Robinhood Markets, Inc.NASDAQ: HOOD

Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)

· Issued by Robinhood Markets, Inc.

Summary by 6ix AI

For the third quarter ended September 30, 2026, Robinhood's total net revenues rose 12% to $1,424 million from $1,274 million. Net income attributable to Robinhood fell 16% to $468 million from $556 million, and diluted earnings per share fell 16% to $0.51 from $0.61.

Key details

  • Total operating expenses for the quarter rose 16% to $739 million from $639 million. Adjusted EBITDA, a company measure of earnings that excludes items such as interest, taxes, depreciation and stock-based pay and is not based on standard accounting rules, rose 9% to $808 million from $742 million.
  • Funded Customers rose by 1.9 million to 28.7 million and Robinhood Gold Subscribers rose 34% to 5.18 million. Total Platform Assets rose 19% to $395.9 billion from $332.7 billion. Net Deposits for the quarter were $15.7 billion, compared with $20.4 billion a year earlier.
  • Event contracts (prediction-market) revenue rose to $173 million from $27 million and options revenue rose 31% to $399 million, while cryptocurrency revenue fell 55% to $120 million from $268 million. Net interest revenues fell 9% to $415 million.
  • In September 2026, Robinhood entered into agreements with Crypto.com and its affiliates under which it may receive, over a three-year term, up to a 10% equity interest in Crypto.com and certain of its affiliates. In return, Robinhood routes a selection of event contracts to Crypto.com's exchange and clearinghouse regulated by the US Commodity Futures Trading Commission.
  • For the nine months ended September 30, 2026, total net revenues were $3,799 million and net income attributable to Robinhood was $1,379 million, compared with $3,190 million and $1,278 million a year earlier.

What’s still pending

  • The equity interest in Crypto.com is up to 10% and is to be received, if at all, over a three-year term, so the final amount is not set.

6ix AI wrote this summary from the release below and checked it against the release.

On 6ix: 6ix.com/news/robinhood-markets-quarterly-report-for-quarter-ending-september-30-2026-form-10-q

Watch Robinhood Markets' latest callRobinhood Markets (NASDAQ:HOOD) Q3 2026 Earnings Call · Replay · Oct 27Read the transcript of Robinhood Markets (NASDAQ:HOOD) Q3 2026 Earnings Call
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 Quarterly Report, and should be read in conjunction with our interim unaudited condensed consolidated financial statements and notes elsewhere in this Quarterly Report and our audited consolidated financial statements and the related notes and the discussion under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our 2025 Form 10-K.
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."
Data as of and for the three and nine months ended September 30, 2025 and 2026 has been derived from our unaudited condensed consolidated financial statements appearing at the beginning of this Quarterly Report. Results for any interim period should not be construed as an inference of what our results would be for any full fiscal year or future period.
We refer to our "users" and our "customers" interchangeably throughout this Quarterly 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 three months ended September 30, 2026, as compared to the three months ended September 30, 2025:
•total net revenues increased 12% to $1,424 million compared to $1,274 million;
•net income attributable to Robinhood decreased 16% to $468 million, compared to $556 million;
•diluted EPS decreased 16% to $0.51, compared to $0.61;
•total operating expenses increased 16% to $739 million compared to $639 million;
•Adjusted EBITDA (non-GAAP) increased 9% to $808 million compared to $742 million;
•Funded Customers increased by 1.9 million, or 7%, to 28.7 million compared to 26.8 million, and Investment Accounts increased by 2.5 million, or 9%, to 30.4 million compared to 27.9 million;
•Total Platform Assets increased 19% to $395.9 billion compared to $332.7 billion, primarily driven by continued Net Deposits and higher equity valuations, partially offset by lower cryptocurrency valuations;
•Net Deposits were $15.7 billion, which translates to an annualized growth rate of 17% relative to Total Platform Assets at the end of the second quarter of 2026, compared to $20.4 billion, which translates to an annualized growth rate of 29% relative to Total Platform Assets at the end of the second quarter of 2025. Over the past twelve months, Net Deposits were $71.0 billion, a growth rate of 21% relative to Total Platform Assets at the end of the third quarter of 2025;
•ARPU increased 5% to $200 compared to $191; and
•Robinhood Gold Subscribers increased 34% to 5.18 million compared to 3.88 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 to Adjusted EBITDA, please see "-Non-GAAP Financial Measures" below.
Recent Developments

Crypto.com Agreement
In September 2026, we entered into agreements with Crypto.com and its affiliates under which we may receive over a three-year term up to a 10% equity interest in Crypto.com and certain of its affiliates as consideration for routing a selection of event contracts to its CFTC-regulated exchange and clearinghouse doing business in the Crypto.com App under the brand Crypto.com | Derivatives North America (CDNA) and also a separate trader-focused App under the brand OG.com.
Key Performance Metrics
Key performance metrics for the relevant periods were as follows:
Three Months Ended
September 30,
2025 2026
% Change
Funded Customers(1) (in millions)
26.8 28.7 7 %
Total Platform Assets(2) (in billions)
$ 332.7 $ 395.9 19 %
Net Deposits (in billions)
$ 20.4 $ 15.7 NM
Annualized Growth Rate with respect to Net Deposits 29% 17% NM
ARPU (in dollars)
$ 191 $ 200 5 %
Robinhood Gold Subscribers (in millions)
3.88 5.18 34 %
________________
(1)The following table describes the annual changes within Funded Customers:
Three Months Ended
September 30,
(in millions) 2025 2026 % Change
Beginning Funded Customers 26.5 28.4 7 %
New Funded Customers 0.7 0.6 (14) %
Resurrected Customers 0.1 0.1 - %
Churned Customers (0.5) (0.4) (20) %
Ending Funded Customers 26.8 28.7 7 %
(2)The following table sets out the components of Total Platform Assets by type of asset:
Three Months Ended
September 30,
(in billions) 2025 2026 % Change
Equities $ 203.0 $ 277.5 37 %
Cryptocurrencies 51.1 37.9 (26) %
Options and futures 3.9 2.4 (38) %
RIA assets 42.2 51.1 21 %
Cash held by Customers 46.3 49.1 6 %
Receivables from Customers (primarily margin balances) (13.8) (22.1) 60 %
Total Platform Assets $ 332.7 $ 395.9 19 %
The following table describes the changes within Total Platform Assets:
Three Months Ended
September 30,
(in billions) 2025 2026 % Change
Beginning Total Platform Assets $ 278.6 $ 368.7 32 %
Net Deposits 20.4 15.7 NM
Net market gains 33.7 11.5 (66) %
Ending Total Platform Assets $ 332.7 $ 395.9 19 %
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, and other results under GAAP, we utilize non-GAAP calculations of Adjusted EBITDA. Adjusted EBITDA is defined as net income attributable to Robinhood, excluding (i) net income (loss) attributable to non-controlling interests, (ii) interest expenses related to debt obligations, (iii) provision for (benefit from) income taxes, (iv) depreciation and amortization, (v) SBC, (vi) significant legal and tax settlements and reserves, and (vii) 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:
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(in millions) 2025 2026 2025 2026
Net income attributable to Robinhood $ 556 $ 468 $ 1,278 $ 1,379
Net income attributable to non-controlling interests - 8 - 16
Net income 556 476 1,278 1,395
Interest expenses related to debt obligations 8 10 22 28
Provision for income taxes 78 149 169 350
Depreciation and amortization 22 26 63 72
EBITDA (non-GAAP) 664 661 1,532 1,845
SBC 78 80 229 277
Restructuring charges - - - 23
Unrealized and realized losses (gains)(1)
- 67 - (62)
Adjusted EBITDA (non-GAAP) $ 742 $ 808 $ 1,761 $ 2,083
_______________
(1) For the three and nine months ended September 30, 2026, primarily related to investments in the Funds.
Results of Operations
The following table summarizes our unaudited condensed consolidated statements of operations data:
(in millions) Three Months Ended
September 30,		 Nine Months Ended
September 30,
2025 2026 2025 2026
Revenues:
Transaction-based revenues $ 730 $ 867 $ 1,852 $ 2,266
Net interest revenues 456 415 1,103 1,163
Other revenues 88 142 235 370
Total net revenues 1,274 1,424 3,190 3,799
Operating expenses(1):
Brokerage and transaction 56 68 154 190
Technology and development 237 254 665 751
Operations 33 79 93 174
Provision for credit losses 26 71 78 163
Marketing 102 104 306 315
General and administrative 185 163 450 536
Total operating expenses 639 739 1,746 2,129
Other income (expense), net (1) (60) 3 75
Income before income taxes 634 625 1,447 1,745
Provision for income taxes 78 149 169 350
Net income $ 556 $ 476 $ 1,278 $ 1,395
Less: Net income (loss) attributable to non-controlling interests - 8 - 16
Net income attributable to Robinhood $ 556 $ 468 $ 1,278 $ 1,379
_______________
(1)Includes SBC expense as follows:
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(in millions)
2025 2026 2025 2026
Brokerage and transaction $ 2 $ 3 $ 7 $ 8
Technology and development 40 40 123 128
Operations 1 1 4 3
Marketing 2 1 6 6
General and administrative 33 35 89 132
Total SBC expense $ 78 $ 80 $ 229 $ 277
Comparison of the Three and Nine Months Ended September 30, 2025 and 2026
Revenues
Transaction-Based Revenues
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(in millions, except for percentages) 2025 2026 % Change 2025 2026 % Change
Transaction-based revenues:
Options $ 304 $ 399 31 % $ 809 $ 1,001 24 %
Event contracts 27 173 541 % 40 433 983 %
Cryptocurrencies 268 120 (55) % 680 354 (48) %
Equities 86 121 41 % 208 332 60 %
Other 45 54 20 % 115 146 27 %
Total transaction-based revenues $ 730 $ 867 19 % $ 1,852 $ 2,266 22 %
Transaction-based revenues as a % of total net revenues:
Options 23% 28% 25% 26%
Event contracts 2% 12% 1% 12%
Cryptocurrencies 21% 8% 21% 9%
Equities 7% 9% 7% 9%
Other 4% 4% 4% 4%
Total transaction-based revenues 57% 61% 58% 60%
Transaction-based revenues increased by $137 million and $414 million, for the three and nine months ended September 30, 2026, primarily driven by increases of $146 million and $393 million in event contracts, $95 million and $192 million in options, and $35 million and $124 million in equities, partially offset by decreases of $148 million and $326 million in cryptocurrencies.
Options revenues increased, for the three and nine months ended September 30, 2026, primarily due to a 66% and 44% increase in Options Contracts Traded per trader. The increase was partially offset by lower option rebate rates due to the mix of ticker symbols traded as different ticker symbols pay different rebate rates and an 11% and 6% decrease in the number of users placing option trades.
Event contracts revenues increased, for the three and nine months ended September 30, 2026, primarily due to overall growth in the market related to prediction markets resulting in an acceleration in our prediction markets business, reflecting higher trading activity, predominantly in sports-related event contracts, compared to the same period in 2025 when the offering was still in its early stage.
Cryptocurrencies revenues decreased, for the three and nine months ended September 30, 2026, primarily due to a 37% and 25% decrease in the number of users placing cryptocurrency trades, a 13% and 18% decrease in the average Notional Trading Volume traded per trader, and lower cryptocurrency rebate rates from crypto market makers, partially offset by revenues earned from Robinhood Chain.
Equities revenues increased, for the three and nine months ended September 30, 2026, primarily due to a 48% and 50% increase in the average Notional Trading Volume traded per trader. 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.
Net Interest Revenues
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(in millions, except for percentages) 2025 2026 % Change 2025 2026 % Change
Net interest revenues:
Margin interest $ 153 $ 244 59 % $377 $652 73 %
Interest on segregated cash, cash equivalents, securities, and deposits, net 103 55 (47) % 236 173 (27) %
Cash Sweep 64 45 (30) % 172 131 (24) %
Credit card, net 17 50 194 % 40 122 205 %
Interest on corporate cash and investments 39 47 21 % 134 112 (16) %
Interest expenses related to credit facilities (8) (8) - % (22) (26) 18 %
Securities lending, net 87 (19) NM 164 (5) NM
Other 1 1 - % 2 4 100 %
Total net interest revenues $ 456 $ 415 (9) % $1,103 $1,163 5 %
Net interest revenues as a % of total net revenues:
Margin interest 12 % 17 % 12 % 17 %
Interest on segregated cash, cash equivalents, securities, and deposits, net 9 % 4 % 8 % 5 %
Cash Sweep 5 % 3 % 6 % 4 %
Credit card, net 1 % 4 % 1 % 3 %
Interest on corporate cash and investments 3 % 3 % 4 % 3 %
Interest expenses related to credit facilities (1) % (1) % (1) % (1) %
Securities lending, net 7 % (1) % 5 % - %
Other - % - % - % - %
Total net interest revenues 36 % 29 % 35 % 31 %
Net interest revenues decreased by $41 million and increased by $60 million for the three and nine months ended September 30, 2026. For the three and nine months ended September 30, 2026, interest revenue from securities lending, net decreased primarily driven by a lower average rate on higher stock loan balances as the hard-to-borrow market weakened. Interest on segregated cash, cash equivalents, securities and deposits, net decreased primarily driven by higher interest expense on customer free credit balances due to our updated High-Yield Cash program, partially offset by higher income on investments. Cash Sweep decreased primarily driven by a lower short-term interest rate environment. Margin interest and credit card interest, net increased due to increased margin borrowers and the growth in our credit card business. Although the Federal Reserve increased the Federal Funds Rate in September 2026, 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.
The following table summarizes interest-earning assets, the revenue generated by these assets, and their respective annualized yields:
(in millions, except for annualized 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
Three Months Ended September 30, 2026
September 30, 2026 $ 22,145 $ 20,439 $ 32,296 $ 1,841 $ 76,721
June 30, 2026 21,641 18,687 29,707 1,457 71,492
Average(3)
21,483 19,547 30,603 1,692 73,325
Revenue (expense) $ 244 $ 102 $ 45 $ 50 $ 441 $ (19) $ (8) $ 1 $ 415
Annualized yield(4)
4.54% 2.09% 0.59% 11.82 % 2.41% 2.26%
Three Months Ended June 30, 2026
June 30, 2026 $ 21,641 $ 18,687 $ 29,707 $ 1,457 $ 71,492
March 31, 2026 16,953 16,669 26,023 1,132 60,777
Average(3)
19,015 18,001 28,020 1,347 66,383
Revenue (expense) $ 215 $ 91 $ 41 $ 40 $ 387 $ 10 $ (10) $ 2 $ 389
Annualized yield(4)
4.52% 2.02% 0.59% 11.88 % 2.33% 2.34%
Three Months Ended September 30, 2025
September 30, 2025 $ 13,938 $ 14,352 $ 35,370 $ 742 $ 64,402
June 30, 2025 9,457 14,045 32,719 562 56,783
Average(3)
11,812 14,340 33,947 667 60,766
Revenue (expense) $ 153 $ 142 $ 64 $ 17 $ 376 $ 87 $ (8) $ 1 $ 456
Annualized yield(4)
5.18% 3.96% 0.75% 10.19% 2.48% 3.00%
Nine Months Ended September 30, 2026
September 30, 2026 $ 22,145 $ 20,439 $ 32,296 $ 1,841 $ 76,721
December 31, 2025 16,823 10,995 32,786 1,040 61,644
Average(3)
19,277 17,073 29,484 1,391 67,225
Revenue (expense) $ 652 $ 285 $ 131 $ 122 $ 1,190 $ (5) $ (26) $ 4 $ 1,163
Annual yield(4)
4.51% 2.23% 0.59% 11.69% 2.36% 2.31%
Nine Months Ended September 30, 2025
September 30, 2025 $ 13,938 $ 14,352 $ 35,370 $ 742 $ 64,402
December 31, 2024 7,909 9,943 26,064 391 44,307
Average(3)
9,843 12,109 30,234 534 52,720
Revenue (expense) $ 377 $ 370 $ 172 $ 40 $ 959 $ 164 $ (22) $ 2 $ 1,103
Annualized yield(4)
5.11% 4.07% 0.76% 9.99% 2.42% 2.78%
__________
(1) Includes cash and cash equivalents, restricted cash, segregated cash, cash equivalents, and 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 and ii) an on-balance sheet amount representing purchased credit card receivables by the Trust. Robinhood Credit collects interest from customers that carry balances and pays interest on the amount funded through the Trust, with the difference in those amounts resulting in net interest revenues. As of September 30, 2026, the off-balance sheet amount funded under the Program agreement was $196 million and the on-balance sheet amount was $1,645 million. Refer to Note 11 - Financing Activities and Off-Balance Sheet Risk to our unaudited condensed consolidated financial statements in this Quarterly Report for more information.
(3) Average balance rows represent the simple average of month-end balances in a given period.
(4) Annualized yield is calculated by annualizing revenue for the given period and dividing by the applicable average asset balance.
(5) Includes interest expenses related to our revolving credit facilities; interest expense related to the Trust is included in the credit card, net interest yield calculation. Refer to Note 11 - Financing Activities and Off-Balance Sheet Risk to our unaudited condensed consolidated financial statements in this Quarterly Report for more information.
Other Revenues
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(in millions, except for percentages) 2025 2026 % Change 2025 2026 % Change
Other revenues:
Gold subscription revenues
$ 47 $ 62 32 % $ 129 $ 166 29 %
Proxy revenues 7 7 - % 52 57 10 %
Other 34 73 115 % 54 147 172 %
Total other revenues $ 88 $ 142 61 % $ 235 $ 370 57 %
Other revenues as a % of total net revenues:
Gold subscription revenues
4 % 4 % 4 % 4 %
Proxy revenues 1 % - % 2 % 2 %
Other 2 % 6 % 1 % 4 %
Other revenues as a % of total net revenues 7 % 10 % 7 % 10 %
Total Other revenues increased $54 million and $135 million for the three and nine months ended September 30, 2026, primarily driven by increases in service revenues earned from Trump Accounts and Robinhood Gold subscription revenues due to growth in Robinhood Gold Subscribers.
Operating Expenses
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(in millions, except for percentages) 2025 2026 % Change 2025 2026 % Change
Operating expenses:
Brokerage and transaction $ 56 $ 68 21 % $ 154 $ 190 23 %
Technology and development 237 254 7 % 665 751 13 %
Operations 33 79 139 % 93 174 87 %
Provision for credit losses 26 71 173 % 78 163 109 %
Marketing 102 104 2 % 306 315 3 %
General and administrative 185 163 (12) % 450 536 19 %
Total operating expenses $ 639 $ 739 16 % $ 1,746 $ 2,129 22 %
Brokerage and Transaction
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(in millions) 2025 2026 % Change 2025 2026 % Change
Employee compensation, benefits, and overhead $ 16 15 (6)% $ 43 48 12%
Market data expenses 9 13 44% 25 36 44%
Instant withdrawals 9 10 11% 25 29 16%
Other 22 30 36% 61 77 26%
Total $ 56 $ 68 21% $ 154 $ 190 23%
Percent of total net revenues:
4 % 5 % 5 % 5 %
Brokerage and transaction costs increased by $12 million and $36 million for the three and nine months ended September 30, 2026, primarily due to an $8 million and $16 million increase in other brokerage and transactions costs, respectively, primarily related to increases in credit card processing fees and network fees. In addition, market data expenses increased by $4 million and $11 million driven by an increase in customer volume.
Technology and Development
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(in millions) 2025 2026 % Change 2025 2026 % Change
Employee compensation, benefits, and overhead $ 130 $ 118 (9) % $ 364 $ 389 7 %
Cloud infrastructure services 54 60 11 % 156 167 7 %
Software and tools 40 62 55 % 113 160 42 %
Other 13 14 8 % 32 35 9 %
Total $ 237 $ 254 7 % $ 665 $ 751 13 %
Percent of total net revenues:
19 % 18 % 21 % 20 %
Technology and development costs increased by $17 million and $86 million for the three and nine months ended September 30, 2026, primarily due to increases in software expenses of $22 million and $47 million driven by expanded use of AI technologies across the business. Cloud infrastructure services increased $6 million and $11 million primarily driven by financial system integration in connection with acquired businesses. For the three months ended September 30, 2026, these increases were partially offset by a $12 million decrease in employee compensation, benefits, and allocated overhead expenses driven by lower average headcount. For the nine months ended September 30, 2026, employee compensation, benefits, and allocated overhead expenses increased by $25 million, driven by acquisitions and the launch of new products.
Operations
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(in millions) 2025 2026 % Change 2025 2026 % Change
Employee compensation, benefits, and overhead $ 22 $ 29 32% $ 61 $ 83 36%
Customer experience 5 26 420% 16 51 219%
Other 6 24 300% 16 40 150%
Total $ 33 $ 79 139% $ 93 $ 174 87%
Percent of total net revenues:
3 % 6 % 3 % 5 %
Operations costs increased by $46 million and $81 million for the three and nine months ended September 30, 2026, primarily due to increases in customer experience costs of $21 million and $35 million to support Trump Accounts. Employee compensation, benefits, and allocated overhead increased by $7 million and $22 million driven by the increased growth and expansion of our business. Additionally, other operations expense increased by $18 million and $24 million driven by growth in our credit card business.
Provision for credit losses
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(in millions) 2025 2026 % Change 2025 2026 % Change
Provision for credit losses - credit card related $ 23 $ 61 165% $ 55 $ 143 160%
Provision for credit losses - brokerage related 3 10 233% 23 20 (13)%
Total $ 26 $ 71 173% $ 78 $ 163 109%
Percent of total net revenues:
2 % 5 % 2 % 4 %
Provision for credit losses increased by $45 million and $85 million for the three and nine months ended September 30, 2026, primarily due to a $38 million and $88 million increase in credit card-related provision for credit losses driven by higher balances across the credit card portfolio consistent with the growth of our credit card business. For the nine months ended September 30, 2026, the increase was partially offset by a decrease in reserve rates, benefiting from recovery rates and a decrease in brokerage related provision for credit losses due to decreased fraud activity.
Marketing
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(in millions) 2025 2026 % Change 2025 2026 % Change
Digital marketing $ 42 $ 48 14 % $ 136 $ 151 11 %
Brand marketing 19 14 (26) % 64 40 (38) %
Employee compensation, benefits, and overhead 13 11 (15) % 37 38 3 %
Other
28 31 11 % 69 86 25 %
Total $ 102 $ 104 2 % $ 306 $ 315 3 %
Percent of total net revenues:
8 % 7 % 10 % 8 %
Marketing costs increased by $2 million and $9 million for the three and nine months ended September 30, 2026 primarily due to an increase in marketing expenses to promote new products and service offerings, partially offset by a decrease in brand marketing expenses due to lower campaign spend compared to the same periods in 2025.
General and Administrative
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(in millions) 2025 2026 % Change 2025 2026 % Change
Employee compensation, benefits, and overhead $ 116 $ 91 (22) % $ 298 $ 331 11 %
Legal expenses 25 23 (8) % 53 67 26 %
Other professional fees 16 17 6 % 48 58 21 %
Other 28 32 14 % 51 80 57 %
Total $ 185 $ 163 (12) % $ 450 $ 536 19 %
Percent of total net revenues:
14 % 11 % 14 % 14 %
General and administrative costs decreased by $22 million for the three months ended September 30, 2026, primarily due to a $25 million decrease in employee compensation, benefits, and allocated overhead expenses driven by lower average headcount. For the nine months ended September 30, 2026, general and administrative costs increased by $86 million mainly driven by a $33 million increase in employee compensation, benefits, and allocated overhead expenses due to increased SBC related to the modification of executive awards related to senior leadership transitions and the growth and expansion of our business. Additionally, other general and administrative expenses increased $4 million and $29 million for the three and nine months ended September 30, 2026 primarily related to reserves for legal matters and expenses related to business growth.
Other income (expense), net
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(in millions) 2025 2026 % Change 2025 2026 % Change
Other income (expense), net $ (1) $ (60) NM $ 3 $ 75 NM
Other income (expense), net decreased by $59 million for the three months ended September 30, 2026 primarily due to mark-to-market loss from equity securities related to investments in RVI and RVII.
Other income (expense), net increased $72 million for the nine months ended September 30, 2026 primarily driven by a $106 million gain recognized as a result of the deconsolidation of RVI and a $23 million gain from equity securities primarily related to investments held by RVI during the three months ended June 30, 2026. The gain was partially offset by the loss incurred during the current period due to market fluctuations. Following RVI's March 2026 IPO, we sold shares of RVI through open market and privately negotiated block sales, consistent with our original intention to reduce our ownership interest in RVI over time. In June 2026, sales effected as part of this ongoing program reduced our ownership from approximately 52% to approximately 49%, resulting in the loss of our controlling financial interest and the deconsolidation of RVI. Refer to Note 4 - Deconsolidation of our unaudited condensed consolidated financial statements in this Quarterly Report for more information.
Provision for Income Taxes
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(in millions) 2025 2026 % Change 2025 2026 % Change
Provision for income taxes
$ 78 $ 149 91 % $ 169 $ 350 107 %
Provision for income taxes increased by $71 million and $181 million for the three and nine months ended September 30, 2026 primarily due to the growth of the business along with a decrease in excess tax benefits from SBC.
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, the NSCC, OCC, and the 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 September 30, 2026, we had cash and cash equivalents of $5.83 billion and stablecoin of $164 million. Refer to Note 8 - Investments and Fair Value Measurement, to our unaudited condensed consolidated financial statements in this Quarterly Report for further information.
Revolving Credit Facilities and Credit Card Funding Trust
As of September 30, 2026, we had revolving credit facilities with total commitments of $4.450 billion and a borrowing capacity for the Trust of up to $1.55 billion. Refer to Note 11 - Financing Activities and Off-Balance Sheet Risk to our unaudited condensed consolidated financial statements in this Quarterly Report for further information.
Series 2026-1 Asset-backed Notes
On July 23, 2026, the Trust completed an issuance of $500 million aggregate principal amount of Series 2026-1 asset-backed notes, generating net cash proceeds of $497 million, which were used
primarily to repay outstanding borrowings under the Trust's existing revolving warehouse facilities. Refer to Note 11 - Financing Activities and Off-Balance Sheet Risk, to our unaudited condensed consolidated financial statements in this Quarterly Report for further information.
RVI Deconsolidation
On June 25, 2026, we sold a portion of our ownership interest in RVI, generating cash proceeds of $22 million. The Company has continued to sell down its position in RVI through September 30, 2026 for total proceeds of $40 million. Refer to Note 4 - Deconsolidation, to our unaudited condensed consolidated financial statements in this Quarterly Report for further information.
Commitments
The following table summarizes our short- and long-term material cash requirements for contractual obligations as of September 30, 2026:
Payments Due by Period
(in millions) Total Remainder of 2026 2027-2028 2029-2030 Thereafter
Long-term borrowings $ 2,700 $ - $ - $ 2,200 $ 500
Purchase commitments(1)
1,237 88 594 496 59
Credit Card Funding Trust borrowing principal and interest 839 839 - - -
Operating lease commitments(2)
329 10 95 88 136
Robinhood match incentives commitments(3)
2 2 - - -
Total $ 5,107 $ 939 $ 689 $ 2,784 $ 695
_______________
(1) 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.
(2) Operating lease commitments include tenant improvement allowances, which are amortized as a reduction of lease expense over the shorter of the estimated useful life of the improvements or the respective lease term.
(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.
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.
The table below summarizes the net capital, capital requirements, and excess net capital of RHS, RHF, RHD, and TradePMR as of periods presented:
September 30, 2026
(in millions) Net Capital Required Net Capital Net Capital in Excess of Required Net Capital
RHS $ 4,212 $ 491 $ 3,721
RHF 329 0.25 329
RHD 585 11 574
TradePMR
18 0.25 18
As of September 30, 2026, these subsidiaries were in compliance with their respective regulatory capital requirements.
Cash Flows
The following table summarizes our cash flow activities:
Nine Months Ended
September 30,
(in millions) 2025 2026
Cash provided by (used in):
Operating activities $ 2,575 $ 3,983
Investing activities 699 (1,533)
Financing activities (708) 2,439
Operating activities
(in millions) 2025 to 2026 Change
Changes to net cash provided by (used in) operating activities were primarily due to:
Increase in payable to users primarily driven by higher customer free credit balance $ 2,693
Decrease in securities borrowed due to market conditions 998
Decrease in receivables from users primarily driven by lower growth in customer margin receivables, partially offset by a higher provision for credit losses 875
Increase in net income after adjusting for non-cash items 274
Increase in working capital primarily driven by decrease in deposits with clearing organizations 84
Decrease in securities loaned due to market conditions, variable lending and funding activities (349)
Increase in securities segregated under federal and other regulations (3,167)
$ 1,408
Investing activities
(in millions) 2025 to 2026 Change
Changes to net cash provided by (used in) investing activities were primarily due to:
Increase due to lower cash paid associated with business and asset acquisitions $ 150
Increase in proceeds from sales of investment 40
Cash derecognized upon deconsolidations (225)
Increase in purchases of non-marketable securities (222)
Decrease in proceeds received from maturities of held-to-maturity investments (347)
Increase in purchases of credit card receivables offset by collections during the year (482)
Decrease in cash, cash equivalents, and segregated cash acquired in business acquisitions (1,098)
Other (48)
$ (2,232)
Financing activities
(in millions) 2025 to 2026 Change
Changes to net cash provided by (used in) financing activities were primarily due to:
Proceeds from issuance of long-term borrowings $ 2,700
Increase in borrowings by the Credit Card Funding Trust to purchase credit card receivables 512
Decrease in cash paid for taxes related to net share settlement of equity awards 379
Proceeds received from issuance of RVI common stock in connection with initial public offering, net of offering costs 312
Increase in contributions from noncontrolling interests 49
Purchase of Capped Calls (123)
Increase in cash paid for repurchases of common stock of RHM (136)
Increase in repayments on borrowings by the Credit Card Funding Trust (523)
Other (23)
$ 3,147
Critical Accounting Estimates
Our unaudited condensed consolidated financial statements are prepared in accordance with GAAP. The preparation of these unaudited condensed consolidated financial statements requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities on our unaudited condensed 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. We also have other key accounting policies, which involve the use of estimates, judgments, and assumptions that are significant to understanding our results. 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.
There have been no material changes to our critical accounting estimates during the nine months ended September 30, 2026, as compared to those disclosed in "Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates" in our 2025 Form 10-K.
Recent Accounting Pronouncements
See Item 1 of Part I, "Unaudited Financial Statements - Note 2 - Recent Accounting Pronouncements."

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