Robinhood Markets, Inc.

What they do

Robinhood operates mobile-first and desktop trading platforms where customers buy and sell equities, options, cryptocurrencies, futures and event contracts, and holds customer cash and securities. It earns transaction-based revenue from routing and executing customer trades, net interest revenue from customer cash, margin lending and securities lending, and other revenue from Gold subscriptions and services such as Trump Accounts. Products include the Robinhood app, the Robinhood Legend desktop platform for active traders, retirement accounts and a credit card. It has expanded internationally, including U.K. and E.U. operations.

Revenue drivers

• Transaction-based revenues — Largest revenue line at $776 million in Q2 2026 (up 44% year-over-year), driven by event contracts of $156 million (up over 10x), options of $342 million (up 29%) and equities of $129 million (up 95%), partly offset by cryptocurrencies of $100 million (down 38%).
• Net interest revenues — $389 million in Q2 2026, up 9% year-over-year, from growth in interest-earning assets, partly offset by lower short-term rates and securities lending activity.
• Other revenues — $143 million in Q2 2026, up 54% year-over-year, primarily from Trump Account service revenues and increased Robinhood Gold subscription revenues.
• Robinhood Gold subscriptions — Subscription product reached a record 4.84 million subscribers in Q2 2026, up 39% year-over-year, contributing to other revenues and supporting ARPU of $187.

Recent performance

Q2 2026 total net revenues rose 32% year-over-year to a record $1.31 billion. Net income attributable to Robinhood rose 45% to $561 million (company-wide net income of $573 million, up 48%), and diluted EPS rose 48% to $0.62. Adjusted EBITDA increased 35% to $741 million. Funded Customers grew 7% to 28.4 million and Total Platform Assets rose 32% to $368.7 billion. Net Deposits were a record $21.7 billion for the quarter.

Strategy

Management states it is pursuing "product velocity" to broaden ownership, citing initiatives such as Robinhood Chain, Robinhood Ventures, Trump Accounts, Robinhood Legend and the credit card. The company reported 13 business lines at $100 million or more in annualized revenues, and said Legend and the credit card joined that roster. In June 2026 Robinhood announced a reduction in force of about 10% of full-time employees plus closure of some open roles, described as intended to maintain a high performance culture and accelerate product velocity. It also repurchased $414 million of Class A stock in Q2 2026 and has repurchased $1.3 billion under its program since Q3 2024.

Risks

• Growth may not continue — The company states it might not grow in line with historical rates as it rapidly expands products and geographies.
• Quarterly results volatility — Management states results of operations and other operating metrics fluctuate quarter to quarter, making them difficult to predict.
• Transaction revenue sensitivity and PFOF — Factors such as reduced spreads, lower trading activity, disruption of Liquidity Provider relationships, or new regulation or bans on payment for order flow could reduce profitability and raise compliance costs.
• Interest-rate exposure — The company states it is directly and indirectly exposed to interest-rate fluctuations, and that rapidly changing rate environments have reduced and could reduce net interest revenues and profitability.

Outlook

Management describes the business as firing on all cylinders and points to record revenues, Net Deposits and Gold subscribers, and new highs in equity, option and event contract volumes. It highlights continued product launches, a more diversified business with 13 business lines above $100 million in annualized revenues, and expected benefits from Trump Accounts and Rothera. The company does not provide specific forward financial guidance in these excerpts.