October 31, 2026·44 min read
Robinhood Markets (HOOD), Financial Analysis
Insights derived from analysing SEC filings. Independent analysis, not a publication of the SEC.
Net revenues Q3 2026
$1.42bn
+11.8% year on year (Q3 2025 $1.27bn)
Operating expenses Q3 2026
$739m
+15.6% year on year (Q3 2025 $639m)
Operating margin Q3 2026
48.1%
(1.7 pts) year on year (Q3 2025 49.8%)
Key findings
- Revenue mix moves toward prediction markets and active trading. Q3 2026 net revenues $1.42bn, +11.8%; transaction based revenues $867m, +18.8%, while net interest revenues fell 9.0% to $415m. Event contracts revenue of $173m exceeded cryptocurrencies revenue of $120m (55.2% lower).
- Options and equities set volume records: options revenue $399m, +31.3%, on 905m contracts (+48.4%); equities revenue $121m, +40.7%, on $992bn of notional volume (+53.3%). The 10-Q cites more contracts per trader and 11% fewer users placing option trades.
- Margin lending grows while securities lending turns negative: Margin Book $22.1bn, +59%, and margin interest $244m, +59.5%; securities lending net ($19m) against $87m a year earlier; segregated cash interest net of interest paid to customers $55m against $103m.
- Costs rise faster than revenue: operating expenses $739m, +15.6%, led by provisions for credit losses ($71m, of which $61m on credit cards) and Trump Accounts operations; operating income $685m, +7.9%. Net income attributable $468m, (15.8%), after ($60m) of other expense from Robinhood Ventures marks and a 23.8% tax rate. Adjusted net income $542m per the amended release (original $550m).
- Assets keep flowing in: Net Deposits $15.7bn (17% annualized), $71.0bn over twelve months; platform assets $396bn, +19.0%; Gold Subscribers 5.2m, +34%. The release states October Net Deposits above $13bn month to date, incl. $6bn from the Dell family contribution to Trump Accounts.
- Shares at $85.41 on 30 Oct 2026, 6.7% below the prior close and 42.8% below the 52 week high; 39.4x TTM diluted EPS of $2.17. Scenario model: base case $89 in three years, best $175, worst $30.
Figures are read from the Forms 10-K for FY2022, FY2023, FY2024 and FY2025, the Forms 10-Q for Q3 2025 and Q1 to Q3 2026, the Forms 8-K with all their exhibits, incl. the quarterly earnings releases with their financial outlook (Ex 99.1), which serve as the CFO commentary, the amended Q3 2026 release filed on Form 8-K/A, the Rule 606 order routing reports (Ex 99.1, 99.2), the credit agreement of Robinhood Securities (Ex 10.1), the indenture, capped call form and releases of the 2029 convertible notes (Ex 4.1, 10.1, 99.1, 99.2), the Form 8-K Item 5.07 vote results of the 2026 annual meeting, Schedules 13G and Forms 4 on the record for central index key 1783879, together with the Forms 8-K, 10-Q and 6-K of nine peer companies used in chapters 2 to 6. Earnings call transcripts were not available; management points come from the releases and the Form 10-Q. Monthly figures are the preliminary months printed in the earnings releases; Robinhood files no monthly operating data on Form 8-K. Accession numbers for every filing used appear in the Sources appendix. Market prices are closes of 30 October 2026.
1 Revenue & Business Model
- Storyline: earnings shift from crypto and interest rates toward active trading, prediction markets and customer assets. Transaction based revenues were 60.9% of Q3 2026 net revenues against 57.3% a year earlier; net interest revenues fell to 29.1% from 35.8%. Chapters 2 to 5 cover the four revenue drivers: equities and options, crypto and prediction markets, net interest and margin lending, and Gold and asset gathering.
- Business model: one reportable segment. Robinhood earns transaction based revenues from liquidity providers that pay for routed equity, options and crypto orders and from fees on event contracts; net interest revenues from margin loans, segregated cash, the cash sweep program, securities lending, corporate cash and the credit card; other revenues from Robinhood Gold subscriptions, proxy rebates and, from Q2 2026, Trump Accounts service revenues.
- Net revenues FY2021 $1.82bn to FY2025 $4.47bn, (25.2%) in FY2022 and +51.6% in FY2025; TTM Q3 2026 $5.08bn, +20.9% on the prior twelve months.
- FY2025 by type: options $1.12bn, cryptocurrencies $901m, equities $302m, other transaction based incl. event contracts $302m, net interest $1.51bn, other $331m. Geography is not disclosed; international Funded Customers passed 1m in Q2 2026 (release).
- Acquisitions since Feb 2025: TradePMR ($169m), Bitstamp ($224m), MIAXdx through the Rothera joint venture with Susquehanna ($79m for 90%) and WonderFi ($178m); goodwill rose from $179m at Dec 2024 to $515m at Sep 2026.
Table 1.1 Net revenues by type, last five quarters ($m)
| Revenue line | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 | Change (%) |
|---|---|---|---|---|---|---|
| Options ($m) | 304 | 314 | 260 | 342 | 399 | 31.3 |
| Event contracts ($m) | 27 | n/a | 104 | 156 | 173 | 540.7 |
| Equities ($m) | 86 | 94 | 82 | 129 | 121 | 40.7 |
| Cryptocurrencies ($m) | 268 | 221 | 134 | 100 | 120 | (55.2) |
| Other transaction based ($m) | 45 | 147 | 43 | 49 | 54 | 20.0 |
| Transaction based revenues ($m) | 730 | 776 | 623 | 776 | 867 | 18.8 |
| Net interest revenues ($m) | 456 | 411 | 359 | 389 | 415 | (9.0) |
| Other revenues ($m) | 88 | 96 | 85 | 143 | 142 | 61.4 |
| Total net revenues ($m) | 1,274 | 1,283 | 1,067 | 1,308 | 1,424 | 11.8 |
Q4 2025 equals FY2025 less 9M 2025; Q4 2025 event contracts revenue is not split out and sits in other transaction based revenue ($147m). Change is Q3 2026 against Q3 2025.
Table 1.2 Operating metrics, last five quarters
| Metric | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 | Change (%) |
|---|---|---|---|---|---|---|
| Funded Customers (m) | 26.8 | 27.0 | 27.4 | 28.4 | 28.7 | 7.1 |
| Total Platform Assets ($bn) | 333 | 324 | 307 | 369 | 396 | 19.0 |
| Net Deposits ($bn) | 20.4 | 15.9 | 17.7 | 21.7 | 15.7 | (23.0) |
| Gold Subscribers (m) | 3.9 | 4.2 | 4.3 | 4.8 | 5.2 | 33.5 |
| ARPU, annualized ($) | 191 | 191 | 157 | 187 | 200 | 4.7 |
| Margin Book ($bn) | 13.9 | 16.8 | 17.0 | 21.6 | 22.1 | 58.9 |
| Equity notional volume ($bn) | 647 | 710 | 638 | 956 | 992 | 53.3 |
| Options contracts traded (m) | 610 | 659 | 586 | 774 | 905 | 48.4 |
| Crypto notional volume ($bn) | 80 | 82 | 66 | 40 | 50 | (37.5) |
| Event contracts traded (bn) | 2.3 | 8.5 | 8.8 | 13.6 | 16.4 | 613.0 |
Company definitions from the Ex 99.1 releases. Crypto notional volume includes Bitstamp. Change is Q3 2026 against Q3 2025.
2 Equities & Options: Record Volumes from Active Traders
- Options revenue $399m in Q3 2026, +31.3%, 28.0% of net revenues; 905m contracts traded, +48.4%. The 10-Q attributes growth to a 66% rise in contracts traded per trader, partly offset by lower rebate rates and 11% fewer users placing option trades.
- Equities revenue $121m, +40.7%, on $992bn of equity notional volume, +53.3%; notional volume per trader rose 48% (10-Q). Both volumes were records (release).
- Transaction based revenues $867m, 60.9% of net revenues; TTM $3.04bn. The Rule 606 reports of Robinhood Securities list venue payments of about $401m in Q3 2025 and $424m in Q4 2025, 77% of them on options; the company states the reports show some but not necessarily all payment for order flow.
- Products (release): 17 products announced at the Sep 2026 HOOD Summit, incl. Robinhood Agents, 24/7 trading of select US equities and perpetual futures for eligible US customers; about 200k Agentic Trading accounts with over $1.6bn of notional volume.
How retail trading is changing
- Retail activity rose across brokers in Q3 2026: Schwab daily average trades 10.7m, +44%; Interactive Brokers DARTs 4.27m, +18%, while its customer stock volumes fell 24%; Webull options contracts +68% and equity notional +73% in Q2 2026.
- Rule changes: the Pattern Day Trader rule was eliminated on 4 Jun 2026, which Webull credits for record Q2 2026 volumes; Rule 605 execution quality reports apply from 1 Aug 2026; tick size and access fee rules were delayed to Nov 2027; the SEC proposed rescinding Rule 611 in Jun 2026 (Robinhood 10-Q).
- AI agents in trading: about 200k Robinhood Agentic Trading accounts; Webull's Vega AI had about 480k active users in Q2 2026; Schwab introduced Charley, an AI assistant for US retail clients, in Q3 2026 (Schwab release).
Table 2.1 Trading businesses compared
| Company | Period | Trading measure | Further filed detail |
|---|---|---|---|
| Robinhood | Q3 2026 | Options revenue $399m (+31.3%) | 905m options contracts (+48.4%); equity notional $992bn (+53.3%) |
| Charles Schwab | Q3 2026 | Daily average trades 10.7m (+44%) | net revenues $7.17bn (+17%); pretax margin 52.7% |
| Interactive Brokers | Q3 2026 | Commission revenue $602m (+12%) | DARTs 4.27m (+18%); customer stock volumes (24%), options volumes (1%) |
| Morgan Stanley (E*TRADE) | Q3 2026 | Self directed DARTs 1.10m | self directed client assets $1.80tn |
| Webull | Q2 2026 | Trading related revenue $147.7m (+66%) | 213m options contracts (+68%); equity notional $279bn (+73%) |
| Futu | Q2 2026 | Trading volume HK$6.42tn | US stock volume HK$5.02tn; pretax margin 59.4% |
| UP Fintech (Tiger) | Q2 2026 | Options and futures 26.3m contracts | stock trading volume $154.5bn; pretax margin 30.0% |
Periods differ: Webull, Futu and UP Fintech had filed Q2 2026 only by 31 Oct 2026. Futu figures in Hong Kong dollars.
3 Crypto & Prediction Markets: Event Contracts Overtake Crypto
- Event contracts revenue $173m in Q3 2026 against $27m, 12.1% of net revenues; 16.4bn contracts traded against 2.3bn. 9M 2026 event contracts revenue $433m against $40m, mainly sports related contracts (10-Q).
- Cryptocurrencies revenue $120m, (55.2%): users placing crypto trades (37%), notional volume per trader (13%) and lower rebate rates, partly offset by Robinhood Chain revenue (10-Q). Robinhood App volume $21bn, (48%); Bitstamp $29bn, (28%).
- Rothera: the joint venture with Susquehanna bought MIAXdx on 20 Jan 2026 and launched a CFTC licensed exchange and clearinghouse in Jun 2026; over $100m of annualized revenue in its first full quarter and over 6.4bn contracts traded since launch (release). Robinhood also routes contracts to Kalshi, ForecastEx and Crypto.com, which may grant Robinhood up to 10% of its equity.
- State actions: Robinhood stopped new sports contracts in Nevada (Dec 2025) and Michigan and agreed on 26 Oct 2026 to stop new sports contracts in Ohio by 2 Nov 2026; the Ninth Circuit affirmed denial of its injunction in Nevada (Aug 2026); in a parallel KalshiEx case the Sixth Circuit affirmed denial in Ohio and reversed in Tennessee (Sep 2026); the CFTC has sued several states asserting preemption (10-Q).
How crypto trading and prediction markets are changing
- Crypto trading slowed in Q3 2026: Coinbase reports total market spot volume (6%) and derivatives volume (11%) on Q2, with its transaction revenue $590.2m, (43.6%), and consumer transaction revenue $450m against $844m.
- More venues for event contracts: Coinbase reports over $200m of annualized prediction market revenue; DraftKings launched Predictions in Dec 2025; Webull added prediction markets to its B2B offering; Interactive Brokers lists prediction markets among its products.
- Courts split on state power: the Third Circuit ruled for KalshiEx in New Jersey (Apr 2026), the Ninth Circuit for Nevada (Aug 2026); new state taxes on prediction market operators start in Illinois (Jul 2026), North Carolina and Kentucky (Jan 2027) (Robinhood 10-Q).
Table 3.1 Crypto and prediction market businesses compared
| Company | Period | Measure | Further filed detail |
|---|---|---|---|
| Robinhood | Q3 2026 | Event contracts $173m; crypto $120m (55.2%) | 16.4bn event contracts; crypto notional $50bn (37.5%) |
| Coinbase | Q3 2026 | Transaction revenue $590.2m (43.6%) | consumer transaction revenue $450m against $844m; prediction markets above $200m annualized revenue |
| DraftKings | Q2 2026 | Revenue $1.44bn (4.6%) | Predictions product launched Dec 2025; FY2026 revenue guidance $6.5bn to $6.9bn |
| eToro | Jul 2026 | 1.4m crypto trades in the month | 2.0m in Apr 2026 |
| Webull | Q2 2026 | Prediction markets added to its B2B offering | no revenue figure disclosed |
| Interactive Brokers | Q3 2026 | Prediction markets listed among products | no revenue figure disclosed |
Coinbase operating margin was 5.1% in Q3 2026; its net income of $719m includes $715m of crypto asset gains.
4 Net Interest & Margin Lending: Record Loans, Lower Lending Fees
- Net interest revenues $415m in Q3 2026, (9.0%), 29.1% of net revenues against 35.8% a year earlier; interest earning assets $76.7bn at a 2.41% average yield against $64.4bn at 2.48%.
- Margin interest $244m, +59.5%, on an average Margin Book of $21.5bn at a 4.54% yield; Margin Book $22.1bn at 30 Sep 2026, +59%, against $7.9bn at Dec 2024, equal to 5.6% of platform assets.
- Funding moved on balance sheet: the Feb 2026 High Yield Cash change moved over $6bn from the off balance sheet sweep to free credit balances that fund margin lending; segregated cash interest net $55m after $64m paid to customers, against $103m; Cash Sweep $32.3bn, (9%), with sweep revenue $45m at a 0.59% yield; Cash and Deposits $20.4bn, +43%.
- Securities lending net ($19m) against $87m: a lower average rate on higher stock loan balances as the hard to borrow market weakened (10-Q). Credit card net interest $50m, +194%, at an 11.82% yield; Gold Card 1.3m customers with over $19bn of annualized payment volume.
- Rates: the 10-Q notes the Fed raised rates in Sep 2026 and that any future cuts would reduce net interest revenues.
How margin lending and interest income are changing
- Margin balances reached records: Schwab $187.9bn at 30 Sep 2026 incl. $60.7bn tied to adviser long/short strategies; Interactive Brokers $105.2bn, +36%; Robinhood $22.1bn, +59%. Margin loans equal 10.9% of customer equity at Interactive Brokers, 5.6% of platform assets at Robinhood and 1.4% of client assets at Schwab.
- Yields fall as balances grow: margin yields 5.70% at Schwab, 4.54% at Robinhood and 4.25% at Interactive Brokers in Q3 2026; net interest revenue 48.5% of Schwab net revenues against 29.1% at Robinhood.
- Rates: Robinhood's 10-Q notes the Fed raised rates in Sep 2026; the release names lower short term rates and lower securities lending for the Q3 2026 decline in net interest revenues.
Table 4.1 Margin lending compared
| Company | Filed detail | Date | Margin loans ($bn) | Margin yield (%) | Net interest share of revenue (%) | Margin loans to client assets (%) |
|---|---|---|---|---|---|---|
| Charles Schwab | incl. $60.7bn tied to adviser long/short strategies | 30 Sep 2026 | 187.9 | 5.70 | 48.5 | 1.4 |
| Interactive Brokers | margin loans +36%; net interest income $1.15bn (+19%) | 30 Sep 2026 | 105.2 | 4.25 | n/a | 10.9 |
| Robinhood | Margin Book +59%; margin interest $244m | 30 Sep 2026 | 22.1 | 4.54 | 29.1 | 5.6 |
| Futu | HK$95.1bn incl. securities lending | 30 Jun 2026 | about 12.1 | n/a | n/a | n/a |
| UP Fintech (Tiger) | incl. securities lending; interest income $79.8m | 30 Jun 2026 | 7.4 | n/a | n/a | n/a |
| Webull | receivables from customers; FY2025 margin yield 7.23% | 30 Jun 2026 | 1.0 | n/a | n/a | n/a |
Client assets: Robinhood Total Platform Assets, Interactive Brokers customer equity, Schwab client assets.
5 Gold & Asset Gathering: Subscribers, Deposits and Trump Accounts
- Gold Subscribers 5.2m, +34%; adoption 18% of Funded Customers and about 40% of new customers; Gold subscription revenue $62m, +31.9%; ARPU $200, +5%. Funded Customers 28.7m, +7.1%, with 0.6m new customers, (14%).
- Net Deposits $15.7bn in Q3 2026, 17% annualized on Q2 platform assets, after $21.7bn in Q2 2026; $71.0bn over twelve months. Total Platform Assets $396bn, +19.0%, incl. $51.1bn of TradePMR RIA assets; crypto holdings $37.9bn, (26%).
- Trump Accounts: the US Treasury named Robinhood broker and sole initial trustee in Apr 2026; automatic enrollment created accounts for nearly 70m children and 25m children received $250 from the Dell family's $6.25bn pledge (release). Other revenues $142m, +61.4%, mainly Trump Accounts service revenue under a cost plus contract; operations costs for them +$21m (10-Q).
- Wealth products (release): Robinhood Retirement $36.6bn, +51%; Robinhood Strategies over $2bn from 350k Funded Customers; Robinhood Banking nearly $5bn of deposits; Trust Accounts over $300m.
How asset gathering and subscriptions are changing
- Incumbents keep gathering assets: Schwab core net new assets $190.4bn in Q3 2026, +38%, a 5.8% annualized rate; Interactive Brokers accounts 5.58m, +35%, with customer equity $964.7bn, +27%. Robinhood's 17% annualized Net Deposit rate is measured on a smaller base of $369bn.
- App based brokers grow from small bases: Webull customer assets $28.5bn, +79%, and eToro assets under administration $19.2bn in Q2 2026.
- Subscriptions spread in retail finance: Coinbase One paid subscribers +24% in Q3 2026, with subscription and services 49% of Coinbase net revenue; Robinhood Gold reached 5.2m subscribers.
Table 5.1 Asset gathering compared
| Company | Period | Flow or asset measure | Further filed detail |
|---|---|---|---|
| Robinhood | Q3 2026 | Net Deposits $15.7bn (17% annualized) | Total Platform Assets $396bn (+19.0%); Funded Customers 28.7m |
| Charles Schwab | Q3 2026 | Core net new assets $190.4bn (5.8% annualized) | client assets $13.33tn (+15%); 48.6m client accounts |
| Interactive Brokers | Q3 2026 | Customer equity $964.7bn (+27%) | accounts 5.58m (+35%); customer credits $186.2bn |
| Coinbase | Q3 2026 | Subscription and services $570.2m (20.4%) | Coinbase One paid subscribers +24% |
| Webull | Q2 2026 | Customer assets $28.5bn (+79%) | funded accounts 5.13m; registered users 28.2m |
| eToro | Q2 2026 | Assets under administration $19.2bn | funded accounts 4.28m |
| Futu | Q2 2026 | Client assets HK$1.40tn (about $178.5bn) | funded accounts 3.84m |
Table 5.2 Preliminary monthly figures printed in the earnings releases
| Month and source | Net Deposits ($bn) | Other figures stated |
|---|---|---|
| Oct 2025 (Q3 2025 release) | 5.5 | Margin Book above $16bn; equity notional $320bn; options above 260m contracts; crypto notional above $32bn; event contracts 2.5bn |
| Jan 2026 (Q4 2025 release) | 4.5 | Margin Book $18.4bn; equity notional $227bn; options 200m contracts; crypto notional $22.9bn; event contracts 3.4bn |
| Apr 2026, month to date (Q1 2026 release) | about 5.0 | equity and options volumes on track for the highest month of the year (CFO quote in the release) |
| Oct 2026, month to date (Q3 2026 release) | above 13 | incl. $6bn from the Dell family contribution to Trump Accounts |
Robinhood files no monthly operating data on Form 8-K; these months appear in the quarterly Ex 99.1 releases.
6 Financial Analysis & Ratios
- Operating margin 46.8% in FY2025 and 45.7% TTM, against (90.4%) in FY2021 and (28.7%) in FY2023; Q3 2026 48.1% against 49.8% in Q3 2025.
- Net income TTM $1.98bn, 39.0% of net revenues; FY2024 net income of $1.41bn includes a $369m deferred tax benefit; FY2023 includes $485m of SBC from the cancelled 2021 founders award.
- Cash flow follows brokerage balances: operating cash flow ($157m) in FY2024, $1.64bn in FY2025 and $3.05bn TTM. 9M 2026 operating cash flow of $3.98bn includes a $6.45bn rise in payables to users and a $7.85bn rise in securities loaned; capital expenditure was $76m TTM.
- Balance sheet at 30 Sep 2026: total assets $58.3bn, incl. receivables from users of $23.6bn (mainly margin loans), segregated cash and securities $13.4bn and corporate cash $5.83bn plus $164m of stablecoin; debt $3.50bn (2029 0% convertible notes $2.17bn carrying, asset backed notes $500m face, credit card warehouse $839m); equity $10.08bn.
- Capital returns: buybacks $653m in FY2025 (12m shares at $54.30) and $689m in 9M 2026, incl. $290m bought with the convertible notes; $1.5bn authorization of Mar 2026; no dividends. Robinhood Securities net capital $4.21bn, $3.72bn above the requirement.
Table 6.1 Income statement, cash flow and balance sheet summary ($bn unless stated)
| Line item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM Q3 2026 |
|---|---|---|---|---|---|---|
| Revenue | 1.8 | 1.4 | 1.9 | 3.0 | 4.5 | 5.1 |
| Research and development | 1.2 | 0.9 | 0.8 | 0.8 | 0.9 | 1.0 |
| Selling, general and administrative | 1.7 | 1.0 | 1.3 | 0.7 | 1.0 | 1.1 |
| Operating income | (1.6) | (1.0) | (0.5) | 1.1 | 2.1 | 2.3 |
| Net income | (3.7) | (1.0) | (0.5) | 1.4 | 1.9 | 2.0 |
| Diluted EPS ($) | (7.49) | (1.17) | (0.61) | 1.56 | 2.05 | 2.17 |
| Operating cash flow | (0.9) | (0.9) | 1.2 | (0.2) | 1.6 | 3.0 |
| Capital expenditure | (0.1) | (0.1) | 0.0 | (0.1) | (0.1) | (0.1) |
| Free cash flow | (1.0) | (0.9) | 1.2 | (0.2) | 1.6 | 3.0 |
| Stock based compensation | 1.6 | 0.7 | 0.9 | 0.3 | 0.3 | 0.4 |
| Cash and investments | 6.3 | 6.3 | 5.2 | 4.7 | 4.3 | 5.8 |
| Total debt | 0.0 | 0.0 | 0.0 | 0.1 | 0.6 | 3.5 |
| Total equity | 7.3 | 7.0 | 6.7 | 8.0 | 9.2 | 10.1 |
Revenue is total net revenues, after $32m of interest expense on borrowings in FY2025. Robinhood reports no cost of revenue, gross profit or operating income line: operating income here is net revenues less total operating expenses; R&D is technology and development; SG&A is marketing plus general and administrative. Net income is attributable to Robinhood. Cash and investments is corporate cash plus held to maturity investments and excludes $13.4bn of segregated cash at 30 Sep 2026. TTM equals Q4 2025 plus Q1 to Q3 2026.
Table 6.2 What changed, Q3 2026 against Q3 2025
| Metric | Q3 2025 | Q3 2026 | Change |
|---|---|---|---|
| Revenue ($bn) | 1.27 | 1.42 | 11.8% |
| Operating income ($bn) | 0.64 | 0.69 | 7.9% |
| Net income ($bn) | 0.56 | 0.47 | (15.8%) |
| Diluted EPS ($) | 0.61 | 0.51 | (16.4%) |
| Operating cash flow ($bn) | (1.58) | 1.23 | n/a |
| Free cash flow ($bn) | (1.59) | 1.20 | n/a |
| Operating margin (%) | 49.8 | 48.1 | (1.7 pts) |
| Net margin (%) | 43.6 | 32.9 | (10.8 pts) |
Table 6.3 Ratio analysis
| Ratio | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM Q3 2026 |
|---|---|---|---|---|---|---|
| Growth and margins | ||||||
| Revenue growth (%) | n/a | (25.2) | 37.3 | 58.2 | 51.6 | n/a |
| Operating margin (%) | (90.4) | (74.4) | (28.7) | 35.7 | 46.8 | 45.7 |
| Net margin (%) | (203.1) | (75.7) | (29.0) | 47.8 | 42.1 | 39.0 |
| FCF margin (%) | (53.3) | (66.9) | 62.2 | (7.0) | 35.4 | 58.4 |
| Cost and investment intensity | ||||||
| R&D (%) revenue | 68.0 | 64.7 | 43.2 | 27.7 | 20.1 | 19.3 |
| SBC (%) revenue | 86.6 | 48.2 | 46.7 | 10.3 | 6.8 | 6.9 |
| Capex (%) revenue | 4.6 | 4.2 | 1.1 | 1.7 | 1.2 | 1.5 |
| Effective tax rate (%) | n/a | n/a | n/a | (32.6) | 10.7 | 16.9 |
| Returns | ||||||
| ROE (%) | (50.6) | (14.4) | (7.9) | 19.2 | 22.0 | 19.7 |
| ROA (%) | (18.7) | (4.8) | (1.9) | 4.8 | 5.9 | 3.4 |
| ROIC (%) | (129.4) | (134.4) | (30.4) | 25.6 | 34.1 | 24.9 |
| Asset turnover (x) | 0.09 | 0.06 | 0.06 | 0.11 | 0.12 | 0.09 |
| Liquidity and leverage | ||||||
| Current ratio (x) | 1.56 | 1.41 | 1.24 | 1.39 | 1.26 | 1.24 |
| Debt to equity (x) | 0.00 | 0.00 | 0.00 | 0.02 | 0.07 | 0.35 |
| Net cash ($bn) | 6.3 | 6.3 | 5.2 | 4.6 | 3.7 | 2.3 |
| Efficiency and cash quality | ||||||
| FCF to net income (x) | n/a | n/a | n/a | (0.15) | 0.84 | 1.50 |
| Shareholder returns (%) FCF | n/a | n/a | 52 | n/a | 41 | 27 |
Free cash flow moves with brokerage balances (payables to users, securities loaned, segregated securities, margin receivables) and does not track earnings. ROE and ROA use average balances for FY2022 to FY2025 and period end balances for FY2021 and TTM. Net cash is corporate cash less debt. FY2024 tax rate reflects a $369m deferred tax benefit.
Table 6.4 Valuation snapshot at $85.41 per share, 30 Oct 2026
| Measure | Value |
|---|---|
| Market cap ($bn) | 76.9 |
| Enterprise value ($bn) | 74.6 |
| P/E (TTM) (x) | 39.4 |
| EV/Sales (TTM) (x) | 14.7 |
| EV/EBITDA (TTM) (x) | 30.9 |
| Price/Book (x) | 7.7 |
| EV/Adjusted EBITDA (TTM) (x) | 26.2 |
Cost structure and profitability
- Operating expenses $739m in Q3 2026, +15.6%, against net revenues +11.8%; the release names credit card provisions, Trump Accounts and Rothera costs and marketing and growth investments. Adjusted operating expenses and SBC $664m, +8%.
- Operations $79m, +139.4%, and provision for credit losses $71m, +173.1% ($61m on credit cards): together 10.5% of net revenues against 4.6% a year earlier.
- Technology and development $254m, +7.2%, 17.8% of revenue; the 10-Q cites software and tools +55% from use of AI tools. G&A $163m, (11.9%), on lower average headcount (10-Q); the June 2026 reduction in force cost a $23m restructuring charge and $7m of SBC in Q2 2026.
- Brokerage and transaction costs $68m, 4.8% of revenue; marketing $104m, +2.0%; SBC $80m, 5.6% of revenue.
- Below operating income: other expense ($60m) against ($1m) a year earlier and tax $149m (23.8% rate) against $78m (12.3%) cut net income attributable to $468m; 9M 2026 net income attributable $1.38bn, +7.9%.
Table 6.5 Costs as % of net revenues, last five quarters
| Line | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 |
|---|---|---|---|---|---|
| Brokerage and transaction (% of revenue) | 4.4 | 4.4 | 5.6 | 4.7 | 4.8 |
| Technology and development (% of revenue) | 18.6 | 18.1 | 22.6 | 19.6 | 17.8 |
| Operations (% of revenue) | 2.6 | 2.9 | 3.6 | 4.4 | 5.5 |
| Provision for credit losses (% of revenue) | 2.0 | 2.8 | 3.4 | 4.3 | 5.0 |
| Marketing (% of revenue) | 8.0 | 7.2 | 10.0 | 8.0 | 7.3 |
| General and administrative (% of revenue) | 14.5 | 13.9 | 16.3 | 15.2 | 11.4 |
| Total operating expenses (% of revenue) | 50.2 | 49.3 | 61.5 | 56.1 | 51.9 |
| Operating income (% of revenue) | 49.8 | 50.7 | 38.5 | 43.9 | 48.1 |
| Stock based compensation (% of revenue) | 6.1 | 5.9 | 8.6 | 8.0 | 5.6 |
Table 6.6 Operating income to net income ($m)
| Line | Q3 2025 | Q3 2026 | 9M 2026 |
|---|---|---|---|
| Net revenues | 1,274 | 1,424 | 3,799 |
| Total operating expenses | (639) | (739) | (2,129) |
| Operating income | 635 | 685 | 1,670 |
| Other income (expense) | (1) | (60) | 75 |
| Income taxes | (78) | (149) | (350) |
| Net income incl. non controlling interests | 556 | 476 | 1,395 |
| Net income attributable to Robinhood | 556 | 468 | 1,379 |
| Effective tax rate (%) | 12.3 | 23.8 | 20.1 |
Non controlling interests relate to Robinhood Ventures and the Rothera joint venture from 2026.
Table 6.7 GAAP and adjusted measures as amended, by quarter
| Measure | Q3 2025 | Q2 2026 | Q3 2026 |
|---|---|---|---|
| Diluted EPS ($) | 0.61 | 0.62 | 0.51 |
| Adjusted EPS ($) | 0.61 | 0.55 | 0.60 |
| Net income attributable ($m) | 556 | 561 | 468 |
| Adjusted net income ($m) | 561 | 500 | 542 |
| Adjusted EBITDA ($m) | 742 | 741 | 808 |
| Adjusted EBITDA margin (%) | 58.2 | 56.7 | 56.7 |
| Adjusted operating expenses and SBC ($m) | 613 | 641 | 664 |
Adjusted figures from the amended Q3 2026 Ex 99.1 (8-K/A of 27 Oct 2026). 9M 2026 Adjusted Net Income $1.409bn, Adjusted EPS $1.54.
7 MD&A & Management Commentary
Q3 2026 results release and Form 10-Q
- Q3 2026 (27 Oct 2026, Ex 99.1 and 10-Q): net revenues $1.42bn, +12%, a quarterly record; net income $476m incl. non controlling interests, (14%), and $468m attributable; diluted EPS $0.51, (16%), incl. $67m ($0.07 per share) of unrealized losses mainly on Robinhood Ventures Fund I.
- Revenue drivers (release): event contracts $173m, up over 6x; options $399m, +31%; equities $121m, +41%; cryptocurrencies $120m, (55%). Net interest revenues (9%) on lower securities lending and short term rates, partly offset by growth in interest earning assets ($76.7bn at a 2.41% average yield).
- Expenses (10-Q): operations $79m, +139%, mainly Trump Accounts customer experience (+$21m) and credit card growth; provision for credit losses $71m, incl. $61m on credit cards; technology and development +7% with software and tools +55% from use of AI tools; G&A (12%) on lower average headcount.
- Non GAAP (amended release): Adjusted EBITDA $808m, +9%, a 57% margin; Adjusted Net Income $542m, (3%), against $561m and Adjusted EPS $0.60 against $0.61, new measures from Q3 2026. The original Ex 99.1 showed $550m; the 8-K/A filed the same day revises the presentation of the income tax effects of the non GAAP adjustments.
- Product metrics (Q3 2026 release): about 200k Agentic Trading accounts with over $1.6bn of notional volume; Robinhood Chain generated over $80bn of decentralized exchange volume and over $50m of chain fees in Q3 2026, its first period on mainnet.
- Q2 2026 (29 Jul 2026, release): net revenues $1.31bn, +32%; diluted EPS $0.62 incl. $129m of RVI gains; record Net Deposits $21.7bn (28% annualized); 13 business lines at $100m or more of annualized revenue; Trump Accounts launched on 4 Jul 2026.
Table 7.1 Company outlook and targets in 2026, every revision
| Item | Outlook | Source |
|---|---|---|
| 2026 adjusted operating expenses and SBC, initial | $2.6bn to $2.725bn, 18% growth at the midpoint on 2025's $2.27bn | Q4 2025 release, 10 Feb 2026 |
| Revision 1 | raised to $2.7bn to $2.825bn, adding $100m to build Trump Accounts (cost plus contract) | Q1 2026 release, 28 Apr 2026 |
| Revision 2 | lowered and tightened to $2.675bn to $2.775bn while absorbing Rothera and WonderFi costs | Q2 2026 release, 29 Jul 2026 |
| Revision 3 | top end lowered by $25m to $2.675bn to $2.75bn; 9M 2026 actual $1.91bn implies $763m to $838m in Q4 | Q3 2026 release, 27 Oct 2026 |
| Outlook exclusions | provision for credit losses, pending acquisition costs, CFO transition and restructuring award changes, certain regulatory matters, impairments | Q3 2026 release |
| Revenue guidance | none provided | Q3 2026 release |
| October 2026 Net Deposits | above $13bn month to date, incl. $6bn from the Dell family contribution to Trump Accounts | Q3 2026 release |
| Share repurchases | $1.5bn authorization of Mar 2026 over about three years; $1.3bn bought since Q3 2024 at about $48 per share | Ex 99.1, 24 Mar and 27 Oct 2026 |
Management and CFO commentary
- CFO Shiv Verma, Q3 2026 release: revenues were the highest for any quarter; Rothera added a business line above $100m of annualized revenue (14 such lines per the release); October Net Deposits topped $13bn month to date. The outlook section cuts the expense outlook top end by $25m on efficiency gains.
- CFO Shiv Verma, Q2 2026 release: record revenues and new highs in equity, option and event contract volumes; Adjusted EBITDA $741m at a 57% margin; Net Deposits $21.7bn, 28% annualized. The Jun 2026 closing release puts the no net dilution level of the $2.2bn 0% convertible notes at about $303.95 a share incl. the concurrent repurchase.
- Q1 2026 release: expense outlook raised by $100m for the Trump Accounts build, contracted on a cost plus basis with a small margin, so revenues are expected to exceed costs.
- Q3 2026 release highlights: automatic enrollment created Trump Accounts for nearly 70m children; crypto trading launched in the UK and Dubai Financial Services Authority approval received, with a product rollout there planned for 2027.
- Q2 2026 release: the Robinhood Gold Card passed 1m customers with over $17bn of annualized purchase volume; the credit card business passed $100m of annualized revenues.
Table 7.2 Management statements in their own words
| Speaker | Date and source | Statement |
|---|---|---|
| Vlad Tenev, Chairman and CEO | 27 Oct 2026, Q3 2026 release (Ex 99.1) | “Our vision is to make everyone an owner” |
| Shiv Verma, Chief Financial Officer | 27 Oct 2026, Q3 2026 release (Ex 99.1) | “leading to our highest quarter ever for revenues” |
| Shiv Verma, Chief Financial Officer | 25 Jun 2026, convertible notes closing release (Ex 99.1) | “this transaction gives us even more strategic flexibility to invest for future growth” |
Table 7.3 Key disclosures in the Forms 10-Q and 10-K
| Item | Disclosure |
|---|---|
| 10-Q Q3 2026, funded customers | Beginning 28.4m; new 0.6m, (14%) year on year; resurrected 0.1m; churned 0.4m; ending 28.7m. |
| 10-Q Q3 2026, platform assets | Equities $277.5bn, cryptocurrencies $37.9bn, (26%), RIA assets on TradePMR $51.1bn, cash held by customers $49.1bn, options and futures $2.4bn, less receivables from customers $22.1bn: $395.9bn. Q3 change: Net Deposits $15.7bn, net market gains $11.5bn. |
| 10-Q Q3 2026, other income | ($60m) in Q3 2026 from marks on Robinhood Ventures Fund I and II; 9M 2026 includes a $106m gain on deconsolidating RVI in June 2026 when ownership fell from about 52% to 49%; retained interests $461m. |
| 10-Q Q3 2026, liquidity | Revolving facilities $4.45bn, undrawn at quarter end; credit card warehouse capacity $1.55bn with $839m drawn; $500m Series 2026 1 asset backed notes issued 23 Jul 2026 at 4.86% to 5.65%; contractual obligations $5.11bn. |
| 10-Q Q3 2026, Crypto.com | Sep 2026 agreements under which Robinhood may receive up to 10% of the equity of Crypto.com and affiliates over three years for routing selected event contracts to its exchange and the OG.com app. |
| 10-Q Q3 2026, legal | Loss accruals $96m against $71m at Dec 2025; cash sweep class actions settled in principle; PFOF class action settlement approved Jun 2026; event contract suits in several states and a consolidated consumer class action. |
| 10-K FY2025, revenue model | Net revenues $4.47bn: transaction based $2.63bn, net interest $1.51bn, other $331m; single reportable segment; no revenue by geography. |
| 10-K FY2025, tax and credit | Tax expense $225m, a 10.7% effective rate; credit card receivables $840m with $26m past due; provision for credit losses $114m against $76m in FY2024. |
8 Peer Valuation & Sector Summary
- Sector: retail brokerage, crypto trading and prediction markets. Robinhood competes with incumbent brokers (Schwab, Interactive Brokers, Morgan Stanley's E*TRADE), app based brokers (Webull, Futu, UP Fintech, eToro), crypto exchanges (Coinbase) and sportsbooks entering prediction markets (DraftKings).
- Growth (latest quarter): Robinhood net revenues +11.8% in Q3 2026 (TTM +20.9%), Schwab +17%, Coinbase (35%), DraftKings (4.6%) in Q2 2026.
- Margins: Robinhood Q3 2026 pretax margin 43.9% and operating margin 48.1%, against Interactive Brokers 78.0% and Schwab 52.7% (pretax), Futu 59.4%, UP Fintech 30.0% and Webull 17.5% (Q2 2026 pretax) and Coinbase 5.1% (operating).
- Valuation: HOOD 39.4x TTM P/E, 14.7x EV/Sales and 26.2x EV/Adjusted EBITDA at $85.41; market value $76.9bn against Schwab $152.3bn, Coinbase $38.5bn and SoFi $21.7bn.
- Summary across drivers: Robinhood's Q3 2026 growth came from options, equities and event contracts, while crypto revenue fell 55% against a 44% fall in Coinbase transaction revenue, and net interest fell 9% while Margin Book growth (+59%) outpaced Interactive Brokers (+36%).
Table 8.1 Peer comparison, Q3 2026 against Q3 2025
| Company | Revenue growth (%) | Operating margin (%) | Net margin (%) | Market value ($bn) |
|---|---|---|---|---|
| HOOD | 11.8 | 48.1 | 32.9 | 77 |
| SCHW | 17.0 | 52.7 | n/a | 152 |
| COIN | (35.0) | 5.1 | 59.1 | 39 |
| SOFI | n/a | n/a | n/a | 22 |
| IBKR | n/a | 78.0 | n/a | n/a |
All rows are the single quarter Q3 2026 against Q3 2025, not trailing twelve months: Robinhood operating margin (net revenues less total operating expenses) and net margin attributable; Schwab and Interactive Brokers pretax margins shown in the operating margin column; Coinbase operating and net margins (net income includes $715m of crypto asset gains). Peer TTM figures were not computed. Market values use closes of 30 Oct 2026 and cover page share counts; Interactive Brokers market value not computed.
Table 8.2 Latest quarter results from peer filings
| Company | Filed detail | Period | Net revenues ($m) | Growth (%) | Pretax margin (%) |
|---|---|---|---|---|---|
| Robinhood | Funded Customers 28.7m; platform assets $396bn | Q3 2026 | 1,424 | 11.8 | 43.9 |
| Charles Schwab | daily average trades 10.7m (+44%); client assets $13.33tn | Q3 2026 | 7,171 | 17.0 | 52.7 |
| Interactive Brokers | DARTs 4.27m (+18%); commissions $602m (+12%); accounts 5.58m | Q3 2026 | n/a | n/a | 78.0 |
| Coinbase | operating margin 5.1%; transaction revenue $590m (44%) | Q3 2026 | 1,216 | (35.0) | n/a |
| DraftKings | Predictions launched Dec 2025 | Q2 2026 | 1,443 | (4.6) | n/a |
| Webull | options contracts 213m (+68%); funded accounts 5.13m | Q2 2026 | 198.8 | n/a | 17.5 |
| UP Fintech (Tiger) | options and futures contracts 26.3m | Q2 2026 | 182.3 | n/a | 30.0 |
| Futu | client assets HK$1.40tn; funded accounts 3.84m | Q2 2026 | HK$7,200 | n/a | 59.4 |
Robinhood pretax margin equals pretax income $625m over net revenues. Futu revenue in Hong Kong dollars. Interactive Brokers revenue not collected.
9 Material Events & Contracts
- 16 Forms 8-K and 8-K/A in twelve months: five earnings releases and the amended Q3 2026 release, two sets of Rule 606 order routing reports, the Robinhood Securities credit agreement and buyback authorization, the convertible notes launch and closing, four officer notices, the June 2026 reduction in force and the annual meeting results.
- Financing in 2026: $2.2bn of 0.00% convertible notes due 2029 (Jun 2026), $500m of asset backed notes secured on credit card receivables (Jul 2026, 10-Q) and a $3.25bn revolver for Robinhood Securities (Mar 2026); revolving capacity totals $4.45bn, undrawn at 30 Sep 2026.
- Leadership changes: CFO Jason Warnick retired and Shiv Verma became CFO on 6 Feb 2026; CTO Jeffrey Pinner left on 7 May 2026; Dara Bazzano became principal accounting officer on 25 Jun 2026.
Table 9.1 Forms 8-K filed in the last twelve months
| Date | Items | Event |
|---|---|---|
| 31 Oct 2025 | 2.02, 7.01, 9.01 | Q3 2025 Rule 606 order routing reports of the two broker dealers furnished (Ex 99.1, 99.2). |
| 5 Nov 2025 | 2.02, 5.02, 9.01 | Q3 2025 results: net revenues $1.27bn (+100%), net income $556m, diluted EPS $0.61, Net Deposits $20.4bn. CFO Jason Warnick to retire; Shiv Verma named next CFO. |
| 30 Jan 2026 | 2.02, 7.01, 9.01 | Q4 2025 Rule 606 order routing reports furnished. |
| 10 Feb 2026 | 2.02, 5.02, 9.01 | Q4 and FY2025 results: FY net revenues $4.47bn (+52%), net income $1.88bn, diluted EPS $2.05; 2026 adjusted operating expenses and SBC outlook $2.6bn to $2.725bn. Shiv Verma CFO from 6 Feb 2026. |
| 24 Mar 2026 | 1.01, 2.03, 7.01, 9.01 | Robinhood Securities enters the fifth amended and restated credit agreement: 364 day senior secured revolver of $3.25bn, expandable to $4.875bn. Ex 99.1: $1.5bn share repurchase authorization. |
| 24 Mar 2026 | 5.02 | 8-K/A on CFO pay: base salary $600,000, bonus target 75% of salary, promotion RSU grant of about $18m over four years. |
| 28 Apr 2026 | 2.02, 9.01 | Q1 2026 results: net revenues $1.07bn (+15%), net income $346m incl. non controlling interests, diluted EPS $0.38; outlook raised to $2.7bn to $2.825bn for the Trump Accounts build. |
| 8 May 2026 | 5.02 | Chief Technology Officer Jeffrey Pinner departs effective 7 May 2026 under the Change in Control and Severance Plan. |
| 3 Jun 2026 | 5.07 | 2026 annual meeting of 2 Jun 2026: all ten directors elected, say on pay approved, EY ratified. |
| 16 Jun 2026 | 2.05 | Reduction in force of about 10% of full time employees; about $20m of cash severance and about $8m of SBC, recognized in Q2 2026. |
| 23 Jun 2026 | 8.01, 9.01 | Launch and pricing of the convertible senior notes offering (Ex 99.1, 99.2). |
| 25 Jun 2026 | 1.01, 2.03, 3.02, 7.01, 8.01, 9.01 | Closing of $2.2bn 0.00% convertible senior notes due 1 Oct 2029; conversion price about $174.42; capped calls up to $237.85 for $123m; $290m of shares repurchased at the same time. |
| 26 Jun 2026 | 5.02 | Dara Bazzano, Chief Accounting Officer, appointed principal accounting officer from 25 Jun 2026. |
| 29 Jul 2026 | 2.02, 9.01 | Q2 2026 results: net revenues $1.31bn (+32%), net income $573m incl. non controlling interests and $129m of RVI gains, diluted EPS $0.62; outlook $2.675bn to $2.775bn. |
| 27 Oct 2026 | 2.02, 9.01 | Q3 2026 results: net revenues $1.42bn (+12%), net income $476m ($468m attributable), diluted EPS $0.51 (16%), Adjusted EBITDA $808m; outlook top end lowered to $2.75bn. |
| 27 Oct 2026 | 2.02, 9.01 | 8-K/A with revised Ex 99.1 to revise the presentation of income tax effects of non GAAP adjustments; GAAP results unchanged; Adjusted Net Income $542m (original $550m), Adjusted EPS $0.60 unchanged; Q2 2026 Adjusted EPS $0.55 (original $0.50). |
Table 9.2 Material contracts and financing arrangements
| Contract | Terms |
|---|---|
| 0.00% convertible senior notes due 1 Oct 2029 (Ex 4.1) | $2.2bn principal; conversion price about $174.42; cash settlement up to principal; not redeemable before 1 Jul 2028 except a cleanup; fundamental change put at par; carrying value $2.17bn at 30 Sep 2026. |
| Capped calls (Ex 10.1) | Strike $174.42, cap $237.85, about 12.6m Class A shares, cost $123.2m; the closing release states no net dilution expected below about $237.85, or $303.95 incl. the concurrent repurchase. |
| Robinhood Securities credit agreement (Ex 10.1, Mar 2026) | 364 day senior secured revolver $3.25bn, accordion to $4.875bn; minimum excess net capital about $2.23bn and net capital of at least 10% of aggregate debit items. |
| Credit card funding | Credit Card Funding Trust warehouse capacity $1.55bn, $839m drawn; Series 2026 1 asset backed notes $500m at 4.86% to 5.65% (10-Q Q3 2026). |
| Rothera joint venture with Susquehanna | Acquired 90% of MIAXdx on 20 Jan 2026 for $79m, of which Susquehanna funded $41m; option to buy half of the remaining 10% within three years; consolidated, with non controlling interests. |
| Trump Accounts (US Treasury) | Robinhood named broker and sole initial trustee in Apr 2026; contracted on a cost plus basis with a small margin; service revenue booked in other revenues. |
| Crypto.com agreements (Sep 2026) | Up to 10% equity in Crypto.com and affiliates over three years for routing selected event contracts. |
10 Ownership, Voting Power & Annual Meeting
- Two voting share classes: Class B carries ten votes and holds about 57.4% of total votes on 107.1m shares; founders Vlad Tenev (47.4m) and Baiju Bhatt (46.8m) together control about 50.5% of votes. The proxy statement ownership table was not parsed; holdings come from Forms 4 and Schedules 13G.
- 2026 annual meeting (2 Jun 2026): all ten directors elected; Jonathan Rubinstein had 142.5m votes against (9.3% of votes cast), Dara Treseder and Robert Zoellick about 76m each; say on pay approved with 98.6%; EY ratified with 99.9%. No shareholder proposals.
- Insiders, 12 months: the only open market purchases were by director Meyer Malka through Bullfrog Capital, 680,000 shares at $80.39 to $83.45 in May and June 2026 for $55.3m. Sales were made under trading plans by Vlad Tenev (875,000 shares between 21 Sep and 5 Oct 2026 at about $114 to $126), Baiju Bhatt, Chief Legal Officer Daniel Gallagher and CFO Shiv Verma.
- CFO pay: base salary $600,000, bonus target 75% of salary and a promotion RSU grant of about $18m vesting over four years (8-K/A, Mar 2026).
Table 10.1 Annual meeting vote results, 2 Jun 2026
| Proposal | For (bn votes) | Against (bn votes) | Abstain (bn votes) | For as % of votes cast | Result |
|---|---|---|---|---|---|
| Elect Vladimir Tenev | 1.516 | 0.016 | 0.002 | 98.9 | Elected |
| Elect Baiju Bhatt | 1.530 | 0.004 | 0.001 | 99.7 | Elected |
| Elect John Hegeman | 1.530 | 0.004 | 0.001 | 99.7 | Elected |
| Elect Paula Loop | 1.528 | 0.005 | 0.001 | 99.6 | Elected |
| Elect Meyer Malka | 1.529 | 0.005 | 0.001 | 99.7 | Elected |
| Elect Christopher Payne | 1.529 | 0.005 | 0.001 | 99.7 | Elected |
| Elect Jonathan Rubinstein | 1.391 | 0.143 | 0.001 | 90.7 | Elected |
| Elect Susan Segal | 1.520 | 0.014 | 0.001 | 99.1 | Elected |
| Elect Dara Treseder | 1.457 | 0.077 | 0.001 | 95.0 | Elected |
| Elect Robert Zoellick | 1.457 | 0.076 | 0.001 | 95.0 | Elected |
| Advisory vote on executive pay | 1.512 | 0.021 | 0.001 | 98.6 | Approved |
| Ratify Ernst & Young LLP for FY2026 | 1.674 | 0.002 | 0.001 | 99.9 | Approved |
Votes combine Class A (one vote) and Class B (ten votes). Broker non votes 142.2m on each item except the auditor ratification.
Table 10.2 Holders and voting power
| Holder | Class A (m) | Class B (m) | Votes (% of total) |
|---|---|---|---|
| Vlad Tenev, CEO and co founder (Form 4, 5 Oct 2026) | 0.0 | 47.4 | 25.4 |
| Baiju Bhatt, co founder and director (Form 4, 21 Oct 2026) | 0.0 | 46.8 | 25.1 |
| Vanguard Capital Management (Schedule 13G, 31 Mar 2026) | 59.1 | 0.0 | 3.2 |
| BlackRock (Schedule 13G/A, 30 Sep 2025) | 55.8 | 0.0 | 3.0 |
| FMR (Schedule 13G/A, 30 Sep 2025) | 31.2 | 0.0 | 1.7 |
| All Class B shares (10 votes each) | 0.0 | 107.1 | 57.4 |
Votes use 793.4m Class A (one vote) and 107.1m Class B (ten votes) outstanding at 21 Oct 2026; Class B converts to Class A on sale. Schedule 13G percentages of Class A as filed: Vanguard 7.48%, BlackRock 7.2%, FMR 4.0%. The two founders vote under a Founders' Voting Agreement.
11 Risk Factors
- Summary of Risk Factors in the FY2025 Form 10-K: 28 bullets against 29 in FY2024; four added, five removed and four materially reworded. The counts and chart below refer to the summary list; Item 1A word counts were not available. Robinhood restates its full risk factors in each Form 10-Q.
Table 11.1 Risk factors and legal matters with filed figures
| Risk | Disclosure and change |
|---|---|
| Event contracts and state law | Event contracts revenue $173m in Q3 2026; new sports contracts stopped in Nevada (Dec 2025) and Michigan, and in Ohio by 2 Nov 2026 under an agreement following a cease and desist letter; suits in six states, tribal suits and a consolidated consumer class action; Illinois tax from 1 Jul 2026, North Carolina and Kentucky from 1 Jan 2027. |
| Payment for order flow and market structure | Transaction based revenues 60.9% of Q3 2026 net revenues; Rule 605 reports from 1 Aug 2026; tick size and access fee rules delayed to Nov 2027; SEC proposal of Jun 2026 to rescind Rule 611. |
| Interest rates | Net interest revenues 29.1% of Q3 2026 net revenues; the Fed raised rates in Sep 2026 and the 10-Q states that future cuts would reduce net interest revenues. |
| Credit risk on cards and margin | Provision for credit losses $71m in Q3 2026, of which $61m on credit cards; card receivables $1.65bn; Margin Book $22.1bn. |
| Crypto revenue and legal status | Cryptocurrencies revenue $120m, (55%); new risk bullets on staking, onchain lending, Stock Tokens and perpetual futures. |
| Regulatory investigations | New York Attorney General, Massachusetts Securities Division, FINRA and FDIC matters; loss accruals $96m at 30 Sep 2026. |
| Founder control | Class B holds about 57% of votes; founders about 50% under a voting agreement. |
| Joint venture control | Rothera, the event contract exchange and clearinghouse, is owned with Susquehanna and neither wholly owned nor operationally controlled by Robinhood. |
How risk factors changed
- Comparison: 10-K FY2025 filed 18 Feb 2026 acc 0001783879-26-000023 against 10-K FY2024 filed 18 Feb 2025 acc 0001783879-25-000049.
- Prediction markets moved into the core risk list: event contracts and the Rothera exchange joint venture are new summary risks in FY2025, and by Q3 2026 Robinhood states it has already pulled certain new event contracts under state enforcement pressure.
- Crypto product risk shifted from price volatility to legal status: summary bullets on crypto price swings and payment misuse were dropped, while staking, onchain lending, Stock Tokens and perpetual futures were added.
- Market structure rules carry specific dates: odd lot data (operative 27 Apr 2026), Rule 605 reports (1 Aug 2026) and tick size and access fee caps (delayed to Nov 2027) are each tied to possible lower PFOF.
- New business lines bring new exposure in 2026: Trump Accounts trustee role, underwriting since Jun 2026, Robinhood Agents and leveraged perpetual futures since Sep 2026.
- Summary list length changed from 29 bullets (FY2024) to 28 (FY2025) and stayed at 28 in the Q1 and Q3 2026 Forms 10-Q.
Table 11.2 Size of the risk factor section
| Measure | 10-K FY2024 | 10-K FY2025 |
|---|---|---|
| Risk factors (count) | 29 | 28 |
Table 11.3 Risk factors added, removed and materially reworded
| Change | Risk factor | What changed |
|---|---|---|
| Added | Rothera joint venture with SIG not wholly controlled | New summary risk on Rothera, the futures and derivatives exchange and clearinghouse (Rothera E&C) owned with SIG, which acquired MIAXdx in Jan 2026; Robinhood states it neither wholly owns nor operationally controls it. |
| Added | Event contracts depend on enforcement actions and litigation | New summary risk that ongoing and future regulatory enforcement, litigation or changes in federal or state law could stop Robinhood offering event contracts; over 12bn event contracts were traded on the platform in 2025. |
| Added | US staking services could be deemed securities offerings | New summary risk that the SEC, a state regulator or a private litigant could treat US staking services as unregistered securities offerings or broker activity, forcing Robinhood to stop staking and pay penalties. |
| Added | Robinhood Stock Tokens in the EEA | New summary risk on tokenized stock products offered in the EEA, naming regulatory, litigation, contractual, operational and reputational exposure; the FY2025 release cites about 2,000 Stock Tokens in Europe. |
| Removed | History of operating losses | Dropped from the summary list but kept in the body; the body still states 2024 was the first year of positive GAAP net income. |
| Removed | Software and systems interruption and flaws | Dropped from the summary list; whether the full body factor remains could not be checked (body text beyond the first part not retrieved). |
| Removed | Extreme volatility of cryptocurrency prices | Dropped from the summary list; crypto price volatility is still named among quarterly fluctuation drivers in the body. |
| Removed | Robinhood Credit card defaults and credit risk | Dropped from the summary list; the body interest rate factor still names missed credit card payments, and Bitstamp lending adds credit risk in the operations factor. |
| Removed | Payment services exploited for illegal payments | Dropped from the summary list (covered Crypto Transfers, Wallet, Connect, Cash Card, Credit and Spending Account); body status not checked. |
| Reworded | Transaction revenue, Liquidity Providers and PFOF | Market makers are renamed Liquidity Providers (market makers, wholesalers and others); new dates: SEC exemptive relief of 30 Sep and 31 Oct 2025 moved compliance to Feb, Aug and Nov 2026, odd lot data from 1 May 2026 and Rule 605 reports from 1 Aug 2026; overnight orders now primarily rather than all routed through Virtu. |
| Reworded | Brand and reputation harmed by media coverage | Changed from could adversely affect to have in the past, and may in the future, adversely affect. |
| Reworded | Rapid expansion of operations | Adds the June 2025 Bitstamp acquisition and its institutional products (on exchange lending, off exchange settlement, perpetual futures) as new credit and regulatory exposure; growth factor drops the statement that growth drivers have slowed in recent years. |
| Reworded | Liquidity and capital needs | Adds SEC Rule 15c3-3 daily reserve computations due by Jun 2026, event contract capital and deposits at ForecastEx and Kalshi, MiCA capital rules for RHEU and Bitstamp Europe and the FCA's May 2025 crypto prudential proposals; best execution factor adds that the SEC withdrew its Dec 2022 proposal in Jun 2025. |
Table 11.4 Risk factor updates in quarterly reports since the annual filing
| Filing | Change disclosed |
|---|---|
| 10-Q Q1 2026 filed 28 Apr 2026 | Full risk factors restated, not limited to changes. Summary list stays at 28 bullets; best execution now cited under common law agency principles and fiduciary obligations; crypto adds investment contract status; Stock Tokens bullet adds crypto perpetual trading in the EEA. Body adds Trump Accounts trustee role as a new business line, a profitability factor noting 2025 net income rose, two overnight Liquidity Providers instead of Virtu alone, and daily 15c3-3 computations started in Jan 2026. |
| 10-Q Q3 2026 filed 27 Oct 2026 | Event contracts bullet adds that Robinhood has stopped offering certain new event contracts after actual or threatened state enforcement; staking bullet adds onchain lending; Stock Tokens bullet widens to global Stock Tokens, planned US perpetual futures and decentralized perpetuals via Robinhood Wallet. Body adds FINRA underwriting approval (Jun 2026, first deal Sep 2026), Robinhood Agents and leveraged crypto perpetual futures (Sep 2026), a Sep 2026 reduction in force, SEC delay of tick size and access fee rules to Nov 2027 (11 Jun 2026), SEC proposal to rescind Rule 611 and Rule 610(e) (Jun 2026), FINRA best execution notice (24 Jul 2026), court approval of the PFOF class action settlement (Jun 2026), and Rothera E&C, Crypto.com and OG.com as event contract venues. |
12 Stock Price, Scenarios & Sensitivity
- HOOD closed at $85.41 on 30 Oct 2026, 6.7% below the prior close of $91.59, 42.8% below the 52 week high of $149.41 and 34.5% above the low of $63.51.
- Valuation: 39.4x TTM diluted EPS of $2.17; 26.2x EV/Adjusted EBITDA (TTM $2.84bn); 7.7x book value attributable to Robinhood.
- Scenario model: net revenues grow from TTM Q3 2026 $5.08bn for three years; operating margin as stated; no other income; 22% tax rate; 911m diluted shares; price equals TTM Q3 2029 EPS times exit P/E. Management gives no revenue guidance.
Critical factors and core assumptions
Table 12.1 Critical factors behind the best case
| Factor | Current value | Best case requires | Evidence in filings and calls |
|---|---|---|---|
| Event contracts | $173m in Q3 2026; 16.4bn contracts | above $1bn a year with federal jurisdiction upheld | 10-Q Q3 2026; state actions in Nevada, Michigan and Ohio; Third and Ninth Circuit rulings |
| Net Deposits | $71.0bn over twelve months, 21% of platform assets | 20% or more of platform assets each year | Q3 2026 release and Form 10-Q |
| Margin Book and credit card | Margin Book $22.1bn at a 4.54% yield; card receivables $1.65bn | Margin Book above $30bn with stable credit losses | 10-Q Q3 2026 interest table; card provision $61m in Q3 |
| Crypto revenue | $120m in Q3 2026, (55%) | back toward $250m a quarter | Q3 2025 $268m; Bitstamp volume (28%) |
| Gold adoption | 5.2m subscribers, 18% of Funded Customers | 25% adoption | Q3 2026 release |
| Expense growth | 2026 outlook $2.675bn to $2.75bn | expense growth below revenue growth | outlook revisions in the 2026 releases |
- Revenue base TTM Q3 2026 $5.08bn; operating income $2.32bn (45.7% margin).
- Best case: 25% revenue CAGR, 52% operating margin, 40x P/E, share count +1% from the convertible notes above the cap.
- Base case: 15% revenue CAGR, 45% margin, 30x P/E, share count unchanged.
- Worst case: 3% revenue CAGR, 35% margin, 18x P/E; adverse rulings on sports event contracts, lower payment for order flow and rate cuts.
- Tax rate 22% (Q3 2026: 23.8%; TTM 16.9%); diluted shares 911m; convertible notes dilute above $174.42, offset by capped calls up to $237.85.
Scenarios, three years forward
Table 12.2 Scenario analysis, TTM Q3 2026 to TTM Q3 2029
| Measure | Worst case | Base case | Best case |
|---|---|---|---|
| Revenue CAGR, 3 years (%) | 3.0 | 15.0 | 25.0 |
| Revenue, TTM Q3 2029 ($bn) | 5.6 | 7.7 | 9.9 |
| Operating margin, TTM Q3 2029 (%) | 35.0 | 45.0 | 52.0 |
| Net income, TTM Q3 2029 ($bn) | 1.5 | 2.7 | 4.0 |
| EPS, TTM Q3 2029 ($) | 1.66 | 2.98 | 4.38 |
| Exit P/E (x) | 18.0 | 30.0 | 40.0 |
| Implied price ($) | 30 | 89 | 175 |
| Change against $85.41 (%) | (65) | 5 | 105 |
| Implied annual return (%) | (29.5) | 1.5 | 27.0 |
No dividends. Scenario values are model outputs, not company guidance.
Sensitivity analysis
Table 12.3 Sensitivity of implied price to revenue CAGR and operating margin at 30x P/E
| Revenue CAGR \ Operating margin | 35% | 40% | 45% | 48% | 52% |
|---|---|---|---|---|---|
| 3% | $50 | $57 | $64 | $68 | $74 |
| 9% | $59 | $68 | $76 | $81 | $88 |
| 15% | $69 | $79 | $89 | $95 | $103 |
| 20% | $79 | $90 | $102 | $108 | $117 |
| 25% | $89 | $102 | $115 | $122 | $133 |
Cells show implied share price in year 3. Current price $85.41. Blue cells sit above it, red cells below.
Table 12.4 Sensitivity of implied price to exit P/E and operating margin at 15% revenue CAGR
| Exit P/E \ Operating margin | 35% | 40% | 45% | 48% | 52% |
|---|---|---|---|---|---|
| 18x | $42 | $48 | $54 | $57 | $62 |
| 24x | $56 | $64 | $71 | $76 | $83 |
| 30x | $69 | $79 | $89 | $95 | $103 |
| 35x | $81 | $93 | $104 | $111 | $120 |
| 40x | $93 | $106 | $119 | $127 | $138 |
Cells show implied share price in year 3. Current price $85.41. Blue cells sit above it, red cells below.
Disclaimer
This analysis is for information only and is not financial advice. It is derived from public SEC filings retrieved via sec-api.io and is not a publication of the U.S. Securities and Exchange Commission. Scenario values are model outputs under stated assumptions and are not forecasts. Data as of 30 October 2026.
Sources
All company figures are read from SEC filings retrieved through the sec-api.io MCP server. Earnings call transcripts were not available; management points are taken from the earnings releases and the Forms 10-Q.
Table A.1 Filings used, with accession numbers
| Form | Period | Filed | Accession number |
|---|---|---|---|
| 10-Q | Q3 2026 | 27 Oct 2026 | 0001783879-26-000167 |
| 8-K Ex 99.1 | Q3 2026 | 27 Oct 2026 | 0001783879-26-000164 |
| 8-K Ex 99.1 (amended) | Q3 2026 | 27 Oct 2026 | 0001783879-26-000170 |
| 10-Q | Q2 2026 | 29 Jul 2026 | 0001783879-26-000114 |
| 10-Q | Q1 2026 | 28 Apr 2026 | 0001783879-26-000062 |
| 10-K | FY2025 | 18 Feb 2026 | 0001783879-26-000023 |
| 10-Q | Q3 2025 | 5 Nov 2025 | 0001783879-25-000310 |
| 10-K | FY2023 | 27 Feb 2024 | 0001783879-24-000054 |
| 10-K | FY2022 | 27 Feb 2023 | 0001783879-23-000045 |
| 8-K Ex 99.1 | Q2 2026 | 29 Jul 2026 | 0001783879-26-000113 |
| 8-K Ex 99.1 | Q1 2026 | 28 Apr 2026 | 0001783879-26-000061 |
| 8-K Ex 99.1 | Q4 2025 | 10 Feb 2026 | 0001783879-26-000013 |
| 8-K Ex 99.1 | Q3 2025 | 5 Nov 2025 | 0001783879-25-000309 |
| 8-K Ex 99.1 | Q2 2025 | 30 Jul 2025 | 0001783879-25-000250 |
| 8-K Ex 99.1 | Q1 2025 | 30 Apr 2025 | 0001783879-25-000144 |
| 8-K Ex 99.1 | Q4 2024 | 12 Feb 2025 | 0001783879-25-000045 |
| 8-K 5.07 | 2026 annual meeting | 3 Jun 2026 | 0001783879-26-000068 |
| 8-K 1.01 | Convertible notes | 25 Jun 2026 | 0001783879-26-000077 |
| 8-K 2.05 | Reduction in force | 16 Jun 2026 | 0001783879-26-000071 |
| 8-K 1.01 | RHS credit agreement | 24 Mar 2026 | 0001783879-26-000045 |
Table A.2 Further filings used: Robinhood Forms 8-K, ownership filings and peer filings
| Company | Form | Filed | Accession number |
|---|---|---|---|
| Robinhood | 10-K FY2024 (risk factors) | 18 Feb 2025 | 0001783879-25-000049 |
| Robinhood | 8-K | 31 Oct 2025 | 0001783879-25-000305 |
| Robinhood | 8-K | 30 Jan 2026 | 0001783879-26-000007 |
| Robinhood | 8-K (Item 5.02, 8-K/A) | 24 Mar 2026 | 0001783879-26-000047 |
| Robinhood | 8-K | 8 May 2026 | 0001783879-26-000065 |
| Robinhood | 8-K | 23 Jun 2026 | 0001783879-26-000074 |
| Robinhood | 8-K | 26 Jun 2026 | 0001783879-26-000083 |
| Vanguard Capital Management | Schedule 13G | 30 Apr 2026 | 0002100119-26-000987 |
| BlackRock | Schedule 13G/A (event 30 Sep 2025) | n/a | 0002012383-25-002898 |
| FMR | Schedule 13G/A (event 30 Sep 2025) | n/a | 0000315066-25-002827 |
| Vlad Tenev | Form 4 (transaction 5 Oct 2026) | n/a | 0001871006-26-000012 |
| Baiju Bhatt | Form 4 (transaction 21 Oct 2026) | n/a | 0001870914-26-000029 |
| Meyer Malka | Form 4 (holdings at 2 Oct 2026) | n/a | 0001104659-26-113360 |
| Charles Schwab | 8-K Ex 99.1 | 15 Oct 2026 | 0000316709-26-000035 |
| Charles Schwab | 10-Q Q2 2026 | n/a | 0000316709-26-000031 |
| Interactive Brokers Group | 8-K Ex 99.1 | 15 Oct 2026 | 0001381197-26-000154 |
| Coinbase Global | 8-K Ex 99.1 | 29 Oct 2026 | 0001679788-26-000121 |
| Coinbase Global | 10-Q Q3 2026 | n/a | 0001679788-26-000122 |
| Morgan Stanley | 8-K Ex 99.2 | 14 Oct 2026 | 0000895421-26-000288 |
| DraftKings | 8-K Ex 99.1 | 7 Aug 2026 | 0001883685-26-000027 |
| SoFi Technologies | 10-Q Q2 2026 | n/a | 0001818874-26-000054 |
| Webull | 6-K Ex 99.1 | 19 Aug 2026 | 0001213900-26-091702 |
| Futu Holdings | 6-K Ex 99.1 | 20 Aug 2026 | 0001104659-26-098911 |
| UP Fintech | 6-K Ex 99.1 | 26 Aug 2026 | 0001193125-26-365784 |
| eToro | 6-K Ex 99.1 | 11 Aug 2026 | 0001213900-26-087525 |
Table B.1 Exhibits to Forms 8-K filed in the last twelve months
| Filed | Exhibit | Document | Content |
|---|---|---|---|
| 31 Oct 2025 | Ex 99.1 | Robinhood Financial Rule 606(a) report, Q3 2025 | Listed venue payments about $321m, of which about $246m on options; Citadel Securities about 39% of non directed options orders. |
| 31 Oct 2025 | Ex 99.2 | Robinhood Securities Rule 606(a) report, Q3 2025 | Listed venue payments about $401m: options about $308m, stocks outside the S&P 500 about $81m, S&P 500 stocks about $12m. |
| 5 Nov 2025 | Ex 99.1 | Q3 2025 earnings release | Net revenues $1.27bn (+100%); net income $556m; 2025 expense outlook raised to about $2.28bn. |
| 30 Jan 2026 | Ex 99.1 | Robinhood Financial Rule 606(a) report, Q4 2025 | Listed venue payments about $339m, of which about $260m on options; October 2025 about $147m. |
| 30 Jan 2026 | Ex 99.2 | Robinhood Securities Rule 606(a) report, Q4 2025 | Listed venue payments about $424m: options about $325m, stocks outside the S&P 500 about $85m, S&P 500 stocks about $14m. |
| 10 Feb 2026 | Ex 99.1 | Q4 and FY2025 earnings release | FY2025 net revenues $4.47bn (+52%); Adjusted EBITDA about $2.5bn; 2026 expense outlook $2.6bn to $2.725bn. |
| 24 Mar 2026 | Ex 10.1 | Fifth amended and restated credit agreement | 364 day senior secured revolver of $3.25bn with JPMorgan Chase Bank as agent; margins 1.25% (Tranche A) and 2.50% (B, C) over SOFR based rates; 0.45% commitment fee. |
| 24 Mar 2026 | Ex 99.1 | Blog post on the $1.5bn repurchase authorization | New authorization adds over $1.1bn of capacity; execution over about three years. |
| 28 Apr 2026 | Ex 99.1 | Q1 2026 earnings release | Net revenues $1.07bn (+15%); event contracts lift other transaction revenue; outlook raised by $100m for Trump Accounts. |
| 23 Jun 2026 | Ex 99.1 | Release on the proposed convertible notes offering | $2.0bn of convertible notes due 1 Oct 2029 plus a $200m option; about $300m for repurchases. |
| 23 Jun 2026 | Ex 99.2 | Release on pricing of the 0.00% convertible notes | Conversion rate 5.7332 shares per $1,000, about $174.42 per share, a 65% premium; cap price about $237.85. |
| 25 Jun 2026 | Ex 4.1 | Indenture for the 0.00% convertible senior notes due 2029 | $2.2bn principal with U.S. Bank Trust Company as trustee; at most 20,811,560 shares issuable; cash settlement up to principal. |
| 25 Jun 2026 | Ex 10.1 | Form of capped call confirmation | Strike $174.4227 and cap $237.8475 per share over about 12.6m Class A shares. |
| 25 Jun 2026 | Ex 99.1 | Release on closing of the convertible notes | Net proceeds about $2.169bn; 2.743m Class A shares repurchased for about $290m; capped calls $123.2m. |
| 29 Jul 2026 | Ex 99.1 | Q2 2026 earnings release | Net revenues $1.31bn (+32%); event contracts revenue $156m; 13 business lines at $100m or more annualized revenue. |
| 27 Oct 2026 | Ex 99.1 | Q3 2026 earnings release (original) | Net revenues $1.42bn (+12%); event contracts $173m; Adjusted Net Income shown as $550m. |
| 27 Oct 2026 | Ex 99.1 | Q3 2026 earnings release (amended, 8-K/A) | Adjusted Net Income $542m; Q3 2025 $561m; Q2 2026 $500m; 9M 2026 $1.409bn ($1.54 per share). |
