Robinhood — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total net revenues reached a record $1.42 billion, a 12% increase year-over-year.
• Transaction-based revenues increased 19% year-over-year to $867 million, driven by event contracts ($173 million, up over 6x), options ($399 million, up 31%), and equities ($121 million, up 41%), partially offset by cryptocurrencies ($120 million, down 55%).
• Net interest revenues decreased 9% year-over-year to $415 million due to lower securities lending activity and short-term interest rates.
• Other revenues increased 61% year-over-year to $142 million, driven by Trump Account service revenues and increased Robinhood Gold subscription revenues.
• Net income decreased 14% year-over-year to $476 million, with diluted EPS down 16% to $0.51; this included $67 million ($0.07 EPS) of unrealized losses related to Robinhood Ventures Fund I.
• Adjusted Net Income (non-GAAP) decreased 3% year-over-year to $550 million, and Adjusted EPS (non-GAAP) decreased 3% to $0.60.
• Total operating expenses increased 16% year-over-year to $739 million, driven by higher provisions for credit losses, expenses related to Trump Accounts and Rothera, and marketing investments.
• Adjusted Operating Expenses and Share-Based Compensation (non-GAAP) increased 8% year-over-year to $664 million.
• Adjusted EBITDA (non-GAAP) increased 9% year-over-year to $808 million.
• Cash and cash equivalents totaled $5.8 billion at period end, compared to $4.3 billion in Q3 2025.
• Share repurchases totaled $25 million (0.2 million shares) in the quarter; cumulative repurchases since Q3 2024 reached $1.3 billion (27 million shares).

Guidance and Future Outlook:

• The company lowered the top end of its 2026 Adjusted Operating Expenses and SBC outlook by $25 million to a range of $2.675 billion to $2.75 billion to reflect ongoing efficiency gains.
• The company is not providing a 2026 outlook for total operating expenses (GAAP) due to the inability to predict with reasonable certainty the impact of provision for credit losses, pending acquisition costs, and significant regulatory expenses.
• October Net Deposits have already topped $13 billion month-to-date, including $6 billion from the Dell family's contribution to Trump Accounts.
• Robinhood plans to begin rolling out its product suite in the Dubai Financial Services Authority (DFSA) region in 2027.

Business Segments and Product Lines:

• Robinhood now has 14 business lines that have reached $100 million or more in annualized revenues.
• Rothera reached over $100 million in annualized revenues in its first full quarter of operation, with over 6.4 billion contracts traded since launch.
• Robinhood Gold subscribers reached a record 5.2 million, a 34% year-over-year increase, representing an 18% overall adoption rate and approximately 40% adoption among new customers.
• Robinhood Gold Card grew to 1.3 million customers with over $19 billion in total annualized payment volume.
• Trump Accounts reached a milestone with the U.S. Treasury launching automatic enrollment for nearly 70 million children; 25 million children have $250 invested from the Dell family's $6.25 billion pledge.
• Robinhood Banking generated nearly $5 billion in deposits from over 350,000 Funded Customers, with approximately 40% of customers signed up for direct deposit.
• Robinhood Strategies grew to 350,000 Funded Customers with over $2 billion in assets under management.
• Trust Accounts hold over $300 million in assets with an average account size of over $400,000.
• Robinhood Retirement AUC increased 51% year-over-year to a record $36.6 billion.
• Margin Book increased 59% year-over-year to a record $22.1 billion.
• Cash and Deposits increased 43% year-over-year to a record $20.4 billion.
• Equity Notional Trading Volumes increased 53% year-over-year to a record $992 billion.
• Options Contracts Traded increased 48% year-over-year to a record 905 million.
• Event Contracts Traded increased over 7x year-over-year to a record 16.4 billion.
• Crypto Notional Trading Volumes decreased 38% year-over-year to $50 billion.
• Robinhood Chain generated over $80 billion in DEX volume and over $50 million of chain fees in its first quarter on Mainnet.

Market and Competitive Landscape:

• Market share gains drove active trader engagement to new highs, with record volumes for equities, options, and prediction markets, and record margin balances.
• The company launched crypto trading in the UK and received authorization from the DFSA to launch in Dubai, covering trading and custody across ten asset classes.
• Approximately 200,000 customers have opened Agentic Trading Accounts, driving over $1.6 billion in notional trading volume.
• Average Revenue Per User (ARPU) increased 5% year-over-year to $200.

Risks and Challenges:

• Actual results may differ materially due to the rate of growth in Funded Customers, effectiveness of cross-selling products, success in managing credit losses and fraud, and web-hosting expense management.
• The company faces risks related to regulatory changes, including potential bans on payment for order flow (PFOF) and new fee-based models for cryptocurrency.
• Risks include exposure to fluctuations in interest rates, the difficulty of raising capital, and the need to maintain regulatory capital levels.
• Operational risks include potential mishandling of customer assets, clearing function errors, and cybersecurity incidents.
• The company relies on a joint venture for Rothera and does not wholly own or operationally control it.
• Future results may be impacted by adverse developments in pending litigation, regulatory investigations, and state enforcement actions regarding event contracts.

Management Commentary and Tone:

• CEO Vlad Tenev stated the vision is to make everyone an owner, as broad ownership is essential to a free, stable, and prosperous society.
• CFO Shiv Verma noted that customers are trusting the company with more assets as the product roadmap is delivered, leading to the highest quarter ever for revenues.
• Management highlighted strong momentum entering Q4, citing record Net Deposits in October.
• The tone reflects confidence in product expansion, citing the HOOD Summit announcement of 17 new products and features, including Robinhood Agents, 24/7 trading of select U.S. equities, perpetual futures, and earnings contracts.

Other Key Points:

• Funded Customers increased by 1.9 million (7% year-over-year) to 28.7 million.
• Investment Accounts increased by 2.5 million (9% year-over-year) to 30.4 million.
• Total Platform Assets increased 19% year-over-year to $396 billion, driven by Net Deposits and higher equity valuations, partially offset by lower cryptocurrency valuations.
• Net Deposits were $15.7 billion, representing an annualized growth rate of 17% relative to Total Platform Assets at the end of Q2 2026; over the past twelve months, Net Deposits were $71.0 billion (21% growth relative to Q3 2025 assets).
• Robinhood Chain became a top-five chain by revenue and volume in its first quarter on Mainnet.
• The company introduced new non-GAAP financial measures: Adjusted Net Income and Adjusted EPS.
• Long-term borrowings increased to $2.66 billion as of September 30, 2026, compared to zero in the prior period.