Financials · NASDAQ: HOOD
Robinhood: how the business works
Robinhood runs a brokerage and crypto app that earned $4.47 billion of revenue in FY2025 from trading, interest and subscriptions.
By Hardik Bhandare · Checked against filings:
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Robinhood Markets, Inc. · Menlo Park, California · Founded 2013
Last updated
- Revenue, FY2025
- $4.47B
- Net income, FY2025
- $1.88B
- Funded Customers (company measure), Sep 30, 2026
- 28.7 million
- Employees, Dec 31, 2025
- About 2,900
- Founders' share of votes, Apr 8, 2026
- 58.1%
The short version
Robinhood in 5 points
1 · What it sells
Robinhood runs a brokerage and crypto app for stocks, options, crypto and event contracts, lends to customers on margin and sells a Gold subscription, with revenue of $4.47 billion in FY2025.
2 · Who pays it
In FY2025, market makers and exchanges paid 55% of revenue, and customers, banks and others made up the remaining 45% (100 minus 55, Cityfort calculation from FY2025 10-K/A, after interest Robinhood itself pays), which filings do not split further by payer.
3 · What it keeps from $100
Of every $100 that came in during FY2025, Robinhood kept $42.0 as net income, helped by a 10.7% tax rate against the 21% statutory rate and only $14 million of non-operating income, and its operating income was $46.8 per $100 of revenue; net income in FY2024 and Q2 FY2026 held one-off items.
4 · Where the operating profit comes from
Robinhood reports one operating segment, so it gives no split of its $2.09 billion of FY2025 operating income (revenue minus operating expenses, a Cityfort calculation from FY2025 10-K/A) by product or country.
5 · The one thing to watch
Crypto revenue fell to $120 million in Q3 FY2026 from $268 million a year earlier, while event contract revenue rose to $173 million from $27 million.
Sources: From Robinhood's FY2025 10-K (re-filed as a 10-K/A), Q3 FY2026 10-Q and Oct 27, 2026 earnings release · checked
See the full receipt and the management scorecard below
01Where the money goes · FY2025
Where does $100 of Robinhood's money go?
Robinhood · FY2025
Receipt for every $100
| Technology and development | $20.0 |
|---|---|
| General and administrative | $14.0 |
| Marketing | $8.9 |
| Operations and credit losses | $5.4 |
| Brokerage and transaction costs | $4.7 |
| Income tax | $5.0 |
| Kept as net income | $42.0 |
| Total | $100 |
Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.
How this is worked out
Cityfort calculation from FY2025 10-K/A. Of every $100 that came in during FY2025 (revenue plus $14 million of other income): each line = line ÷ $4,487 million × 100. Robinhood kept $42.0 as net income. Stock-based pay of $305 million sits inside the cost lines. Income tax was 10.7% of pre-tax income, against the 21% statutory rate: share-based pay cut tax by $184 million and research credits by $66 million. The FY2025 tax rate was 10.7%, against the 21% statutory rate.
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02The business in one line
What does Robinhood do?
Market makers and exchanges pay Robinhood for its customers' trades, and customers, banks and others pay it interest and fees; technology is its largest cost, and $42.0 of every $100 was left as net income in FY2025.
- In FY2025, transaction revenue was 58.8% of the total, net interest 33.8%, and subscriptions and other revenue 7.4%.
- Payables to users, securities loaned and fractional shares owed to customers were $43.08 billion of Robinhood's $48.19 billion of liabilities at Sep 30, 2026 (Cityfort calculation from Q3 FY2026 10-Q), so its cash flow and total assets mostly track customer and share-lending balances.
03Who pays it
Who pays Robinhood?
Market makers and exchanges
55%
of revenue
They pay Robinhood for customers' stock, option and crypto orders. On stocks and options this is payment for order flow; on crypto, transaction rebates.
Customers, banks and others
45%
of revenue
The remaining 45% is 100 minus 55, a Cityfort calculation from FY2025 10-K/A, after interest Robinhood itself pays; filings do not split it by payer. It includes customers' margin interest ($573M), Cash Sweep from partner banks ($229M) and Gold fees ($179M).
- Market makers and exchanges55%
- Customers, banks and others45%
Customer concentration
Citadel Securities was 13% of FY2025 revenue and 17% of Q3 FY2026 revenue. Wintermute Trading was 6% of FY2025 revenue. The 55% is a filed figure and differs from transaction revenue (58.8%). Robinhood says its order flow arrangements are "often not documented under binding contracts".
- Largest customer
- 13%
04Why it makes money
Why does Robinhood make money?
From FY2021 to FY2025, revenue rose while operating expenses fell, so more of each dollar reached operating income.
Revenue rose from $1.82 billion in FY2021 to $4.47 billion in FY2025, while operating expenses fell from $3.46 billion to $2.38 billion. Stock-based payPay given as shares instead of cash, which spreads ownership more thinly. Learn more fell $1.27 billion over those years, more than the whole fall. Operating expenses rose from $1.90 billion in FY2024 to $2.38 billion in FY2025. Robinhood says transaction revenue falls when trading falls, and net interest moves with interest rates.
Operating income per $100 of revenue
−$90.4$46.8
FY2021 to FY2025
- Customers bring money and trades to the platform
- Market makers pay for orders; customers pay fees and interest
- Cash and margin balances earn interest
- From FY2021 to FY2025, technology and general costs fell as revenue rose
- Cash funds new products and acquisitions
- New products add more trades and balances
↺ Step 6 feeds back into step 1.
05Business segments · FY2025; revenue by source, not segments
Which businesses make up Robinhood?
Net interest
34%Robinhood reports one operating segment, so these are revenue sources with no profit split. This one is margin interest, interest on cash and securities, Cash Sweep and share lending, after interest on credit lines.
Revenue $1.5B
Options
25%Payment for order flow on customers' option trades.
Revenue $1.1B
Cryptocurrencies
20%Transaction rebates and fees on customers' crypto trades.
Revenue $901M
Equities
7%Payment for order flow on customers' stock trades.
Revenue $302M
Other transaction
7%Includes event contracts. Robinhood does not state full-year FY2025 event contract revenue.
Revenue $302M
Other revenues
7%Gold subscriptions ($179M), proxy revenue ($63M) and other ($89M).
Revenue $331M
How the mix changed
- Net interest
- Options
- Cryptocurrencies
- Equities
- Other transaction
- Other revenues
Revenue by segment, FY2021 to FY2025.
US$
See the numbers
06The numbers · Consolidated · US$
How has Robinhood done?
Revenue
$4.5BFY2025
Revenue fell to $1.36 billion in FY2022 from $1.82 billion in FY2021, then rose each year to $4.47 billion in FY2025.
US$
See the numbers
Net profit
$1.9BFY2025
Net income was $1.88 billion in FY2025 after net losses in FY2021 to FY2023; FY2021 held a $2.05 billion non-cash loss, FY2024 a $369 million tax benefit, Q2 FY2026 a $106 million gain, and Q3 FY2026 shows $468 million to Robinhood out of $476 million in total.
US$
See the numbers
Profit kept per $100 of revenue
$42.1FY2025
Net income per $100 of revenue was $42.1 in FY2025, stock-based pay fell from $86.6 per $100 in FY2021 to $6.8, and EBITDA here is not before all interest because net interest sits inside revenue.
$ of profit per $100 of revenue (net margin)
See the numbers
Free cash flow
$1.6BFY2025
Cash flow here mostly tracks customer balances, not business earnings: cash from operations was −$157 million in FY2024, when net income was $1.41 billion, and went from $3.51 billion in Q2 FY2025 to −$1.58 billion in Q3 FY2025.
US$ · cash from operations minus spending on plants and equipment
See the numbers
See all yearly numbers
EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (Dec 31; Robinhood's fiscal year is the calendar year, so Q3 FY2026 is July to September 2026). Net profit is the share belonging to the company's owners.
Learn: Fiscal years that don't end in December: Nvidia's FY2027 explained · Stock-based compensation and dilution: pay that becomes shares
07Who runs it
Who runs Robinhood, and did they deliver?
Vladimir Tenev
Co-founder, Chair, President and CEO · since 2013
CEO or co-CEO since the founding. 2025 total pay was $3.0 million: $34,248 salary, no stock award, $1.72 million of personal security and $1.25 million of personal aircraft use.
Baiju Bhatt
Co-founder and director · since 2013
Former co-CEO and Chief Creative Officer.
Shiv Verma
Chief Financial Officer · since 2026
Became CFO in February 2026, after Jason Warnick's retirement. He had been Senior Vice President of Finance and Strategy and Treasurer since 2018.
Steven Quirk
Chief Brokerage Officer · since 2022
2025 total pay was $12.87 million.
Daniel Gallagher
Chief Legal, Compliance, and Corporate Affairs Officer · since 2022
Chief Legal Officer since May 2020.
What they said, and what happened
1 partly delivered · 1 delivered · 2 too early to tell
Said on Feb 12, 2025
Robinhood said it expected 2025 Adjusted Operating Expenses and share-based pay of $2.0 to $2.1 billion, excluding TradePMR and Bitstamp.
Partly deliveredWhat happened
It raised the range three times, twice to add the acquisitions, and reported $2.27 billion. Total operating expenses (GAAP) were $2.38 billion.
Said on Nov 5, 2025
Robinhood said it expected 2025 Adjusted Operating Expenses and share-based pay of about $2.28 billion.
DeliveredWhat happened
Reported $2.27 billion in the Feb 10, 2026 release.
Said on Feb 10, 2026
Robinhood said it expected 2026 Adjusted Operating Expenses and share-based pay of $2.6 to $2.725 billion.
Too early to tellWhat happened
It raised the range on Apr 28, 2026, adding about $100 million for Trump Accounts, then lowered it on Jul 29 and Oct 27, 2026.
Said on Oct 27, 2026
Robinhood said it expected 2026 Adjusted Operating Expenses and share-based pay of $2.675 to $2.75 billion.
Too early to tellWhat happened
The measure was $1.912 billion in the first nine months of 2026. Total operating expenses (GAAP) were $2.13 billion.
08What could go wrong
What could go wrong for Robinhood?
- Demand
Revenue falls when trading falls
Transaction revenue was 60.9% of Q3 FY2026 revenue. Robinhood says it depends on trading volumes and tends to fall when trading falls. Crypto revenue was $120 million in Q3 FY2026, down from $268 million a year earlier.
Watch Options, crypto, equities and event contract revenue lines in each 10-Q.
- Concentration
Reliance on market makers and order flow payments
Market makers and exchanges paid 46% of Q3 FY2026 revenue, and Citadel Securities alone 17%, up from 13% a year earlier. Robinhood says these deals are often not under binding contracts, and that payment for order flow could be restricted or banned.
Watch The revenue concentration table in each 10-Q, and SEC rules on order flow.
- Legal
State challenges to event contracts
Plaintiffs allege sports event contracts are illegal gambling. Suits came from gambling-recovery companies in six states, tribes, customers, Wisconsin and Kentucky. Robinhood's unit sued five states for relief from gaming laws, and results differ: a New Jersey injunction stands, while Nevada and Michigan requests were denied. It stopped new sports contracts in Nevada on Dec 1, 2025, and agreed to stop in Ohio by Nov 2, 2026. Event contract revenue was $173 million in Q3 FY2026, up from $27 million. It collects no federal excise tax on them because it believes none applies, and calls their tax treatment "unclear".
Watch The event contracts part of the legal note in each 10-Q and 10-K.
- Governance
Founders control the votes
Tenev and Bhatt and their related entities hold all Class B shares, with 10 votes each. They had 58.1% of votes on Apr 8, 2026, on 12.2% of all shares. Robinhood's 10-K says they can determine or significantly influence director elections, charter changes and mergers, and "might have interests that differ" from other holders. A voting agreement ties the two together. Class B converts to Class A by Aug 2, 2036 at the latest.
Watch The voting power column in each proxy statementThe yearly filing about shareholder votes, the board and executive pay. Learn more, and Class B share counts on each 10-Q cover.
- Pricing
Net interest moves with interest rates and share lending
Net interest was 30.6% of revenue in the first nine months of 2026. It fell 9% to $415 million in Q3 FY2026, which Robinhood ties to lower share lending and lower short-term rates. Net share lending was −$19 million in that quarter, against $87 million a year earlier.
Watch Net interest revenue and its lines in each 10-Q.
- Other
Credit losses are rising with lending
The provision for credit losses was $163 million in the first nine months of 2026, up from $78 million a year earlier. Its Oct 27, 2026 release ties higher provisions to growth in card loans. Card loans held by its trust were $1.51 billion at Sep 30, 2026, and margin loans $22.1 billion.
Watch Provision for credit losses and Margin Book in each quarterly release.
- Cash and liquidity
Clearinghouse deposits can swing quickly
Robinhood's broker-dealer must post deposits with clearinghouses, and the 10-K says these requirements fluctuate significantly. It cites its early 2021 trading restrictions as an example of what can follow. Credit lines of $1.125 billion and $3.325 billion were undrawn at Sep 30, 2026.
Watch Drawings on credit lines and net capital in each 10-Q.
- Regulation
Other lawsuits and regulators
Open matters listed in the Q3 FY2026 10-Q include a class action on best execution, suits over the early 2021 trading restrictions and the IPO, a Cash Sweep class action, and regulators' inquiries. Robinhood says reasonably possible losses it can estimate are not material in aggregate, but it cannot estimate many of them.
Watch The legal note in each 10-Q and 10-K.
09Both sides
What do supporters and critics point to?
What supporters point to
- Revenue rose from $1.36 billion in FY2022 to $4.47 billion in FY2025.
- Operating income per $100 of revenue went from −$90.4 in FY2021 to $46.8 in FY2025.
- Gold Subscribers rose 34% in a year to 5.18 million at Sep 30, 2026.
- Options revenue was $399 million in Q3 FY2026, up from $304 million a year earlier.
- Corporate cash of $5.83 billion was above borrowings of $3.54 billion at Sep 30, 2026.
What critics point to
- Market makers and exchanges paid 46% of Q3 FY2026 revenue, under deals often not in binding contracts.
- Crypto revenue fell 55% in Q3 FY2026, to $120 million.
- The founders had 58.1% of the votes on 12.2% of the shares on Apr 8, 2026.
- Sports event contracts are being challenged by states, tribes and customers, and Robinhood stopped new ones in Nevada.
- The provision for credit losses rose to $71 million in Q3 FY2026 from $26 million a year earlier.
10What to watch next
What should you watch next at Robinhood?
Next event
Q4 FY2026 results
Date not announced yet.
Event contract revenue and state cases
Revenue was $173 million in Q3 FY2026. Robinhood agreed to stop new sports contracts in Ohio by Nov 2, 2026.
Net Deposits in Q4 FY2026
CFO Shiv Verma said on Oct 27, 2026 that October Net Deposits had "topped $13 billion month-to-date, including $6 billion from the Dell family's contribution to Trump Accounts".
Costs against the expense outlook
Robinhood's Oct 27, 2026 outlook for 2026 is $2.675 to $2.75 billion on its own measure, which was $1.912 billion after nine months.
11Key dates
What are the key dates for Robinhood?
| Event | Date | Source |
|---|---|---|
| Earliest date Robinhood may redeem its convertible notes, on conditions | Form 8-K: closing of 0.00% convertible senior notes due 2029 (Items 1.01, 2.03, 3.02) | |
| Convertible notes mature | Form 8-K: closing of 0.00% convertible senior notes due 2029 (Items 1.01, 2.03, 3.02) | |
| Warrants for 8.74 million Class A shares expireStrike price $26.60. | Form 10-Q, Q3 fiscal 2026 (quarter ended Sep 30, 2026) | |
| Latest date all Class B shares convert to Class AEarlier triggers are set out in the 10-K. | Form 10-K/A, fiscal year 2025 (year ended Dec 31, 2025; complete re-filing, formatting fix only) |
Learn: IPO lock-up agreements: what they are and when they end
12Key facts
Key facts about Robinhood
- What does Robinhood do?
- Robinhood Markets runs a brokerage and crypto app, mostly in the US, where customers trade stocks, options, crypto and event contracts, borrow against their investments and pay for a Gold subscription. Robinhood's revenue was $4.47 billion in FY2025 (calendar 2025), and it reported 28.7 million Funded Customers, a company measure, at Sep 30, 2026.
- How does Robinhood make money, and what is its business model?
- Robinhood charges no commission on US stocks, ETFs and options, and earns from what surrounds those trades. In FY2025, 58.8% of its $4.47 billion revenue was transaction revenue, 33.8% net interest and 7.4% subscriptions and other revenue. Market makers and exchanges paid 55% of FY2025 revenue.
- Is Robinhood profitable?
- Robinhood's net income was $1.88 billion in FY2025 and $1.41 billion in FY2024, which included a $369 million deferred tax benefit. It had net losses in FY2021, FY2022 and FY2023. Net income attributable to Robinhood was $468 million in Q3 FY2026, down from $556 million a year earlier.
- What is Robinhood's revenue by segment?
- Robinhood reports one operating segment, so it has no segment revenue. By source in FY2025, Robinhood earned $1.51 billion from net interest (33.8%), $1.12 billion from options (25.1%), $901 million from crypto (20.1%), $302 million from equities (6.8%), $302 million from other transactions (6.8%) and $331 million from other revenue (7.4%).
- How much does Robinhood earn from options and stocks?
- Robinhood's options revenue was $1.12 billion in FY2025, 25.1% of revenue, and its equities revenue was $302 million, 6.8%. In Q3 FY2026 options revenue was $399 million and equities revenue $121 million.
- How much does Robinhood earn from crypto?
- Robinhood's crypto revenue was $901 million in FY2025, 20.1% of revenue, up from $626 million in FY2024. In Q3 FY2026 it was $120 million, down from $268 million a year earlier.
- What are event contracts, and how much does Robinhood earn from them?
- An event contract is a derivative built around a Yes or No position on a stated event, which pays out if the position matches the outcome. Robinhood charges a commission per contract. Its event contract revenue was $173 million in Q3 FY2026 and $433 million in the first nine months of 2026, 11.4% of revenue in those months.
- How much does Robinhood earn from interest?
- Robinhood's net interest revenue was $1.51 billion in FY2025, 33.8% of revenue. The largest lines were margin interest paid by customers ($573 million), interest on segregated cash and securities ($319 million) and Cash Sweep at partner banks ($229 million).
- How much does Robinhood earn from Gold subscriptions?
- Robinhood's Gold subscription revenue was $179 million in FY2025, 4.0% of revenue, and $62 million in Q3 FY2026. Robinhood reported 5.18 million Gold Subscribers, a company measure, at Sep 30, 2026.
- Who owns Robinhood?
- Robinhood's founders, Vladimir Tenev and Baiju Bhatt, and their related entities hold all of its Class B shares, which carry 10 votes each. On Apr 8, 2026 the founders had 58.1% of the votes, on 12.2% of all shares. BlackRock held 7.0% of Class A at Sep 30, 2025.
Go deeper
More detail from the same filings. Open any section.
13What it sells
13What it sells
What does Robinhood sell?
Options ($1.12B in FY2025)
Contracts on the future price of a stock. Market makers pay Robinhood for the customer orders it routes to them, known as payment for order flow.
Crypto trading ($901M)
Robinhood acts as agent and routes customer orders to market makers or exchanges. It bought the Bitstamp exchange in June 2025.
Stocks and ETFs ($302M)
No commission on US-listed shares. Market makers pay Robinhood for the orders, as with options.
Event contracts ($173M in Q3 FY2026)
Derivatives built around a Yes or No position on a stated event, paying out if the position matches the outcome. Robinhood charges a commission per contract.
Margin loans ($573M of interest)
Loans to customers, backed by the investments in their accounts. The loans totaled $22.1 billion at Sep 30, 2026.
Cash and share lending
FY2025 interest on segregated cash and securities ($319M), Cash Sweep at partner banks ($229M) and company cash ($167M), plus net revenue from lending customers' shares ($190M).
Gold subscription ($179M)
A flat paid subscription, $5 a month or $50 a year, with 5.18 million subscribers at Sep 30, 2026.
Credit card ($64M, net)
The Gold Card is issued by Coastal Community Bank under a program agreement with Robinhood's credit unit.
What it does
- Does: Routes customer orders to market makers and exchanges, and clears its own stock, ETF and option trades
- Does: Lends to customers on margin and lends out customers' shares
- Does: Acts as broker and sole initial trustee for Trump Accounts for the US Treasury, launched Jul 4, 2026
- Does: Offers crypto trading in the US, the EU and the UK, and brokerage in the UK
What it does not do
- Does not: Is not a bank: Coastal Community Bank provides the banking services and issues the credit card
- Does not: Does not treat customer money as its own: $13.44 billion of segregated cash and securities at Sep 30, 2026 was held apart
- Does not: Does not report revenue by country: it says substantially all revenue is in the US
- Does not: Does not publish a free cash flow figure
14How the money flows
14How the money flows · FY2025
How does money flow through Robinhood?
Money in
- Transaction revenue (options, crypto, stocks, other)$2.6B
- Net interest revenue$1.5B
- Other revenue (Gold, proxy and other)$331M
- Other income$14M
The company
Robinhood
$4.5B came in
Money out
- Technology and development$897M
- General and administrative$628M
- Marketing$399M
- Operations and credit losses$244M
- Brokerage and transaction costs$211M
- Income tax$225M
- Net income$1.9B
- Market makers, exchanges, customers, banks and others paid Robinhood $4.47 billion of revenue in FY2025.
- Net interest is counted after $32 million of interest on Robinhood's own credit lines, so that cost sits inside revenue.
- Technology and general costs took $1.53 billion, marketing $399 million, and operations and credit losses $244 million.
- That left $2.09 billion of operating income, a Cityfort calculation from FY2025 10-K/A. Other income added $14 million.
- After $225 million of income tax, $1.88 billion was left as net income.
15What it needs to run
15What it needs to run
What does Robinhood need to run?
Licenses
Robinhood holds licenses as an introducing and a clearing broker-dealer, a money transmitter and a futures commission merchant.
Regulatory capital
Its clearing broker-dealer had net capital of $4.21 billion at Sep 30, 2026, against $491 million required.
Credit lines
A $1.125 billion unsecured line and a $3.325 billion secured 364-day line were both undrawn at Sep 30, 2026.
Cloud computing
Its core infrastructure and data platform run on Amazon Web Services.
People
About 2,900 full-time employees at Dec 31, 2025. In June 2026 it announced a cut of about 10% of full-time staff.
16Where growth could come from
16Where growth could come from
Where could Robinhood's growth come from?
Robinhood said on Oct 27, 2026 that it expects 2026 Adjusted Operating Expenses and share-based pay of $2.675 to $2.75 billion. That is a company measure that leaves out credit losses and some other costs. The outlook in the release covers expenses only, not revenue.
Event contracts
Mixed$173M in Q3 FY2026
Revenue rose from $27 million a year earlier. Several states have challenged sports contracts (see risks). A September 2026 deal may give Robinhood up to 10% of Crypto.com and some affiliates over three years for routing contracts there.
Status: Mixed, partly on track.
Margin loans
Working$22.1B Margin Book, Sep 30, 2026
Margin interest was $244 million in Q3 FY2026, up from $153 million a year earlier. The Margin Book, a company measure, was $13.9 billion a year earlier.
Status: Working, on track against what the company said.
Gold subscriptions
Working5.18M subscribers, Sep 30, 2026
Gold revenue was $62 million in Q3 FY2026, up from $47 million a year earlier.
Status: Working, on track against what the company said.
Credit card
Mixed$50M in Q3 FY2026
Net credit card revenue rose from $17 million a year earlier. The provision for credit losses rose to $71 million from $26 million, which Robinhood links partly to growth in card loans.
Status: Mixed, partly on track.
Trump Accounts
NewLaunched Jul 4, 2026
Robinhood is broker and sole initial trustee for the US Treasury. It said on Apr 28, 2026 that the work is on a "cost plus basis with a small margin". Other revenues rose to $142 million in Q3 FY2026 from $88 million.
Status: New, recently announced.
Crypto
Mixed$120M in Q3 FY2026
Revenue fell 55% from $268 million a year earlier. Robinhood added Bitstamp in June 2025 and WonderFi in June 2026.
Status: Mixed, partly on track.
Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.
17The company's own measures (non-GAAP)
17The company's own measures · FY2025 and Q3 FY2026
What do Robinhood's own measures show?
Official (GAAP): Net income, FY2025
$1.9B
Company's own measure: Adjusted EBITDA, FY2025
$2.5B
Robinhood adds back interest on debt, tax, depreciation, stock-based pay, significant legal and tax settlements, restructuring, and unrealized gains and losses. The EBITDAOperating profit before wear-and-tear charges (depreciation and amortization). As a margin: per $100 of sales. in "The numbers" does not add back stock-based pay ($2,180 million).
Official (GAAP): Net income, Q3 FY2026
$476M
Company's own measure: Adjusted EBITDA, Q3 FY2026
$808M
Same definition, which also excludes non-controlling interests.
Official (GAAP): Net income to Robinhood, Q3 FY2026
$468M
Company's own measure: Adjusted Net Income, Q3 FY2026
$550M
New in Q3 FY2026. It leaves out restructuring, CFO transition stock awards, unrealized gains and losses, and amortization of intangibles, with their tax effect. Ordinary stock-based pay stays in.
Official (GAAP): Diluted EPS, Q3 FY2026
$0.51
Company's own measure: Adjusted EPS, Q3 FY2026
$0.60
Adjusted Net Income divided by diluted shares.
Official (GAAP): Total operating expenses, Q3 FY2026
$739M
Company's own measure: Adjusted Operating Expenses and share-based pay, Q3 FY2026
$664M
Robinhood leaves out the provision for credit losses, settlements and other significant items.
Official (GAAP): Revenue, Q3 FY2026
$1.4B
Company's own measure: Funded Customers, Sep 30, 2026
28.7 million
A person with an account at a Robinhood entity who, in the past 45 days, had a balance above zero or made a transaction.
Official (GAAP): Total assets on the balance sheet, Sep 30, 2026
$58.3B
Company's own measure: Total Platform Assets, Sep 30, 2026
395.9 US$ billion
What customers' investments and cash are worth, net of what they owe, plus assets at advisers using TradePMR. Most of it is not on Robinhood's balance sheet. It replaced Assets Under Custody in 2025, so earlier years are not like for like.
Official (GAAP)
No official figure measures this; it is the company's own operating measure.
Company's own measure: Net Deposits, Q3 FY2026
15.7 US$ billion
Cash and assets customers brought in, less withdrawals and transfers out.
Official (GAAP): Revenue, Q3 FY2026
$1.4B
Company's own measure: Revenue per customer (ARPU), Q3 FY2026, annualized
200 US$
Robinhood's average revenue per user, stated at an annual rate.
Official (GAAP): Gold subscription revenue, Q3 FY2026
$62M
Company's own measure: Gold Subscribers, Sep 30, 2026
5.2 million
5.18 million: a person with an account at a Robinhood entity who is subscribed to Gold and has made at least one subscription payment.
Official (GAAP): Receivables from users, net, Sep 30, 2026
$23.6B
Company's own measure: Margin Book, Sep 30, 2026
22.1 US$ billion
What customers owe on loans for buying securities.
Official (GAAP)
No official figure measures this; it is the company's own operating measure.
Company's own measure: Cash Sweep, Sep 30, 2026
32.3 US$ billion
Customer cash moved to deposits at program banks. It is off the balance sheet; Robinhood earns a net interest spread on it.
These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.
Sources
Form 10-K/A, fiscal year 2025 (year ended Dec 31, 2025; complete re-filing, formatting fix only); Q3 2026 earnings release (Form 8-K, Exhibit 99.1); Form 10-Q, Q3 fiscal 2026 (quarter ended Sep 30, 2026)
Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out · Stock-based compensation and dilution: pay that becomes shares
18Financial strength and debt
18Financial strength · Sep 30, 2026
How much debt does Robinhood have?
- Total debt$3.5B
- Cash and investments$5.8B
- Net cash (cash minus debt)$2.3B
- Net worth (shareholders' money)$10.1B
- Most of these liabilities are customer balances and share lending, not borrowings, so total liabilities are not debt here. Payables to users were $18.47 billion and fractional shares owed to customers $5.12 billion. Securities loaned ($19.48 billion) is cash collateral received from those borrowing shares, and includes securities held for Robinhood's own account.
- Cash here is corporate cash only. Segregated cash and securities of $13.44 billion are held apart for customers and are not Robinhood's to spend.
- Borrowings are a Cityfort calculation from Q3 FY2026 10-Q: $2,200 million of convertible notes, $500 million of card-backed notes and $839 million of credit card trust borrowing principal and interest, which sits in other current liabilities. The balance sheet carries the first two at $2,660 million. Trust and card-backed note holders have no recourse to Robinhood's general credit.
- Debt to equity and interest cover are left blank. Customer balances and interest counted inside revenue would make both ratios misleading here.
- Equity of $10.08 billion includes $77 million of non-controlling interests. A further $500 million of card-backed notes was issued on Oct 15, 2026, after this date.
- Robinhood publishes no free cash flow figure. Credit card purchases sit in investing cash flows ($5.20 billion out and $4.44 billion collected in FY2025), so the free cash flow shown on this page leaves them out.
19Who owns it
19Who owns it · ownership as of Apr 8, 2026
Who owns Robinhood?
- Officers and directors (as a group), shares
- 13.4%
- Officers and directors (as a group), votes
- 58.6%
Shares vs votes by class
Robinhood has more than one class of shares, and the classes carry different votes. The share of votes a class holds can differ a lot from its share of the shares.
- Class A common stock: share of all votes42.6%
- Class B common stock: share of all votes57.4%
Each class's part of all votes = its shares outstanding × votes per share ÷ the total for all classes.
Share classes
Holders of 5% or more
From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.
Sources
Form 10-Q, Q3 fiscal 2026 (quarter ended Sep 30, 2026); Proxy statement (DEF 14A) for the June 2, 2026 annual meeting (record date Apr 8, 2026); Schedule 13G: Vanguard Capital Management, Class A and 2 more
Learn: Dual-class shares: when votes and ownership don't match · How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes
20What it does with profit
20What it does with profit
What does Robinhood do with its profit?
Buyback · Dec 31, 2023
FY2023: mostly 55.3 million Class A shares bought from the US Marshals Service at $10.96 a share.
$608M
Buyback · Dec 31, 2024
FY2024: 10.4 million shares at an average of $24.78.
$257M
Buyback · Dec 31, 2025
FY2025: 12 million shares at an average of $54.30.
$653M
Buyback · Sep 30, 2026
First nine months of 2026, including $290 million bought in June with convertible note proceeds at $105.71 a share.
$689M
Money raised · Aug 2, 2021
IPO of 55.0 million Class A shares at $38.00, including 2.6 million sold by holders. FY2021 cash flows show $2,052 million of IPO proceeds.
$2.1B
Money raised · Jun 25, 2026
0.00% convertible senior notes due 2029.
$2.2B
Money raised · Jul 23, 2026
Series 2026-1 card-backed notes, about 4.86% average coupon.
$500M
Money raised · Oct 15, 2026
Series 2026-2 card-backed notes, after the Sep 30 balance sheet.
$500M
21Governance signals
21Governance signals
What do Robinhood's governance filings show?
- Auditor
- Ernst & Young LLP, since 2017
- Auditor changes
- None in the period covered
- Audit qualifications
- None reported
- Related-party dealings
- Entities affiliated with Ribbit Capital, led by director Meyer Malka, bought $501.6 million of Robinhood's February 2021 convertible notes. In February 2025 Robinhood signed issuer agreements tied to Ribbit funds' hedges. The founders' voting agreement and exchange agreements are also listed in the proxy.
- Credit rating
- No public credit rating found
Flags to know about
other
Founders' voting agreement
Tenev and Bhatt agree to vote for each other as directors and to vote together on other directors, deferring to a board committee if they disagree. All Class B shares convert to Class A by Aug 2, 2036 at the latest.
shares as collateral · Apr 22, 2026
Shares and warrants used as collateral
Director Meyer Malka entered a prepaid forward sale on 1,000,000 Class A shares on Nov 21, 2025, for up to about $89.3 million, and put those shares up as collateral. Ribbit funds put up warrants for up to 2,828,430 Class A shares in collars with Bank of America. Robinhood has a policy against hedging and using shares as collateral, "subject to rare and limited exceptions".
other
Pre-arranged share sale plans
Under Rule 10b5-1 plansAn insider's trading plan, set up in advance, that buys or sells shares on a schedule. Learn more adopted in Q3 FY2026, Tenev may sell up to 1,900,000 Class A shares by Nov 19, 2027 (adopted Sep 14, 2026). Chief Legal Officer Daniel Gallagher may sell up to 220,000 (adopted Aug 5, 2026), CFO Shiv Verma up to 59,694 less earlier plan sales (adopted Jul 31, 2026), and Chief Accounting Officer Dara Bazzano shares from settling up to 31,378 restricted stock units, less tax withholding (adopted Aug 3, 2026).
regulatory
Past settlements
In December 2020 Robinhood settled an SEC investigation into best execution and order flow payments, paying a $65 million civil penalty. In June 2021 it resolved FINRA matters, on a no admit, no deny basis, with censure, fines and restitution of $70 million.
regulatory
Open investigations
Robinhood's Q3 FY2026 10-Q lists a New York Attorney General investigation into brokerage execution quality and order price collars, and FINRA investigations including the Aug 4-5, 2024 overnight trading disruption.
other
Senior changes
Chief Technology Officer Jeffrey Pinner separated on May 7, 2026, and Dara Bazzano became principal accounting officer on Jun 25, 2026. Robinhood also announced a cut of about 10% of full-time staff on Jun 16, 2026.
disclosure
What Robinhood does not report
Filings give no profit by product, no revenue by country, no named competitors, no full-year FY2025 event contract revenue, and no revenue split by payer beyond market makers and exchanges. The FY2025 10-K was re-filed on Feb 20, 2026 as a 10-K/A to fix formatting; no number changed.
22What the market paid
22What the market paid · price as of Oct 30, 2026
What did the market pay for Robinhood on Oct 30, 2026?
Price as of Oct 30, 2026 (shown for education; prices change daily).
Price as of Oct 30, 2026: Robinhood's Class A shares closed at $84.99 on Nasdaq. Market value of about $76.5 billion (Cityfort calculation from the Oct 30, 2026 Nasdaq closing price and the Q3 FY2026 10-Q cover) = $84.99 × 900.49 million Class A and Class B shares (Oct 21, 2026). P/E is price ÷ earnings per share: 39.2 on $2.17, the sum of diluted EPS for the four quarters to Sep 30, 2026, which includes a $106 million gain in Q2 FY2026. Price to book is market value ÷ shareholders' equity: 7.7 on $10.0 billion, excluding non-controlling interests. EV/EBITDA is left blank because customer balances would make it misleading.
- Share price
- $84.99
- Market value (market cap)
- $76.5B
- P/E
- 39.2×
- P/B
- 7.7×
Source: HOOD historical closing prices, Oct 26-30, 2026; Form 10-Q, Q3 fiscal 2026 (quarter ended Sep 30, 2026); Q3 2026 earnings release (Form 8-K, Exhibit 99.1) and 3 more
23How it got here
23How it got here
How did Robinhood get here?
2013
Milestone
Founded
Vladimir Tenev and Baiju Bhatt founded Robinhood. It says it was the first US retail broker to offer commission-free stock trading with no account minimums.
2020
Crisis
SEC settlement
In December 2020 Robinhood settled an SEC investigation into best execution and order flow payments, with a $65 million civil penalty.
2021
Crisis
Early 2021 trading restrictions
Temporary limits on trading some stocks, including GameStop and AMC, led to arbitrations and government inquiries that are still listed in its filings.
2021
Milestone
IPO on Nasdaq
Robinhood closed its IPO on Aug 2, 2021 at $38.00 a share, and had a $3.69 billion net loss that year, including a $2.05 billion non-cash loss.
2022
Crisis
Two staff cuts
Revenue fell to $1.36 billion. Robinhood cut about 9% of full-time staff in April and about 23% in August.
2023
Business-model change
Into credit cards
Robinhood bought X1, a credit card company, on Jul 3, 2023. It became the base of the Gold Card.
2024
Milestone
Back to net income
Net income was $1.41 billion after three years of net losses, including a $369 million deferred tax benefit.
2025
Business-model change
Advisers and a crypto exchange
Robinhood bought TradePMR, a platform for investment advisers, in February, and the Bitstamp crypto exchange in June.
2026
Business-model change
A joint venture event contract exchange
A joint venture with SIG bought 90% of the exchange MIAXdx, now Rothera, on Jan 20, 2026. Event contract revenue reached $433 million in the first nine months of 2026.
2026
Milestone
Trump Accounts and first convertible notes
Robinhood became broker and sole initial trustee for Trump Accounts, launched on Jul 4, and issued $2.2 billion of convertible notes in June.
24Sources and changes
Where every number on this page comes from
Sources (25 documents)
- S1Form 10-K/A, fiscal year 2025 (year ended Dec 31, 2025; complete re-filing, formatting fix only) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 20, 2026
- S3Form 10-K, fiscal year 2024 (year ended Dec 31, 2024) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 18, 2025
- S4Form 10-K, fiscal year 2023 (year ended Dec 31, 2023) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 27, 2024
- S5Form 10-K, fiscal year 2022 (year ended Dec 31, 2022) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 27, 2023
- S6Form 10-K, fiscal year 2021 (year ended Dec 31, 2021) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 24, 2022
- S7Form 10-Q, Q3 fiscal 2026 (quarter ended Sep 30, 2026) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 28, 2026
- S14Q3 2026 earnings release (Form 8-K, Exhibit 99.1) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 27, 2026
- S15Q2 2026 earnings release (Form 8-K, Exhibit 99.1) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 29, 2026
- S16Q1 2026 earnings release (Form 8-K, Exhibit 99.1) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 28, 2026
- S17Q4 2025 earnings release (Form 8-K, Exhibit 99.1) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 10, 2026
- S18Q3 2025 earnings release (Form 8-K, Exhibit 99.1) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Nov 5, 2025
- S19Q2 2025 earnings release (Form 8-K, Exhibit 99.1) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 30, 2025
- S20Q1 2025 earnings release (Form 8-K, Exhibit 99.1) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 30, 2025
- S21Q4 2024 earnings release (Form 8-K, Exhibit 99.1) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 12, 2025
- S23Proxy statement (DEF 14A) for the June 2, 2026 annual meeting (record date Apr 8, 2026) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 22, 2026
- S24Form 8-K: closing of 0.00% convertible senior notes due 2029 (Items 1.01, 2.03, 3.02) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jun 25, 2026
- S25Form 8-K: reduction in force of about 10% (Item 2.05) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jun 16, 2026
- S26Form 8-K: Chief Technology Officer separation (Item 5.02) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · May 8, 2026
- S27Form 8-K: principal accounting officer appointed (Item 5.02) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jun 26, 2026
- S28Form 8-K: Shiv Verma appointed CFO (Items 2.02, 5.02) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 10, 2026
- S29Form 8-K: CFO Jason Warnick retirement (Items 2.02, 5.02) · Robinhood Markets, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Nov 5, 2025
- S30Schedule 13G: Vanguard Capital Management, Class A · Vanguard Capital Management (SEC EDGAR) · Tier 1: company or exchange filing · Apr 30, 2026
- S31Schedule 13G/A: The Vanguard Group, Class A (zero after internal realignment) · The Vanguard Group (SEC EDGAR) · Tier 1: company or exchange filing · Mar 27, 2026
- S32Schedule 13G/A: BlackRock, Inc., Class A · BlackRock, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 17, 2025
- S34HOOD historical closing prices, Oct 26-30, 2026 · Nasdaq · Tier 1: company or exchange filing · Oct 30, 2026
Changes to this page (v2 · Nov 1, 2026)
- v2 · Nov 1, 2026Standardized calculation labels to name the filing they come from; no figures changed. (editorial update, Q3 FY2026)
- v1 · Nov 1, 2026First version, through Q3 FY2026 (quarter ended Sep 30, 2026). (first version)
Numbers come only from tier 1 and tier 2 sources. Read how we research.
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