Slug: robinhood
Date: 2026-10-06
Industry: Retail Brokerage / Fintech
Accent: #00C805
Status: Public (NASDAQ: HOOD). Audited annual figures from the 2025 Form 10-K (filed Feb 18, 2026); quarterly figures from the Q2 2026 Form 10-Q (filed Jul 30, 2026) and the Q2 2026 results release filed as 8-K Ex. 99.1 (Jul 29, 2026, unaudited). Q3 2026 results had not been reported as of Oct 6, 2026. Adjusted EBITDA and Adjusted Operating Expenses and SBC are company-defined non-GAAP measures.
| Metric | Value | Label | Source |
|---|---|---|---|
| FY2025 revenue | Total net revenues $4,473M (vs $2,951M, +52%); transaction-based $2,628M (59%); net interest $1,514M (34%); other $331M | FACT | 10-K |
| FY2025 transaction detail | Options $1,123M; cryptocurrencies $901M; equities $302M; other $302M (prediction markets, instant withdrawals) | FACT | 10-K |
| FY2025 profit | Net income $1,883M; Adjusted EBITDA $2.52B | FACT (Adj. EBITDA non-GAAP) | 10-K |
| FY2025 costs | Total opex $2,379M: brokerage & transaction $211M; T&D $897M; operations $130M; credit losses $114M; marketing $399M; G&A $628M | FACT | 10-K |
| FY2025 KPIs | Funded Customers 27.0M; Total Platform Assets $322.1B; Net Deposits $68.1B; ARPU $171; Gold 4.18M | FACT | 10-K |
| Headcount | ~2,900 full-time employees at Dec 31, 2025; |
FACT | 10-K; 8-K |
| Revenue concentration | Citadel Securities 13% of total net revenues in 2025, 16% in Q2 2026; market makers and exchanges together ≈55% of 2025 total net revenues | FACT | 10-K; 10-Q |
| Q2 2026 revenue | $1,308M (+32% Y/Y); transaction-based $776M (+44%, 59%); net interest $389M (+9%); other $143M (+54%) | FACT | Release; 10-Q |
| Q2 2026 transaction detail | Options $342M; event contracts $156M (12% of revenue, from $10M); crypto $100M (−38%); equities $129M (+95%); other $49M | FACT | 10-Q |
| Q2 2026 net interest detail | Margin interest $215M; segregated cash $60M; Cash Sweep $41M; credit card $40M; corporate cash $31M; securities lending $10M | FACT | 10-Q |
| Q2 2026 other revenue | Gold subscriptions $54M; proxy $42M; other $47M (incl. Trump Account service revenue) | FACT | 10-Q |
| Q2 2026 profit | Net income $573M (+48%) incl. $129M gains mostly from RVI deconsolidation; diluted EPS $0.62; Adjusted EBITDA $741M | FACT | Release |
| Q2 2026 costs | Total opex $734M (+33%, 56% of revenue); T&D $256M; G&A $199M; marketing $104M; credit losses $56M (2×); restructuring $23M | FACT | Release |
| Q2 2026 KPIs | Funded Customers 28.4M; Investment Accounts 29.9M; Total Platform Assets $369B (+32%); Net Deposits $21.7B (TTM $75.7B); ARPU $187; Gold 4.84M (17% adoption; ~40% of new funded customers) | FACT | Release |
| Q2 2026 volumes | Equity notional $956B; options contracts 774M; crypto notional $40B (app $18B, Bitstamp $22B); event contracts 13.6B | FACT | Release |
| Balances | Margin Book $21.6B (+127%); Cash and Deposits $18.7B; Cash Sweep $29.7B (>$6B moved from sweep to fund margin in Feb 2026); Retirement AUC $34.5B | FACT | Release |
| Products | Gold Card 1M+ customers, $17B annualized purchase volume; Banking $3B+ deposits from 240K+ customers; Strategies 300K+ customers, ~$2B AUM; Robinhood Advisor Network $50B AUM; Agentic Trading ~100K accounts | FACT (company figures) | Release |
| Rothera | JV with Susquehanna (SIG) bought 90% of MIAXdx Jan 20, 2026 (~$79M cash; SIG contributed $41M); renamed Rothera E&C, CFTC-licensed DCM/DCO/SEF; launched June 2026 | FACT | 10-Q; Release |
| Trump Accounts | Robinhood is broker and sole initial trustee for the U.S. Treasury, working with BNY; launched Jul 4, 2026; 7M+ sign-ups and ~$1.5B deposited per Jul 29 release | FACT (company claim) | 10-Q; Release |
| Capital | Cash & equivalents $5.4B; $2.2B 0.00% convertible notes due 2029 (Jun 2026); $414M Q2 buybacks | FACT | Release; 8-K |
| Outlook | 2026 Adjusted Operating Expenses and SBC $2.675–2.775B (lowered from $2.7–2.825B) | FACT (non-GAAP) | Release |
| Gold pricing | $5/month after 30-day trial; 3.6% APY on eligible brokerage cash (page as of Oct 6, 2026; rates change); 3% IRA match | FACT | Gold page; 10-K |
| Prediction commission | ≈$0.011 revenue per event contract ($156M ÷ 13.6B contracts) | INFERENCE | 10-Q; Release |
| Revenue mix Q2 2026 | Net interest ≈30%; other ≈11% of total | INFERENCE | 10-Q |
Commission-free trading → paid for by market makers through payment for order flow (Citadel Securities alone 16% of Q2 2026 revenue) → a second engine of interest on customer money (margin interest $215M a quarter) → Gold at $5/month (4.8M members) pulls in cash, retirement savings and card spend → now stretching into prediction markets (event contracts $156M, up 10×+), its own exchange (Rothera), banking, credit cards and Trump Accounts.
The lesson is “the customer isn’t the only one paying.” Robinhood charges no commission, so its biggest revenue comes from market makers that pay to fill customer orders, especially options. That makes revenue depend on how much customers trade — booming in Q2 2026 (record equity, option and event-contract volumes) but exposed to quiet markets and to any rule change restricting PFOF. The second engine is the float: margin loans, cash, cards and securities lending, which depends on balances and interest rates. Gold is the glue: its $54M of fees are only ~4% of revenue, but its perks attract the deposits and engagement that feed both engines. Prediction markets grew fastest and also carry the most regulatory risk — the 10-Q describes state fights over sports event contracts (e.g. Robinhood stopped new sports contracts in Nevada from Dec 1, 2025).
# Robinhood — research brief **Slug:** robinhood **Date:** 2026-10-06 **Industry:** Retail Brokerage / Fintech **Accent:** `#00C805` **Status:** Public (NASDAQ: HOOD). Audited annual figures from the 2025 Form 10-K (filed Feb 18, 2026); quarterly figures from the Q2 2026 Form 10-Q (filed Jul 30, 2026) and the Q2 2026 results release filed as 8-K Ex. 99.1 (Jul 29, 2026, unaudited). Q3 2026 results had not been reported as of Oct 6, 2026. Adjusted EBITDA and Adjusted Operating Expenses and SBC are company-defined non-GAAP measures. ## Label key - **FACT** — SEC filings (2025 Form 10-K, Q2 2026 Form 10-Q, Q2 2026 results release, Jun 16 2026 reduction-in-force 8-K, Jun 25 2026 convertible notes 8-K) and Robinhood’s Gold pricing page. Company claims inside filings (“#1 platform for active traders”, Trump Account sign-ups, “13 business lines at $100M+”) are labeled FACT (company claim). - **SECONDARY** — none used on this canvas. - **INFERENCE** — teaching ratios computed from FACT figures (labeled; not reported metrics). ## Primary sources (FACT) 1. Q2 2026 results release (8-K Ex. 99.1, Jul 29, 2026): https://www.sec.gov/Archives/edgar/data/1783879/000178387926000113/q22026robinhoodexhibit991.htm 2. Q2 2026 Form 10-Q: https://www.sec.gov/Archives/edgar/data/1783879/000178387926000114/hood-20260630.htm 3. 2025 Form 10-K: https://www.sec.gov/Archives/edgar/data/1783879/000178387926000023/hood-20251231.htm 4. Reduction-in-force 8-K (Item 2.05, Jun 16, 2026): https://www.sec.gov/Archives/edgar/data/1783879/000178387926000071/hood-20260616.htm 5. Convertible notes 8-K (Jun 25, 2026): https://www.sec.gov/Archives/edgar/data/1783879/000178387926000077/hood-20260622.htm 6. Robinhood Gold pricing page: https://robinhood.com/us/en/gold/ ## Key figures used on canvas | Metric | Value | Label | Source | |---|---|---|---| | FY2025 revenue | Total net revenues $4,473M (vs $2,951M, +52%); transaction-based $2,628M (59%); net interest $1,514M (34%); other $331M | FACT | 10-K | | FY2025 transaction detail | Options $1,123M; cryptocurrencies $901M; equities $302M; other $302M (prediction markets, instant withdrawals) | FACT | 10-K | | FY2025 profit | Net income $1,883M; Adjusted EBITDA $2.52B | FACT (Adj. EBITDA non-GAAP) | 10-K | | FY2025 costs | Total opex $2,379M: brokerage & transaction $211M; T&D $897M; operations $130M; credit losses $114M; marketing $399M; G&A $628M | FACT | 10-K | | FY2025 KPIs | Funded Customers 27.0M; Total Platform Assets $322.1B; Net Deposits $68.1B; ARPU $171; Gold 4.18M | FACT | 10-K | | Headcount | ~2,900 full-time employees at Dec 31, 2025; ~10% cut announced Jun 16, 2026 (~$20M cash + ~$8M SBC) | FACT | 10-K; 8-K | | Revenue concentration | Citadel Securities 13% of total net revenues in 2025, 16% in Q2 2026; market makers and exchanges together ≈55% of 2025 total net revenues | FACT | 10-K; 10-Q | | Q2 2026 revenue | $1,308M (+32% Y/Y); transaction-based $776M (+44%, 59%); net interest $389M (+9%); other $143M (+54%) | FACT | Release; 10-Q | | Q2 2026 transaction detail | Options $342M; event contracts $156M (12% of revenue, from $10M); crypto $100M (−38%); equities $129M (+95%); other $49M | FACT | 10-Q | | Q2 2026 net interest detail | Margin interest $215M; segregated cash $60M; Cash Sweep $41M; credit card $40M; corporate cash $31M; securities lending $10M | FACT | 10-Q | | Q2 2026 other revenue | Gold subscriptions $54M; proxy $42M; other $47M (incl. Trump Account service revenue) | FACT | 10-Q | | Q2 2026 profit | Net income $573M (+48%) incl. $129M gains mostly from RVI deconsolidation; diluted EPS $0.62; Adjusted EBITDA $741M | FACT | Release | | Q2 2026 costs | Total opex $734M (+33%, 56% of revenue); T&D $256M; G&A $199M; marketing $104M; credit losses $56M (2×); restructuring $23M | FACT | Release | | Q2 2026 KPIs | Funded Customers 28.4M; Investment Accounts 29.9M; Total Platform Assets $369B (+32%); Net Deposits $21.7B (TTM $75.7B); ARPU $187; Gold 4.84M (17% adoption; ~40% of new funded customers) | FACT | Release | | Q2 2026 volumes | Equity notional $956B; options contracts 774M; crypto notional $40B (app $18B, Bitstamp $22B); event contracts 13.6B | FACT | Release | | Balances | Margin Book $21.6B (+127%); Cash and Deposits $18.7B; Cash Sweep $29.7B (>$6B moved from sweep to fund margin in Feb 2026); Retirement AUC $34.5B | FACT | Release | | Products | Gold Card 1M+ customers, $17B annualized purchase volume; Banking $3B+ deposits from 240K+ customers; Strategies 300K+ customers, ~$2B AUM; Robinhood Advisor Network $50B AUM; Agentic Trading ~100K accounts | FACT (company figures) | Release | | Rothera | JV with Susquehanna (SIG) bought 90% of MIAXdx Jan 20, 2026 (~$79M cash; SIG contributed $41M); renamed Rothera E&C, CFTC-licensed DCM/DCO/SEF; launched June 2026 | FACT | 10-Q; Release | | Trump Accounts | Robinhood is broker and sole initial trustee for the U.S. Treasury, working with BNY; launched Jul 4, 2026; 7M+ sign-ups and ~$1.5B deposited per Jul 29 release | FACT (company claim) | 10-Q; Release | | Capital | Cash & equivalents $5.4B; $2.2B 0.00% convertible notes due 2029 (Jun 2026); $414M Q2 buybacks | FACT | Release; 8-K | | Outlook | 2026 Adjusted Operating Expenses and SBC $2.675–2.775B (lowered from $2.7–2.825B) | FACT (non-GAAP) | Release | | Gold pricing | $5/month after 30-day trial; 3.6% APY on eligible brokerage cash (page as of Oct 6, 2026; rates change); 3% IRA match | FACT | Gold page; 10-K | | Prediction commission | ≈$0.011 revenue per event contract ($156M ÷ 13.6B contracts) | INFERENCE | 10-Q; Release | | Revenue mix Q2 2026 | Net interest ≈30%; other ≈11% of total | INFERENCE | 10-Q | ## Model read (teaching arc) **Commission-free trading → paid for by market makers through payment for order flow (Citadel Securities alone 16% of Q2 2026 revenue) → a second engine of interest on customer money (margin interest $215M a quarter) → Gold at $5/month (4.8M members) pulls in cash, retirement savings and card spend → now stretching into prediction markets (event contracts $156M, up 10×+), its own exchange (Rothera), banking, credit cards and Trump Accounts.** The lesson is “the customer isn’t the only one paying.” Robinhood charges no commission, so its biggest revenue comes from market makers that pay to fill customer orders, especially options. That makes revenue depend on how much customers trade — booming in Q2 2026 (record equity, option and event-contract volumes) but exposed to quiet markets and to any rule change restricting PFOF. The second engine is the float: margin loans, cash, cards and securities lending, which depends on balances and interest rates. Gold is the glue: its $54M of fees are only ~4% of revenue, but its perks attract the deposits and engagement that feed both engines. Prediction markets grew fastest and also carry the most regulatory risk — the 10-Q describes state fights over sports event contracts (e.g. Robinhood stopped new sports contracts in Nevada from Dec 1, 2025). ## Do not invent - Q3 2026 results (not reported as of Oct 6, 2026) - Exact PFOF rates per share or per contract - Exact prediction-market commission per contract (only the ≈1¢ INFERENCE above) - Share price, market cap, or valuation - Current headcount after the June 2026 reduction (only “~10%” disclosed)