as potential changes in federal or state law, could immediately or subsequently prevent us from offering, or continuing to offer, event contracts or that we have in the past decided, and may in the future decide, to stop offering certain new event contracts as a result of actual or threatened state enforcement actions; the effects of competition; our need to innovate and acquire or invest in new products, services, technologies and geographies in order to attract and retain customers and deepen their engagement with us in order to maintain growth; our reliance on third parties to perform some key functions and the risk that processing, operational or technological failures could impair the availability or stability of our platforms; the risk of cybersecurity incidents, theft, data breaches, and other online attacks; the difficulty of processing customer data in compliance with privacy laws; our need as a regulated financial services company to develop and maintain effective compliance and risk management infrastructures; the risks associated with incorporating artificial intelligence technologies into some of our products and processes; the regulation, litigation, contractual, operational, and reputational risks associated with our introduction of products such as Robinhood Chain and Stock Tokens globally, continued offering of Classic Stock Tokens (formerly "Robinhood Stock Tokens") and perpetual futures trading in the European Economic Area, our planned offering of perpetual futures in the U.S., updates to Robinhood Wallet, and our staking and onchain lending services offered in the U.S.; and the risk that substantial future sales of Class A common stock in the public market, or the perception that they may occur, could cause the price of our stock to fall. Because some of these risks and uncertainties cannot be predicted or quantified and some are beyond our control, you should not rely on our forward-looking statements as predictions of future events. More information about potential risks and uncertainties that could affect our business and financial results can be found in Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, as well as in our other filings with the SEC, all of which are available on the SEC’s web site at www.sec.gov. Moreover, we operate in a very competitive and rapidly changing environment; new risks and uncertainties may emerge from time to time, and it is not possible for us to predict all risks nor identify all uncertainties. The events and circumstances reflected in our forward-looking statements might not be achieved and actual results could differ materially from those projected in the forward-looking statements. Except as otherwise noted, all forward-looking statements in this press release are made as of the date of this press release, October 27, 2026, and are based on information and estimates available to us at this time. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. Except as required by law, Robinhood assumes no obligation to update any of the statements in this press release whether as a result of any new information, future events, changed circumstances, or otherwise. You should read this press release with the understanding that our actual future results, performance, events, and circumstances might be materially different from what we expect.
We collect and analyze operating and financial data to evaluate the health of our business, allocate our resources and assess our performance. In addition to total net revenues, net income, and other results under GAAP, we utilize non- GAAP calculations of adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”) , Adjusted EBITDA Margin, Adjusted Operating Expenses, Adjusted Operating Expenses and 14 SBC, Adjusted Net Income, and Adjusted EPS. This non-GAAP financial information is presented for supplemental informational purposes only, should not be considered in isolation or as a substitute for, or superior to, financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. We believe each of these non-GAAP measures provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance and cost structure, as applicable, and that Adjusted Net Income and Adjusted EPS provide a view of profitability before certain non-operating items. These non- GAAP measures are used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this press release.
Adjusted EBITDA is defined as net income attributable to Robinhood, excluding (i) net income (loss) attributable to non-controlling interests, (ii) interest expenses related to debt obligations, (iii) provision for (benefit from) income taxes, (iv) depreciation and amortization, (v) SBC, (vi) significant legal and tax settlements and reserves, and (vii) other significant gains, losses, and expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses) that we believe are not indicative of our ongoing results.
The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount and timing of these items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods and competitors less meaningful. Adjusted EBITDA is a key measurement used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.
Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total net revenues. The most directly comparable GAAP measure is net margin (calculated as net income divided by total net revenues).
Adjusted Operating Expenses is defined as GAAP total operating expenses minus (i) SBC, (ii) provision for credit losses, (iii) significant legal and tax settlements and reserves, (iv) interest expenses classified as operating expenses, and (v) other significant expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses) that we believe are not indicative of our ongoing expenses. The amount and timing of the excluded items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods less meaningful.
Adjusted Operating Expenses and SBC is defined as GAAP total operating expenses minus (i) provision for credit losses, (ii) significant legal and tax settlements and reserves, (iii) other significant expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses), that we believe are not indicative of our ongoing expenses, (iv) interest expenses classified as operating expenses, and (v) SBC related to modifications of awards impacted by restructuring as well as in connection with our CFO transition. The amount and timing of the excluded items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods less meaningful. Unlike Adjusted Operating Expenses, Adjusted Operating Expenses and SBC does not adjust for SBC except for in 2026 as it relates to modifications of awards impacted by restructuring and our CFO transition.
Adjusted Net Income is defined as net income attributable to Robinhood, excluding: (i) SBC attributable to CFO transition & restructuring, (ii) restructuring charges, (iii) unrealized and realized losses (gains), (iv) amortization of intangible assets, and (v) the tax impact of non-GAAP adjustments.
Adjusted EPS is defined as Adjusted Net Income divided by the weighted average number of diluted common shares outstanding during the period, determined in accordance with ASC 260, excluding the effect of our 15 convertible senior notes as they are currently anti-dilutive. Shares issuable upon settlement of capped call transactions entered into in connection with our convertible senior notes are excluded from the diluted share count to the extent they offset the dilutive effect of our convertible notes.
In addition to the measures presented in our unaudited condensed 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.
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 are each considered to be a Funded Customer. Starting in June 2026, customers of WonderFi are also considered Funded Customers.
We define Total Platform Assets as the sum of the fair value of all equities, options, cryptocurrency, futures (including options on futures and swaps, including event contracts), cash held by users in their accounts, net of receivables from users (previously reported as Assets Under Custody), and any such assets managed by RIAs using TradePMR’s platform that are not custodied by Robinhood, as of a stated date or period end on a trade date basis. Net Deposits and net market gains (losses) drive the change in Total Platform Assets in any given period. Starting in June 2026, the fair value of all cryptocurrency also includes cryptocurrency on WonderFi. Starting in July 2026, Total Platform Assets include Trump Account assets custodied by Robinhood. Total Platform Assets also include cryptocurrency lent through platform-enabled lending programs and total value locked in Robinhood Earn, representing customer assets deposited into Robinhood Earn programs, where customers may recall such assets at any time through the platform, but exclude assets held in Robinhood Non- custodial Wallet for which the customer holds full or partial keys.
We define Assets Under Custody as Total Platform Assets, excluding assets managed by RIAs using TradePMR's platform that are not custodied by Robinhood, as of a stated date or period end on a trade date basis.
We define Net Deposits as all cash deposits and asset transfers from customers, as well as dividends, interest, staking rewards, and cash or assets earned in connection with Company promotions (such as account transfer and retirement match incentives, free stock bonuses) received by customers, net of reversals, customer cash withdrawals, margin and lending interest, Robinhood Gold subscription fees, and assets transferred off of our platforms for a stated period. As previously disclosed, due to data limitations we did not include TradePMR client figures in our Net Deposits key performance metric prior to March 2026. Starting in March 2026, Net Deposits include results from TradePMR. Starting in June 2026, Net Deposits also include results from WonderFi. Starting in July 2026, Net Deposits include Trump Account contributions and seed funding from Treasury.
We define average revenue per user, or 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. Figures in this press release represent ARPU annualized for each three-month period presented.
Robinhood Gold Subscribers We define a Robinhood 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. 16
We define Robinhood Retirement AUC as the total Assets Under Custody in traditional individual retirement accounts (“IRAs") and Roth IRAs. This does not include accounts with an RIA using TradePMR’s platform.
We define Cash Sweep as the period-end total amount of participating users’ uninvested brokerage and banking cash that has been automatically “swept” or moved from their 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. This includes balances from customers of RIAs using TradePMR’s platform. In February 2026, we updated our brokerage High-Yield Cash program to fund growth in margin lending, resulting in over $6 billion of Cash Sweep balances moving to Cash and Deposits in the form of customer free credit balances.
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). This includes margin loan balances from customers of RIAs using TradePMR’s platform.
We define Notional Trading Volume, or Notional Volume, for any specified asset class as the aggregate dollar value (purchase price or sale price as applicable) of trades executed in that asset class on our platforms over a specified period of time. Crypto Notional Volume includes both Robinhood App Notional Volume and Bitstamp Notional Volume. Robinhood App Notional Volume represents the dollar value of executed crypto trades on the Robinhood platform over a specified period of time, and, starting in June 2026, includes the dollar value of executed crypto trades from WonderFi customers. Bitstamp Notional Volume represents the dollar value of executed crypto trades on the Bitstamp platform over a specified period of time. For example, each $1 of transaction value executed between a buyer and seller is counted as $1 of transaction value in the relevant period, rather than $2 if counted for each of the buyer and seller.
We define Options Contracts Traded as the total number of options contracts bought or sold over a specified period of time. Each contract generally entitles the holder to trade 100 shares of the underlying stock.
We define Event Contracts Traded as the total number of event contracts bought or sold over a specified period of time through our Prediction Markets Hub. Each contract can be traded at $0.01 increments up to $1 and is worth $1 upon settlement. Cash and Deposits
We define Cash and Deposits as the period-end sum of cash and cash equivalents, restricted cash, segregated cash, cash equivalents, and securities under federal and other regulations, deposits with clearing organizations, and investments.
We define an Investment Account as a funded individual brokerage account, a funded joint investing account, a funded IRA, a funded custodial account, or an account with an RIA using TradePMR’s platform. Starting in September 2025, a Funded Customer can have multiple Investment Accounts - one or more individual brokerage accounts, a joint investing account, a funded custodial account, a traditional IRA, a Roth IRA, and/or an RIA custody account using TradePMR’s platform. Investment Accounts do not include Bitstamp or WonderFi as such accounts are not brokerage or other Investment Accounts. 17 Robinhood Gold Adoption Rate
We define the Robinhood Gold adoption rate as end of period Robinhood Gold Subscribers divided by end of period Funded Customers.
Growth rate is calculated as aggregate Net Deposits over a specified 12-month period, divided by Total Platform Assets for the fiscal quarter that immediately precedes such 12-month period. Annualized growth rate is calculated as Net Deposits for a specified quarter multiplied by 4 and divided by Total Platform Assets for the immediately preceding quarter.
Based on a given business crossing $100 million in quarterly annualized revenues (revenues in a given quarter times 4). 18
Full text with the tables
Robinhood Reports Third Quarter 2026
Results
Revenues were a record $1.4 billion, up 12% year-over-year
Diluted EPS down 16% year-over-year to $0.51; Adjusted EPS down 3% year-over-
year to $0.60
Net Deposits were $16 billion, and Robinhood Gold Subscribers reached a record
5.2 million
Robinhood now up to 14 business lines that have reached $100 million or more in
annualized revenues
MENLO PARK, Calif. – October 27, 2026 – Robinhood Markets, Inc. (“Robinhood”)
(NASDAQ: HOOD) today announced financial results for the third quarter of 2026,
which ended September 30, 2026.
"Our vision is to make everyone an owner, because broad ownership is essential
to a free, stable, and prosperous society," said
Vlad Tenev, Chairman and CEO of Robinhood.
"Customers are trusting us with more of their assets as we deliver on our
product roadmap, leading to our highest quarter ever for revenues," said Shiv
Verma, Chief Financial Officer of Robinhood. "We also added a new business
cylinder with over $100 million in annualized revenues this quarter as Rothera
scaled rapidly. And we're entering Q4 with strong momentum, as October Net
Deposits have already topped $13 billion month-to-date, including $6 billion
from the Dell family's contribution to Trump Accounts."
Third Quarter Results
•
Total net revenue
s
increased 12% y ear-over-year to $1.42 billion.
◦
Transaction-based revenues
increased 19% year-over-year to $867 million , primarily driven by event
contracts revenue of $173 million, up over 6x , op tions revenue of $399 million
, up 31%, and equities revenue o f $121 million, up 41%, partially offset by
cryptocurrencies revenue of $120 million, down 55%.
◦
Net interest revenues
decreased 9% year-over-year to $415 million , primarily driven by lower
securities lending activity and short-term interest rates, partially offset by
growth in interest-earning assets.
◦
Other revenues
increased 61% year-over-year to $142 million, primarily driven by Trump Account
service revenues and increased Robinhood Gold subscription revenues.
•
Net income
decreased 14% year-over-year to $476 million, and
diluted earnings per share ("EPS")
decreased 16% to $0.51.
◦ Net income included $67 million, or $0.07 of diluted EPS, of unrealized losses
primarily related to the mark-to-market of Robinhood Ventures Fund I ("RVI").
•
Adjusted Net Income (non-GAAP)
decreased 3% year-over-year to $550 million, and
Adjusted EPS
(
non-GAAP)
decreased 3% to $0.60.
◦ Adjusted Net Income and Adjusted EPS are new non-GAAP financial measures
introduced this quarter to provide a view of profitability before certain non-
operating items; refer to page 13 for more information.
•
Total operating expenses
increased 16% year-over-year to $739 million. The year-over-year increase was
primarily driven by higher provisions for credit losses as we grow the credit
card loan book, expenses related to Trump Accounts and Rothera, and marketing
and growth investments.
◦ Adjusted Operating Expenses and Share-Based Compensation (“SBC”) (non-GAAP)
increased 8% year-over-year to $664 million.
•
Adjusted EBITDA (non-GAAP)
increased 9% year-over-year to $808 million.
•
Funded Customers
increased by 1.9 million, or 7%, year-over-year to 28.7 million.
◦
Investment Accounts
increased by 2.5 million , or 9%, year-over-year to 30.4 million.
•
Total Platform Assets
increased 19% year-over-year to $396 billion, primarily driven by continued Net
Deposits and higher equity valuations, partially offset by lower cryptocurrency
valuations.
•
Net Deposits
were $15.7 billion, an annualized growth rate of 17% relative to Total Platform
Assets at the end of Q2 2026. Over the past twelve months, Net Deposits were
$71.0 billion, a growth rate of 21% relative to Total Platform Assets at the end
of Q3 2025.
•
Robinhood Gold Subscribers
increased by 1.3 million, or 34%, year-over-year to 5.2 million.
•
Average Revenue Per User (“ARPU”)
increased 5% year-over-year to $200.
•
Cash and cash equivalents
totaled $5.8 billion, compared with $4.3 billion at the end of Q3 2025.
•
Share repurchases
were $25 million, representing 0.2 million shares of our Class A common stock at
an average price per share of approximately $105.
◦ Through Q3 2026, cumulative repurchases under our program since Q3 2024 total
$1.3 billion, representing 27 million of our Class A shares at an average price
per share of approximately $48.
1
Highlights
Robinhood Delivers Growth Across the Business as It Expands Global Access to
Financial Markets
#1 Platform for Active Traders
• Market share gains drove active trader engagement to new highs in Q3, with
record volumes for equities, options, and prediction markets, and record margin
balances.
• In September, Robinhood hosted its third annual HOOD Summit in Houston, with
about 1,500 in-person attendees and more than 50 million livestream viewers. At
the event, the company announced 17 new products and features aimed at making it
the best platform for active traders, including Robinhood Agents and Agent Apps,
24/7 trading of select U.S. equities, perpetual futures for eligible U.S.
customers, and earnings contracts in the prediction markets hub.
• To date, approximately 200 thousand customers have opened Agentic Trading
Accounts, driving over $1.6 billion in notional trading volume.
• Rothera reached over $100 million in annualized revenues in its first full
quarter of operation, with over 6.4 billion contracts traded since launch.
#1 in Wallet Share for the Next Generation
• Trump Accounts reached another major milestone as the U.S. Treasury launched
automatic enrollment, establishing accounts for nearly 70 million children
nationwide. Additionally, 25 million children have $250 invested thanks to Susan
and Michael Dell's $6.25 billion pledge.
• In Q3, Gold subscribers grew to a record 5.2 million, representing an 18
percent overall adoption rate and approximately 40 percent adoption rate among
new customers.
• Robinhood Gold Card grew to 1.3 million customers with over $19 billion in
total annualized payment volume in Q3.
• Robinhood Banking continued to drive momentum, with nearly $5 billion in
deposits from over 350 thousand Funded Customers and approximately 40 percent of
customers signed up for direct deposit to date.
• Robinhood Strategies grew to 350 thousand Funded Customers with over $2
billion in assets under management in Q3.
• Trust Accounts are over $300 million in assets with an average account size of
over $400 thousand to date.
#1 Global Financial Ecosystem
• Robinhood continued to grow its global footprint, launching crypto trading in
the UK and announcing it has received authorization from the Dubai Financial
Services Authority ("DFSA") to launch in the region. The authorization covers
trading and custody across all ten DFSA-approved asset classes, including
equities, crypto, ETFs, and investment tokens. Robinhood plans to begin rolling
out its product suite in the area in 2027.
• In its first quarter on Mainnet, Robinhood Chain became a top-five chain by
revenue and volume, generating over $80 billion in DEX volume and over $50
million of chain fees.
2
Additional Q3 2026 Operating Data
•
Robinhood Retirement AUC
increased 51% year-over-year to a record $36.6 billion.
•
Margin Book
increased 59% year-over-year to a record $22.1 billion.
•
Cash and Deposits
increased 43% year-over-year to a record $20.4 billion.
•
Cash Sweep
decreased 9% year-over-year to $32.3 billion.
•
Equity Notional Trading Volumes
increased 53% year-over-year to a record $992 billion.
•
Options Contracts Traded
increased 48% year-over-year to a record 905 million.
•
Crypto Notional Trading Volumes
decreased 38% year-over-year to $50 billion, including Robinhood App Notional
Volumes which decreased 48% year-over-year to $21 billion, and Bitstamp Notional
Volumes which decreased 28% year-over-year to $29 billion.
•
Event Contracts Traded
increased over 7x year-over-year to a record 16.4 billion.
3
Conference Call and Livestream Information
Robinhood will host a video call to discuss its results at 2 p.m. PT / 5 p.m. ET
today, October 27, 2026. The video call can be accessed at
investors.robinhood.com, along with the earnings press release and accompanying
slide presentation. The event will also be live streamed to YouTube and X.com
via Robinhood’s official channels, @RobinhoodApp, on Vlad Tenev’s X.com account,
@vladtenev, as well as in the Robinhood App. Following the call, a replay and
transcript will also be available at investors.robinhood.com.
Financial Outlook
The paragraph below provides information on our 2026 expense plan and outlook.
We are not providing a 2026 outlook for total operating expenses and have not
reconciled our 2026 outlook for Adjusted Operating Expenses and SBC to the most
directly comparable GAAP financial measure, total operating expenses, because we
are unable to predict with reasonable certainty the impact of certain items
without unreasonable effort. These items include, but are not limited to,
provision for credit losses and significant regulatory expenses which may be
material and could have a significant impact on total operating expenses for
2026.
Our prior outlook for 2026 Adjusted Operating Expenses and SBC provided at Q2
2026 Earnings (July 29, 2026) was $2.675 to $2.775 billion. As we look ahead to
the rest of the year, we are lowering the top end of our prior outlook by $25
million to a range of $2.675 to $2.75 billion to reflect ongoing efficiency
gains across our business. This expense outlook does not include provision for
credit losses, costs related to our pending acquisitions, costs from equity
modifications of restructuring and executive awards in connection with our CFO
transition, interest expenses classified as operating expenses, potential
significant regulatory matters, or other significant expenses (such as
impairments, restructuring charges, and other business acquisition- or
disposition-related expenses) that may arise or accruals we may determine in the
future are required, as we are unable to accurately predict the size or timing
of such matters, expenses or accruals at this time.
Actual results might differ materially from our outlook due to several factors,
including the rate of growth in Funded Customers and our effectiveness to cross-
sell products which affects variable marketing costs, the degree to which we are
successful in managing credit losses and preventing fraud, and our ability to
manage web-hosting expenses efficiently, among other factors. See “Non-GAAP
Financial Measures” for more information on Adjusted Operating Expenses and SBC,
including significant items that we believe are not indicative of our ongoing
expenses that would be adjusted out of total operating expenses (GAAP) to get to
Adjusted Operating Expenses and SBC (non-GAAP) should they occur.
About Robinhood
Robinhood Markets, Inc. (NASDAQ: HOOD) is a global leader in financial services
offering retail brokerage, crypto, advisory, digital banking services, and
private markets access to a new generation of investors. Additional information
about Robinhood can be found at www.robinhood.com.
Robinhood uses the “Overview” tab of its Investor Relations website (accessible
at investors.robinhood.com/overview) and its Newsroom (accessible at
newsroom.aboutrobinhood.com), as means of disclosing information to the public
in a broad, non-exclusionary manner for purposes of the U.S. Securities and
Exchange Commission’s (“SEC”) Regulation Fair Disclosure (Reg. FD). Investors
should routinely monitor those web pages, in addition to Robinhood’s press
releases, SEC filings, and public conference calls and webcasts, as information
posted on them could be deemed to be material information.
“Robinhood” and the Robinhood feather logo are registered trademarks of
Robinhood Markets, Inc. All other names are trademarks and/or registered
trademarks of their respective owners.
Contacts
Investors: Press:
ir@robinhood.com press@robinhood.com
4
ROBINHOOD MARKETS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions, except per
share data)
Assets December 31, September 30,
Current assets: 2025 2026
──────────────────────────────────────────────────────────────────────────────
Cash and cash equivalents $ 4,261 $ 5,829
Cash, cash equivalents, and
securities
segregated under federal 5,749 13,443
and other
regulations
Receivables from brokers,
dealers, and 426 537
clearing organizations
Receivables from users, net 17,994 23,598
Securities borrowed 2,408 4,781
Deposits with clearing 702 1,125
organizations
User-held fractional shares 3,782 5,123
Deferred customer match 185 226
incentives
Other current assets,
including current
prepaid expenses of $127 as
of December 798 1,616
31, 2025 and $182 as of
September 30,
2026
Total current assets 36,305 56,278
Property, software, and 154 187
equipment, net
Goodwill 385 515
Intangible assets, net 168 231
Non-current deferred
customer match 428 578
incentives
Other non-current assets,
including
non-current prepaid
expenses of $11 as 697 482
of December 31, 2025 and
$22 as of
September 30, 2026
Total assets $ 38,137 $ 58,271
Liabilities and
stockholders’ equity
Current liabilities:
Accounts payable and $ 463 $ 658
accrued expenses
Payables to users 11,986 18,473
Securities loaned 11,626 19,480
Fractional shares 3,782 5,123
repurchase obligation
Other current liabilities 914 1,509
Total current liabilities 28,771 45,243
Long-term borrowings — 2,660
Other non-current 215 290
liabilities
Total liabilities 28,986 48,193
Commitments and
contingencies
Stockholders’ equity:
Preferred stock, $0.0001
par value. 210
million shares authorized,
no shares — —
issued and outstanding as
of December
31, 2025 and September 30,
2026.
Class A common stock,
$0.0001 par value.
21 billion shares
authorized, 790
million shares issued and
outstanding as
of December 31, 2025; 21 — —
billion shares
authorized, 793 million
shares issued
and outstanding as of
September 30,
2026.
Class B common stock,
$0.0001 par value.
700 million shares
authorized, 111
million shares issued and
outstanding as
of December 31, 2025; 700 — —
million shares
authorized, 108 million
shares issued
and outstanding as of
September 30,
2026.
Class C common stock,
$0.0001 par value.
7 billion shares
authorized, no shares — —
issued and outstanding as
of December
31, 2025 and September 30,
2026.
Additional paid-in capital 11,284 10,783
Accumulated other
comprehensive income 8 -9
(loss)
Accumulated deficit -2,152 -773
Non-controlling interests 11 77
Total stockholders’ equity 9,151 10,078
Total liabilities and
stockholders’ $ 38,137 $ 58,271
equity
5
ROBINHOOD MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(…
m…
e…
p… Th…
s… Mo… Th…
a… En… Mo…
p… Se… En…
d… 30, YO… Ju… QO…
R… 20… 20… Ch… 20… 30, Ch…
──────────────────────────────────────────────────────────────────────────────
T… $ 730 $ 867 19 % $ 776 12 %
r…
N…
i… 456 415 -9 % 389 7 %
r…
O… 88 142 61 % 143 -1 %
r…
T…
n… 1,… 1,… 12 % 1,3… 9 %
r…
O…
e…
B…
a… 56 68 21 % 62 10 %
t…
T…
a… 237 254 7 % 256 -1 %
d…
O… 33 79 139 % 57 39 %
P…
f… 26 71 173 % 56 27 %
c…
l…
M… 102 104 2 % 104 — %
G…
a… 185 163 -12 % 199 -18 %
a…
T…
o… 639 739 16 % 734 1 %
e…
O…
i… -1 -60 NM 135 NM
(…
n…
I…
b… 634 625 -1 % 709 -12 %
i…
t…
P…
f… 78 149 91 % 136 10 %
i…
t…
N… $ 556 $ 476 -14 % $ 573 -17 %
i…
L…
N…
i…
(… — 8 NM 12 NM
a…
to
n…
i…
N…
i…
a… $ 556 $ 468 -16 % $ 561 -17 %
to
R…
N…
i…
a…
to
R…
c…
s…
B… $ 556 $ 468 $ 561
D… $ 556 $ 468 $ 561
N…
i…
p…
s…
a…
to
R…
c…
s…
B… $ 0.… $ 0.… $ 0.62
D… $ 0.… $ 0.… $ 0.62
W…
s…
u…
to
c…
n…
i…
p…
s…
a…
to
R…
c…
s…
B… 889 898 899
D… 918 911 912
6
ROBINHOOD MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in
millions,
except per
share and Nine Months
percentage Ended
data) September 30,
Revenues: 2025 2026 YOY% Change
──────────────────────────────────────────────────────────────────────────────
Transaction… $ 1,852 $ 2,266 22 %
revenues
Net interest 1,103 1,163 5 %
revenues
Other 235 370 57 %
revenues
Total net 3,190 3,799 19 %
revenues
Operating
expenses(1)…
Brokerage
and 154 190 23 %
transaction
Technology
and 665 751 13 %
development
Operations 93 174 87 %
Provision
for credit 78 163 109 %
losses
Marketing 306 315 3 %
General and 450 536 19 %
administrat…
Total
operating 1,746 2,129 22 %
expenses
Other 3 75 NM
income, net
Income
before 1,447 1,745 21 %
income taxes
Provision
for income 169 350 107 %
taxes
Net income $ 1,278 $ 1,395 9 %
Less: Net
income
(loss)
attributable — 16 NM
to
non-control…
interests
Net income
attributable $ 1,278 $ 1,379 8 %
to Robinhood
Net income
attributable
to Robinhood
common
stockholder…
Basic $ 1,278 $ 1,379
Diluted $ 1,278 $ 1,379
Net income
per share
attributable
to
Robinhood
common
stockholder…
Basic $ 1.44 $ 1.53
Diluted $ 1.39 $ 1.51
Weighted-av…
shares used
to compute
net income
per share
attributable
to
Robinhood
common
stockholder…
Basic 885 899
Diluted 919 913
7
ROBINHOOD MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
____________
(1) The following table presents operating expenses as a percent of total net
revenues:
Thr… Th… Nine
Mon… Mo… Mon…
End… En… End…
Sep… Ju… Sep…
30, 30, 30,
2025 2026 20… 2025 20…
Br…
and 4 % 5 % 5 % 5 % 5 %
tr…
Te…
and 19 % 18 % 20 % 21 % 20 %
de…
Op… 3 % 6 % 4 % 3 % 5 %
Pr…
for 2 % 5 % 4 % 2 % 4 %
cr…
lo…
Ma… 8 % 7 % 8 % 10 % 8 %
Ge…
and 14 % 11 % 15 % 14 % 14 %
ad…
To…
op… 50 % 52 % 56 % 55 % 56 %
ex…
(2) The following table presents the SBC on our unaudited condensed consolidated
statements of operations for the periods indicated:
Three Three Nine
Mont… Months Mont…
Ended Ended Ended
(in Sept… June Sept…
mill… 2025 30, 2026 2026 30, 2025 30, 2026
──────────────────────────────────────────────────────────────────────────────
Brok…
and $ 2 $ 3 $ 2 $ 7 $ 8
tran…
Tech…
and 40 40 48 123 128
deve…
Oper… 1 1 1 4 3
Mark… 2 1 3 6 6
Gene…
and 33 35 51 89 132
admi…
Total $ 78 $ 80 $ 105 $ 229 $ 277
SBC
8
ROBINHOOD MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Nine
Months Months
(in Ended Ended
milli… Septem… Septem…
Opera… 30, 30,
activ… 2025 2026 2025 2026
──────────────────────────────────────────────────────────────────────────────
Net $ 556 $ 476 $ 1,278 $ 1,395
income
Adjus…
to
recon…
net
income
to
net
cash
provi…
by
(used
in)
opera…
activ…
Depre…
and 22 26 63 72
amort…
Provi…
for 26 71 78 163
credit
losses
Defer…
income — 61 — 63
taxes
Share… 78 80 229 277
compe…
Gain
on — -1 — -107
decon…
Unrea…
and
reali…
(gain)
loss — 69 — 46
on
equity
secur…
net
Other 5 22 13 26
Chang…
in
opera…
assets
and
liabi…
Secur…
segre…
under
feder… -1,392 -787 -1,193 -4,360
and
other
regul…
Recei…
from
broke…
deale… -93 139 19 -111
and
clear…
organ…
Recei…
from -4,514 -463 -5,814 -4,939
users,
net
Secur… -448 1,255 -3,371 -2,373
borro…
Depos…
with -720 115 -951 -423
clear…
organ…
Curre…
and
non-c…
defer… -130 -4 -226 -190
custo…
match
incen…
Other
curre…
and
non-c… 68 -336 395 -328
assets
and
prepa…
expen…
Accou…
payab…
and 37 49 -75 47
accru…
expen…
Payab…
to 1,806 1,251 3,754 6,447
users
Secur… 3,026 -1,056 8,203 7,854
loaned
Other
curre…
and 97 258 173 424
non-c…
liabi…
Net
cash
(used
in) -1,576 1,225 2,575 3,983
provi…
by
opera…
activ…
Inves…
activ…
Purch…
of
prope… -3 -10 -13 -31
softw…
and
equip…
Capit…
of
inter… -9 -11 -28 -32
devel…
softw…
Consi…
trans…
for
busin… — — -399 -249
acqui…
and
asset
acqui…
Cash,
cash
equiv…
and
segre…
cash
acqui… — — 1,193 95
in
busin…
acqui…
and
asset
acqui…
Purch…
of — -2 -8 -230
non-m…
secur…
Proce…
from
matur… 81 — 347 —
of
held-…
inves…
Purch…
of
credit
card
recei… -1,389 -4,682 -2,917 -10,8…
by
Credit
Card
Fundi…
Trust
Colle…
of
purch… 1,180 4,247 2,526 9,961
credit
card
recei…
Proce…
from
sales — 12 — 40
of
inves…
in RVI
Cash
derec… — -5 — -225
upon
decon…
Other -2 -28 -2 -28
Net
cash
(used
in) -142 -479 699 -1,533
provi…
by
inves…
activ…
Finan…
activ…
Proce…
from
issua… — 500 — 2,700
of
long-…
borro…
Proce…
from
exerc… 3 1 14 4
of
stock
optio…
Proce…
from
issua…
of RVI
common
stock
in
conne… — — — 312
with
initi…
public
offer…
net of
offer…
costs
Proce…
from
issua…
of
common
stock — — 15 17
under
the
Emplo…
Share
Purch…
Plan
Taxes
paid
relat…
to net
share -41 -11 -413 -34
settl…
of
equity
awards
Repur…
of
Class -107 -25 -553 -689
A
common
stock
Draws
on 2,700 — 2,701 2,511
credit
facil…
Repay…
on -2,700 — -2,701 -2,511
credit
facil…
Borro…
by the
Credit 141 375 245 757
Card
Fundi…
Trust
Repay…
on
borro…
by the — -498 — -523
Credit
Card
Fundi…
Trust
Payme…
of
debt — -2 -16 -33
issua…
costs
Purch…
of — — — -123
Capped
Calls
Contr…
from — 8 — 49
nonco…
inter…
Other -1 5 — 2
Net
cash
(used
in) -5 353 -708 2,439
provi…
by
finan…
activ…
Effect
of
forei…
excha…
rate
chang… — -19 8 -28
on
cash
and
cash
equiv…
Net
incre…
in
cash,
cash
equiv… -1,723 1,080 2,574 4,861
segre…
cash,
and
restr…
cash
Cash,
cash
equiv…
segre…
cash,
and 12,992 13,674 8,695 9,893
restr…
cash,
begin…
of the
period
Cash,
cash
equiv…
segre…
cash,
and $ 11,269 $ 14,754 $ 11,269 $ 14,754
restr…
cash,
end of
the
period
9
ROBINHOOD MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Reconciliation of cash,
cash
equivalents, segregated
cash and
restricted cash, end of
the period:
──────────────────────────────────────────────────────────────────────────────
Cash and cash
equivalents, end of the $ 4,331 $ 5,829 $ 4,331 $ 5,829
period
Segregated cash and cash
equivalents, 6,853 8,883 6,853 8,883
end of the period
Restricted cash in other
current assets, 68 28 68 28
end of the period
Restricted cash in other
non-current 17 14 17 14
assets, end of the
period
Cash, cash equivalents,
segregated cash $ 11,269 $ 14,754 $ 11,269 $ 14,754
and restricted cash, end
of the period
Supplemental
disclosures:
Cash paid for interest $ 8 $ 21 $ 20 $ 46
Cash paid for income
taxes, net of $ 1 $ 59 $ 83 $ 230
refund received
Derecognized assets and
liabilities $ — $ 25 $ — $ 376
(net)
Retained RVI and RVII
interest at fair $ — $ 26 $ — $ 461
value
10
Reconciliation of GAAP to Non-GAAP Results
(Unaudited)
… Th… Th… Ni…
… Mo… Mo… Mo…
… En… En… En…
… Se… Ju… Se…
… 30, 30, 30,
… 20… 20… 20… 20… 20…
──────────────────────────────────────────────────────────────────────────────
…
…
… $ 5… $ 4… $ 5… $ 1… $ 1…
…
…
…
…
… — 8 12 — 16
…
…
…
… 5… 4… 5… 1… 1…
…
… 44 % 33 % 44 % 40 % 37 %
…
…
…
… 8 10 10 22 28
…
…
…
…
… 78 1… 1… 1… 3…
…
…
…
… 22 26 23 63 72
…
… 6… 6… 7… 1… 1…
…
… 78 80 1… 2… 2…
… — — 23 — 23
…
…
…
… — 67 -… — -…
…
…
…
… $ 7… $ 8… $ 7… $ 1… $ 2…
…
…
… 58 % 57 % 57 % 55 % 55 %
…
…
(1) For the three and nine months ended September 30, 2026, primarily related to
investments in Robinhood Ventures funds.
Three Three Nine
Mont… Mont… Mont…
Ended Ended Ended
(in Sept… June Sept…
mil… 2025 30, 2026 2026 30, 2025 30, 2026
──────────────────────────────────────────────────────────────────────────────
Tot…
ope… $ 639 $ 739 $ 734 $ 1,746 $ 2,1…
exp…
(GA…
Les…
SBC
exc…
CFO 78 78 91 229 248
tra…
and
res…
SBC
att…
to — 2 7 — 22
CFO
tra…
SBC
att… — — 7 — 7
to
res…
Pro…
for 26 71 56 78 163
cre…
los…
Int… — 2 — — 2
exp…
Res… — — 23 — 23
cha…
Adj…
Ope… $ 535 $ 586 $ 550 $ 1,439 $ 1,6…
Exp…
(no…
(1) For the three and nine months ended September 30, 2026, primarily related to
interest expense amortization of convertible notes.
11
Reconciliation of GAAP to Non-GAAP Results
(Unaudited)
Three Three Nine
Mont… Mont… Mont…
Ended Ended Ended
(in Sept… June Sept…
mil… 2025 30, 2026 2026 30, 2025 30, 2026
──────────────────────────────────────────────────────────────────────────────
Tot…
ope… $ 639 $ 739 $ 734 $ 1,746 $ 2,1…
exp…
(GA…
Les…
SBC
exc…
CFO 78 78 91 229 248
tra…
and
res…
SBC
att… — — 7 — 7
to
res…
SBC
att…
to — 2 7 — 22
CFO
tra…
Pro…
for 26 71 56 78 163
cre…
los…
Int… — 2 — — 2
exp…
Res… — — 23 — 23
cha…
Adj…
Ope… 535 586 550 1,439 1,6…
Exp…
(no…
Add:
SBC
exc…
CFO 78 78 91 229 248
tra…
and
res…
Adj…
Ope…
Exp… $ 613 $ 664 $ 641 $ 1,668 $ 1,9…
and
SBC
(no…
(1) For the three and nine months ended September 30, 2026, primarily related to
interest expense amortization of convertible notes.
12
Reconciliation of GAAP to Non-GAAP Results
(Unaudited)
(in
mil… Three Thr… Nine
exc… Mont… Mon… Mont…
per Ended End… Ended
sha… Sept… June Sept…
dat… 2025 30, 2026 2026 30, 2025 30, 2026
──────────────────────────────────────────────────────────────────────────────
Net
inc…
att… $ 556 $ 468 $ 561 $ 1,278 $ 1,3…
to
Rob…
SBC
att…
to
CFO — 2 14 — 29
tra…
&
res…
Res… — — 23 — 23
cha…
Unr…
and
rea… — 67 -129 — -62
los…
(ga…
Amo…
of 7 9 8 16 23
int…
ass…
Tax
imp…
of 2 4 -23 4 -17
non…
adj…
Adj…
Net $ 565 $ 550 $ 454 $ 1,298 $ 1,3…
Inc…
Wei…
num…
of
dil… 918 911 912 919 913
com…
sha…
out…
Dil… $ 0.61 $ 0.51 $ 0.62 $ 1.39 $ 1.51
EPS
Adj… $ 0.62 $ 0.60 $ 0.50 $ 1.41 $ 1.51
EPS
(1) For the three and nine months ended September 30, 2026, primarily related to
investments in Robinhood Ventures funds.
13
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding the expected
financial performance of Robinhood Markets, Inc. and its consolidated
subsidiaries (“we,” “Robinhood,” or the “Company”) and our strategic and
operational plans, including (among others) statements regarding that customers
are trusting us with more of their assets as we deliver on our product roadmap;
we're entering Q4 with strong momentum; Robinhood announced it has received
authorization from the DFSA and plans to begin rolling out its product suite in
the area in 2027; and all statements and information under the heading
“Financial Outlook”. Forward-looking statements generally relate to future
events or our future financial or operating performance. In some cases, you can
identify forward-looking statements because they contain words such as
“believe,” “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,”
“intend,” “target,” “project,” “contemplate,” “estimate,” “predict,”
“potential,” or “continue,” or the negative of these words or other similar
terms or expressions that concern our expectations, strategy, plans, or
intentions. Our forward-looking statements are subject to a number of known and
unknown risks, uncertainties, assumptions, and other factors that may cause our
actual future results, performance, or achievements to differ materially from
any future results expressed or implied in this press release. Reported results
should not be considered an indication of future performance. Factors that
contribute to the uncertain nature of our forward-looking statements include,
among others: our rapid and continuing expansion, including continuing to
introduce new products and services on our platforms as well as geographic
expansion; the difficulty of managing our business effectively, including the
size of our workforce, and the risk of declining or negative growth; the
fluctuations in our financial results and key metrics from quarter to quarter;
our reliance on transaction-based revenue, including payment for order flow
(“PFOF”), the risk of new regulation or bans on PFOF and similar practices, and
the addition of our new fee-based model for cryptocurrency; our exposure to
fluctuations in interest rates and rapidly changing interest rate environments;
the difficulty of raising additional capital (to provide liquidity needs and
support business growth and objectives) on reasonable terms, if at all; the need
to maintain capital levels required by regulators and self-regulatory
organizations; the risk that we might mishandle the cash, securities, and
cryptocurrencies we hold on behalf of customers, and our exposure to liability
for processing, operational, or technical errors in clearing functions; the
impact of negative publicity on our brand and reputation; the risk that changes
in business, economic, or political conditions that impact the global financial
markets, or a systemic market event, might harm our business; our dependence on
key employees and a skilled workforce; the fact that we do not wholly own or
operationally control Rothera, our joint venture with Susquehanna International
Group, and its subsidiaries; operational and regulatory risks and expenditures
prior to and following closing of our acquisitions and investments; the
difficulty of complying with an extensive, complex, and changing regulatory
environment, the risk of monetary and other penalties for noncompliance, and the
need to adjust our business model in response to new or modified laws and
regulations; the possibility of adverse developments in pending litigation and
regulatory investigations; the risk that the outcome of currently ongoing and
potential future regulatory enforcement actions and litigation, as well as
potential changes in federal or state law, could immediately or subsequently
prevent us from offering, or continuing to offer, event contracts or that we
have in the past decided, and may in the future decide, to stop offering certain
new event contracts as a result of actual or threatened state enforcement
actions; the effects of competition; our need to innovate and acquire or invest
in new products, services, technologies and geographies in order to attract and
retain customers and deepen their engagement with us in order to maintain
growth; our reliance on third parties to perform some key functions and the risk
that processing, operational or technological failures could impair the
availability or stability of our platforms; the risk of cybersecurity incidents,
theft, data breaches, and other online attacks; the difficulty of processing
customer data in compliance with privacy laws; our need as a regulated financial
services company to develop and maintain effective compliance and risk
management infrastructures; the risks associated with incorporating artificial
intelligence technologies into some of our products and processes; the
regulation, litigation, contractual, operational, and reputational risks
associated with our introduction of products such as Robinhood Chain and Stock
Tokens globally, continued offering of Classic Stock Tokens (formerly "Robinhood
Stock Tokens") and perpetual futures trading in the European Economic Area, our
planned offering of perpetual futures in the U.S., updates to Robinhood Wallet,
and our staking and onchain lending services offered in the U.S.; and the risk
that substantial future sales of Class A common stock in the public market, or
the perception that they may occur, could cause the price of our stock to fall.
Because some of these risks and uncertainties cannot be predicted or quantified
and some are beyond our control, you should not rely on our forward-looking
statements as predictions of future events. More information about potential
risks and uncertainties that could affect our business and financial results can
be found in Part II, Item 1A of our Quarterly Report on Form 10-Q for the
quarter ended September 30, 2026, as well as in our other filings with the SEC,
all of which are available on the SEC’s web site at www.sec.gov. Moreover, we
operate in a very competitive and rapidly changing environment; new risks and
uncertainties may emerge from time to time, and it is not possible for us to
predict all risks nor identify all uncertainties. The events and circumstances
reflected in our forward-looking statements might not be achieved and actual
results could differ materially from those projected in the forward-looking
statements. Except as otherwise noted, all forward-looking statements in this
press release are made as of the date of this press release, October 27, 2026,
and are based on information and estimates available to us at this time.
Although we believe that the expectations reflected in our forward-looking
statements are reasonable, we cannot guarantee future results, performance, or
achievements. Except as required by law, Robinhood assumes no obligation to
update any of the statements in this press release whether as a result of any
new information, future events, changed circumstances, or otherwise. You should
read this press release with the understanding that our actual future results,
performance, events, and circumstances might be materially different from what
we expect.
Non-GAAP Financial Measures
We collect and analyze operating and financial data to evaluate the health of
our business, allocate our resources and assess our performance. In addition to
total net revenues, net income, and other results under GAAP, we utilize non-
GAAP calculations of adjusted earnings before interest, taxes, depreciation, and
amortization (“Adjusted EBITDA”) , Adjusted EBITDA Margin, Adjusted Operating
Expenses, Adjusted Operating Expenses and
14
SBC, Adjusted Net Income, and Adjusted EPS. This non-GAAP financial information
is presented for supplemental informational purposes only, should not be
considered in isolation or as a substitute for, or superior to, financial
information presented in accordance with GAAP, and may be different from
similarly titled non-GAAP measures used by other companies. We believe each of
these non-GAAP measures provides useful information to investors and others in
understanding and evaluating our results of operations, as well as providing a
useful measure for period-to-period comparisons of our business performance and
cost structure, as applicable, and that Adjusted Net Income and Adjusted EPS
provide a view of profitability before certain non-operating items. These non-
GAAP measures are used by our management internally to make operating decisions,
including those related to operating expenses, evaluate performance, and perform
strategic planning and annual budgeting. Reconciliations of these non-GAAP
measures to the most directly comparable financial measures calculated and
presented in accordance with GAAP are provided in the financial tables included
in this press release.
Adjusted EBITDA
Adjusted EBITDA is defined as net income attributable to Robinhood, excluding
(i) net income (loss) attributable to non-controlling interests, (ii) interest
expenses related to debt obligations, (iii) provision for (benefit from) income
taxes, (iv) depreciation and amortization, (v) SBC, (vi) significant legal and
tax settlements and reserves, and (vii) other significant gains, losses, and
expenses (such as impairments, restructuring charges, and business acquisition-
or disposition-related expenses) that we believe are not indicative of our
ongoing results.
The above items are excluded from our Adjusted EBITDA measure because these
items are non-cash in nature, or because the amount and timing of these items
are unpredictable, are not driven by core results of operations, and render
comparisons with prior periods and competitors less meaningful. Adjusted EBITDA
is a key measurement used by our management internally to make operating
decisions, including those related to operating expenses, evaluate performance,
and perform strategic planning and annual budgeting.
Adjusted EBITDA Margin
Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total net
revenues. The most directly comparable GAAP measure is net margin (calculated as
net income divided by total net revenues).
Adjusted Operating Expenses
Adjusted Operating Expenses is defined as GAAP total operating expenses minus
(i) SBC, (ii) provision for credit losses, (iii) significant legal and tax
settlements and reserves, (iv) interest expenses classified as operating
expenses, and (v) other significant expenses (such as impairments, restructuring
charges, and business acquisition- or disposition-related expenses) that we
believe are not indicative of our ongoing expenses. The amount and timing of the
excluded items are unpredictable, are not driven by core results of operations,
and render comparisons with prior periods less meaningful.
Adjusted Operating Expenses and SBC
Adjusted Operating Expenses and SBC is defined as GAAP total operating expenses
minus (i) provision for credit losses, (ii) significant legal and tax
settlements and reserves, (iii) other significant expenses (such as impairments,
restructuring charges, and business acquisition- or disposition-related
expenses), that we believe are not indicative of our ongoing expenses, (iv)
interest expenses classified as operating expenses, and (v) SBC related to
modifications of awards impacted by restructuring as well as in connection with
our CFO transition. The amount and timing of the excluded items are
unpredictable, are not driven by core results of operations, and render
comparisons with prior periods less meaningful. Unlike Adjusted Operating
Expenses, Adjusted Operating Expenses and SBC does not adjust for SBC except for
in 2026 as it relates to modifications of awards impacted by restructuring and
our CFO transition.
Adjusted Net Income
Adjusted Net Income is defined as net income attributable to Robinhood,
excluding: (i) SBC attributable to CFO transition & restructuring, (ii)
restructuring charges, (iii) unrealized and realized losses (gains), (iv)
amortization of intangible assets, and (v) the tax impact of non-GAAP
adjustments.
Adjusted EPS
Adjusted EPS is defined as Adjusted Net Income divided by the weighted average
number of diluted common shares outstanding during the period, determined in
accordance with ASC 260, excluding the effect of our
15
convertible senior notes as they are currently anti-dilutive. Shares issuable
upon settlement of capped call transactions entered into in connection with our
convertible senior notes are excluded from the diluted share count to the extent
they offset the dilutive effect of our convertible notes.
Key Performance Metrics
In addition to the measures presented in our unaudited condensed 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.
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 are each considered to be a Funded
Customer. Starting in June 2026, customers of WonderFi are also considered
Funded Customers.
Total Platform Assets
We define Total Platform Assets as the sum of the fair value of all equities,
options, cryptocurrency, futures (including options on futures and swaps,
including event contracts), cash held by users in their accounts, net of
receivables from users (previously reported as Assets Under Custody), and any
such assets managed by RIAs using TradePMR’s platform that are not custodied by
Robinhood, as of a stated date or period end on a trade date basis. Net Deposits
and net market gains (losses) drive the change in Total Platform Assets in any
given period. Starting in June 2026, the fair value of all cryptocurrency also
includes cryptocurrency on WonderFi. Starting in July 2026, Total Platform
Assets include Trump Account assets custodied by Robinhood. Total Platform
Assets also include cryptocurrency lent through platform-enabled lending
programs and total value locked in Robinhood Earn, representing customer assets
deposited into Robinhood Earn programs, where customers may recall such assets
at any time through the platform, but exclude assets held in Robinhood Non-
custodial Wallet for which the customer holds full or partial keys.
Assets Under Custody
We define Assets Under Custody as Total Platform Assets, excluding assets
managed by RIAs using TradePMR's platform that are not custodied by Robinhood,
as of a stated date or period end on a trade date basis.
Net Deposits
We define Net Deposits as all cash deposits and asset transfers from customers,
as well as dividends, interest, staking rewards, and cash or assets earned in
connection with Company promotions (such as account transfer and retirement
match incentives, free stock bonuses) received by customers, net of reversals,
customer cash withdrawals, margin and lending interest, Robinhood Gold
subscription fees, and assets transferred off of our platforms for a stated
period. As previously disclosed, due to data limitations we did not include
TradePMR client figures in our Net Deposits key performance metric prior to
March 2026. Starting in March 2026, Net Deposits include results from TradePMR.
Starting in June 2026, Net Deposits also include results from WonderFi. Starting
in July 2026, Net Deposits include Trump Account contributions and seed funding
from Treasury.
Average Revenue Per User (“ARPU”)
We define average revenue per user, or 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. Figures in this press
release represent ARPU annualized for each three-month period presented.
Robinhood Gold Subscribers
We define a Robinhood 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.
16
Additional Operating Metrics
Robinhood Retirement AUC
We define Robinhood Retirement AUC as the total Assets Under Custody in
traditional individual retirement accounts (“IRAs") and Roth IRAs. This does not
include accounts with an RIA using TradePMR’s platform.
Cash Sweep
We define Cash Sweep as the period-end total amount of participating users’
uninvested brokerage and banking cash that has been automatically “swept” or
moved from their 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. This
includes balances from customers of RIAs using TradePMR’s platform. In February
2026, we updated our brokerage High-Yield Cash program to fund growth in margin
lending, resulting in over $6 billion of Cash Sweep balances moving to Cash and
Deposits in the form of customer free credit balances.
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). This includes margin loan balances
from customers of RIAs using TradePMR’s platform.
Notional Trading Volume
We define Notional Trading Volume, or Notional Volume, for any specified asset
class as the aggregate dollar value (purchase price or sale price as applicable)
of trades executed in that asset class on our platforms over a specified period
of time. Crypto Notional Volume includes both Robinhood App Notional Volume and
Bitstamp Notional Volume. Robinhood App Notional Volume represents the dollar
value of executed crypto trades on the Robinhood platform over a specified
period of time, and, starting in June 2026, includes the dollar value of
executed crypto trades from WonderFi customers. Bitstamp Notional Volume
represents the dollar value of executed crypto trades on the Bitstamp platform
over a specified period of time. For example, each $1 of transaction value
executed between a buyer and seller is counted as $1 of transaction value in the
relevant period, rather than $2 if counted for each of the buyer and seller.
Options Contracts Traded
We define Options Contracts Traded as the total number of options contracts
bought or sold over a specified period of time. Each contract generally entitles
the holder to trade 100 shares of the underlying stock.
Event Contracts Traded
We define Event Contracts Traded as the total number of event contracts bought
or sold over a specified period of time through our Prediction Markets Hub. Each
contract can be traded at $0.01 increments up to $1 and is worth $1 upon
settlement.
Cash and Deposits
We define Cash and Deposits as the period-end sum of cash and cash equivalents,
restricted cash, segregated cash, cash equivalents, and securities under federal
and other regulations, deposits with clearing organizations, and investments.
Glossary Terms
Investment Accounts
We define an Investment Account as a funded individual brokerage account, a
funded joint investing account, a funded IRA, a funded custodial account, or an
account with an RIA using TradePMR’s platform. Starting in September 2025, a
Funded Customer can have multiple Investment Accounts - one or more individual
brokerage accounts, a joint investing account, a funded custodial account, a
traditional IRA, a Roth IRA, and/or an RIA custody account using TradePMR’s
platform. Investment Accounts do not include Bitstamp or WonderFi as such
accounts are not brokerage or other Investment Accounts.
17
Robinhood Gold Adoption Rate
We define the Robinhood Gold adoption rate as end of period Robinhood Gold
Subscribers divided by end of period Funded Customers.
Growth Rate and Annualized Growth Rate with respect to Net Deposits
Growth rate is calculated as aggregate Net Deposits over a specified 12-month
period, divided by Total Platform Assets for the fiscal quarter that immediately
precedes such 12-month period. Annualized growth rate is calculated as Net
Deposits for a specified quarter multiplied by 4 and divided by Total Platform
Assets for the immediately preceding quarter.
Businesses that have reached $100M or more in annualized revenues
Based on a given business crossing $100 million in quarterly annualized revenues
(revenues in a given quarter times 4).
18