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Robinhood Markets, Inc. (HOOD) is a financial services company that operates a brokerage platform enabling customers to trade financial instruments such as stocks, options, and cryptocurrencies. The company generates revenue through transaction-based activities, interest income, and other services, offering a user-friendly platform designed to simplify investing for retail customers. Robinhood also provides subscription services and facilitates asset transfers, supported by a robust technological infrastructure and compliance with regulatory requirements.
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Transaction-Based Revenues - Earns fees by routing customer orders for options, cryptocurrencies, and equities to market makers. Includes Payment for Order Flow (PFOF) for equities and options, and transaction rebates for cryptocurrencies.
- Options - Generates fees based on a per-contract basis.
- Equities - Charges a fixed percentage of the bid-ask spread.
- Cryptocurrencies - Collects rebates as a fixed percentage of the notional order value.
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Net Interest Revenues - Derives income from interest on corporate cash, margin loans, segregated cash, deposits with clearing organizations, securities lending, and customer credit card balances. Also incurs interest expenses from revolving credit facilities.
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Other Revenues - Includes subscription fees from Robinhood Gold, proxy revenues, and fees for facilitating asset transfers to other broker-dealers.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Vladimir Tenev ExecutiveBoard | Co-Founder, CEO, President, Chair of the Board | None | Co-founded Robinhood in 2013; led the company to record revenues and profitability in 2023; holds degrees in Mathematics from Stanford and UCLA. | View Report → |
Daniel Gallagher Executive | Chief Legal, Compliance, and Corporate Affairs Officer | Board Member at National Association of Corporate Directors, Symbiont.io, and Rally Rd. | Former SEC Commissioner; joined Robinhood in 2020 as Chief Legal Officer; extensive experience in regulatory and corporate affairs. | |
Jason Warnick Executive | Chief Financial Officer | None | Joined Robinhood in 2018; previously spent 20 years at Amazon in various finance leadership roles; holds a B.A. in Accounting from Western Washington University. | |
Steven Quirk Executive | Chief Brokerage Officer | Board Member at Cara Collective | Joined Robinhood in 2022; previously led trading strategy and initiatives at TD Ameritrade; has a background in developing trading tools and technology. | |
Christopher Payne Board | Director | Board Member at Gogo Inc. and Hims & Hers Health, Inc. | Joined Robinhood's Board in 2024; former President and COO at DoorDash; extensive experience in technology and product development at eBay, Microsoft, and Amazon. | |
Dara Treseder Board | Director | Board Member at Public Health Institute and Autodesk Foundation | Joined Robinhood's Board in 2021; currently CMO at Autodesk; previously held senior marketing roles at Peloton, Carbon, and GE Ventures. | |
Frances Frei Board | Director | Professor at Harvard Business School; Board Member at AltC Acquisition Corp.; Co-Founder of The Leadership Consortium LLC | Joined Robinhood's Board in 2021; expertise in organizational management and leadership; author and speaker on trust and empowerment. | |
Jonathan Rubinstein Board | Lead Independent Director | Senior Advisor at PDT Partners; Member of National Academy of Engineering and IEEE | Joined Robinhood's Board in 2021; former executive at Apple, Palm, and Bridgewater Associates; expertise in technology infrastructure and business strategy. | |
Meyer Malka Board | Director | Founder and Managing Partner of Ribbit Capital | Joined Robinhood's Board in 2022; extensive experience in building and investing in technology and financial services companies globally. | |
Paula Loop Board | Director | Board Member at Fastly, Inc. and APi Group Corporation | Joined Robinhood's Board in 2021; retired PwC Partner with over 30 years of experience in corporate governance, financial strategy, and risk management. | |
Robert Zoellick Board | Director | Chairman, Americas at Temasek Holdings; Chair of International Advisory Council at Standard Chartered Bank; Member of Strategic Council at Swiss Re | Joined Robinhood's Board in 2021; former President of the World Bank; extensive experience in global finance and policy. | |
Susan Segal Board | Director | President and CEO of Americas Society and Council of the Americas; Board Member at MercadoLibre and Vista Energy | Joined Robinhood's Board in 2024; extensive experience in financial services and emerging markets; recognized for work in economic inclusion and social empowerment. |
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Despite having nearly 2 million customers on the waitlist for the Gold credit card, only about 100,000 have been onboarded so far; what specific challenges are hindering a faster rollout, and how do you plan to scale the card to meet demand while managing credit risk? ,
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With the wind-down of the 1% Gold deposit boost in November due to lower-than-expected customer activity, how will you adjust your strategy for customer acquisition and engagement, and what promotional offers do you plan to prioritize moving forward? , ,
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There was a noted decoupling between revenues and assets under custody this quarter amid rate cuts and subdued trading activity; how confident are you that this relationship will hold in the face of further rate cuts from the Fed, and what steps are you taking to mitigate potential revenue impacts?
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Equity fee capture declined by about 20% sequentially; can you elaborate on the factors contributing to this decline and what measures you're implementing to address potential pressures on your revenue streams?
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As you expand into new offerings like presidential election event contracts, index options, and futures, how are you assessing and managing the potential regulatory and reputational risks associated with these products, and how do they align with your long-term strategic goals? , ,
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Citadel Securities, LLC | Market maker | All | Accounted for 12% of total revenue in 2023 |
Entities affiliated with Wolverine Holdings, L.P. | Market maker | All | Accounted for 6% of total revenue in 2023 |
Entities affiliated with Susquehanna International Group, LLP | Market maker | All | Accounted for 2% of total revenue in 2023 |
Tai Mo Shan Limited (Jump Trading Group) | Market maker | All | Accounted for 1% of total revenue in 2023 |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Bitstamp | 2025 | Planned acquisition valued at approximately $200 million in cash, designed to accelerate international expansion into the EU, UK, and other markets. The deal is expected to close in the first half of 2025 subject to customary regulatory approvals. |
TradePMR | 2025 | Planned acquisition with a total consideration of about $300 million (including $180 million cash and $120 million equity compensation), aimed at expanding Robinhood’s capabilities in custodial and portfolio management for registered investment advisors; closing is expected in the first half of 2025, pending regulatory conditions. |
Pluto Capital Inc. | 2024 | Completed acquisition in July 2024 of an AI-powered investment research platform to bolster Robinhood’s AI and advisory offerings, aligning with its strategic product enhancement plans. |
MNA Holdco LLC and Marex North America LLC | 2024 | Completed acquisition on January 3, 2024, in which Robinhood acquired all outstanding stock for approximately $3 million (net of $125 million cash acquired), including licenses recognized as an indefinite-lived intangible asset. |
X1 Inc. | 2023 | Completed acquisition on July 3, 2023 for $104 million in cash, which expanded Robinhood’s entry into consumer credit; the technology and platform (now rebranded as Robinhood Credit) support the launch of a no-fee rewards credit card and target roughly 80,000 pre-acquisition cardholders. |
Ziglu Limited | 2022 | Completed acquisition following a definitive agreement from April 16, 2022, originally estimated at $170 million and later revised to $73 million after adjustments, to enhance Robinhood’s cryptocurrency and financial services in the U.K. and Europe; includes additional $12 million in advances subject to various financial treatment options. |
Recent press releases and 8-K filings for HOOD.
- Revenue increased 50% YoY to $927 million with record net deposits of $18 billion.
- Net income rose 114% to $336 million with EPS at $0.37.
- Achieved 3.2 million Robinhood Gold subscribers.
- Accelerated product innovation with launches in futures, prediction markets, and Robinhood Legend, driving strong active trading and customer engagement.
- Strategic initiatives included the TradePMR acquisition adding $40 billion in platform assets and an expanded share repurchase program now authorized at $1.5 billion (up by $500 million).