Robinhood Markets, Inc. (HOOD)

CIK: 0001783879. SIC: 6211 Security Brokers, Dealers & Flotation Companies. Latest 10-K as of: 2026-02-18.

SIC breadcrumb: Finance, Insurance, And Real Estate > Security And Commodity Brokers, Dealers, Exchanges, And Services > SIC 6211 Security Brokers, Dealers & Flotation Companies

SEC company page: https://www.sec.gov/edgar/browse/?CIK=1783879. Latest filing source: 0001783879-26-000023.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-20. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001783879.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-18. Report date: 2025-12-31.

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This section presents management’s perspective on our financial condition and results of operations, including performance metrics that management uses to assess company performance. The following discussion and analysis is intended to highlight and supplement data and information presented elsewhere in this Annual Report, and should be read in conjunction with our consolidated financial statements and notes elsewhere in this Annual Report. It is also intended to provide you with information that will assist you in understanding our consolidated financial statements, the changes in key items in those consolidated financial statements from year to year, and the primary factors that accounted for those changes. To the extent that this discussion describes prior performance, the descriptions relate only to the periods listed, which might not be indicative of our future financial outcomes. In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause results to differ materially from management’s expectations. Factors that could cause such differences are discussed in the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors.”

We refer to our “users” and our “customers” interchangeably throughout this Annual Report to refer to individuals who hold accounts on our platforms.

Overview

    Robinhood was founded on the belief that everyone should be welcome to participate in our financial system. We are creating modern financial services platforms for everyone, regardless of their wealth, income, or background.

Our mission is to democratize finance for all. We use technology to provide access to the financial system in a way that is simple and convenient for our customers. We believe investing should be familiar and welcoming, with a simple design and an intuitive interface, so that customers are empowered to achieve their goals. We started with a revolutionary, bold brand and design in the Robinhood app which makes investing approachable for millions. Over the last decade, we have disrupted and changed the industry, becoming the first U.S. retail broker to offer commission-free stock trading with no account minimums, which was subsequently adopted by the rest of the industry. In recent years, we have continued to build relationships with our customers by introducing new products and diversifying our services that further expand access to the financial system, including focusing on products and tools for more seasoned investors. Through these efforts, we believe we have made investing culturally relevant and understandable, and that our platforms are enabling our customers to become long-term investors and take greater control of their finances.

Financial Results and Performance

With respect to the year ended December 31, 2025, as compared to the year ended December 31, 2024:

•total net revenues increased 52% to $4.47 billion compared to $2.95 billion;

•net income increased 33% to $1.88 billion compared to $1.41 billion;

•diluted EPS increased 31% to $2.05 compared to $1.56;

101

Table of Contents

•total operating expenses increased 25% to $2.38 billion compared to $1.90 billion;

•Adjusted EBITDA (non-GAAP) increased 76% to $2.52 billion compared to $1.43 billion;

•Funded Customers increased by 1.8 million, 7%, to 27.0 million compared to 25.2 million and Investment Accounts increased by 2.2 million , 8%, to 28.4 million compared to 26.2 million;

•Total Platform Assets increased 67% to $322.1 billion(1) compared to $192.9 billion, driven by continued Net Deposits, acquired assets, and higher equity valuations;

•Net Deposits were $68.1 billion, which translates to a growth rate of 35% relative to Total Platform Assets at the end of the fourth quarter of 2024, compared to $50.5 billion, which translates to a growth rate of 49% relative to Total Platform Assets at the end of the fourth quarter of 2023;

•ARPU increased 40% to $171 compared to $122; and

•Robinhood Gold Subscribers increased 58% to 4.18 million compared to 2.64 million.

Adjusted EBITDA is a non-GAAP financial measure. For more information about Adjusted EBITDA, including the definition and limitations of such measure, and a reconciliation of net income (loss) to Adjusted EBITDA, please see “—Non-GAAP Financial Measures.”

(1) Subsequent to the release of our preliminary earnings results for the fourth quarter and full year 2025 on February 10, 2026, December 2025 Total Platform Assets were revised to reflect final crypto pricing data.

Recent Developments

Acquisition of MIAXdx

In November 2025, we established a joint venture, Rothera, in partnership with SIG, that acquired 90% of the issued and outstanding equity of MIAXdx in January 2026. Following closing, Rothera renamed MIAXdx to Rothera E&C.

Pending Business Acquisitions

On May 12, 2025, we entered into an agreement to acquire all outstanding equity of WonderFi, a Canadian leader in digital asset products and services, for C$0.36 per share, representing a total equity value of approximately $180 million. The pending acquisition is subject to customary closing conditions, including regulatory approvals.

In December 2025, we entered into agreements to acquire PT Buana Capital Sekuritas, an Indonesian brokerage, and PT Pedagang Aset Kripto, a licensed Indonesian digital financial asset trader. Both pending acquisitions are subject to customary closing conditions, including regulatory approvals.

102

Table of Contents

Key Performance Metrics

Key performance metrics for the relevant periods were as follows:

Year Ended December 31,

2024

2025

Funded Customers(1) (in millions)

25.2

27.0

Total Platform Assets (2) (in billions)

$

192.9

$

322.1

Net Deposits (in billions)

$

50.5

$

68.1

Growth Rate with respect to Net Deposits

49%

35%

ARPU (in dollars)

$

122

$

171

Robinhood Gold Subscribers (in millions)

2.64

4.18

_______________

(1) The following table describes the annual changes within Funded Customers:

Year Ended December 31,

(in millions)

2024

2025

Beginning Funded Customers

23.4 

25.2 

New Funded Customers

2.2 

2.5 

Resurrected Customers

0.5 

0.4 

Acquired customers

— 

0.6 

Churned Customers

(0.9)

(1.7)

Ending Funded Customers

25.2 

27.0 

(2) The following table sets out the components of Total Platform Assets by type of asset:

Year Ended December 31,

(in billions)

2024

2025

Equities

$

130.6 

$

212.0 

Cryptocurrencies

35.2 

38.2 

Options and futures

1.8 

2.8 

RIA assets

— 

42.5 

Cash held by Customers

33.3 

43.4 

Receivables from Customers (primarily margin balances)

(8.0)

(16.8)

Total Platform Assets

$

192.9 

$

322.1 

The following table describes the changes within Total Platform Assets:

Year Ended December 31,

(in billions)

2024

2025

Beginning Total Platform Assets

$

102.6 

$

192.9 

Acquired assets

— 

51.8 

Net Deposits

50.5 

68.1 

Net market gains

39.8 

9.3 

Ending Total Platform Assets

$

192.9 

$

322.1 

Subsequent to the release of our preliminary earnings results for the fourth quarter and full year 2025 on February 10, 2026, December 2025 Total Platform Assets were revised to reflect final crypto pricing data.

103

Table of Contents

Non-GAAP Financial Measures

Adjusted EBITDA

We collect and analyze operating and financial data to evaluate the health of our business, allocate our resources and assess our performance. In addition to total net revenues, net income (loss), and other results under GAAP, we utilize non-GAAP calculations of Adjusted EBITDA. Adjusted EBITDA is defined as net income (loss), excluding (i) interest expenses related to credit facilities, (ii) provision for (benefit from) income taxes, (iii) depreciation and amortization, (iv) SBC, (v) significant legal and tax settlements and reserves, and (vi) other significant gains, losses, and expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses) that we believe are not indicative of our ongoing results. This non-GAAP financial information is presented for supplemental informational purposes only, should not be considered in isolation or as a substitute for, or superior to, financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies.

The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount and timing of these items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods and competitors less meaningful. We believe Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Moreover, Adjusted EBITDA is a key measurement used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.

The following table presents a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net income:

Year Ended December 31,

(in millions)

2024

2025

Net income

$

1,411 

$

1,883 

Add:

Interest expenses related to credit facilities

24 

32 

Provision for (benefit from) income taxes

(347)

225 

Depreciation and amortization

77 

86 

EBITDA (non-GAAP)

1,165 

2,226 

Add:

SBC

304 

305 

Significant legal and tax settlements and reserves (1)

(40)

— 

Unrealized gains in non-marketable equity securities (2)

— 

(9)

Adjusted EBITDA (non-GAAP)

$

1,429 

$

2,522 

_______________

(1) For the year ended December 31, 2024, significant legal and tax settlements and reserves included a $55 million benefit due to a reversal of an accrual as part of a regulatory settlement.

(2) For the year ended December 31, 2025, unrealized gains in non-marketable equity securities primarily related to investments held by Robinhood Ventures Fund I.

104

Table of Contents

Key Components of Our Results of Operations

Revenues

Transaction-Based Revenues

Transaction-based revenues consist of amounts earned from routing customer orders for options, cryptocurrencies, and equities to market makers. When customers place orders for options, cryptocurrencies, or equities on our platform, we route these orders to market makers and we receive consideration from those market makers. With respect to options and equities trading, such fees are known as PFOF. With respect to cryptocurrencies trading, we receive “Transaction Rebates” when routing to market makers. In the case of options, our fee is on a per contract basis based on the underlying security. For equities, the fees we receive are typically based on the size of the publicly quoted bid-ask spread for the security being traded; that is, we receive a fixed percentage of the difference between the publicly quoted bid and ask at the time the trade is executed. In the case of cryptocurrencies, our rebate is a fixed percentage of the notional order value.

Within each asset class, whether options, cryptocurrencies, or equities, the transaction-based revenue we earn is calculated in an identical manner among all participating market makers. We route option and equity orders in priority to participating market makers that we believe are most likely to give our customers the best execution, based on historical performance (according to order price, trading symbol, availability of the market maker and, if statistically significant, order size), and, in the case of options, the likelihood of the order being filled is a factor as well. For cryptocurrency orders, we route to market makers based on price and availability of the cryptocurrency from the market maker.

We also earn transaction-based revenues from commissions. Acting as an agent, we facilitate purchases and sales of event contracts and futures on behalf of users. Commissions are recognized on a trade-date basis as this is when the performance obligation is satisfied.

Net Interest Revenues

Net interest revenues consist of interest revenues less interest expenses. We earn interest revenues on margin loans to users, segregated cash, cash equivalents, and securities, deposits with clearing organizations, corporate cash and investments, Cash Sweep, and carried customer credit card balances. We also earn and incur interest revenues and expenses on securities lending transactions. We incur interest expenses in connection with our revolving credit facilities and borrowings by the Credit Card Funding Trust.

Other Revenues

Other revenues primarily consists of Robinhood Gold subscription fees, proxy revenues, digital asset listing fees, selling concession revenues, advertising revenues, and ACATS fees charged to users for facilitating the transfer of part or all of assets in their accounts to another broker-dealer.

Robinhood Match Incentives

We offer a match incentive on customers’ eligible contributions to their retirement accounts and, from time to time, an incentive on other transfers of assets to our platform. All match incentives are recognized

105

Table of Contents

as a reduction to revenue when earned. The matches are allocated to certain revenue categories on a proportional basis.

Operating Expenses

Brokerage and Transaction

Brokerage and transaction costs primarily consist of compensation and employee benefits, as well as allocated overhead for employees engaged in clearing and brokerage functions, market data expenses, expenses related to our instant withdrawals feature, and other brokerage and transaction costs such as costs related to our Cash Sweep and securities lending programs, customer statement-related costs, regulatory fees and fees paid to centralized clearinghouses. A large portion of our brokerage and transaction costs are variable and tied to trading and transaction volumes on our platforms.

Technology and Development

Technology and development costs primarily consist of costs related to compensation and benefits, for engineering, data science, and design personnel, as well as allocated overhead, costs incurred to support and improve our platforms and develop new products, and costs associated with computer hardware and software, including amortization of internally developed software.

Operations

Operations costs consist of customer service related expenses, including compensation and employee benefits, as well as allocated overhead for employees engaged in customer support, and costs incurred to support and improve customer experience (such as third-party customer service vendors).

Provision for Credit Losses

The provision for credit losses consists of expected credit losses related to credit card and brokerage products. For credit card related, we have two types of provision for credit losses: i) one related to off-balance sheet credit card principal receivables, and ii) one related to on-balance sheet purchased credit card and interest receivables. Brokerage-related provision for credit losses primarily relates to unsecured balances of receivables from users due to Fraudulent Deposit Transactions and losses on margin lending.

Marketing

Marketing costs primarily consist of paid marketing channels such as digital marketing and brand marketing, as well as compensation and employee benefits, and allocated overhead for employees engaged in the marketing function and other marketing costs such as costs related to our keynote events.

General and Administrative

General and administrative costs primarily consist of compensation and employee benefits, as well as allocated overhead for certain executives and employees engaged in legal, finance, human resources, risk, and compliance. General and administrative costs also include legal expenses, other professional fees, as well as other general and administrative costs such as costs related to business insurance, and real estate charges including impairments on our operating leases and leasehold improvements, lease terminations, and settlements and penalties.

106

Table of Contents

Results of Operations

The following table summarizes our consolidated statements of operations data:

(in millions)

Year Ended December 31,

2024

2025

Revenues:

Transaction-based revenues

$

1,647 

$

2,628 

Net interest revenues

1,109 

1,514 

Other revenues

195 

331 

Total net revenues

2,951 

4,473 

Operating expenses(1):

Brokerage and transaction

164 

211 

Technology and development

818 

897 

Operations

112 

130 

Provision for credit losses

76 

114 

Marketing

272 

399 

General and administrative

455 

628 

Total operating expenses

1,897 

2,379 

Other income, net

10 

14 

Income before income taxes

1,064 

2,108 

Provision for (benefit from) income taxes

(347)

225 

Net income

$

1,411 

$

1,883 

Net income (loss) attributable to non-controlling interest

— 

— 

Net income attributable to Robinhood

$

1,411 

$

1,883 

____________________

(1)Includes SBC expense as follows:

Year Ended December 31,

(in millions)

2024

2025

Brokerage and transaction

9 

10 

Technology and development

192 

159 

Operations

7 

6 

Marketing

8 

8 

General and administrative

88 

122 

Total SBC expense

$

304 

$

305 

107

Table of Contents

Comparison of the Years Ended December 31, 2025 and 2024

A discussion of our results for fiscal year 2024 compared to fiscal year 2023 can be found in “Management's Discussion and Analysis of Financial Condition and Results of Operations — Comparison of the Years Ended December 31, 2024 and 2023” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 18, 2025.

Revenues

Transaction-Based Revenues

Year Ended December 31,

Year Ended December 31,

(in millions, except for percentages)

2024

2025

2024 to 2025

% Change

2024

2025

Transaction-based revenues

 % of total net revenues

Options

$

760

$

1,123

48 

%

26%

25%

Cryptocurrencies

626

901

44 

%

21%

20%

Equities

177

302

71 

%

6%

7%

Other

84

302

260 

%

3%

7%

Total transaction-based revenues

$

1,647

$

2,628

60 

%

56 

%

59 

%

Transaction-based revenues increased by $981 million primarily driven by increases of $363 million in options, $275 million in cryptocurrencies, and $125 million in equities. In addition, other transaction-based revenues increased by $218 million primarily driven by increased user activities in Prediction Markets and instant withdrawals.

Options revenues increased primarily due to higher option rebate rates due to the mix of ticker symbols traded as different ticker symbols pay different rebate rates. In addition, options revenues increased due to a 12% increase in Options Contracts Traded per trader and a 16% increase in the number of users placing option trades. The increase was offset by a $55 million increase of match incentives paid to our customers.

Cryptocurrencies revenues increased primarily due to higher cryptocurrency rebate rates from crypto market makers and a 6% increase in the number of users placing cryptocurrency trades, partially offset by 9% decrease in the average Notional Trading Volume traded per trader. In addition, cryptocurrencies revenues benefited from our acquisition of Bitstamp. The increase was offset by an $18 million increase of certain incentives paid to our customers.

Equities revenues increased as a result of a 65% increase in the average Notional Trading Volume traded per trader and a 12% increase in the number of users placing equity trades. The increase was partially offset by lower equity rebate rates due to the mix of ticker symbols traded as different ticker symbols pay different rebate rates. The increase was offset by a $14 million increase of certain match incentives paid to our customers.

108

Table of Contents

Net Interest Revenues

Year Ended December 31,

Year Ended December 31,

(in millions, except for percentages)

2024

2025

2024 to 2025

% Change

2024

2025

Net interest revenues:

% of total net revenues

Margin interest

$

319

$

573

80 

%

11%

13%

Interest on segregated cash, cash equivalents, securities, and deposits

261

319

22 

%

9%

8%

Interest on corporate cash and investments

256

167

(35)

%

9%

4%

Cash Sweep

179

229

28 

%

6%

5%

Securities lending, net

94

190

102 

%

3%

4%

Credit card, net

24

64

167 

%

1%

1%

Interest expenses related to credit facilities

(24)

(32)

33 

%

(1)%

(1)%

Other

—

4

NM

—%

—%

Total net interest revenues

$

1,109

$

1,514

37 

%

38 

%

34 

%

Net interest revenues increased by $405 million, primarily driven by growth in our interest-earning asset balances and securities lending activities. The increase was partially offset by a decrease in interest revenue on corporate cash and investments primarily driven by a lower short-term interest rate environment. We anticipate any potential future rate cuts by the Federal Reserve will negatively impact our net interest revenues and adversely affect our customers’ returns on cash deposits.

109

Table of Contents

The following table summarizes interest-earning assets, the revenue generated by these assets, and their respective annual yields:

(in millions, except for annual yield)

Margin Book

Cash and deposits(1)

Cash Sweep
(off-balance sheet)

Credit card, net(2)

Total interest-earning assets

Securities lending, net

Interest expenses related to credit facilities(5)

Other

Total net interest revenues

Year ended December 31, 2025

December 31, 2025

$

16,823

$

10,995

$

32,786

$

1,040

$

61,644 

—

December 31, 2024

7,909

9,943

26,064

391

44,307 

Average(3)

11,431

12,226

30,912

631

55,200 

Revenue (expense)

573

486

229

64

$

1,352 

$

190 

$

(32)

$

4 

$

1,514 

Annual yield(4)

5.01 

%

3.98 

%

0.74 

%

10.14 

%

2.45 

%

2.74 

%

Year ended December 31, 2024

December 31, 2024

$

7,909

$

9,943

$

26,064

$

391

$

44,307 

December 31, 2023

3,458

10,107

16,352

205

30,122 

Average(3)

5,082

10,252

21,352

261

36,947 

Revenue (expense)

319

517

179

24

$

1,039 

$

94 

$

(24)

$

— 

$

1,109 

Annual yield(4)

6.28 

%

5.04 

%

0.84 

%

9.20%

2.81 

%

3.00 

%

_______________

(1) Includes cash and cash equivalents, restricted cash, segregated cash, cash equivalents, securities under federal and other regulations, deposits with clearing organizations, and investments.

(2) Credit card, net consists of i) an off-balance sheet amount representing customer principal amounts funded by Coastal Bank under the Program Agreement. Under the Program Agreement, Robinhood Credit collects interest from customers that carry a balance and pays interest on the amount funded by Coastal Bank, with the difference between those amounts resulting in net interest revenue; ii) an on-balance sheet amount representing purchased credit card receivables by the Credit Card Funding Trust. Robinhood Credit collects interest from customers that carry balances and pays interest on the amount funded through the Credit Card Funding Trust, with the difference in those amounts resulting in net interest revenues. As of December 31, 2025, the off-balance sheet amount funded under the Program Agreement was $200 million and the on-balance sheet amount was $840 million. Refer to Note 11 - Financing Activities and Off-Balance Sheet Risk to our consolidated financial statements in this Annual Report for more information.

(3) Average balance rows represent the simple average of month-end balances in a given period.

(4) Annual yield is calculated by dividing revenue for the given period by the applicable average asset balance.

(5) Includes interest expenses related to our revolving credit facilities; interest expense related to the Credit Card Funding Trust is included in the credit card, net interest yield calculation. Refer to Note 11 - Financing Activities and Off-Balance Sheet Risk to our consolidated financial statements in this Annual Report for more information.

110

Table of Contents

Other Revenues

Year Ended December 31,

Year Ended December 31,

(in millions, except for percentages)

2024

2025

2024 to 2025

% Change

2024

2025

Other revenues:

% of total net revenues

Gold subscription revenues

$

109

$

179

64%

4 

%

4 

%

Proxy revenues

60

63

5%

2 

%

1 

%

Other

26

89

242%

1 

%

2 

%

Total other revenues

$

195

$

331

70%

7 

%

7 

%

Other revenues increased by $136 million primarily driven by increased Gold subscription revenues of $70 million due to an increase in Gold Subscribers. Additionally, other revenues increased $63 million primarily driven by higher revenues from an increased number of digital assets listed, revenues derived from acquired business during the year, and increased IPO offerings.

Operating Expenses

(in millions, except for percentages)

2024

2025

2024 to 2025

% Change

Operating expenses:

Brokerage and transaction

$

164

$

211

29 

%

Technology and development

818

897

10 

%

Operations

112

130

16 

%

Provision for credit losses

76

114

50 

%

Marketing

272

399

47 

%

General and administrative

455

628

38 

%

Total operating expenses

$

1,897

$

2,379

Brokerage and Transaction

(in millions)

2024

2025

2024 to 2025

% Change

Employee compensation, benefits, and overhead

$

45

$

60

33 

%

Market data expenses

26

34

31 

%

Instant withdrawals

22

33

50 

%

Other

71

84

18 

%

Total

$

164

$

211

29 

%

Percent of total net revenues:

5 

%

5 

%

Brokerage and transaction costs increased by $47 million primarily driven by an increase of $15 million in employee compensation, benefits, and overhead due to increased average headcount to continue to support the growth and expansion of our brokerage business. Other brokerage and transaction costs increased $13 million primarily due to credit card network and processing fees driven by higher credit card transaction volume. Instant withdrawals expenses increased $11 million due to higher customer activities. Additionally, market data expenses increased $8 million primarily due to higher trading volumes.

111

Table of Contents

Technology and Development

(in millions)

2024

2025

2024 to 2025

% Change

Employee compensation, benefits, and overhead

$

479

$

485

1 

%

Cloud infrastructure services

189

211

12 

%

Software and tools

123

156

27 

%

Other

27

45

67 

%

Total

$

818

$

897

10 

%

Percent of total net revenues:

28%

20%

Technology and development costs increased by $79 million primarily due to increases of $33 million in software and tools and $22 million in cloud infrastructure expenses primarily driven by acquisitions and the continued growth and expansion of our business. Additionally, other technology and development expenses increased $18 million primarily driven by investments to support acquisitions and product growth.

Operations

(in millions)

2024

2025

2024 to 2025

% Change

Employee compensation, benefits, and overhead

$

79 

$

83 

5 

%

Customer experience

18 

23 

28 

%

Other

15 

24 

60 

%

Total

$

112 

$

130 

16 

%

Percent of total net revenues:

4 

%

3 

%

Operations costs increased by $18 million primarily due to an increase of $9 million in other operations expense primarily related to costs associated with customer onboarding and account verification due to the growth of our customer base. Additionally, employee compensation, benefits, and overhead increased $4 million due to increased average headcount to support the expansion of our business.

Provision for credit losses

(in millions)

2024

2025

2024 to 2025

% Change

Provision for credit losses - credit card related

$

55 

$

86 

56 

%

Provision for credit losses - brokerage related

21 

28 

33 

%

Total

$

76 

$

114 

50 

%

Percent of total net revenues:

3 

%

3 

%

Provision for credit losses cost increased by $38 million primarily due to a $31 million increase in credit card related provision for credit losses mainly due to higher balances in purchased credit card receivables.

112

Table of Contents

Marketing

(in millions)

2024

2025

2024 to 2025

% Change

Digital marketing

$

119 

$

177 

49 

%

Brand marketing

45 

78 

73 

%

Employee compensation, benefits, and overhead

41 

50 

22 

%

Other marketing

67 

94 

40 

%

Total

$

272 

$

399 

47 

%

Percent of total net revenues:

9 

%

9 

%

Marketing costs increased by $127 million primarily due to higher expenses in digital marketing of $58 million and brand marketing of $33 million as we increased our investments in paid marketing channels and other marketing initiatives to promote our brand, products, and services. Other marketing costs increased $27 million primarily related to our keynote events. Additionally, employee compensation, benefits, and overhead increased $9 million due to increased average headcount to support the expansion of our business.

General and Administrative

(in millions)

2024

2025

2024 to 2025

% Change

Employee compensation, benefits, and overhead

$

323 

$

401 

24 

%

Legal expenses

71 

76 

7 

%

Other professional fees

47 

64 

36 

%

Other

14 

87 

521 

%

Total

$

455 

$

628 

38 

%

Percent of total net revenues:

15%

14%

General and administrative costs increased by $173 million primarily due to an increase of $78 million in employee compensation, benefits, and overhead driven by increased average headcount, payroll taxes related to the vesting of Market-Based RSUs, and expenses recognized for shares granted in connection with acquisitions. In addition, other general and administrative expenses increased $73 million primarily due to a $55 million reversal of an accrual as part of a regulatory settlement in the prior year and an increase in expenses to support business expansion. Other professional fees increased $17 million primarily due to costs incurred in relation to business expansion.

Provision for (Benefit from) Income Taxes

(in millions)

2024

2025

2024 to 2025

% Change

Provision for (benefit from) income taxes

$

(347)

$

225 

NM

Provision for income taxes increased by $572 million primarily due to the     benefits from the valuation release of the U.S. federal and certain state deferred tax assets in the fourth quarter of 2024 and the growth of the business.

113

Table of Contents

Liquidity and Capital Resources

Sources and Uses of Funds

Our principal sources of liquidity are cash flows generated from operations, and our cash, cash equivalents, investments, and stablecoin. Other sources of future funds may include potential borrowing under our revolving lines of credit and potential issuance of new debt or equity. Our liquidity needs are primarily to support and invest in our core business, including investing in new ways to serve our customers, potentially seeking strategic acquisitions to leverage existing capabilities and further build our business, and for general capital needs (including capital requirements imposed by regulators and SROs and cash deposit and collateral requirements under the rules of the DTC, NSCC, OCC, and CFTC). Based on our current level of operations, we believe our primary sources of liquidity will be adequate to meet our current liquidity needs for the next 12 months.

Liquid Assets

As of December 31, 2025, we had cash and cash equivalents of $4.3 billion and stablecoin of $152 million.

Revolving Credit Facilities and Credit Card Funding Trust

As of December 31, 2025, we had committed revolving credit facilities with a total borrowing capacity of $3.775 billion and a borrowing capacity for our Credit Card Funding Trust of up to $950 million. Refer to Note 11 - Financing Activities and Off-Balance Sheet Risk to our consolidated financial statements in this Annual Report for further information.

Commitments

The following table summarizes our short- and long-term material cash requirements for contractual obligations as of December 31, 2025:

Payments Due by Period

(in millions)

Total

2026

2027-2028

2029-2030

Thereafter

Operating lease commitments(1)

$

334 

$

35 

$

90 

$

83 

$

126 

Purchase commitments(2)

512 

398 

110 

4 

— 

Robinhood match incentives commitments(3)

39 

39 

— 

— 

— 

Credit Card Funding Trust borrowing principal and interest

602 

602 

— 

— 

— 

Total

$

1,487 

$

1,074 

$

200 

$

87 

$

126 

_______________

(1) Operating lease commitments include tenant improvement allowance incentives amortized over the lease terms from 2025 to 2026.

(2)Purchase commitments are determined based on the non-cancelable quantities or termination amounts to which we are contractually obligated. These primarily relate to commitments for cloud infrastructure, data services, and business insurance.

(3)Robinhood match incentives commitments represent non-cancelable future match payments on eligible cash deposits made by Robinhood Gold Subscribers. The future match payments are forfeited if deposits are not held on the platform during the specific earning period.

In addition to lease and purchase commitments, we have two committed financing agreements: one with a contractual term of 30 days and a daily minimum commitment of $25 million and another with a contractual term of 21 days with a daily minimum commitment of $35 million. See “Securities Borrowing

114

Table of Contents

and Lending” in Note 1 - Description of Business and Summary of Significant Accounting Policies to our consolidated financial statements in this Annual Report for further information.

Acquisitions

We seek potential acquisitions to leverage existing capabilities and further build out our business.

In May 2025, we entered into an agreement to acquire all outstanding equity of WonderFi for C$0.36 per share, representing a total equity value of approximately $180 million.

In November 2025, we established a joint venture, Rothera, in partnership with SIG, that acquired 90% of the issued and outstanding equity of MIAXdx in January 2026. Following closing, Rothera renamed MIAXdx to Rothera E&C.

In December 2025, we entered into agreements to acquire PT Buana Capital Sekuritas, an Indonesian brokerage, and PT Pedagang Aset Kripto, a licensed Indonesian digital financial asset trader.

Refer to Note 3 - Business Combinations to our consolidated financial statements in this Annual Report for more information on our acquisitions.

Repurchase Program

On May 28, 2024, we announced that our board of directors approved the Repurchase Program authorizing us to repurchase up to $1 billion of our outstanding Class A common stock to return value to shareholders. On April 30, 2025, we announced that our board of directors has authorized an additional $500 million, bringing the Repurchase Program authorization to a total of $1.5 billion. For the year ended December 31, 2025, we had made share repurchases of $653 million under the Repurchase Program. Refer to Part II, Item 5 and Note 12 - Common Stock and Stockholders’ Equity to our consolidated financial statements in this Annual Report for more information about the Repurchase Program.

Regulatory Capital Requirements

Our broker-dealer subsidiaries (RHS, RHF, and TradePMR) are subject to the Net Capital Rule, administered by the SEC and FINRA, which requires the maintenance of minimum net capital, as defined. Net capital and the related net capital requirements may fluctuate on a daily basis. RHS and RHF compute net capital under the alternative method as permitted by the Net Capital Rule.

Our FCM subsidiary, RHD, is subject to CFTC Regulation 1.17, administered by the CFTC and the NFA, which requires the maintenance of minimum net capital, as defined by CFTC Regulation 1.17. Net capital and the related net capital requirements may fluctuate on a daily basis.

115

Table of Contents

The table below summarizes the net capital, capital requirements and excess net capital of RHS, RHF, RHD, and TradePMR as of periods presented:

December 31, 2025

(in millions)

Net Capital

Required Net Capital

Net Capital in Excess of Required Net Capital

RHS

$

3,532 

$

373 

$

3,159 

RHF

210 

0.25 

210 

RHD

180 

10 

170 

TradePMR

13 

0.25 

13 

As of December 31, 2025, these subsidiaries were in compliance with their respective regulatory capital requirements.

Cash Flows

The following table summarizes our cash flow activities:

Year Ended December 31,

(in millions)

2024

2025

2024 to 2025 Change

Cash provided by (used in):

Operating activities

$

(157)

$

1,638 

$

1,795 

Investing activities

(148)

141 

289 

Financing activities

(345)

(590)

(245)

Operating activities

(in millions)

2024 to 2025 Change

Changes to net cash provided by (used in) operating activities were primarily due to:

Increase in net income after adjusting for non-cash items

$

1,073 

Increase in securities borrowed due to increased customer activities

2,462 

Increase in securities segregated under federal and other regulations

594 

Increase in securities loaned due to continued growth of our securities lending program, as well as market conditions, variable lending and funding activities

247 

Decrease in working capital primarily driven by the timing of collection of receivables from users and payment of current liabilities

(2,581)

$

1,795 

116

Table of Contents

Investing activities

(in millions)

2024 to 2025 Change

Changes to net cash provided by (used in) investing activities were primarily due to:

Increase in cash, cash equivalents, and segregated cash acquired in business acquisitions

$

1,068 

Proceeds received from maturities of held-to-maturity investments offset by lower purchases in the current year

298 

Increase in purchases of credit card receivables offset by collections during the year

(563)

Consideration transferred for business acquisitions and asset acquisitions

(265)

Purchases of non-marketable securities primarily related to Robinhood Ventures

Fund I

(243)

Other

(6)

$

289 

Financing activities

(in millions)

2024 to 2025 Change

Changes to net cash used in financing activities were primarily due to:

Increase in repurchase of common stock under the Repurchase Program

$

(396)

Increase in cash used for taxes related to net share settlement of equity awards

(193)

Increase in borrowings by the Credit Card Funding Trust to purchase credit card receivables

336 

Other

8 

$

(245)

Critical Accounting Estimates

The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. The SEC has defined a company’s critical accounting policies as the ones that are most important to the portrayal of the company’s financial condition and results of operations, and which require the company to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. Based on this definition, we have identified the critical accounting estimates addressed below. We also have other key accounting policies, which involve the use of estimates, judgments, and assumptions that are significant to understanding our results. For additional information, refer to Note 1 - Description of Business and Summary of Significant Accounting Policies to our consolidated financial statements in this Annual Report. Although we believe that our estimates, assumptions, and judgments are reasonable, they are based upon information presently available. Actual results might differ significantly from these estimates under different assumptions, judgments, or conditions.

117

Table of Contents

Allowance for Credit Losses

The amount of the allowance for credit losses represents management’s estimate of expected credit losses over the remaining expected life of our financial assets measured at amortized cost considering available information from internal and external sources. The allowance for credit losses provides for unsecured balances of receivables from users due to Fraudulent Deposit Transactions, losses on margin lending, purchased credit card receivables, and reserves on proxy revenue receivables. The allowance for credit losses takes into account relevant available information including the nature of the collateral, potential future changes in collateral values, and historical credit loss information.

The amount of the allowance for credit losses represents management’s estimate of expected credit losses from off-balance sheet credit exposure over the remaining expected life of credit card receivables originated under an arrangement with Coastal Bank. Coastal Bank is the legal lender and originator, the party to which the customer has a credit-borrower relationship, and the legal owner of the credit card receivables. We are responsible to pay Coastal Bank customer balances that are ultimately charged off or deemed uncollectible, generally when balances become outstanding for over 180 days. Allowance for credit losses takes into account information from internal and external sources and market data, which is estimated based on outstanding customer credit card principal balances owned by Coastal Bank and anticipated future customer payment rates based on past portfolio performance, both of which are unobservable inputs. The measurement of this liability using this method approximates fair value. For additional information, refer to Note 11 - Financing Activities and Off-Balance Sheet Risk to our consolidated financial statements in this Annual Report.

Business Combinations

We allocate the fair value of the purchase price to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired customer contracts, acquired technology, and trade names, based on expected future growth rates and margins, attrition rates, future changes in technology and royalty for similar brand licenses, useful lives, and discount rates. Management's estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results might differ from estimates.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination and is allocated to reporting units expected to benefit from the business combination. We test goodwill for impairment at least annually in the fourth quarter or whenever events or changes in circumstances indicate that goodwill might be impaired. We evaluate our reporting units when changes in our operating structure occur, and if necessary, reassign goodwill using a relative fair value allocation approach. In testing for goodwill impairment, we first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, we determine it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then additional impairment testing is not required. However, if we conclude otherwise, we proceed to a quantitative assessment.

The quantitative assessment compares the estimated fair value of a reporting unit to its book value, including goodwill. If the fair value exceeds book value, goodwill is considered not to be impaired and no additional steps are necessary. However, if the book value of a reporting unit exceeds its fair value, an

118

Table of Contents

impairment loss will be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.

Income Taxes

We make significant judgments and estimates to determine any valuation allowance recorded against deferred tax assets. Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent we believe that they will not be realized. We consider many factors when assessing the likelihood of future realization of our deferred tax assets including, but not limited to, historical cumulative loss experience and expectations of future earnings, tax planning strategies, and the carry-forward periods available for tax reporting purposes. Our judgment regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute business plans and/or tax planning strategies. Should there be a change in the ability to recover deferred tax assets, our tax provision would increase or decrease in the period in which the assessment is changed.

We recognize a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized. We account for uncertain tax positions, including net interest and penalties, as a component of income tax expense or benefit. We make adjustments to these uncertain tax positions in accordance with applicable income tax guidance and based on changes in facts and circumstances. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact to our consolidated financial statements and operating results.

Share-based Compensation

Market-Based RSUs

We have granted RSUs that vest upon the satisfaction of all the following conditions: time-based service conditions, performance-based conditions, and market-based conditions. The time-based service condition for these awards is generally satisfied over six years. The performance-based conditions were satisfied upon the occurrence of an IPO. The market-based conditions are satisfied upon our achievement of specified share prices. As of December 31, 2024, SBC expense related to the Market-Based RSUs was fully recognized and as of December 31, 2025, all Market-Based RSUs were fully vested.

For market-based awards, we determined the grant-date fair value utilizing a Monte Carlo valuation model, which incorporates various assumptions including expected stock price volatility, expected term, and risk-free interest rates.

We record SBC expense for market-based equity awards on an accelerated attribution method over the requisite service period, and only if performance-based conditions are considered probable to be satisfied. We determined the requisite service period by comparing the derived service period to achieve the market-based condition and the explicit time-based service period, using the longer of the two service periods as the requisite service period.

Recent Accounting Pronouncements

Refer to Note 2 - Recent Accounting Pronouncements to our consolidated financial statements in this Annual Report.

119

Table of Contents