10-K – 2026-02-20 – hood-20251231.htm

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 18, 2026 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

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Description of the Matter
Transaction-based revenues

As discussed in Note 1 and Note 5 to the consolidated financial statements, the Company recognized transaction-based revenues of $2,628 million for the year ended December 31, 2025, of which $2,326 million is comprised of revenues earned from routing user orders to market makers when the performance obligation is satisfied, which is at the point in time when a routed order is executed by the market maker. The Company’s transaction-based revenues from routing user orders are earned from various market makers, and involve several inputs from the Company’s information technology environment to calculate the revenue recognized.

Auditing transaction-based revenues from routing user orders was complex and involved significant audit effort to identify, test, and evaluate the inputs to record transaction-based revenues from routing user orders.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the revenue recognition process for transaction-based revenues from routing user orders. With the involvement of our information technology professionals, we identified and tested the relevant inputs from the information technology environment used to process and record transaction-based revenues earned from routing user orders and tested the relevant information technology general controls over the Company’s information technology environment.

Our audit procedures included, among others, testing on a sample basis the completeness and accuracy of the underlying data and calculations used to record transaction-based revenues from routing user orders, obtaining external confirmation of revenue recognized and transaction price from market makers, and comparing revenue recognized to cash receipts.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2017.
San Francisco, California
February 18, 2026
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Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Robinhood Markets, Inc.

Opinion on Internal Control Over Financial Reporting

We have audited Robinhood Markets, Inc.’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Robinhood Markets, Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria.

As indicated in the accompanying Management’s Report on Internal Control over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of TradePMR and Bitstamp, which are included in the 2025 consolidated financial statements of the Company. TradePMR constituted less than one percent of total assets as of December 31, 2025 and less than one percent of consolidated total net revenues for the year then ended. Bitstamp constituted four percent of total assets as of December 31, 2025 and one percent of consolidated total net revenues for the year then ended. Our audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial reporting of TradePMR and Bitstamp.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and our report dated February 18, 2026 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
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Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP
San Francisco, California
February 18, 2026
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ROBINHOOD MARKETS, INC.
CONSOLIDATED BALANCE SHEETS

December 31,
(in millions, except share and per share data) 2024 2025
Assets
Current assets:
Cash and cash equivalents $ 4,332   $ 4,261  
Cash, cash equivalents, and securities segregated under federal and other regulations 4,724   5,749  
Receivables from brokers, dealers, and clearing organizations 471   426  
Receivables from users, net 8,239   17,994  
Securities borrowed 3,236   2,408  
Deposits with clearing organizations 489   702  
User-held fractional shares 2,530   3,782  
Held-to-maturity investments 398   —  
Deferred customer match incentives 100   185  
Other current assets, including current prepaid expenses of $ 75 as of December 31, 2024 and $ 127 as of December 31, 2025
584   798  
Total current assets 25,103   36,305  
Property, software, and equipment, net 139   154  
Goodwill 179   385  
Intangible assets, net 38   168  
Non-current deferred customer match incentives 195   428  
Other non-current assets, including non-current prepaid expenses of $ 17 as of December 31, 2024 and $ 11 as of December 31, 2025
533   697  
Total assets $ 26,187   $ 38,137  
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses $ 397   $ 463  
Payables to users 7,448   11,986  
Securities loaned 7,463   11,626  
Fractional shares repurchase obligation 2,530   3,782  
Other current liabilities 266   914  
Total current liabilities 18,104   28,771  
Other non-current liabilities 111   215  
Total liabilities 18,215   28,986  
Commitments and contingencies (Note 15)

Stockholders’ equity:
Preferred stock, $ 0.0001 par value. 210,000,000 shares authorized, no shares issued and outstanding as of December 31, 2024 and December 31, 2025.
—   —  
Class A common stock, $ 0.0001 par value. 21,000,000,000 shares authorized, 764,903,997 shares issued and outstanding as of December 31, 2024; 21,000,000,000 shares authorized, 790,331,696 shares issued and outstanding as of December 31, 2025.
—   —  
Class B common stock, $ 0.0001 par value. 700,000,000 shares authorized, 119,588,986 shares issued and outstanding as of December 31, 2024; 700,000,000 shares authorized, 110,996,736 shares issued and outstanding as of December 31, 2025.
—   —  
Class C common stock, $ 0.0001 par value. 7,000,000,000 shares authorized, no shares issued and outstanding as of December 31, 2024 and December 31, 2025.
—   —  
Additional paid-in capital 12,008   11,284  
Accumulated other comprehensive income (loss) ( 1 ) 8  
Accumulated deficit ( 4,035 ) ( 2,152 )
Non-controlling interest —   11  
Total stockholders’ equity
7,972   9,151  
Total liabilities and stockholders’ equity
$ 26,187   $ 38,137  

See Accompanying Notes to the Consolidated Financial Statements.
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ROBINHOOD MARKETS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

Year Ended December 31,

(in millions, except share and per share data) 2023 2024 2025
Revenues:
Transaction-based revenues $ 785   $ 1,647   $ 2,628  
Net interest revenues 929   1,109   1,514  
Other revenues 151   195   331  
Total net revenues 1,865   2,951   4,473  

Operating expenses:
Brokerage and transaction 146   164   211  
Technology and development 805   818   897  
Operations 116   112   130  
Provision for credit losses 43   76   114  
Marketing 122   272   399  
General and administrative 1,169   455   628  
Total operating expenses 2,401   1,897   2,379  

Other income, net 3   10   14  
Income (loss) before income taxes ( 533 ) 1,064   2,108  
Provision for (benefit from) income taxes 8   ( 347 ) 225  
Net income (loss) $ ( 541 ) $ 1,411   $ 1,883  
Net income (loss) attributable to non-controlling interest —   —   —  
Net income (loss) attributable to Robinhood $ ( 541 ) $ 1,411   $ 1,883  
Net income (loss) attributable to Robinhood common stockholders:
Basic $
( 541 )

$
1,411  

$
1,883  

Diluted $ ( 541 ) $ 1,411   $ 1,883  
Net income (loss) per share attributable to Robinhood common stockholders:
Basic $ ( 0.61 ) $ 1.60   $ 2.12  
Diluted $
( 0.61 )

$
1.56  

$
2.05  

Weighted-average shares used to compute net income (loss) per share attributable to Robinhood common stockholders:
Basic 890,857,659   881,113,156   888,504,958  
Diluted 890,857,659  

906,171,504  

918,781,846  

See Accompanying Notes to the Consolidated Financial Statements.
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ROBINHOOD MARKETS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Year Ended December 31,
(in millions) 2023 2024 2025
Net income (loss) $ ( 541 ) $ 1,411   $ 1,883  
Other comprehensive income (loss), net of tax:
Foreign currency translation —   ( 1 ) 9  
Net losses on hedging instruments:

Net loss on hedging instruments during the period ( 4 ) —   —  
Reclassification adjustment for net losses included in net income
1   3   —  
Net gain (loss) on hedging instruments
( 3 ) 3   —  
Total other comprehensive income (loss), net of tax ( 3 ) 2   9  
Total comprehensive income (loss) $ ( 544 ) $ 1,413   $ 1,892  
Total comprehensive income (loss) attributable to non-controlling interest —   —   —  
Total comprehensive income (loss) attributable to Robinhood $ ( 544 ) $ 1,413   $ 1,892  

See Accompanying Notes to the Consolidated Financial Statements.
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ROBINHOOD MARKETS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31,
(in millions) 2023 2024 2025
Operating activities:
Net income (loss) $ ( 541 ) $ 1,411   $ 1,883  
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization 71   77   86  
Provision for credit losses 43   76   114  
Deferred income taxes —   ( 369 ) 181  
Share-based compensation 871   304   305  
Other 8   —   3  
Changes in operating assets and liabilities:
Securities segregated under federal and other regulations —   ( 397 ) 197  
Receivables from brokers, dealers, and clearing organizations ( 13 ) ( 382 ) 62  
Receivables from users, net ( 298 ) ( 4,592 ) ( 9,106 )
Securities borrowed ( 1,085 ) ( 1,634 ) 828  
Deposits with clearing organizations ( 152 ) ( 151 ) ( 213 )
Current and non-current prepaid expenses 37   ( 25 ) ( 28 )
Current and non-current deferred customer match incentives ( 30 ) ( 265 ) ( 318 )
Other current and non-current assets ( 18 ) ( 415 ) ( 152 )
Accounts payable and accrued expenses 134   ( 35 ) ( 18 )
Payables to users 396   2,351   3,423  
Securities loaned 1,713   3,916   4,163  
Other current and non-current liabilities 45   ( 27 ) 228  
Net cash provided by (used in) operating activities 1,181   ( 157 ) 1,638  
Investing activities:
Purchases of property, software, and equipment ( 2 ) ( 13 ) ( 15 )
Capitalization of internally developed software ( 19 ) ( 37 ) ( 39 )
Consideration transferred for business acquisitions and asset acquisitions ( 107 ) ( 134 ) ( 399 )
Cash, cash equivalents, and segregated cash acquired in business acquisitions and asset acquisitions
14   125   1,193  
Purchases of non-marketable securities ( 1 ) ( 1 ) ( 244 )
Purchases of held-to-maturity investments ( 759 ) ( 556 ) —  
Proceeds from maturities of held-to-maturity investments 282   658   400  
Purchases of credit card receivables by Credit Card Funding Trust —   ( 748 ) ( 5,195 )
Collections of purchased credit card receivables —   556   4,440  
Other 10   2   —  
Net cash provided by (used in) investing activities ( 582 ) ( 148 ) 141  
Financing activities:
Proceeds from exercise of stock options 5   18   16  
Proceeds from issuance of common stock under the Employee Share Purchase Plan 14   16   22  
Taxes paid related to net share settlement of equity awards ( 12 ) ( 244 ) ( 437 )
Repurchase of Class A common stock ( 608 ) ( 257 ) ( 653 )
Draws on credit facilities 20   22   4,752  
Repayments on credit facilities ( 20 ) ( 22 ) ( 4,752 )
Borrowings by the Credit Card Funding Trust —   132   468  
Repayments on borrowings by the Credit Card Funding Trust —   ( 1 ) —  
Change in principal collected from customers due to Coastal Bank 1   6   —  
Payments of debt issuance costs ( 10 ) ( 15 ) ( 17 )
Contributions from noncontrolling interests —   —   11  
Net cash used in financing activities ( 610 ) ( 345 ) ( 590 )
Effect of foreign exchange rate changes on cash and cash equivalents —   ( 1 ) 9  
Net increase (decrease) in cash, cash equivalents, segregated cash, and restricted cash ( 11 ) ( 651 ) 1,198  
Cash, cash equivalents, segregated cash, and restricted cash, beginning of the period 9,357   9,346   8,695  
Cash, cash equivalents, segregated cash, and restricted cash, end of the period $ 9,346   $ 8,695   $ 9,893  

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ROBINHOOD MARKETS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

Reconciliation of cash, cash equivalents, segregated cash, and restricted cash, end of the period:

Cash and cash equivalents, end of the period $ 4,835   $ 4,332   $ 4,261  
Segregated cash and cash equivalents, end of the period 4,448   4,327   5,549  
Restricted cash in other current assets, end of the period 46   18   66  
Restricted cash in other non-current assets, end of the period 17   18   17  
Cash, cash equivalents, segregated cash and restricted cash, end of the period $ 9,346   $ 8,695   $ 9,893  
Supplemental disclosures:
Cash paid for interest $ 12   $ 16   $ 31  
Cash paid for income taxes, net of refund received $ 9   $ 18   $ 95  

See Accompanying Notes to the Consolidated Financial Statements.
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ROBINHOOD MARKETS, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Common stock (1)
Additional
paid-in
capital Accumulated other comprehensive loss Accumulated deficit Total stockholders’
equity
(in millions, except for number of shares) Shares Amount
Balance as of December 31, 2022 892,751,571   $ —   $ 11,861   $ —   $ ( 4,905 ) $ 6,956  
Net loss —  —  —  —  ( 541 ) ( 541 )
Issuance of common stock in connection with stock option exercises 2,449,169   —  5   —  —  5  
Issuance of common stock in connection with Employee Share Purchase Plan 1,968,081   —  14   —  —  14  
Issuance of common stock upon settlement of restricted stock units, net of shares withheld 30,267,312   —  ( 12 ) —  —  ( 12 )
Repurchase and retirement of Class A common stock ( 55,273,469 ) —  ( 611 ) —  —  ( 611 )
Change in other comprehensive loss —  —  —  ( 3 ) —  ( 3 )
Share-based compensation —  —  888   —  —  888  
Balance as of December 31, 2023 872,162,664   $ —   $ 12,145   $ ( 3 ) $ ( 5,446 ) $ 6,696  

See Accompanying Notes to the Consolidated Financial Statements.

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ROBINHOOD MARKETS, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Common stock (1)
Additional
paid-in
capital Accumulated other comprehensive loss Accumulated deficit Total stockholders’
equity
(in millions, except for number of shares) Shares Amount
Balance as of December 31, 2023 872,162,664   $ —   $ 12,145   $ ( 3 ) $ ( 5,446 ) $ 6,696  
Net income —  —  —  —  1,411   1,411  
Issuance of common stock in connection with stock option exercises 3,954,721   —  18   —  —  18  
Issuance of common stock in connection with Employee Share Purchase Plan 2,275,623   —  16   —  —  16  
Issuance of common stock upon settlement of restricted stock units, net of shares withheld 15,999,321   —  ( 244 ) —  —  ( 244 )
Issuance of common stock in connection with warrants exercises, net of shares withheld 456,764   —  —  —  —  — 
Repurchase and retirement of Class A common stock ( 10,356,110 ) —  ( 257 ) —  —  ( 257 )
Change in other comprehensive income —  —  —  2   —  2  
Share-based compensation —  —  330   —  —  330  
Balance as of December 31, 2024 884,492,983   $ —   $ 12,008   $ ( 1 ) $ ( 4,035 ) $ 7,972  

See Accompanying Notes to the Consolidated Financial Statements.

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ROBINHOOD MARKETS, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Common stock (1)
Additional
paid-in
capital Accumulated other comprehensive income (loss) Accumulated deficit Non-controlling Interest Total stockholders’
equity
(in millions, except for number of shares) Shares Amount
Balance as of December 31, 2024 884,492,983   $ —   $ 12,008   $ ( 1 ) $ ( 4,035 ) $ —   $ 7,972  
Net income —  —  —  —  1,883   —  1,883  
Issuance of common stock in connection with stock option exercises 4,206,007   —  16   —  —  —  16  
Issuance of common stock in connection with warrants exercises, net of shares withheld 2,816,093   —  —  —  —  —  — 
Issuance of common stock in connection with Employee Share Purchase Plan 765,702   —  22   —  —  —  22  
Issuance of common stock in connection with business combination 2,049,711   —  —  —  —  —  — 
Issuance of common stock upon settlement of restricted stock units, net of shares withheld 19,016,398   —  ( 437 ) —  —  —  ( 437 )
Repurchase and retirement of Class A common stock ( 12,018,462 ) —  ( 653 ) —  —  —  ( 653 )
Change in other comprehensive income —  —  —  9   —  —  9  
Share-based compensation —  —  328   —  —  —  328  
Capital contributions from a partner —  —  —  —  —  11   11  
Balance as of December 31, 2025 901,328,432   $ —   $ 11,284   $ 8   $ ( 2,152 ) $ 11   $ 9,151  

_______________
(1) The share amounts listed above combine Class A common stock and Class B common stock.

See Accompanying Notes to the Consolidated Financial Statements.
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ROBINHOOD MARKETS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1: DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Robinhood was founded in 2013 and our mission is to democratize finance for all. Our platforms enable customers to buy, sell, and trade equities, options, event contracts, and futures, as well as buy, sell, and transfer cryptocurrencies. We are also responsible for the custody of user-held cryptocurrencies. In addition, we offer credit cards with certain rewards offerings, as well as a cash card and spending account that help our customers in investing, saving, and earning rewards.

We are continuously introducing new products and diversifying our services that further expand access to the financial system. In February 2025, we acquired TradePMR, a custodial and portfolio management platform for RIAs. In March 2025, we launched Robinhood Strategies, a digital investment advisory service that offers tailored, expert-managed, and goal-based portfolios directly within our mobile platform, featuring low and capped fees. In June 2025, we acquired Bitstamp, a globally-scaled cryptocurrency exchange with institutional and retail customers. In September 2025, we launched Robinhood Ventures Fund I, a closed-end fund that aims to offer retail investors exposure to private companies at the frontiers of their respective industries.

Basis of Presentation
The accompanying consolidated financial statements have been prepared in accordance with GAAP. The consolidated financial statements include the accounts of RHM and its wholly-owned direct and indirect subsidiaries. All intercompany balances and transactions have been eliminated.
Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The impact of these reclassifications is immaterial to the presentation of the consolidated financial statements taken as a whole and had no impact on previously reported total assets, total liabilities and net income (loss).
Principles of Consolidation
We consolidate entities in which we have a controlling financial interest. We first evaluate whether the entity is a voting interest entity or a VIE. We evaluate our ownership, contractual and other interests in entities to determine if we have a variable interest in an entity. These evaluations are complex, involve judgment, and the use of estimates and assumptions based on available historical and prospective information, among other factors. If we determine that an entity for which we hold a contractual or ownership interest in is a VIE and that we are the primary beneficiary, we consolidate such entity in the consolidated financial statements. The primary beneficiary of a VIE is the party that meets both of the following criteria: (1) has the power to make decisions that most significantly affect the economic performance of the VIE; and (2) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. We continuously monitor if any changes in the interest or relationship with the entity may impact the determination of whether we are still the primary beneficiary and require us to revise our previous conclusion. We consolidate a voting interest entity if we can exert control over the financial and operating policies of an investee. Other parties’ equity investment are reported as non-controlling interest. In November 2025, we established a joint venture, Rothera, in partnership with SIG. We will consolidate the financial results into our consolidated financial statements due to our ability to exert control over the financial and operating policies of the joint venture.
Use of Estimates
The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial
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statements and accompanying notes. We base our estimates on historical experience, and other assumptions we believe to be reasonable under the circumstances. Assumptions and estimates used in preparing our consolidated financial statements include, but are not limited to, those related to revenue recognition, SBC, the determination of allowances for credit losses, investment valuation, capitalization of internally developed software, useful lives of property, software, and equipment, valuation and useful lives of intangible assets, valuation of reporting units in assessing goodwill for impairment, incremental borrowing rate used to calculate operating lease right-of-use assets and related liabilities, impairment of long-lived assets, uncertain tax positions, realizability of deferred tax assets, accrued and contingent liabilities. Actual results could differ from these estimates and could have a material adverse effect on our operating results.
Segment Information
Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the CODM in deciding how to allocate resources and assess performance. Our CODM is our CEO and President, Vladimir Tenev. We operate and report financial information in one operating segment. This is because our CODM utilizes consolidated net income (loss) and company-wide key performance metrics (as defined in Part II, Item 7 of this Annual Report, “Key Performance Metrics”) to allocate resources and determine performance. The measure of segment assets is not regularly presented to the CODM. Consolidated net income (loss) is also used by the CODM to monitor budgeted versus actual results. The monitoring of budgeted versus actual results is used by the CODM to assess performance of the business and in establishing company-wide’s objectives and key results. Substantially all of our revenues and assets are attributed to or located in the United States. Significant segment expenses required to be disclosed as part of the segment disclosure of a single segment entity under ASC 280 are presented throughout the consolidated financial statements including the consolidated statements of operations, consolidated statements of cash flows, and Note 5 - Revenues.
We are organized in a GM structure under which GMs have broad responsibility for our individual businesses. We have processes that enable us to produce sufficiently precise and timely business level financial information. GM level financial information is not currently shared with and used by the CODM to allocate resources and determine performance, and there are no plans to do so in the near future.
Revenue Recognition
Transaction-Based Revenues
We primarily earn transaction-based revenues from routing user orders for options, cryptocurrencies, and equities to market makers when the performance obligation is satisfied, which is at the point in time when a routed order is executed by the market maker.
Acting as the agent of the user, we facilitate the purchase and sale of options, cryptocurrencies, and equities through our platforms. Options, cryptocurrencies, and equities transactions are primarily routed through market makers, who are responsible for trade execution. Upon execution of a trade, users are legally required to purchase options, cryptocurrencies, or equities for cash from the transaction counterparty or to sell options, cryptocurrencies, or equities for cash to the transaction counterparty, depending on the transaction. We facilitate and confirm trades only when there are binding, matched legal obligations from the user and the market maker on both sides of the trade.
The transaction price for options is on a per contract basis, while for equities it is primarily based on the bid-ask spread of the underlying trading activity. For cryptocurrencies, the transaction price is a fixed
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percentage of the notional order value. For each trade type, all market makers pay the same transaction price. Payments are collected monthly in arrears from each 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 consist of Robinhood Gold subscription fees, which is a flat recurring rate. Subscription revenue is recognized ratably over the subscription period as the performance obligation is satisfied. Other revenues also consist of proxy revenues, selling concession revenues, advertising revenues and ACATS fees charged to users. We earn proxy revenue directly from issuers through Say Technologies, a wholly-owned subsidiary. Proxy services are made up of two performance obligations, (i) distribution of proxy materials to shareholders and (ii) collection, tallying, and reporting of shareholder response during a voting event. Revenue is recognized at a point in time upon satisfaction of these performance obligations.
Selling concession revenue, generated from IPO activities, is recognized at a point in time when our performance obligation related to the distribution activity is satisfied. Advertising revenue, generated from sales of advertising services on Sherwood Media is recognized as advertisements are delivered. ACATS fees are charged to users for facilitating the transfer of part or all of their accounts to another broker-dealer. We recognize revenue when our performance obligation of administering the transfer is satisfied.
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. The match on retirement contributions and asset transfers are paid upfront and are subject to forfeiture if the recipient does not hold the contributed funds or transferred assets in their account for a specified period of time. These incentives are deferred and recognized over the specified holding period.

For a limited time during 2024, we provided a match on eligible cash deposits made by Robinhood Gold subscribers. Matches on these cash deposits are paid out on a monthly basis ratably over the
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specified earning period. Future match payments are forfeited if deposits are not held on the platform over the specified earning period.

All match incentives are recognized as a reduction to revenue when earned. The matches are allocated to certain revenue categories on a proportional basis. For the years ended December 31, 2024, and 2025, no impairments of the deferred customer match incentive were recognized.

Concentrations of Revenue and Credit Risk
Concentrations of Revenue
We derived transaction-based revenues from individual market makers and exchanges in excess of 10% of total net revenues, as follows:

Year Ended December 31,
2023 2024 2025
Market makers:
Citadel Securities, LLC 12   % 12   % 13   %
Wintermute Trading Ltd 2   % 10   % 6   %
All others individually less than 10% 26   % 34   % 36   %
Total as percentage of total net revenues
40   % 56   % 55   %

Concentrations of Credit Risk
We are engaged in various trading and brokerage activities in which the counterparties primarily include broker-dealers, banks, cryptocurrency market makers, and other financial institutions. In the event our counterparties do not fulfill their obligations, we may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty. Default of a counterparty in equities and options trades, which are facilitated through clearinghouses, would generally be spread among the clearinghouse's members rather than falling entirely on us. It is our policy to review, as necessary, the credit standing of each counterparty.
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, r egulatory 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.
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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. Advertising costs are expensed as incurred and were $ 74  million, $ 179 million, and $ 274 million in the years ended December 31, 2023, 2024, and 2025.
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. For the year ended December 31, 2023, general and administrative costs included a $ 485  million SBC charge related to the 2021 Founders Award Cancellation.
Employee Retirement Benefits
We offer a defined contribution 401(k) plan to full-time employees. Employees may elect to contribute to a traditional 401(k) plan, which qualifies as a deferred compensation arrangement under Section 401 of the Code. In this case, participating employees defer a portion of their pre-tax earnings. Employees may also contribute to a Roth 401(k) plan using post-tax dollars. We match employee contributions up to 3 %, and have incurred $ 12 million, $ 12 million, and $ 17 million of expense related to matching for the years ended December 31, 2023, 2024, and 2025.
Research and Development Costs
Research and development costs described in ASC 730, Research and Development, are expensed as incurred. Our research and development costs consist primarily of employee compensation and benefits for our engineering and research teams, including SBC. Research and development costs recorded in operating expenses under ASC 730 were $ 349 million, $ 323 million, and $ 355 million for the years ended December 31, 2023, 2024, and 2025.
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Share-based Compensation
Common Stock Fair Value
The fair value of our common stock is determined on the grant date using the closing price of our common stock, which is traded on the Nasdaq Global Select Market.
Stock Options
We have granted stock options and we estimate the fair value of stock options granted to employees using the Black-Scholes option-pricing model. The fair value of stock options is recognized as compensation on a straight-line basis over the requisite service period. Forfeitures are accounted for when they occur. No options were granted during 2023, 2024, and 2025.
Time-Based RSUs
We have granted Time-Based RSUs and record SBC expense on a straight-line basis over the requisite service period, which is generally satisfied over one , two or four years . We have elected to account for forfeitures as they occur, with previously recognized SBC reversed in the period that the awards are forfeited.
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 recorded 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.
SBC Expense
SBC expense is part of employee compensation, benefits, and overhead in each of the expense financial statement line items in the consolidated statements of operations except for provision for credit losses.
Net Income (Loss) per Share
We present net income (loss) per share using the two-class method required for multiple classes of common stock. The rights, including the liquidation and dividend rights, of the holders of Class A common stock and Class B common stock are identical, except with respect to voting. As the liquidation and dividend rights are identical for Class A common stock and Class B common stock, the undistributed earnings are allocated on a proportionate basis and the resulting income (loss) per share will, therefore, be the same for both Class A common stock and Class B common stock on an individual or combined basis.
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Basic earnings per share is computed by dividing net income (loss) available to our common stockholders, adjusted to exclude earnings allocated to participating securities, by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed on the basis of the weighted-average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period. The computation of the diluted earnings per share of Class A common stock assumes the conversion of our Class B common stock to Class A common stock, while the diluted EPS of Class B common stock does not assume the conversion of those shares to Class A common stock.
Cash and Cash Equivalents
Cash and cash equivalents include deposits with banks and money market funds or highly liquid financial instruments with maturities of three months or less at the time of purchase. We maintain cash in bank accounts at financial institutions that exceed federally insured limits. We also maintain cash in money market funds which are not FDIC insured. We are subject to credit risk to the extent any financial institution with which we conduct business is unable to fulfill contractual obligations on our behalf. As we have not experienced any material losses in such accounts and we believe that we have placed our cash on deposit with financial institutions which are financially stable, we do not have an expectation of credit losses for these arrangements.
Cash, Cash Equivalents, and Securities Segregated Under Federal and Other Regulations
We are required to segregate cash, cash equivalents, and securities for the exclusive benefit of customers and proprietary accounts of brokers in accordance with the provision of Rule 15c3-3 under the Exchange Act. We continually review the credit quality of our counterparties and have not experienced a default. As a result, we do not have an expectation of credit losses for these arrangements. Segregated cash also includes certain customer funds for which we are an agent and custodian on behalf of our customers that are reflected on our consolidated balance sheets, and for which we follow statutory requirements to keep these funds segregated.
Restricted Cash
We are required to maintain restricted cash deposits to back letters of credit for certain property leases. We have no ability to draw on such funds as long as they remain restricted under the applicable agreements. Restricted cash also includes customers’ credit card payments that we collect on behalf of other financial institutions that are pending remittance. Cash subject to restrictions that expire within one year is included in other current assets in our consolidated balance sheets. For the years ended December 31, 2024 and 2025, current restricted cash balances included in other current assets in our consolidated balance sheets were $ 18 million and $ 66 million. Cash subject to restrictions that exceed one year is included in other non-current assets in our consolidated balance sheets. For the years ended December 31, 2024 and 2025, non-current restricted cash balances were $ 18 million and $ 17 million.
Securities Borrowing and Lending
We operate a securities lending program under which shares that users have pledged to us to collateralize their margin borrowing are lent by us to third parties and a Fully-Paid Securities Lending program under which we borrow fully-paid shares from participating users and lend them to third parties. We also borrow securities from third parties for operational purposes or to facilitate user short sales, and we lend securities to third parties and users that we hold for our own account (such as our holdings to support fractional share and user short sales operations).
When we lend securities to third parties and users, the borrower provides cash as collateral. We earn interest revenue on cash collateral deposited by borrowers, and we can also earn additional revenue for
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lending certain securities based on demand for those securities. For our Fully-Paid Securities Lending, portions of such revenues are paid to participating users, and those payments are recorded as interest expense.
When we borrow securities from users participating in the Fully-Paid Securities Lending program or from third parties, we provide cash as collateral and we record a receivable representing our right to the return of that collateral. The amount of that receivable is presented in “securities borrowed” on our consolidated balance sheets. In the case of our Fully-Paid Securities Lending program, the cash collateral is held by a third-party bank in a deposit account pledged to the user, which we administer as the user’s agent. Users are not entitled to interest on such account, and any interest earned is for our benefit.
Our authorization from users to lend shares that collateralize their margin borrowing is found in our margin account agreement, our borrowing of fully-paid shares from users is conducted under the terms of our Fully-Paid Securities Lending program to which users consent when they enroll in that program, and substantially all of our securities lending and borrowing transactions with third parties are conducted under terms based on an industry-standard MSLA, which has an open contractual term and may be terminated upon notice by either party. We have also entered into fixed-term securities lending agreements with two financial institution counterparties (the “Fixed-Term Securities Lending Agreements”). One of these agreements has a contractual term of 30 days per lending transaction with a daily minimum commitment of $ 25  million and the other has a contractual term of 21 days per lending transaction with a daily minimum commitment of $ 35  million. Under these two agreements we lend to the counterparties (for a fixed term) securities that collateralize users’ margin borrowing, and we obtain cash collateral from the counterparties that we use to provide liquidity support for our margin lending to users.
Each of the MSLAs and Fixed-Term Securities Lending Agreements establishes a master netting arrangement between the lender and the borrower. A master netting arrangement is an agreement between two counterparties that creates a right of set-off for amounts due to and from that same counterparty that is enforceable in the event of a default or bankruptcy. In connection with our securities borrowing and lending activities, however, our policy is to recognize all amounts that are subject to master netting arrangements on a gross basis in our consolidated balance sheets even though some of those amounts may be eligible for offset (i.e., to be presented on a net basis) under GAAP.
Cash Sweep
Our users may elect to participate in Cash Sweep, which allows them to earn interest on their uninvested brokerage cash. These balances are automatically swept to our partner banks, and are not reflected on the consolidated balance sheet.
Cryptocurrencies
We act as an agent in the cryptocurrency transactions that users initiate on our platforms. We have determined we are an agent, for accounting purposes, because we do not control the cryptocurrency before delivery to the user, we are not primarily responsible for the delivery of cryptocurrency to our users, we are not exposed to risks arising from fluctuations of the market price of cryptocurrency before delivery to the user, and we do not set the prices charged to users. After purchasing cryptocurrency on the platform, users are the legal owners of cryptocurrency held under custody by us and users have all the rights and benefits of ownership, including the rights to appreciation and depreciation of the cryptocurrency. We do not allow users to purchase cryptocurrency on margin and cryptocurrency does not serve as collateral for margin loans. As a result, user-held cryptocurrencies are not presented on our consolidated balance sheets. We hold cryptocurrency in custody for users in one or more omnibus cryptocurrency wallets. With the exception of Bitstamp, we do not utilize third-party custodians for settled cryptocurrencies. We hold cryptographic key information and maintain internal record keeping for the cryptocurrencies we hold in custody for users, and we are obligated to secure such assets from loss or theft. Based on the terms of our user agreement, the structure of our crypto offerings, and applicable law,
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and, although we have not obtained a formal legal opinion on this matter, after consultation with internal and external legal counsel, we believe the cryptocurrency we hold in custody for users of our platforms should be respected as users’ property (and should not be available to satisfy the claims of our general creditors) in the event we were to enter bankruptcy. For additional information relating to platform bankruptcy generally, see Part I, Item 1A of this Annual Report, “Risk Factors—Risks Related to Cryptocurrency Products and Services—Cryptocurrency laws, regulations, and accounting standards are often difficult to interpret and are rapidly evolving in ways that are difficult to predict. Changes in these laws and regulations, or our failure to comply with them, could negatively impact cryptocurrency trading on our platform. ”

Investments
We invest in marketable debt securities and determine the classification at the time of purchase.
Available-for-sale investments are recorded at fair value. We have elected the fair value option for our available-for-sale investments as we believe carrying these investments at fair value and taking changes in fair value through earnings best reflects their underlying economics. Fair value adjustments are presented in other (income) expense, net and interest earned on the debt securities as net interest revenues in our consolidated statements of operations.
Held-to-maturity investments are securities that we have both the ability and positive intent to hold until maturity and are recorded at amortized cost. Interest income is calculated using the effective interest method, adjusted for deferred fees or costs, premium, or discount existing at the date of purchase. Interest earned is included in net interest revenues in our consolidated statements of operations. We evaluate held-to-maturity investment for credit losses on a quarterly basis. We do not expect credit losses for our held-to-maturity investments that are obligations of states and political subdivisions and securities issued by U.S. government sponsored agencies. We monitor remaining securities by type and standard credit rating.
Fair Value of Financial Instruments
We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, we may use various valuation approaches, including market, income and/or cost approaches. The fair value hierarchy requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is a market-based measure considered from the perspective of a market participant. Accordingly, even when market assumptions are not readily available, our own assumptions reflect those that market participants would use in pricing the asset or liability at the measurement date. The fair value measurement accounting guidance describes the following three levels used to classify fair value measurements:
Level 1 Inputs: unadjusted quoted prices in active markets for identical assets or liabilities that are accessible by us
Level 2 Inputs: quoted prices for similar assets and liabilities in an active market, quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly
Level 3 Inputs: unobservable inputs that are significant to the fair value of the assets or liabilities
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The carrying amounts of certain financial instruments approximate their fair value due to the short-term nature, which include cash and cash equivalents, cash
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segregated under federal and other regulations, receivables from brokers, dealers, and clearing organizations, receivables from users, net, deposits with clearing organizations, other current assets, accounts payable and accrued expenses, payable to users, securities loaned, and other current liabilities.
Credit Card Program
The Robinhood Credit Card program is funded under the Program Agreement between Robinhood Credit and Coastal Bank, where Coastal Bank is the legal lender and originator, the party to which the customer has a creditor-borrower relationship, and the legal owner of the receivables. Robinhood Credit is responsible for administering the credit card program on a mobile app, including, (i) setting customer credit limits within Coastal Bank’s underwriting standards, (ii) loan servicing, (iii) remitting collected principal from customers to Coastal Bank, and (iv) offering and maintaining the customer rewards program. Coastal Bank is responsible for (i) funding the customer credit, (ii) reporting customer credit activities, and (iii) holding customer receivables.
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. The interest collections and payments are indexed to the Federal Funds Rate and are settled monthly based on a notional of the outstanding principal balances at period end which are revolving with no fixed term. In addition, Robinhood Credit earns revenue from interchange fees from each credit card transaction. Robinhood Credit recognizes interchange revenue net of rewards paid to customers.
Under the terms of the Program Agreement, Robinhood Credit has the ability to purchase credit card receivables originated and held for a period of time by Coastal Bank. Prior to the purchase of the credit card receivables, the customer balances are off-balance sheet. Once purchased, the customer balances are shown on-balance sheet. Robinhood Credit continues to earn interest from customers and uses these purchased credit card receivables as collateral under a trust structure to access debt financing in the ordinary course of business. To help facilitate these transactions, we created a variable interest entity known as the Credit Card Funding Trust.
We have credit exposure related to outstanding principal balances of customer credit cards whether they are owned by Coastal Bank or the Credit Card Funding Trust. We guarantee payment to Coastal Bank in the event Coastal experiences a loss due to a failure by the customer to pay. Robinhood Credit is responsible to pay Coastal Bank customer balances that are ultimately charged off or deemed uncollectible, generally when balances become outstanding for over 180 days.
Robinhood Credit estimates the related allowance for credit card loss based on outstanding customer credit card principal balances and anticipated future customer payment rates based on past portfolio performance, both of which are unobservable inputs. The measurement of this allowance using this method approximates fair value.
Receivables From Brokers, Dealers, and Clearing Organizations
Receivables from brokers, dealers, and clearing organizations include receivables from market makers for routing user orders for execution and other receivables from third-party brokers. These receivables are short term and settle within 30 days. We continually review the credit quality of our counterparties and have not experienced a default. As a result, we do not have an expectation of credit losses for these arrangements.
Receivables From Users, Net
Receivables from users, net are primarily made up of margin receivables. Margin receivables are adequately collateralized by users’ securities balances and are reported at their outstanding principal balance, net of an allowance for credit losses. We monitor margin levels and require users to deposit
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additional collateral, or reduce margin positions, to meet minimum collateral requirements and to avoid automatic liquidation of their positions.
We apply the practical expedient based on collateral maintenance provisions in estimating an allowance for credit losses for receivables from users. We have no expectation of credit losses for receivables from users that are fully secured, where the fair value of the collateral securing the balance is equal to or in excess of the receivable amount. This is based on our assessment of the nature of the collateral, potential future changes in collateral values, and historical credit loss information relating to fully secured receivables. In cases where the fair value of the collateral is less than the outstanding receivable balance from a user, we recognize an allowance for credit losses in the amount of the difference, or unsecured balance, immediately.
We write-off unsecured balances when the balance becomes outstanding for over 180 days or when we otherwise deem the balance to be uncollectible.
Receivables from users, net also consists of credit card receivables purchased from Coastal Bank. From time to time, purchased credit card receivables may be considered pledged under secured borrowings with Coastal Bank. As of December 31, 2024 and 2025, none of the balance of the purchased credit card receivables was considered pledged. We record an allowance for credit losses related to purchased credit card principal balances receivable and credit card interest receivable from customers, shown as a reduction of receivables from users, net on the consolidated balance sheet. This represents management’s estimate of expected credit losses from credit exposure over the remaining expected life of credit card receivables, and takes into account information from internal and external sources, including historical collection data, charge off trends by FICO cohort, and market data. We write-off balances outstanding over 180 days or when we otherwise deem the balance to be uncollectible. The accrual of interest revenue is suspended for aged credit card receivables past 90 days. Interest payments on such non-accrual receivables are recorded as interest revenue on a cash basis. Once the balance is satisfied and brought current, the receivable returns to accrual status.
Deposits With Clearing Organizations
We are required to maintain collateral deposits with clearing organizations such as Depository Trust & Clearing Corporation and Options Clearing Corporation which allow us to use their security transactions services for trade comparison, clearance, and settlement. The clearing organizations establish financial requirements, including deposit requirements, to reduce their risk. The required level of deposits may fluctuate significantly from time to time based upon the nature, size of users’ trading activity, and market volatility. As we have not experienced historic defaults, we do not have an expectation of credit losses for these arrangements.
Fractional Share Program
We operate our fractional share program for the benefit of our users and maintain an inventory of securities held exclusively for the fractional share program. This proprietary inventory is recorded within other current assets on our consolidated balance sheets.
When a user purchases a fractional share, we record the cash received for the user-held fractional share as pledged collateral and an offsetting liability to repurchase the shares as we concluded that we did not meet the criteria for derecognition under the accounting guidance. We measure our inventory of securities, user-held fractional shares and our repurchase obligation at fair value at each reporting period via the election of the fair value option, with realized and unrealized gains and losses recorded in brokerage and transaction expenses in our consolidated statement of operations. We do not earn revenue from our users when they purchase or sell fractional shares from us. We earn transaction-based revenue when shares are purchased from or routed to market makers to fulfill fractional share transactions.
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Other Current Assets
Other current assets include stablecoin assets owned by us that are considered financial assets, restricted cash subject to restrictions that expire within one year, other receivables, deferred costs of Robinhood Match Incentive Program (defined below), interest and dividends receivable, and securities owned by us used for the fractional share program.
Property, Software, and Equipment
Property, software, and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization is recorded on a straight-line basis over the useful life of the asset, which is as follows:

Property, Software, and Equipment Useful Life
Computer equipment 3 years
Fixture and furniture 7 years
Leasehold improvements
Shorter of estimated useful life or lease term
Internally developed software 3 years

Repairs and maintenance that do not enhance or extend the asset’s function and/or useful life are charged to expenses as incurred. When items are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gains or losses arising from such transactions are recognized.
Internally developed software is capitalized when preliminary development efforts are successfully completed and it is probable that the project will be completed and the software will be used as intended. Capitalized costs consist of SBC, salaries, and payroll related costs for employees, and fees paid to third-party consultants who are directly involved in development efforts. Capitalized costs are amortized over the estimated useful life of the software on a straight-line basis and included in technology and development in the consolidated statements of operations. We expense software development costs as they are incurred during the preliminary project stage.
Non-Marketable Equity Securities
We hold two categories of non-marketable equity securities: (i) corporate-held non-marketable equity securities and (ii) Robinhood Ventures Fund I held non-marketable equity investments.
Corporate-held non-marketable equity securities do not have readily determinable fair values and are initially recorded at cost and are subsequently adjusted for impairments and for observable price changes in orderly transactions for the same or a similar security of the same issuer. These securities are included in other non-current assets on the consolidated balance sheets. The related balances were not material for the periods presented.
Robinhood Ventures Fund I held non-marketable equity investments are measured at estimated fair value upon initial recognition and are subsequently remeasured at fair value as of each reporting date. These investments are classified within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs in determining fair value. These securities are included in other non-current assets on the consolidated balance sheets.
Leases
We elected to apply the short-term lease measurement and recognition practical expedient to our leases where applicable, thus leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.
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Operating lease right-of-use assets and operating lease liabilities are recognized at the present value of the future lease payments at the lease commencement date for each lease. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate because the interest rate implicit in most of our leases is not readily determinable. Our incremental borrowing rate is estimated to approximate the interest rate that we would pay to borrow on a collateralized basis with similar terms and payments as the lease. Operating lease right-of-use assets also include any prepaid lease payments and lease incentives. Our lease agreements generally contain lease and non-lease components. Non-lease components, which primarily include payments for maintenance and utilities, are combined with lease payments and accounted for as a single lease component. We include the fixed non-lease components in the determination of the right-of-use assets and operating lease liabilities. We record the amortization of the right-of-use asset and the accretion of lease liability as rent expense and allocate it as overhead in the consolidated statements of operations.
Business Combinations and Asset Acquisitions
We account for acquisitions of entities or asset groups that qualify as businesses using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded in the consolidated statements of operations.
Acquisitions that do not meet the definition of a business are accounted for as asset acquisitions. We allocate the cost of the acquisition, including direct and incremental transaction costs, to the individual assets acquired and liabilities assumed on a relative fair value basis. Goodwill is not recognized in an asset acquisition.
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 impairment loss will be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.
Intangible Assets, Net
Intangible assets are carried at cost and amortized on a straight-line basis over their estimated useful lives. We evaluate the remaining estimated useful life of its intangible assets being amortized on an
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ongoing basis to determine whether events and circumstances warrant a revision to the remaining period of amortization.
Impairment of Long-lived Assets
We evaluate the recoverability of long-lived assets, including property, software, and equipment, leases, and finite-lived intangible assets whenever events or circumstances indicate that the carrying amounts of such assets may not be recoverable compared to the undiscounted future net cash flows the assets are expected to generate. The impairment test is performed at the asset group level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. When the test results indicate that the carrying amount of long-lived assets is not recoverable, the carrying amount of such assets is reduced to fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values, and third–party independent appraisals, as considered necessary.
Payables to Users
Payables to users represent users’ funds on deposit, and/or funds accruing to users as a result of settled trades and other security related transactions.
Loss Contingencies
We are subject to claims and lawsuits in the ordinary course of business, including arbitration, class actions and other litigation, some of which include claims for substantial or unspecified damages. We are also the subject of inquiries, investigations, and proceedings by regulatory and other governmental agencies. We review our lawsuits, regulatory inquiries and other legal proceedings on an ongoing basis and provide disclosures and record loss contingencies in accordance with the loss contingencies accounting guidance. We establish an accrual for losses at management’s best estimate when we assess that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. If the reasonable estimate is a range and no amount within that range is considered a better estimate than any other amount, an accrual is recorded based on the bottom amount of the range. Accrual for loss contingencies are recorded in accounts payable and accrued expenses on the consolidated balance sheets and expensed in general and administrative expenses in our consolidated statements of operations. We monitor these matters for developments that would affect the likelihood of a loss and the accrued amount, if any, and adjust the amount as appropriate.
Income Taxes
Income tax expense is an estimate of current income taxes payable in the current fiscal year based on reported income before income taxes. Deferred income taxes reflect the effect of temporary differences and carryforwards that we recognize for financial reporting and income tax purposes at enacted tax rates expected to be in effect when taxes are actually paid or recovered.
We account for income taxes under the asset and liability method, which requires recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in our consolidated financial statements, but have not been reflected in our taxable income. 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.
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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.
Related Parties
We have defined related parties as members of our board of directors, executive officers, principal owners of our outstanding stock, and any immediate family members of each such related party, as well as any other person or entity with significant influence over our management or operations and any other affiliates. Related party transactions may include any transaction between entities under common control or with a related party.

NOTE 2: RECENT ACCOUNTING PRONOUNCEMENTS
Recently Adopted Accounting Pronouncements
In December 2023, the FASB issued Accounting Standards Update 2023-09, “Income taxes (Topic 740): Improvements to Income Taxes Disclosures.” This guidance requires annual disclosure of specific categories in the rate reconciliation and provides additional information for reconciling items that meet a quantitative threshold. The guidance is effective for annual periods beginning after December 15, 2024. We adopted this guidance effective January 1, 2025 on a prospective basis. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures.
Recently Issued Accounting Pronouncements Not Yet Adopted
In October 2023, the FASB issued Accounting Standards Update 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” The amendments will impact various disclosure areas, including the statement of cash flows, accounting changes and error corrections, earnings per share, debt, equity, derivatives, and transfers of financial assets. The amendments in this guidance will be effective on the date the related disclosures are removed from Regulation S-X or Regulation S-K by the SEC, and will no longer be effective if the SEC has not removed the applicable disclosure requirement by June 30, 2027. Early adoption is prohibited. We are currently evaluating the impacts of the amendments on our consolidated financial statements.
In March 2024, the SEC adopted final rules under SEC Release No. 34-99678 and No. 33-11275, “The Enhancement and Standardization of Climate-Related Disclosures for Investors” (the “Final Rules”), which requires registrants to provide certain climate-related information in their registration statements and annual reports. The Final Rules require, among other things, disclosure in the notes to the audited financial statements of the effects of severe weather events and other natural conditions, subject to certain thresholds, as well as amounts related to carbon offsets and renewable energy credits or certificates in certain circumstances. The disclosure requirements of the Final Rules were to begin phasing in for annual periods beginning in fiscal year 2025. In April 2024, the SEC stayed the effectiveness of the Final Rules and in March 2025 the SEC voted to end its defense of the climate disclosure rules. We continue to monitor the status of the Final Rules and evaluate the potential impact of the Final Rules.
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In November 2024, the FASB issued Accounting Standards Update 2024-03, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40).” This guidance requires additional disclosures about certain amounts included in the expense captions presented on the statement of operations as well as disclosures about selling expenses. The guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The guidance can either be applied prospectively or retrospectively. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements and related disclosures.
In September 2025, the FASB issued Accounting Standards Update 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.” This guidance simplifies the capitalization guidance for internal-use software costs by removing all references to prescriptive and sequential software development stages under Subtopic 350-40. This guidance is effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods. Early adoption is permitted. The guidance can be applied prospectively, retrospectively or under a modified transition approach. We are currently evaluating the impacts of the amendments on our consolidated financial statements.

NOTE 3: BUSINESS COMBINATIONS
Acquisition of TradePMR
On February 26, 2025, we acquired all of the outstanding equity of TradePMR, a custodial and portfolio management platform for RIAs. The acquisition of TradePMR allows us to deliver investment advisory capabilities to customers by bringing in a scaled RIA custodial and portfolio management platform that connects financial advisors to a new generation of investors.
The acquisition date fair value of the consideration transferred for TradePMR was approximately $ 175  million following customary purchase price adjustments and was entirely paid in cash. The post-close compensation consisted of 2,049,711 unvested shares of the Company’s Class A common stock, valued at approximately $ 100  million as of the closing date of the acquisition, which will vest over a four-year period post-acquisition, subject to the terms of a vesting agreement. Shares of unvested restricted stock have the same voting rights as all other Class A common stock and are considered to be issued and outstanding. These shares are not part of the equity incentive plans described in Note 12 - Common Stock and Stockholders’ Equity.
The purchase price allocation is based on a preliminary valuation and subject to revision as more detailed analyses are completed and additional information about the fair value of assets acquired and liabilities assumed becomes available, including certain tax matters, during the measurement period (up
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to one year from the acquisition date). The following table summarizes the preliminary fair value of assets acquired and liabilities assumed as of the date of acquisition:

(in millions)
Fair Value
Cash and cash equivalents $ 25  
Receivable from users, net 5  
Prepaid expenses 1  
Other current assets 9  
Other non-current assets 3  
Goodwill 111  
Intangible assets 81  
Accounts payable and accrued expenses ( 1 )
Other current liabilities ( 21 )
Other non-current liabilities ( 38 )
Net assets acquired $ 175  

The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill, which is not deductible for tax purposes. Goodwill is primarily attributed to the assembled workforce of TradePMR and anticipated operational synergies. The fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions at the time of acquisition. Tangible net assets were valued at their respective carrying amounts as of the acquisition date, as these amounts approximated fair value.
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition:

(in millions, except years)
Fair Value Useful Life
Customer relationships $ 49   13
Developed technology 31   5
Trade names 1   4
Total $ 81  

The overall weighted average useful life of the identified amortizable intangible assets acquired is 9.76 years. The estimated fair value of the intangible assets acquired approximate the amounts a market participant would pay for these intangible assets as of the acquisition date. We used a multi-period excess earnings method to estimate the fair value of customer relationships and the relief from royalty method to estimate the fair value of developed technology and trade name.
Pro forma results of operations for TradePMR have not been presented as the effect of this acquisition was not material to our consolidated financial statements.
Acquisition of Bitstamp
On June 2, 2025, we acquired all outstanding equity of Bitstamp, a globally-scaled cryptocurrency exchange with retail and institutional customers. This acquisition of Bitstamp accelerates our expansion worldwide, including across the EU, the U.K., and Asia. The acquisition date fair value of the consideration transferred for Bitstamp was approximately $ 224  million following customary purchase price adjustments and was entirely paid in cash.
The purchase price allocation is based on a preliminary valuation and subject to revision as more detailed analyses are completed and additional information about the fair value of assets acquired and
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liabilities assumed becomes available, including certain tax matters, during the measurement period (up to one year from the acquisition date). The following table summarizes the preliminary fair value of assets acquired and liabilities assumed as of the date of acquisition:

(in millions)
Fair Value
Cash and cash equivalents $ 65  
Cash and securities segregated under federal and other regulations 1,103  
Receivable from users, net 13  
Prepaid expenses 6  
Other current assets 15  
Other non-current assets 8  
Goodwill 93  
Intangible assets 70  
Accounts payable and accrued expenses ( 28 )
Payable to users ( 1,115 )
Other current liabilities ( 4 )
Other non-current liabilities ( 2 )
Net assets acquired $ 224  

The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill, which is not deductible for tax purposes. Goodwill is primarily attributed to the assembled workforce of Bitstamp and anticipated operational synergies. The fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions at the time of acquisition. Tangible net assets were valued at their respective carrying amounts as of the acquisition date, as these amounts approximated fair value.
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition:

(in millions, except years)
Fair Value Useful Life
Developed technology $ 39   6
Licenses 21   N/A

Customer relationships 5   18
Other 4   N/A

Trade names 1   2
Total $ 70  

The overall weighted average useful life of the identified amortizable intangible assets acquired is 7.08 years. The estimated fair value of the intangible assets acquired approximate the amounts a market participant would pay for these intangible assets as of the acquisition date. We used a multi-period excess earnings method to estimate the fair value of developed technology, the distributor method to estimate the fair value of customer relationships, the cost approach to estimate the fair value of licenses, and the relief from royalty method to estimate the fair value of trade names.
Pro forma results of operations for Bitstamp have not been presented as the effect of this acquisition was not material to our consolidated financial statements.

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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 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.

NOTE 4: GOODWILL AND INTANGIBLE ASSETS
Goodwill
The following table summarizes the carrying amount of goodwill:
December 31,
(in millions) 2024 2025
Beginning balance $ 175   $ 179  
Less: Accumulated impairment —   —  
Beginning balance, net 175   179  
Additions due to business combinations (1)
4   204  

Foreign currency translation adjustment
—   2  
Ending balance $ 179   $ 385  

_______________
(1) For the year ended December 31, 2025, additions are related to the acquisition of TradePMR and Bitstamp as disclosed in Note 3 - Business Combinations

There was no impairment of goodwill for the years ended December 31, 2024 and 2025.
Intangible Assets
The following tables summarize the components of intangible assets:

December 31, 2024
(in millions, except years) Gross Carrying Value Accumulated Amortization Net Carrying Value Weighted Average Remaining Useful Life - Years
Finite-lived intangible assets:
Developed technology $ 51   $ ( 33 ) $ 18   2.63
Customer relationships 23   ( 13 ) 10   4.72
Indefinite-lived intangible assets 10   —  10   N/A
Total $ 84   $ ( 46 ) $ 38  

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December 31, 2025
(in millions, except years) Gross Carrying Value Accumulated Amortization Net Carrying Value Weighted Average Remaining Useful Life - Years
Finite-lived intangible assets:
Developed technology $ 98   $ ( 26 ) $ 72   4.37
Customer relationships 64   ( 7 ) 57   11.64
Trade names 2   ( 1 ) 1   2.43
Indefinite-lived intangible assets 37   —  37   N/A
Foreign currency translation adjustment
1   —  1   N/A
Total $ 202   $ ( 34 ) $ 168  

Amortization expense of intangible assets was $ 14  million, $ 20  million, and $ 23  million for the years ended December 31, 2023, 2024 and 2025. There was no impairment of intangible assets for the year ended December 31, 2024 and an immaterial impairment of intangible assets for the year ended 2025.
As of December 31, 2025, the estimated future amortization expense of finite-lived intangible assets was as follows:

(in millions) Finite-lived Intangible Assets
2026 $ 27  
2027 22  
2028 18  
2029 18  
2030 12  
Thereafter 33  
Total $ 130  

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NOTE 5: REVENUES
Disaggregation of Revenues
The following table presents our revenues disaggregated by revenue source:

Year Ended December 31,
(in millions) 2023 2024 2025
Transaction-based revenues
Options $ 505 $ 760 $ 1,123
Cryptocurrencies 135 626 901
Equities 104 177 302
Other 41 84 302
Total transaction-based revenues 785 1,647 2,628

Net interest revenues:
Margin interest 243 319 573
Interest on segregated cash, cash equivalents, securities, and deposits 210 261 319
Cash Sweep 123 179 229
Securities lending, net 79 94 190
Interest on corporate cash and investments 288 256 167
Credit card, net 9 24 64
Interest expenses related to credit facilities ( 23 ) ( 24 ) ( 32 )
Other — — 4
Total net interest revenues 929 1,109 1,514

Other revenues:
Gold subscription revenues $ 75 $ 109 $ 179
Proxy revenues 61 60 63
Other 15 26 89
Total other revenues
151   195   331  

Total net revenues $ 1,865 $ 2,951 $ 4,473

The following table presents interest revenue earned and interest expense paid from securities lending:

Year Ended December 31,
(in millions) 2023 2024 2025
Interest revenue $ 184   $ 321   $ 604  
Interest expense ( 105 ) ( 227 ) ( 414 )
Securities lending, net
$ 79   $ 94   $ 190  

Contract Balances
Contract receivables are recognized when we have an unconditional right to invoice and receive payment under a contract and are derecognized when cash is received. Transaction-based revenue receivables due from market makers are reported in receivables from brokers, dealers, and clearing
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organizations while other revenue receivables related to proxy revenues due from issuers are reported in other current assets on the consolidated balance sheets.
As of December 31, 2025, contract liabilities include $ 39 million of unearned subscription revenue for Robinhood Gold and Robinhood Gold Card, recognized when users remit cash payments in advance of the time we satisfy our performance obligations. The unearned subscription revenue was recorded as other current liabilities on the consolidated balance sheets. Contract liabilities also include $ 17 million of TradePMR performance obligations acquired as part of the TradePMR acquisition, with $ 8  million recorded in other current liabilities and $ 9 million in other non-current liabilities which was recorded on the consolidated balance sheets. This liability represents consideration received in advance of satisfying the related performance obligations and is subject to repayment if certain contractual conditions are not met.

The table below sets forth contract receivables and liabilities balances for the periods indicated:

December 31, 2024
(in millions) Contract Receivables Contract Liabilities
Beginning of the period, January 1, 2024 $ 87   $ 4  
End of the period, December 31, 2024
294   11  
Changes during the period $ 207   $ 7  

December 31, 2025
(in millions) Contract Receivables Contract Liabilities
Beginning of the period, January 1, 2025 $ 294   $ 11  
End of the period, December 31, 2025
185   57  
Changes during the period $ ( 109 ) $ 46  

The difference between the opening and ending balances of our contract receivables was primarily driven by lower cryptocurrency transaction-based revenues due to decreased trading volumes as well as number of traders and timing differences between our performance and counterparty payments, partially offset by higher options and equities transaction-based revenues.
The difference between the opening and ending balances of our contract liabilities was primarily driven by an increase in Robinhood Gold Subscribers, Robinhood Gold Card users, and TradePMR performance obligations, and timing differences between our performance and customer billing. We recognized all revenue from amounts included in the opening contract liabilities balance for the year end December 31, 2025.

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NOTE 6: ALLOWANCE FOR CREDIT LOSSES
Allowance for Credit Losses - Brokerage Related
The following table summarizes the brokerage related allowance for credit losses which is primarily related to fraudulent activities, included in receivables from users, net on the consolidated balance sheet:

Year Ended December 31,
(in millions) 2023 2024 2025
Beginning balance $ 18   $ 15   $ 14  
Provision for credit losses 22   21   28  
Write-offs ( 25 ) ( 23 ) ( 30 )
Recoveries —   1   4  
Ending Balance $ 15   $ 14   $ 16  

Allowance for Credit Losses - Credit Card Related
We have two types of allowance for credit losses related to credit cards: i) an allowance related to off-balance sheet credit card receivables, shown as part of accounts payable and accrued expenses on the consolidated balance sheet, and ii) an allowance related to purchased credit card receivables and interest receivable from customers, included in receivables from users, net on the consolidated balance sheet.

The following table summarizes the allowance related to off-balance sheet credit card receivables:
Year Ended December 31,

(in millions)
2023 2024 2025
Beginning balance $ —   $ 32   $ 40  
Opening balance from acquisition of Robinhood Credit 23   —   —  
Provision for credit losses 19   40   27  
Payments to Coastal Bank
( 11 ) ( 34 ) ( 28 )
Recoveries 1   2   2  
Ending balance $ 32   $ 40   $ 41  

The following table summarizes the allowance related to purchased credit card receivables and interest receivables from customers:

Year Ended December 31,

(in millions)
2023 2024 2025
Beginning balance $ —   $ 1   $ 11  
Provision for credit losses 2   15   59  
Write-offs ( 1 ) ( 5 ) ( 17 )
Recoveries —   —   3  
Ending balance $ 1   $ 11   $ 56  

The following tables present the aging analysis of our credit card receivables for the periods presented and the delinquency aging includes all past due principal on loans. Accrued interest receivable of $ 3 million and $ 9 million as of December 31, 2024 and 2025 were not included in the tables below.

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(in millions, except for percentages) December 31, 2024
Aging of receivables

Current <90 Days ≥ 90 days Total Past due receivables Total Receivables
On-balance sheet
$ 186 $ 2 $ 1 $ 3 $ 189
Off-balance sheet
177 15 10 25 202
Total credit card loans $ 363 $ 17 $ 11 $ 28 $ 391
% of Total loans 93   % 4   % 3   % 7   % 100   %

(in millions, except for percentages) December 31, 2025
Aging of receivables

Current <90 Days ≥ 90 days Total Past due receivables Total Receivables
On-balance sheet
$ 814 $ 18 $ 8 $ 26 $ 840
Off-balance sheet
177 15 8 23 200
Total credit card loans $ 991 $ 33 $ 16 $ 49 $ 1,040
% of Total loans 95   % 3   % 2   % 5   % 100   %

The risk in our credit card receivables portfolio correlates to broad economic trends as well as customers' financial condition. The key indicator we monitor when assessing the credit quality and risk is customers' credit scores as they measure the creditworthiness of customers. We use a national third-party provider to update FICO credit scores on a monthly basis. The updated scores are incorporated into a series of credit management reports, which are utilized to monitor risk. The table below presents our credit card receivables by our credit quality indicator, FICO score, including both on-balance sheet and off-balance sheet amounts, as of December 31, 2024 and 2025. We present our receivables by FICO scores.

December 31, December 31,
(in millions, except FICO scores)
2024 % of Total Loans
2025 % of Total Loans

Below 640 $ 64   16   % $ 26   3   %
640-690 100   26   % 202   19   %
Greater than 690 227   58   % 812   78   %
Total credit card loans $ 391   100   % $ 1,040   100   %

NOTE 7: INVESTMENTS AND FAIR VALUE MEASUREMENT
Investments
Available-for-sale
As of December 31, 2024 we had $ 750  million of available-for-sale time deposits classified as cash equivalents on the consolidated balance sheets. As of December 31, 2025, we had no available-for-sale time deposits. These investments had a maturity of three months or less at the time of purchase, and an aggregate market value equal to amortized cost. Refer to Fair Value of Financial Instruments below for further details.
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Held-to-maturity
The following tables summarize our held-to-maturity investments:

December 31, 2024

(in millions) Amortized Cost
Allowance for Credit Losses
Unrealized Gains
Unrealized Losses Fair Value
Debt securities:
U.S. Treasury securities $ 337   $ —   $ 1   $ —   $ 338  
Corporate debt securities 51   —   —   —   51  
U.S. government agency securities 10   —   —   —   10  
Total held-to-maturity investments $ 398   $ —   $ 1   $ —   $ 399  

There were no held to maturity investments as of December 31, 2025 and no sales of held-to-maturity investments during the year ended December 31, 2025.
The table below presents the amortized cost and fair value of held-to-maturity investments by contractual maturity:

December 31, 2024

(in millions) Within 1 Year
1 to 2 Years
Total
Amortized cost
Debt securities:
U.S. Treasury securities $ 337   $ —   $ 337  
Corporate debt securities 51   —   51  
U.S. government agency securities 10   —   10  
Total held-to-maturity investments $ 398   $ —   $ 398  

Fair value
Debt securities:
U.S. Treasury securities $ 338   $ —   $ 338  
Corporate debt securities 51   —   51  
U.S. government agency securities 10   —   10  
Total held-to-maturity investments $ 399   $ —   $ 399  

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Fair Value of Financial Instruments
Financial assets and liabilities measured at fair value on a recurring basis were presented on our consolidated balance sheets as follows:

December 31, 2024
(in millions) Level 1 Level 2 Level 3 Total
Assets
Cash equivalents:
Time deposits $ —   $ 750   $ —   $ 750  
Money market funds 53   —   —   53  
Cash, cash equivalents, and securities segregated under federal and other regulations:
U.S. Treasury securities 1,193   —   —   1,193  
Other current assets:
Stablecoin 361   —   —   361  
Equity securities - securities owned 15   —   —   15  
Other non-current assets:
Money market funds - escrow account 2   —   —   2  
User-held fractional shares 2,530   —   —   2,530  
Total financial assets $ 4,154   $ 750   $ —   $ 4,904  

Liabilities
Fractional shares repurchase obligations
$ 2,530   $ —   $ —   $ 2,530  
Total financial liabilities $ 2,530   $ —   $ —   $ 2,530  

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December 31, 2025
(in millions) Level 1 Level 2 Level 3 Total
Assets
Cash equivalents:
Money market funds $ 52   $ —   $ —   $ 52  
Cash, cash equivalents, and securities segregated under federal and other regulations:
U.S. Treasury securities 311   —   —   311  
Foreign Treasury securities 53   —   —   53  
Deposits with clearing organizations:
U.S. Treasury securities (1)
1   —   —   1  
Other current assets:
U.S. Treasury securities (2)
200   —   —   200  
Stablecoin 152   —   —   152  
Equity securities - securities owned 28   —   —   28  
Other non-current assets:
Non-marketable securities (3)
—   —   232   232  
Money market funds - escrow account 2   —   —   2  
User-held fractional shares 3,782   —   —   3,782  
Total financial assets $ 4,581   $ —   $ 232   $ 4,813  

Liabilities
Fractional shares repurchase obligations
$ 3,782   $ —   $ —   $ 3,782  
Total financial liabilities $ 3,782   $ —   $ —   $ 3,782  
______________
(1) As of December 31, 2025, $ 1 million of our U.S. Treasury securities are deposited with an exchange to enable the execution, clearing, and settlement of event contracts.
(2) Classified as trading securities in which the amortized cost approximates fair value as of December 31, 2025.
(3) Represents non-marketable equity securities held by Robinhood Ventures Fund I.

Robinhood Ventures Fund I investments in non-marketable equity securities
The following table sets forth a summary of the changes in the estimated fair value of Robinhood Ventures Fund I investments in non-marketable equity securities classified as a Level 3 in the fair value hierarchy:

December 31,
(in millions) 2025
Beginning of period, January 1, 2025 $ —  
Purchases during the period
225  
Net unrealized gains (losses) 7  
End of period, December 31, 2025 $ 232  

During the year ended December 31, 2025, we did not have any transfers in or out of Level 3 assets or liabilities.
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Robinhood Ventures Fund I investments measured using Level 3 inputs primarily consist of investments in privately-held investments. Recent financing transactions in the investee are generally considered the best indication of the enterprise value and therefore used as a basis to estimate fair value. When a recent financing transaction occurs and represents fair value, the Company also uses the calibration process, as appropriate, when estimating fair value on subsequent measurement dates. Calibration is the process of using observed transactions in the investee company’s own instruments to ensure that the valuation techniques that will be employed to value the investee company investment on subsequent measurement dates begin with assumptions that are consistent with the original observed transaction and any more recent observed transactions in the instruments issued by the investee company as well as any updates regarding the investee company’s performance. As of December 31, 2025, the Company determined the fair value of investments held by Robinhood Ventures Fund I based on recent financing transactions of each of the investees.
The fair value for certain financial instruments that are not required to be measured or reported at fair value was presented on our consolidated balance sheets as follows:

December 31, 2024

(in millions) Level 1
Level 2
Level 3
Total

Assets
Held-to-maturity investments:
U.S. Treasury securities $ 338   $ —   $ —   $ 338  
Corporate debt securities —   51   —   51  
U.S. government agency securities —   10   —   10  
Total held-to-maturity investments $
338  

$
61  

$
—  

$
399  

The fair values used for held-to-maturity investments are obtained from an independent pricing service and represent fair values determined by pricing models using a market approach that considers observable market data, such as interest rate volatility, relevant yield curves, credit spreads and prices from market makers and live trading systems. Management reviews the valuation methodology and quality controls utilized by the pricing services in management's overall assessment of the reasonableness of the fair values provided.

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NOTE 8: INCOME TAXES
The components of income (loss) before income taxes were as follows:

Year Ended December 31,
(in millions) 2023 2024 2025
Domestic $ ( 534 ) $ 1,063   $ 2,086  
Foreign 1   1   22  
Income (loss) before income taxes $ ( 533 ) $ 1,064   $ 2,108  

The components of the provision for (benefit from) income taxes were as follows:

Year Ended December 31,
(in millions) 2023 2024 2025
Current:
Federal $ 5   $ 16   $ 22  
State 3   6   18  
Foreign —   —   4  
Total current tax expense (benefit) 8   22   44  
Deferred:
Federal —   ( 333 ) 173  
State —   ( 36 ) 20  
Foreign —   —   ( 12 )
Total deferred tax expense (benefit) —   ( 369 ) 181  
Total provision for (benefit from) income taxes $ 8   $ ( 347 ) $ 225  

The table below provides the updated requirements of ASU 2023-09 for 2025. See Note 2 - Recent Accounting Pronouncements for additional details on the adoption of ASU 2023-09.
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The reconciliation of statutory federal income tax rate and our effective income tax rate was as follows (in millions, except for percentages):

Year Ended December 31, 2025
Amount
Percent

Federal tax at statutory rate $ 443   21.0   %
State tax (benefit), net of federal benefit (1)
34   1.6  
Foreign tax effects ( 12 ) ( 0.6 )
Effect of cross-border tax laws 1   0.1  
Nontaxable or nondeductible items:
Share-based compensation ( 184 ) ( 8.7 )
Others
5   0.2  
Tax credits:

Research and development credits ( 66 ) ( 3.1 )
Changes in unrecognized tax benefits
—   —  
Change in valuation allowance 3   0.1  
Other adjustments 1   0.1  
Total provision for (benefit from) income taxes
$ 225   10.7   %

(1) State and local taxes in New York, New Jersey, Pennsylvania and Illinois made up the majority (greater than 50 percent) of the tax effect in this category.
For the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the reconciliation of statutory federal income tax rate and our effective income tax rate was as follows (in percentages):

Year Ended December 31,
2023 2024
Federal tax at statutory rate 21.0   % 21.0   %
State tax (benefit), net of federal benefit
( 1.9 ) 1.1  
Share-based compensation

( 29.7 ) ( 3.5 )
Research and development credits 5.6   ( 4.8 )
Non-deductible regulatory settlements ( 4.6 ) ( 0.7 )
Other 0.2   0.3  
Change in valuation allowance 8.0   ( 46.0 )
Effective tax rate ( 1.4 ) % ( 32.6 ) %

For the year ended December 31, 2025, total income taxes paid (net of refunds) consisted of the following:

Year Ended
December 31,
(in millions) 2025
U.S. federal $ 49  
U.S. state and local 45
Foreign 1
Total $ 95  

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Individual jurisdictions equaling 5% or more of the total income taxes paid (net of refunds) for the year ended December 31, 2025 include U.S. federal at $ 49 million, California at $ 15 million, and New York at $ 6 million.
Significant components of our deferred tax assets and liabilities consisted of the following:

Year Ended December 31,
(in millions)
2024 2025
Deferred tax assets:
Tax credit carryforwards $ 174   $ 193  
Research and experimentation expenditure amortization 248   122  
Lease liabilities 33   52  
Net operating loss carryforwards 29   40  
Accruals and other liabilities 16   29  
Provision for credit losses 16   28  
Share-based compensation 16   10  
Other 31   41  
Total deferred tax assets 563   515  
Deferred tax liabilities:
Deferred customer match incentives ( 74 ) ( 153 )
Right of use assets ( 24 ) ( 43 )
Depreciation and amortization ( 6 ) ( 31 )
Other —   ( 4 )
Total deferred tax liabilities ( 104 ) ( 231 )
Valuation allowance ( 88 ) ( 105 )
Net deferred tax assets $ 371   $ 179  

The reconciliation of the beginning and ending amount of the deferred tax asset valuation allowance was as follows:
Year Ended December 31,
(in millions) 2023 2024 2025
Balance at beginning of period $ 607   $ 574   $ 88  
Charged/(credited) to net income (loss) ( 34 ) ( 486 ) 6  
Charges utilized/(write-offs) 1   —   —  
Additions due to acquisition —   —   11  
Balance at end of period $ 574   $ 88   $ 105  

The realization of tax benefits of net deferred assets is dependent upon future levels of taxable income, of an appropriate character, in the periods the items are expected to be deductible or taxable. Based on our analysis of all positive and negative evidence available for the year ended December 31, 2025, we continue to maintain a valuation allowance for our California, and certain other U.S. states and certain foreign net deferred tax assets, as we believe it is more likely than not that the tax benefits of these jurisdictions’ net deferred tax assets may not be realized. The valuation allowance for California, and certain other U.S. states and certain foreign net deferred tax assets increased by approximately $ 17  million for the year ended December 31, 2025.
As of December 31, 2025, we have $ 44 million of U.S. federal, $ 297 million of state, and $ 11 million of non-U.S. net operating loss carryforwards available to reduce future taxable income. Our U.S. federal net operating loss will carryforward indefinitely. Our state net operating losses begin to expire in 2026 ,
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while our non-U.S. net operating losses begin to expire in 2029 . We have U.S. federal tax credit carryforwards of $ 191 million that will begin to expire in 2043 , if not utilized, and state tax credit carryforwards of $ 158 million that will begin to expire in 2026 .
Utilization of the net operating loss and credit carryforwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Code, and similar state provisions. The annual limitation may result in the expiration of net operating losses and tax credits before utilization.
We had unrecognized tax benefits of approximately $ 134  million of which $ 88  million would affect our effective tax rate if recognized as of December 31, 2025. The remaining $ 46  million of unrecognized tax benefits would not impact the effective tax rate due to realizability of those deferred tax assets. We record interest and penalties related to unrecognized tax benefits in income tax expenses. There were no interest or penalties accrued during the year ended December 31, 2024. Interest accrued during the year ended December 31, 2025 was immaterial .
The reconciliation of the beginning and ending amount of unrecognized tax benefits were as follows:

Year Ended December 31,
(in millions)
2024 2025
Unrecognized benefit - beginning of period $ 74   $ 98  
Gross increases - current year tax positions 23   35  
Gross increases - prior year tax positions 1   1  
Gross decreases - prior year tax positions —   —  
Unrecognized benefit - end of period $ 98   $ 134  

We file in U.S. federal, various state, and foreign jurisdictions. The tax years from 2013 remain open to examination by the U.S. federal and state authorities, due to carry over of unused net operating losses and tax credits. The tax years from 2022 remain open for the most significant foreign jurisdiction.

NOTE 9: PROPERTY, SOFTWARE, AND EQUIPMENT, NET
Property, software, and equipment are presented net of accumulated depreciation and amortization and summarized as follows:

Year Ended December 31,
(in millions) 2024 2025
Internally developed software $ 171   $ 229  
Leasehold improvements 42   48  
Computer equipment 28   36  
Furniture and fixtures 13   15  
Construction in progress 39   40  
Total 293   368  
Less: accumulated depreciation and amortization ( 154 ) ( 214 )
Property, software, and equipment, net $ 139   $ 154  

Depreciation expense of property and equipment was $ 16  million, $ 14  million, and $ 14  million for the years ended December 31, 2023, 2024 and 2025.
Amortization expense of internally developed software was $ 41  million, $ 43  million, and $ 49  million for the years ended December 31, 2023, 2024 and 2025.
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NOTE 10: SECURITIES BORROWING AND LENDING
Our securities lending transactions are subject to enforceable master netting arrangements with other broker-dealers; however, we do not net securities borrowing and lending transactions. Therefore, activity related to securities borrowing and lending activities are presented gross on our consolidated balance sheets.
When we borrow securities from users participating in the Fully-Paid Securities Lending program or from third parties, we provide cash collateral to our users or third parties, which is recorded on our consolidated balance sheets as “securities borrowed”, an asset, representing our rights to the return of that collateral. When we lend securities to third parties and users, we receive cash as collateral, which is recorded on our consolidated balance sheets as “securities loaned”, a liability, representing our obligation to return the collateral.
The following tables set forth certain balances related to our securities borrowing and lending activities:

December 31,
(in millions) 2024 2025
Assets Securities borrowed
Gross amount of cash collateral provided to users for securities borrowing transactions $ 3,236   $ 2,408  
Gross amount offset on the consolidated balance sheets —   —  
Amounts of assets presented on the consolidated balance sheets 3,236   2,408  
Gross amount not offset on the consolidated balance sheets:

Cash collateral provided to users and third parties for securities borrowing transactions 3,236   2,408  
Fair value of securities borrowed from users and third parties ( 3,118 ) ( 2,346 )
Net amount $ 118   $ 62  

Liabilities Securities loaned
Gross amount of cash collateral received from counterparties for securities lending transactions $ 7,463   $ 11,626  
Gross amount offset on the consolidated balance sheets
—   —  
Amounts of liabilities presented on the consolidated balance sheets
7,463   11,626  
Gross amount not offset on the consolidated balance sheets:

Cash collateral received from counterparties for securities lending transactions 7,463   11,626  
Fair value of securities pledged to counterparties ( 6,887 ) ( 10,902 )
Net amount $ 576   $ 724  

As described in Note 1 - Description of Business and Summary of Significant Accounting Policies, we obtain securities on terms that permit us to pledge and/or transfer securities to others. As of December 31, 2024 and 2025, we were permitted to re-pledge securities with a fair value of $ 11.04  billion and $ 23.62  billion under margin account agreements with users, and securities with insignificant fair value that we borrowed under MSLAs with third parties for fiscal years 2024 and 2025. Under the Fully-Paid Securities Lending program, as of December 31, 2024 and 2025, we were permitted to borrow securities with a fair value of $ 38.70  billion and $ 75.88  billion including securities with a fair value of $$ 3.12  billion and $ 2.35  billion that we had borrowed from users.
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As of December 31, 2024 and 2025, we had re-pledged securities with a fair value of $ 6.89 billion and $ 10.90 billion, in each case under MSLAs and Fixed-Term Securities Lending Agreements with third parties. In addition, as of December 31, 2024 and 2025, we had re-pledged $ 1.60 billion and $ 2.83 billion of the permitted amounts under the margin account agreements with clearing organizations to meet deposit requirements.

NOTE 11: FINANCING ACTIVITIES AND OFF-BALANCE SHEET RISK
Revolving Credit Facilities
RHM March 2025 Credit Agreement
On March 21, 2025, RHM entered into the RHM March 2025 Credit Agreement, amending and restating the unsecured revolving line of credit entered into in March 2024 (refer to Note 12 - Financing Activities and Off-Balance Sheet Risk, of the 2024 Form 10-K for more information). The RHM March 2025 Credit Agreement has an initial commitment of $ 1  billion with a maturity date of March 21, 2028. Under circumstances described in the RHM March 2025 Credit Agreement, the aggregate commitments may be increased from time to time by up to $ 250  million in the aggregate (the “Accordion”), for a total commitment of up to $ 1.25  billion. On June 12, 2025, we increased the commitment from $ 1  billion to $ 1.125  billion pursuant to the Accordion and as a result reduced the available incremental commitment available pursuant to the Accordion by a corresponding amount. Borrowings under the RHM March 2025 Credit Agreement will bear interest at a rate per annum equal to the Alternate Base Rate or Adjusted Term SOFR plus an applicable margin rate of 1.50 %. For purposes of the RHM March 2025 Credit Agreement, the Alternate Base Rate is the greatest of (i) the prime rate then in effect, (ii) the Federal Reserve Bank of New York rate then in effect plus 0.5 % and (iii) the Adjusted Term SOFR for a one month interest period plus 1.0 %. The Adjusted Term SOFR Rate is equal to the Term SOFR, published by the Term SOFR Administrator, plus the Term SOFR Adjustment. The Term SOFR Adjustment is 0.10 %. If the Adjusted Term SOFR Rate is less than the floor of 0 %, such rate shall be deemed to be equal to the floor. RHM is obligated to pay a commitment fee calculated at a per annum rate equal to 0.25 % on any unused amount of the RHM March 2025 Credit Agreement.
RHS March 2025 Credit Agreement
On March 21, 2025, RHS, our wholly-owned subsidiary, entered into the RHS March 2025 Credit Agreement among RHS, as borrower, the lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent, amending and restating the $ 2.25  billion 364-day senior secured revolving credit facility entered into in March 2024 (refer to Note 12 - Financing Activities and Off-Balance Sheet Risk, of the 2024 Form 10-K for more information).
The RHS March 2025 Credit Agreement provides for a 364-day senior secured revolving credit facility with a total commitment of $ 2.65  billion. Under circumstances described in the RHS March 2025 Credit Agreement, the aggregate commitments may be increased by up to $ 1.325  billion via an accordion feature, for a total commitment of $ 3.975  billion. Borrowings under the credit facility must be specified to be Tranche A, Tranche B, Tranche C or a combination thereof, with each tranche being secured by different assets of RHS as set forth in the RHS March 2025 Credit Agreement. Borrowings under the RHS March 2025 Credit Agreement will bear interest at a rate per annum equal to the greatest of (i) Daily Simple SOFR (as defined in the RHS March 2025 Credit Agreement) plus 0.10 % , (ii) the Federal Funds Effective Rate (as defined in the RHS March 2025 Credit Agreement) and (iii) the Overnight Bank Funding Rate (as defined in the RHS March 2025 Credit Agreement), in each case, as of the day the loan is initiated, plus an applicable margin rate. The applicable margin rate is 1.25 % for Tranche A loans and 2.50 % for Tranche B and Tranche C loans. Undrawn commitments will accrue commitment fees at a rate per annum equal to 0.50 %.
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The RHS March 2025 Credit Agreement requires RHS to maintain a minimum consolidated tangible net worth and a minimum excess net capital, and subjects RHS to a specified limit on minimum net capital to aggregate debit items. In addition, the RHS March 2025 Credit Agreement contains certain customary affirmative and negative covenants, including limitations with respect to debt, liens, fundamental changes, asset sales, restricted payments, investments and transactions with affiliates, subject to certain exceptions. Amounts due under the RHS March 2025 Credit Agreement may be accelerated upon an “event of default,” as defined in the RHS March 2025 Credit Agreement, such as failure to pay amounts owed thereunder when due, breach of a covenant, material inaccuracy of a representation, or occurrence of bankruptcy or insolvency, subject in some cases to cure periods.
As of December 31, 2024 and December 31, 2025, there were no borrowings outstanding and we were in compliance with all covenants, as applicable, under our revolving credit facilities.
Credit Card Funding Trust
Under terms of the Coastal Bank Program Agreement (discussed below), Robinhood Credit has the ability to purchase credit card receivables originated and held for a period of time by Coastal Bank. Robinhood Credit continues to earn interest from customers and uses these purchased credit card receivables as collateral under a trust structure to access debt financing in the ordinary course of business. To help facilitate these transactions, we created a VIE known as the Credit Card Funding Trust (the “Trust”).
We are the primary beneficiary of the Trust as, through our role as the servicer and administrator, we have the power to direct the activities that most significantly affect the Trust’s economic performance and, due to owning all the equity interest in the Trust, have the right to receive benefits or the obligation to absorb losses. As such, we consolidate the Trust in the consolidated financial statements. Substantially all of the Trust’s assets and liabilities are the purchased credit card receivables, included in receivables from users, net, and the outstanding borrowing, included in other current liabilities, on the consolidated balance sheets.
Our exposure to losses in the Trust is limited to the carrying value of net assets held by the Trust, including expected credit losses related to the purchased credit card receivables (Refer to Note 6 - Allowance for Credit Losses). For the Trust, the creditors have no recourse to our general credit and the liabilities of the Trust can only be settled by the Trust’s assets. Additionally, the assets of the Trust can only be used to settle obligations of the Trust.
As of December 31, 2025, the Trust had four arrangements in place: (1) to borrow up to $ 200 million from Barclays, (2) to borrow up to $ 150 million from SVB, which was amended on September 26, 2025 to decrease the borrowing capacity and the pricing, (3) to borrow up to $ 300 million from WF, which was a new borrowing agreement entered into on August 1, 2025, and (4) to borrow up to $ 300  million from Truist Bank, which was a new borrowing agreement entered into on November 7, 2025.
Under the Barclays arrangement, the Trust may borrow, repay, and re-borrow up to a committed amount of $ 200 million during the revolving period, which ends in November 2026. During this period, borrowings bear interest at Barclays’ commercial paper rate plus 1.75 % and undrawn amounts accrue an undrawn fee at rates between 0.25 % and 0.35 %, depending on utilization. After the revolving period ends, the facility enters an amortization period during which no new borrowings are permitted, and the Trust repays the outstanding balance. The interest margin increases during this amortization phase. In November 2025, the interest rate was renegotiated to Barclays’ commercial paper rate plus 1.3 %, and undrawn amounts accrue an undrawn fee at rates between 0.275 % and 0.325 %,
Under the SVB arrangement, the Trust may borrow, repay, and re-borrow up to a committed amount of $ 150 million during the revolving period, which ends in April 2027. During this period, borrowings bear
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interest at a rate equal to the one-month Term SOFR plus 1.50 %, and undrawn amounts accrue at a rate of 0.25 %.
Under the WF arrangement, the Trust may borrow, repay and re-borrow up to a committed amount of $ 300 million during the revolving period, which ends in August 2028. During this period, borrowings bear interest at a rate equal to the Daily Simple SOFR (as defined in the WF arrangement) plus 1.40 %. After the revolving period ends, the facility enters a controlled amortization period where interest increases to a rate equal to the Daily Simple SOFR plus 2.0 %, and undrawn amounts accrue an undrawn fee at rates between 0.275 % and 0.325 %, depending on utilization.
Under the Truist Bank arrangement, the Trust may borrow, repay and re-borrow up to a committed amount of $ 300  million during the revolving period, which ends in November 2028. During this period, borrowings bear interest at a rate equal to the Daily Simple SOFR (as defined in the Truist Bank arrangement) plus 1.40 %. After the revolving period ends, the facility enters a controlled amortization period where interest increases to a rate equal to the Daily Simple SOFR plus 2.0 %. Undrawn amounts accrue an undrawn fee at rates between 0.275 % and 0.325 %, depending on utilization.
For the year ended December 31, 2024, the weighted average interest rate of the SVB and Barclays arrangements was 7.81 %. For the year ended December 31, 2025, the weighted average interest rate of the SVB, Barclays, WF, and Truist Bank arrangements was 6.16 %. During the years ended December 31, 2024 and 2025, the Trust purchased $ 748 million and $ 5.2 billion of credit card receivables. As of December 31, 2024 and 2025, the carrying value of purchased credit card receivables that had not been collected, net of provision for credit losses, was $ 179 million and $ 786 million, and the outstanding balance of borrowing principal and interest was $ 131 million and $ 602 million. For the years ended December 31, 2024 and 2025, the net interest revenue of the Trust was $ 5 million and $ 45 million.
Off-Balance Sheet Risk
Coastal Bank Program Agreement
Under a program agreement between us and Coastal Bank (the “Program Agreement”) most recently amended in November 2023, Coastal Bank may fund up to $ 300  million of credit card receivables. Robinhood Credit pays Coastal Bank interest based on the average balance of advances during the month at the federal funds rate plus a margin of 3.75 % on the first $ 150  million and 3.00 % on such amounts in excess of $ 150  million.

The credit card receivables and the funding from Coastal Bank are off-balance sheet, considering Coastal Bank is the legal lender and originator, the party to which the customer has a creditor-borrower relationship, and the legal owner of the receivables. As of December 31, 2025, the off-balance sheet credit card receivables funded under the Program Agreement was $ 200 million.

Transaction Settlement

Our users have ownership of the securities they transact on our platforms, including those that collateralize margin loans, and, as a result, such securities are not presented on our consolidated balance sheets. In the normal course of business, we engage in activities involving settlement and financing of securities transactions. User securities transactions are recorded on a settlement date basis. The settlement date for equities and options is one business day after the trade date. These activities may expose us to off-balance sheet risk in the event that the other party to the transaction is unable to fulfill its
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contractual obligations. In such events, we may be required to purchase financial instruments at prevailing market prices in order to fulfill our obligations.
Cryptocurrency Held in Custody on Behalf of Users

We hold cryptocurrencies in custody on behalf of our users which includes staked assets on our platform, totaling $ 35.2 billion and $ 38.2 billion at fair value at December 31, 2024 and 2025, and these assets were not recorded on our consolidated balance sheets. The fair value was determined based on observed market pricing representing the last price executed for trades of each cryptocurrency at period ends. We also considered whether a liability representing anticipated losses from crypto assets which we hold in custody on behalf of users should be recognized and determined the likelihood of such losses was remote. As such, we did not record a liability at December 31, 2024 and 2025.

NOTE 12: COMMON STOCK AND STOCKHOLDERS’ EQUITY
Preferred Stock
Pursuant to our Charter, our board of directors may issue shares of our preferred stock in one or more series and, subject to the applicable law of the State of Delaware, our board of directors may set the powers, rights, preferences, qualifications, limitations and restrictions of such preferred stock. As of December 31, 2025, no terms of the preferred stock were designated, and no shares of preferred stock were outstanding.
Common Stock
Voting Rights
We have three authorized classes of common stock: Class A, Class B, and Class C. Holders of our Class A common stock are entitled to one vote per share on all matters to be voted upon by our stockholders, holders of our Class B common stock are entitled to 10 votes per share on all matters to be voted upon by our stockholders and, except as otherwise required by applicable law, holders of our Class C common stock are not entitled to vote on any matter to be voted upon by our stockholders. The holders of our Class A common stock and Class B common stock vote together as a single class, unless otherwise required by our Charter or applicable law.
Conversion of Class B Common Stock
Each share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock. All Class B common stock will automatically convert (as a class) into Class A common stock upon the earliest of (i) the date and time specified by the affirmative vote of the holders of at least 80 % of the then-outstanding shares of Class B common stock, voting separately as a class, (ii) the date fixed by our board of directors that is no less than 61 days and no more than 180 days following the date on which the number of then-outstanding shares of Class B common stock represents less than 5 % of the aggregate number of shares of Class A common stock and Class B common stock then outstanding, (iii) the date fixed by our board of directors that is no less than 61 days and no more than 180 days following the date that (A) each founder is no longer providing services to our Company as an officer, employee, or consultant and (B) each founder is not a director of our Company as a result of a voluntary resignation by such founder from our board of directors or as a result of a written request or agreement by such founder not to be renominated as a director of our Company at an annual or special meeting of stockholders, (iv) nine months after the death or total disability of both founders (subject to a delay of up to 18 months as may be approved by a majority of our independent directors), or (v) August 2, 2036, the date that is 15 years from the completion of our IPO.
Shares of Class B common stock will also automatically convert into shares of Class A common stock upon sale or transfer except for certain permitted transfers described in our Charter. In addition, each
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share of Class B common stock held by a stockholder who is a natural person, or held by permitted transferees or permitted entities of such natural person (each as described in our Charter) will automatically convert into shares of Class A common stock nine months following the death or total disability of such natural person (subject to a delay of up to 18 months as may be approved by a majority of our independent directors). Notwithstanding the foregoing, in the event such natural person is a founder, to the extent (i) a person designated by such founder and approved by a majority of the independent directors then in office or (ii) the other founder, in each case, has or shares voting control over the shares of Class B common stock held by the deceased or disabled founder, such shares will be treated as being held of record by such person or other founder and will not convert into shares of Class A common stock as a result of such founder’s death or total disability.

Conversion of Class C Common Stock
Upon the conversion or exchange of all outstanding shares of our Class B common stock into shares of Class A common stock, each outstanding share of Class C common stock will convert automatically into one share of Class A common stock on the date or time fixed by our board of directors.
Dividend Rights
Subject to the rights of any holders of our preferred stock, the holders of our common stock will be entitled to receive ratable dividends, if any, as may be declared from time to time by our board of directors out of funds legally available for the payment of dividends.
Right to Receive Liquidation Distributions
If we liquidate, dissolve or wind up, after all liabilities and, if applicable, the holders of each series of our preferred stock have been paid in full, the holders of our common stock will be entitled to share ratably in all remaining assets.
No Preemptive or Similar Rights
Our common stock has no preemptive or conversion rights or other subscription rights. No redemption or sinking fund provisions are applicable to our common stock. The rights, preferences and privileges of the holders of our common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of our preferred stock that we may designate and issue in the future.
Warrants
As of December 31, 2025, we had outstanding warrants with a strike price of $ 26.60 that can be exercised to purchase 8.74 million shares of Class A common stock. The warrants expire on February 12, 2031 and can be exercised with cash or net shares settled at the holder’s option. For the year ended December 31, 2025, 4.13 million warrants had been exercised via net settlement, resulting in 2.82 million shares of Class A common stock issued, and the maximum purchase amount of all remaining outstanding warrants was $ 232 million.
Share Repurchases
On May 28, 2024, we announced that our board of directors approved the Repurchase Program authorizing the Company to repurchase up to $ 1  billion of its outstanding Class A common stock. 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. While the Repurchase Program does not have an expiration date, we expect to execute over the next roughly two years with flexibility to accelerate if market conditions warrant. The timing and amount of repurchase transactions will be determined by us from time to time at our discretion based on our evaluation of market conditions, share price, and other factors. Repurchase transactions may be made using a variety of methods, such as open
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market share repurchases, including the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, or other financial arrangements or transactions. The Repurchase Program does not obligate us to acquire any particular amount of Class A common stock and the Repurchase Program may be suspended or discontinued at any time at our discretion. All shares repurchased will be subsequently retired. For the year ended December 31, 2025, we repurchased approximately 12 million shares of our Class A common stock for $ 653 million.
Equity Incentive Plans
2021 Omnibus Incentive Plan
Our 2021 Plan became effective on July 27, 2021, and provides for the grant of share-based awards (such as options, including ISOs, NSOs, SARs, RSAs, RSUs, performance units, and other equity-based awards) and cash-based awards. Under the 2021 Plan, options could be granted with an exercise price per share not less than the fair market value at the date of grant. Options granted generally vest over a four-year term from the date of grant, at a rate of 25 % after one year , then quarterly on a straight-line basis thereafter. Generally, options granted are exercisable for up to seven years from the date of grant. RSUs granted mostly vest quarterly on a straight-line basis and expire ten years from the date of grant.
As of December 31, 2025, an aggregate of 492 million shares had been authorized for issuance under the 2013 Plan, 2020 Plan, and 2021 Plan, of which 174 million shares had been issued under the plans, 11 million shares were reserved for issuance upon the exercise or settlement of outstanding equity awards under the plans, and 307 million shares remained available for new grants under the 2021 Plan. On January 1, 2026, an additional 45 million shares became available for grant under the 2021 Plan pursuant to its annual evergreen feature.
Stock Option Activity
A summary of stock option activity for the year ended December 31, 2025 is as follows:

Number of Shares Weighted-Average Exercise Price Weighted- Average Remaining Life Total Intrinsic Value
(in millions)

Balance at December 31, 2024 7,843,554 $ 4.49   2.8 $ 257  
Granted during the period —   —  
Exercised during the period ( 4,206,007 ) 3.71  
Expired during the period ( 538,191 ) 0.18  
Forfeited during the period ( 65,377 ) 14.15  
Balance at December 31, 2025 3,033,979   $ 6.12   2.29 $ 325  
Options vested and expected to vest at December 31, 2025 3,033,979 $ 6.12   2.29 $ 325  
Options exercisable at December 31, 2025 2,945,987 $ 5.88   2.27 $ 316  

No options were granted during 2023, 2024 and 2025. The total intrinsic value of options exercised during 2023, 2024 and 2025 was $ 20  million, $ 74  million, and $ 304  million. The intrinsic value is calculated as the difference between the exercise price of the underlying stock option award and the market value of the stock at the time of exercise. The total grant date fair value of options that vested during 2023, 2024 and 2025 was $ 7  million, $ 3  million, and $ 2  million.
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Time-Based RSUs
We grant RSUs that vest upon the satisfaction of a time-based service condition. The following table summarizes the activity related to our Time-Based RSUs for the year ended December 31, 2025:

Number of RSUs Weighted- average grant date fair value
Unvested at December 31, 2024 18,233,088   $ 15.20  
Granted 6,192,563   50.86  
Vested ( 14,548,770 ) 21.28  
Forfeited ( 2,230,494 ) 24.12  
Unvested at December 31, 2025 7,646,387   $ 29.92  

The fair value of Time-Based RSUs vested during 2023, 2024, and 2025 was $ 490  million, $ 439  million, and $ 1.1  billion, respectively.
Market-Based RSUs
In 2019 and 2021, we granted RSUs to our founders under which vesting is conditioned upon both the achievement of share price targets and the continued employment by each recipient over defined service periods. There were no Market-Based RSUs granted during 2023 and 2024. 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.
In February 2023, we cancelled the 2021 Market-Based RSUs of 35.5  million unvested shares. We recognized $ 485  million SBC expense related to the cancellation during the year ended December 31, 2023 , which was included in the general and administrative expense in our consolidated statements of operations. No further expense associated with these awards was recognized after the cancellation. No other payments, replacement equity awards or benefits were granted in connection with the cancellation.
The fair value of Market-Based RSUs that vested during 2023, 2024 and 2025 was $ 5  million,$ 4  million and $ 1.1  billion.
2021 Employee Share Purchase Plan
Our ESPP became effective on July 27, 2021 and enables eligible employees to purchase shares of our common stock at a discount through payroll deductions of up to 15 % of their eligible compensation up to the statutory maximum. The purchase price is equal to 85 % of the fair market value of a share of our common stock on the first date of an offering or the date of purchase, whichever is lower. The ESPP has an automatic rollover feature, whereby employees begin a new 12-month offering period if the fair value of the Company’s common stock on a purchase date is less than that on the original offering date.
The aggregate number of shares reserved for issuance under the ESPP will automatically increase on the first day of each calendar year beginning on January 1, 2022 and ending with (and including) January 1, 2031. Such annual increase will be equal to the lesser of (i) 1 % of the outstanding shares of all classes of our common stock on the last day of the immediately preceding calendar year and (ii) such number of shares determined by the board of directors. No more than 200 million shares of common stock may be issued under our ESPP.
In the year ended December 31, 2025 , 0.8 million shares were purchased under the ESPP at a weighted-average price of $ 29.85 . The fair value of shares to be issued under our ESPP was estimated on the grant date using the Black-Scholes option pricing model. As of December 31, 2025 , approximately 44.9 million shares remained available for issuance under the ESPP. On January 1, 2026, an additional
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9.0 million shares became authorized for issuance under the ESPP pursuant to its annual evergreen feature.

Acquisition of TradePMR
In connection with the acquisition of TradePMR, we issued 2,049,711 unvested shares of Class A common stock, valued at approximately $ 100  million as of the closing date of the acquisition, that will vest over a four-year period post-acquisition, subject to the terms of a vesting agreement. These shares are not part of the equity incentive plans described above. Shares of unvested restricted stock have the same voting rights as all other Class A common stock and are considered to be issued and outstanding. The following table summarizes the activity for the year ended December 31, 2025:

Number of RSUs Weighted- average grant date fair value
Unvested at December 31, 2024 —   $ —  
Issued 2,049,711   48.85  
Vested —   —  
Forfeited —   —  
Unvested at December 31, 2025 2,049,711   $ 48.85  

Share-Based Compensation
SBC is part of employee compensation, benefits, and overhead in each of the financial statement line items in the consolidated statements of operations except for provision for credit losses. The following table presents SBC in our consolidated statements of operations for the periods indicated:

Year Ended December 31,
(in millions) 2023 2024 2025
Brokerage and transaction $ 7   $ 9   $ 10  
Technology and development 211   192   159  
Operations 8   7   6  
Marketing 5   8   8  
General and administrative 640   88   122  
Total $ 871   $ 304   $ 305  

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( 1) For the year ended December 31, 2023 and 2024, SBC expense primarily consisted of $ 292 million and $ 300 million related to Time-Based RSUs. For the same periods, SBC expense also consisted of $ 567 million and negative $ 8 million related to Market-Based RSUs as a result of a reversal of $ 11  million of previously recognized expense related to unvested awards that were forfeited upon the resignation of our co-founder and former Chief Creative Officer during the first quarter of 2024. For the year ended 2025, SBC expense primarily consisted of $ 293 million related to Time-Based RSUs.
The tax benefits recognized in the consolidated statements of operations for SBC were $ 73  million, $ 154 million, and $ 307 million for year ended December 31, 2023, 2024 and 2025.
We have capitalized SBC expense related to internally developed software of $ 17 million , $ 26 million , and $ 23 million for years 2023, 2024 and 2025.
As of December 31, 2025 , there was $ 277 million of unrecognized SBC expense that is expected to be recognized over a weighted-average period of 1.13 years .
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NOTE 13: NET INCOME (LOSS) PER SHARE
The following table presents the calculation of basic and diluted income (loss) per share:

(in millions, except share and per share data)
Year Ended December 31,
2023 2024 2025
Class A
Class B
Class A
Class B
Class A
Class B

Basic EPS:

Numerator

Net income (loss)
$ ( 465 ) $ ( 76 ) $ 1,214   $ 197   $ 1,641   $ 242  
Net income (loss) attributable to non-controlling interest
—   —   —   —   —   —  
Net income (loss) attributable to Robinhood common stockholders
$ ( 465 ) $ ( 76 ) $ 1,214   $ 197   $ 1,641   $ 242  
Denominator

Weighted-average common shares outstanding - basic
763,580,698   127,276,961   758,213,055   122,900,101   774,107,256   114,397,702  
Basic EPS $ ( 0.61 ) $ ( 0.61 ) $ 1.60   $ 1.60   $ 2.12   $ 2.12  

Diluted EPS:

Numerator

Net income (loss)
$ ( 465 ) $ ( 76 ) $ 1,214   $ 197   $ 1,641   $ 242  
Net income (loss) attributable to non-controlling interest
—   —   —   —   —   —  
Net income (loss) attributable to Robinhood common stockholders
$ ( 465 ) $ ( 76 ) $ 1,214   $ 197   $ 1,641   $ 242  
Reallocation of net income (loss) as a result of conversion of Class B to Class A common stock
—   —   197   —   242   —  
Reallocation of net income (loss) to Class B common stock
—   —   —   ( 5 ) —   ( 8 )
Net income (loss) attributable to Robinhood common stockholders for diluted EPS
$ ( 465 ) $ ( 76 ) $ 1,411   $ 192   $ 1,883   $ 234  
Denominator

Weighted-average common shares outstanding - basic
763,580,698   127,276,961   758,213,055   122,900,101   774,107,256   114,397,702  
Dilutive effect of stock options, warrants, and unvested shares
—   —   25,058,348   —   30,276,888   —  
Conversion of Class B to Class A common stock
—   —   122,900,101   —   114,397,702   —  
Weighted-average common shares outstanding - diluted
763,580,698   127,276,961   906,171,504   122,900,101   918,781,846   114,397,702  
Diluted EPS
$ ( 0.61 ) $ ( 0.61 ) $ 1.56   $ 1.56   $ 2.05   $ 2.05  

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The following potential common shares were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive or issuance of such shares is contingent upon the satisfaction of certain conditions that were not satisfied by the end of the period:

  Year Ended December 31,
2023 2024 2025
Time-Based RSUs 34,625,253   828,224   24,418  
Market-Based RSUs 22,476,722   11,065,463   —  
Stock options 12,141,566   —   —  
Warrants 14,278,034   12,868,262   —  
ESPP
305,692   —   —  
Total anti-dilutive securities 83,827,267   24,761,949   24,418  

NOTE 14: LEASES
Our operating leases are comprised of office facilities, with the most significant leases relating to our corporate headquarters in Menlo Park, CA and our office in New York City, NY. Our leases have remaining terms of one year to ten years , and many leases include one or more options to renew. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. We do not have any finance leases.
Lease assets and liabilities recognized on our consolidated balance sheets were as follows:

December 31,
(in millions) Classification 2024 2025
Lease right-of-use assets:
Operating lease assets Other non-current assets $ 94   $ 182  

Lease liabilities:
Current operating lease liabilities Other current liabilities 21   22  
Non-current operating lease liabilities Other non-current liabilities 110   199  
Total lease liabilities $ 131   $ 221  

Fixed operating lease costs primarily consist of monthly base rent amounts due. Variable operating lease costs primarily relate to common area maintenance, property taxes, insurance, and other operating expenses. The components of lease expense were as follows:

Year Ended December 31,
(in millions) 2023 2024 2025
Fixed operating lease costs $ 21   $ 22   $ 29  
Variable operating lease costs 7   8   9  
Short-term lease costs 1   1   3  
Sublease income ( 3 ) ( 6 ) ( 4 )
Total lease costs $ 26   $ 25   $ 37  

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Other information related to our operating leases was as follows:

December 31,
2024 2025
Weighted-average remaining lease term 6.86 years 7.56 years
Weighted-average discount rate 6.92   % 6.62   %

Cash flows related to leases were as follows:

Year Ended December 31,
(in millions) 2023 2024 2025
Operating cash flows:
Payments for operating lease liabilities $ 39   $ 28   $ 30  
Supplemental cash flow data:
Lease liabilities arising from obtaining right-of-use assets (1)
$ ( 8 ) $ 42   $ 106  

_______________
(1) For the year ended December 31, 2023, lease liabilities arising from obtaining right-of-use assets primarily related to a lease modification, partially offset by remeasurements resulting from reassessments of existing lease terms. For the year ended December 31, 2024, lease liabilities arising from obtaining right-of-use assets primarily related to initial recognition of new leases and lease extensions. For the year ended December 31, 2025, lease liabilities arising from obtaining right-of-use assets primarily related to initial recognition of new leases and amendments to existing leases.

Future minimum lease payments under non-cancellable operating leases (with initial lease terms in excess of one year) as of December 31, 2025 are as follows:

(in millions)
2026 $ 35  
2027 46  
2028 44  
2029 43  
2030 40  
Thereafter 126  
Total undiscounted lease payments 334  
Less: imputed interest ( 72 )
Less: lease incentives ( 38 )
Less: leases executed but not yet commenced ( 3 )
Total lease liabilities $ 221  

NOTE 15: COMMITMENTS & CONTINGENCIES
We are subject to contingencies arising in the ordinary course of our business, including contingencies related to legal, regulatory, non-income tax and other matters. We record an accrual for loss contingencies at management’s best estimate when we determine that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. If the reasonable estimate is a range and no amount within that range is considered a better estimate than any other amount, an accrual is recorded based on the bottom amount of the range. If a loss is not probable, or a probable loss cannot be reasonably estimated, no accrual is recorded. Amounts accrued for contingencies in the aggregate were $ 128 million and $ 71 million as of December 31, 2024 and 2025. In our opinion, an adequate
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accrual had been made as of each such date to provide for the probable losses of which we are aware and for which we can reasonably estimate an amount.
Legal and Regulatory Matters
The securities industry, and many other industries in which we operate, are highly regulated and many aspects of our business involve substantial risk of liability. In past years, there has been an increase in litigation and regulatory investigations involving the brokerage, cryptocurrency, derivatives, advisory, and credit card industries. Litigation has included and may in the future include class action suits that generally seek substantial and, in some cases, punitive damages. Federal and state regulators, exchanges, other SROs, or international regulators investigate issues related to regulatory compliance that may result in enforcement action. We are also subject to periodic regulatory audits and inspections that have in the past and could in the future lead to enforcement investigations or actions.
We have been named as a defendant in lawsuits and from time to time we have been threatened with, or named as a defendant in arbitrations and administrative proceedings. The outcomes of these matters are inherently uncertain and some may result in adverse judgments or awards, including penalties, injunctions, or other relief, and we may also determine to settle a matter because of the uncertainty and risks of litigation.
With respect to matters discussed below, we believe, based on current knowledge, that any losses (in excess of amounts accrued, if applicable) as of December 31, 2025 that are reasonably possible and can be reasonably estimated will not, in the aggregate, have a material adverse effect on our business, financial position, operating results, or cash flows. However, for many of the matters disclosed below, particularly those in early stages, we cannot reasonably estimate the reasonable possible loss (or range of loss), if any. In addition, the ultimate outcome of legal proceedings involves judgments and inherent uncertainties and cannot be predicted with certainty. Any judgment entered against us, or any adverse settlement, could materially and adversely impact our business, financial condition, operating results, and cash flows. We might also incur substantial legal fees, which are expensed as incurred, in defending against legal and regulatory claims.
Described below are certain pending matters in which there is at least a reasonable possibility that a material loss could be incurred. We intend to continue to defend these matters vigorously.
Best Execution, Payment for Order Flow, and Sources of Revenue Civil Litigation
Beginning in December 2020, multiple putative securities fraud class action lawsuits were filed against RHM, RHF, and RHS. Five cases were consolidated in the U.S. District Court for the Northern District of California. An amended consolidated complaint was filed in May 2021, alleging violations of Section 10(b) of the Exchange Act and various state law causes of action based on claims that we violated the duty of best execution and misled putative class members by publishing misleading statements and omissions in customer communications relating to the execution of trades and revenue sources (including PFOF). Plaintiffs seek unspecified monetary damages, restitution, disgorgement, and other relief. In February 2022, the court granted Robinhood’s motion to dismiss the amended consolidated complaint without prejudice. In March 2022, plaintiffs filed a second consolidated amended complaint, alleging only violations of Section 10(b) of the Exchange Act, which Robinhood moved to dismiss. In October 2022, the court granted Robinhood’s motion in part and denied it in part. In November 2022, Robinhood filed a motion for judgment on the pleadings, which the court denied in January 2023. In March 2024, Plaintiffs filed a motion for class certification, which Robinhood opposed. In October 2024, the court denied class certification without prejudice. Plaintiffs filed a renewed motion for class certification in January 2025, which Robinhood is opposing. In June 2025, Robinhood agreed to a settlement in principle with plaintiffs, which the court has preliminarily approved.
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State Regulatory Matters
The New York Attorney General is conducting an investigation into brokerage execution quality and collaring the prices of certain trade orders. The MSD is examining RHF’s customer complaint supervision, the disruptions experienced by BOATS during the Robinhood 24 Hour Market overnight trading session on August 4-5, 2024, and the offerings of presidential election and sports event contracts. We are cooperating with these investigations. In December 2025, the Florida Attorney General advised us that it had closed the previously disclosed investigation concerning, among other things, representations about cryptocurrency trading costs and/or fees.
Brokerage Enforcement Matters

The FINRA Enforcement and Examination staff are conducting investigations related to, among other things, disruptions experienced by BOATS during the Robinhood 24 Hour Market overnight trading session on August 4-5, 2024. In December 2025, FINRA advised us in writing that it had closed the previously disclosed investigation into RHS’s and RHF’s compliance with best execution obligations.
The FDIC is investigating issues related to compliance with the EFTA.

Early 2021 Trading Restrictions Matters

Beginning on January 28, 2021, due to increased deposit requirements imposed on RHS by the NSCC in response to unprecedented market volatility, particularly in certain securities, RHS temporarily restricted or limited its customers’ purchase of certain securities, including GameStop Corp. and AMC Entertainment Holdings, Inc., on our U.S. trading platform (the “Early 2021 Trading Restrictions”).
A number of individual and putative class actions related to the Early 2021 Trading Restrictions were filed against RHM, RHF, and RHS, among others, in various federal and state courts and in arbitrations. In April 2021, the Judicial Panel on Multidistrict Litigation entered an order centralizing the federal cases identified in a motion to transfer and coordinate or consolidate the actions filed in connection with the Early 2021 Trading Restrictions in the U.S. District Court for the Southern District of Florida. The court subsequently divided plaintiffs’ claims against Robinhood into three tranches: federal antitrust claims, federal securities law claims, and state law claims. In July 2021, plaintiffs filed consolidated complaints seeking unspecified monetary damages in connection with the federal antitrust and state law tranches. The federal antitrust complaint asserted one violation of Section 1 of the Sherman Act; the state law complaint asserted negligence and breach of fiduciary duty claims. In August 2021, we moved to dismiss both of these complaints.
In January 2022, the court dismissed the state law claims with prejudice. In August 2023, the United States Court of Appeals for the Eleventh Circuit affirmed the district court’s order.

In May 2022, the court dismissed the federal antitrust claims with prejudice. In June 2024, the United States Court of Appeals for the Eleventh Circuit affirmed the district court’s order.

In November 2021, plaintiffs for the federal securities tranche filed a complaint alleging violations of Sections 9(a) and 10(b) of the Exchange Act. The complaint seeks unspecified monetary damages, costs and expenses, and other relief. In January 2022, we moved to dismiss the federal securities law complaint. In August 2022, the court granted in part and denied in part Robinhood’s motion to dismiss. In November 2023, the court denied Plaintiffs’ motion for class certification without prejudice. In April 2024, the court denied Plaintiffs’ motion for leave to file a renewed motion for class certification. On May 28, 2024, Robinhood notified the court that it had reached a settlement in principle with the Plaintiffs in their individual capacities. Robinhood subsequently notified the court that one of these Plaintiffs was unwilling to sign the settlement agreement and requested additional time to negotiate with that individual. On August 14, 2024, the court dismissed the lead and named Plaintiffs’ claims. Robinhood has reached
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settlements with a number of remaining individual plaintiffs. Robinhood’s motion to compel arbitration for the remaining Robinhood customer plaintiffs has been granted.

RHM, RHF, RHS, and our CEO, Vladimir Tenev, among others, have received requests for information, and in some cases, subpoenas and requests for testimony, related to investigations and examinations of the Early 2021 Trading Restrictions from USAO, DOJ, Antitrust Division, the New York Attorney General’s Office, other state attorneys general offices, and a number of state securities regulators. Also, a related search warrant was executed by the USAO to obtain Mr. Tenev’s cell phone. There have been several inquiries based on specific customer complaints. As previously disclosed, on March 6, 2025, we resolved FINRA’s investigation into these matters as part of the March 2025 FINRA Settlement (as defined above).

IPO Litigation
In December 2021, Philip Golubowski filed a putative class action in the U.S. District Court for the Northern District of California against RHM, the officers and directors who signed Robinhood’s IPO offering documents, and Robinhood’s IPO underwriters. Plaintiff’s claims are based on alleged false or misleading statements in Robinhood’s IPO offering documents allegedly in violation of Sections 11 and 12(a) of the Securities Act. Plaintiff seeks unspecified compensatory damages, rescission of shareholders’ share purchases, and an award for attorneys’ fees and costs. In February 2022, certain alleged Robinhood stockholders submitted applications seeking appointment by the court to be the lead plaintiff to represent the putative class in this matter, and in March 2022, the court appointed lead plaintiffs. In June 2022, plaintiffs filed an amended complaint. In August 2022, Robinhood filed a motion to dismiss the complaint. In February 2023, the court granted Robinhood’s motion without prejudice. In March 2023, plaintiffs filed a second amended complaint. In January 2024, the court granted Robinhood’s motion to dismiss the second amended complaint without leave to amend. In February 2024, plaintiffs filed a notice of appeal to the Ninth Circuit. On August 29, 2025, the Ninth Circuit issued its opinion affirming in part and reversing in part the district court. Robinhood’s petition for rehearing en banc was denied. In December 2025, Robinhood requested an extension of time to file its petition for a writ of certiorari in the United States Supreme Court.
In January 2022, Robert Zito filed a complaint derivatively on behalf of Robinhood against Robinhood’s directors at the time of its IPO in the U.S. District Court for the District of Delaware. Plaintiff alleges breach of fiduciary duties, waste of corporate assets, unjust enrichment, and violations of Section 10(b) of the Exchange Act. Plaintiff’s claims are based on allegations of false or misleading statements in Robinhood’s IPO offering documents, and plaintiff seeks an award of unspecified damages and restitution to the Company, injunctive relief, and an award for attorney’s fees and costs. In March 2022, the district court entered a stay of this litigation pending resolution of Robinhood’s motion to dismiss in the Golubowski securities action discussed above.
In August 2022, a shareholder sent a letter to the RHM board of directors demanding, among other things, that the board of directors pursue causes of action on behalf of the Company related to allegations of misconduct in connection with the Early 2021 Trading Restrictions, Robinhood’s IPO offering documents, and the November 2021 Data Security Incident. The board of directors has formed a Demand Review Committee. The board of directors has rejected the demand in part and the Demand Review Committee continues to review the remaining part.
Pay Transparency Litigation
In July 2024, RHM, RHY, and RHC were sued in a putative class action captioned John Milito v. Robinhood Markets, Inc. et. al. , alleging that Robinhood violated Washington’s Equal Pay and Opportunity Act, because some of the Company’s job postings allegedly failed to include a wage scale or salary range. The complaint seeks unspecified total statutory damages, attorneys’ fees and costs, injunctive relief, and declaratory relief. The case was stayed in the Superior Court in King County in Washington pending a certified question to the Washington Supreme Court. In September 2025, the
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Washington Supreme Court issued an opinion addressing the certified question and held that a job applicant for a job posting that failed to include a wage scale or salary range does not need to prove they are a “bona fide” or “good faith” applicant to obtain remedies under the applicable statute. The stay has been lifted and the case is proceeding in discovery.
Cash Sweep Litigation
In October 2024, RHM, RHF, and RHS were sued in a putative class action captioned Dey v. Robinhood Markets, Inc. et. al., in the U.S. District Court for the Northern District of California. Plaintiff asserts breach of fiduciary duty, gross negligence, negligent misrepresentation and omissions, breach of implied covenant of good faith and dealing, and violation of California’s unfair competition law based on allegations that defendants failed to pay a reasonable rate of interest to non-Robinhood Gold brokerage account holders on cash balances swept to program bank deposit programs. The complaint seeks, among other things, certification of the class, unspecified monetary, punitive, treble, and statutory damages, restitution, disgorgement, attorneys’ fees and costs, injunctive relief, and declaratory relief. In January 2025, Robinhood filed a motion to dismiss. On April 28, 2025, the court granted in part and denied in part Robinhood’s motion to dismiss. In May 2025, RHM, RHF, and RHS were sued in a putative class action captioned Deeney v. Robinhood Markets, Inc. et al., in the U.S. District Court for the Northern District of California, which also made allegations related to Robinhood’s cash sweep program. The complaint sought, among other things, certification of the class, unspecified monetary damages, attorneys’ fees and costs, and restitution. The parties in Dey and Deeney have agreed to consolidate the matters and Plaintiffs have filed an amended consolidated complaint. The complaint seeks, among other things, certification of the class, unspecified monetary, punitive, treble, and statutory damages, restitution, disgorgement, attorneys’ fees and costs, injunctive relief, and declaratory relief. Robinhood moved to dismiss the complaint, which was granted in part and denied in part. The case is proceeding in discovery.
Event Contracts Litigation
In June 2025, RHM and RHD were sued along with several co-defendants, in state court in six states (Georgia, Illinois, Kentucky, Massachusetts, Ohio and South Carolina) by Georgia Gambling Recovery LLC, Illinois Gambling Recovery LLC, Kentucky Gambling Recovery LLC, Massachusetts Gambling Recovery LLC, Ohio Gambling Recovery LLC, and South Carolina Gambling Recovery LLC respectively. Each plaintiff asserts a claim under the respective state’s Statute of Anne, which are statutes that permit recovery of gambling losses under certain conditions, which vary by state. Each plaintiff seeks damages for losses allegedly sustained in trading certain event contracts, including damage multipliers in certain states, attorney’s fees and costs, and declaratory relief. Robinhood has removed all six cases to federal court. Each plaintiff is seeking to remand the matters. The court in Georgia denied plaintiff’s motion to remand.
In July 2025, RHM and RHD, among others, were sued by the Blue Lake Rancheria, Chicken Ranch Rancheria of Me-Wuk Indians, and Picayune Rancheria of the Chukchansi Indians (the “Blue Lake plaintiffs”) in the U.S. District Court for the Northern District of California. The complaint alleges that certain event contracts offered by RHD are unlawful sports gambling activity. The Blue Lake plaintiffs allege several causes of action including violation of the Indian Gaming Regulatory Act, violation of tribal gaming Ordinances, civil violation of the Racketeer Influenced and Corrupt Organizations Act (RICO), infringement of tribal sovereignty, and false advertising under the Lanham Act. The Blue Lake plaintiffs have asserted only the RICO cause of action against RHM and RHD. The complaint seeks injunctive relief, declaratory relief, damages, treble damages, costs, and attorney’s fees. In September 2025, the Blue Lake plaintiffs moved for a preliminary injunction. The court denied the motion and plaintiffs have appealed the denial to the United States Court of Appeals for the Ninth Circuit. In the district court, Robinhood has moved to dismiss the action.
In August 2025, a similar suit was filed against RHM and RHD, among others, by the Ho-Chunk Nation in the U.S. District Court for the Western District of Wisconsin alleging substantially the same facts and causes of action and seeking the same relief. The Ho-Chunk Nation is only asserting a claim for a
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civil violation of the RICO Act against RHM and RHD. In December 2025, the plaintiff moved for a preliminary injunction, which Robinhood has opposed. Robinhood has also moved to dismiss the action.
In August 2025, RHD filed suits in the U.S. District Court for the District of Nevada and U.S. District Court for the District of New Jersey seeking injunctive relief from enforcement of Nevada and New Jersey state gaming laws respectively. In September 2025, RHD filed suit in the U.S. District Court for the District of Massachusetts seeking similar injunctive relief from enforcement of Massachusetts state gaming laws. New Jersey has agreed to a preliminary injunction pending the outcome of its appeal in the Third Circuit of the grant of a preliminary injunction in a similar case brought by KalshiEx LLC. In Nevada, the court denied RHD’s motion for a preliminary injunction. Robinhood has agreed to cease offering new sports-related event contracts in Nevada as of December 1, 2025, and to take action to explore unwinding longer-duration open sports-related event contracts in Nevada, in exchange for the State’s agreement to refrain from enforcing its state gaming laws during the pendency of RHD’s appeal. RHD has appealed the decision to the United States Court of Appeals for the Ninth Circuit and moved for an injunction pending appeal, which remains pending. In Massachusetts, the court initially dismissed RHD’s suit as unripe. RHD’s motion for reconsideration was granted. RHD has filed an amended complaint and renewed its motion for a preliminary injunction. Massachusetts has agreed to refrain from enforcing its state gaming laws pending: (1) a decision on RHD’s pending preliminary injunction motion; (2) a final decision on the injunction from a Massachusetts appellate court in KalshiEx’s state court enforcement litigation; and (3) any stay (if ordered) is lifted in KalshiEx’s state court enforcement litigation.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES
None.

ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2025. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of December 31, 2025, our disclosure controls and procedures were effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
Management's Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the U.S. Our management, under the oversight of our board of directors, evaluated the effectiveness of our internal control over financial reporting as of December 31, 2025 based on the framework in Internal Control-Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission.
In accordance with guidance issued by the staffs of the SEC’s Office of the Chief Accountant and the Division of Corporation Finance, companies are permitted to exclude acquisitions from their assessment
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of internal control over financial reporting for the first fiscal year in which the acquisition occurred. Our management’s evaluation of internal control over financial reporting excluded the internal control activities of TradePMR, which we acquired on February 26, 2025, and Bitstamp, which we acquired on June 2, 2025, as discussed in Note 3 - Business Combinations, to our consolidated financial statements in this Annual Report. We have included the financial results of these acquisitions in the consolidated financial statements from the date of acquisition. Total net revenues and total assets subject to TradePMR’s internal control over financial reporting represented less than one percent of both our consolidated total net revenues and total assets for the fiscal year ended and as of December 31, 2025. Total net revenues subject to Bitstamp’s internal control over financial reporting represented one percent of our consolidated total net revenues for the fiscal year ended December 31, 2025. Total assets subject to Bitstamp’s internal control over financial reporting represented four percent of our consolidated total assets as of December 31, 2025. We are in the process of evaluating and integrating TradePMR and Bitstamp into our system of internal control over financial reporting.
Based on this evaluation, our management concluded that our internal control over financial reporting was effective as of December 31, 2025.
Our independent registered public accounting firm, Ernst & Young LLP, who audited the Consolidated Financial Statements included in this Annual Report on Form 10-K, issued an audit report on the Company ’ s internal control over financial reporting. That Report of Independent Registered Public Accounting Firm is included in Item 8 of this Annual Report on Form 10-K.
Changes in Internal Control Over Financial Reporting
There has been no change in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended December 31, 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Inherent Limitations on Effectiveness of Controls
Our management, including our Chief Executive Officer and Chief Financial Officer, believes that our disclosure controls and procedures and internal control over financial reporting are designed to provide reasonable assurance of achieving their objectives and are effective at the reasonable assurance level. However, management does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the company have been detected. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud might occur without being detected.

ITEM 9B. OTHER INFORMATION
On November 13, 2025 , Baiju Prafulkumar Bhatt Living Trust , an entity controlled by Baiju Bhatt, a member of our Board of Directors , adopted a “Rule 10b5-1 trading arrangement” (as defined in Item 408(a) of Regulation S-K) intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act pursuant to which he may sell up to 3,000,000 shares of our Class A common stock on or prior to February 10, 2027 .
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On November 19, 2025 , Steven Quirk , our Chief Brokerage Officer , adopted a “Rule 10b5-1 trading arrangement” (as defined in Item 408(a) of Regulation S-K) intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act pursuant to which he may sell (i) up to 76,874 shares of our Class A common stock (less any shares previously sold under predecessor Rule 10b5-1 trading arrangements), (ii) up to 43,403 unvested RSUs (less any shares previously sold under predecessor Rule 10b5-1 trading arrangements and shares withheld for applicable taxes), (iii) up to 18,376 shares of our Class A common stock, and (iv) up to 261,816 unvested RSUs (less any shares withheld for applicable taxes), in each case on or prior to February 19, 2027 . RSUs convert into Class A common stock on a one-for-one basis upon vesting and settlement.
On December 2, 2025 , The Jonathan J. Rubinstein Trust , an entity controlled by Jonathan Rubinstein, a member of our Board of Directors , adopted a “Rule 10b5-1 trading arrangement” (as defined in Item 408(a) of Regulation S-K) intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act pursuant to which he may sell up to 26,475 shares of our Class A common stock on or prior to November 19, 2027 .
On December 2, 2025 , Paula Loop , a member of our Board of Directors , adopted a “Rule 10b5-1 trading arrangement” (as defined in Item 408(a) of Regulation S-K) intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act pursuant to which she may sell up to 15,036 RSUs on or prior to February 19, 2027 . RSUs convert into Class A common stock on a one-for-one basis upon vesting and settlement.
On December 9, 2025 , Dara Treseder , a member of our Board of Directors , adopted a “Rule 10b5-1 trading arrangement” (as defined in Item 408(a) of Regulation S-K) intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act pursuant to which she may sell up to 15,000 shares of our Class A common stock on or prior to February 20, 2027 .
In addition, certain of our officers may, from time to time, make elections to participate in our ESPP and to have shares withheld or sold to cover withholding taxes or pay the exercise price of options, which may be designed to satisfy the affirmative defense conditions of Rule 10b5-1 under the Exchange Act or may constitute “non-Rule 10b5-1 trading arrangements” (as defined in Item 408(c) of Regulation S-K).

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.
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Table of Contents

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
The information required by this item is incorporated by reference to our Proxy Statement for the 2026 Annual Meeting of Stockholders to be filed with the SEC within 120 days of the fiscal year ended December 31, 2025.

ITEM 11. EXECUTIVE COMPENSATION
The information required by this item is incorporated by reference to our Proxy Statement for the 2026 Annual Meeting of Stockholders to be filed with the SEC within 120 days of the fiscal year ended December 31, 2025.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
The information required by this item is incorporated by reference to our Proxy Statement for the 2026 Annual Meeting of Stockholders to be filed with the SEC within 120 days of the fiscal year ended December 31, 2025.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The information required by this item is incorporated by reference to our Proxy Statement for the 2026 Annual Meeting of Stockholders to be filed with the SEC within 120 days of the fiscal year ended December 31, 2025.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
The information required by this item is incorporated by reference to our Proxy Statement for the 2026 Annual Meeting of Stockholders to be filed with the SEC within 120 days of the fiscal year ended December 31, 2025.
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PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a)    The following documents are filed as part of this Annual Report: