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Item 2 — Management's Discussion and Analysis
Robinhood Markets, Inc. · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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This section presents management’s perspective on our financial condition and results of operations, including performance metrics that management uses to assess company performance. The following discussion and analysis is intended to highlight and supplement data and information presented elsewhere in this Quarterly Report, and should be read in conjunction with our interim unaudited condensed consolidated financial statements and notes elsewhere in this Quarterly Report and our audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our 2025 Form 10-K.
It is also intended to provide you with information that will assist you in understanding our consolidated financial statements, the changes in key items in those consolidated financial statements from year to year, and the primary factors that accounted for those changes. To the extent that this discussion describes prior performance, the descriptions relate only to the periods listed, which might not be indicative of our future financial outcomes. In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause results to differ materially from management’s expectations. Factors that could cause such differences are discussed in the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors.”
Data as of and for the three and six months ended June 30, 2025 and 2026 has been derived from our unaudited condensed consolidated financial statements appearing at the beginning of this Quarterly Report. Results for any interim period should not be construed as an inference of what our results would be for any full fiscal year or future period.
We refer to our “users” and our “customers” interchangeably throughout this Quarterly Report to refer to individuals who hold accounts on our platforms.
Overview
Robinhood was founded on the belief that everyone should be welcome to participate in our financial system. We are creating modern financial services platforms for everyone, regardless of their wealth, income, or background.
Our mission is to democratize finance for all. We use technology to provide access to the financial system in a way that is simple and convenient for our customers. We believe investing should be familiar and welcoming, with a simple design and an intuitive interface, so that customers are empowered to achieve their goals. We started with a revolutionary, bold brand and design in the Robinhood app which makes investing approachable for millions. Over the last decade, we have disrupted and changed the industry, becoming the first U.S. retail broker to offer commission-free stock trading with no account minimums, which was subsequently adopted by the rest of the industry. In recent years, we have continued to build relationships with our customers by introducing new products and diversifying our services that further expand access to the financial system, including focusing on products and tools for more seasoned investors. Through these efforts, we believe we have made investing culturally relevant and understandable, and that our platforms are enabling our customers to become long-term investors and take greater control of their finances.
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Financial Results and Performance
With respect to the three months ended June 30, 2026, as compared to the three months ended June 30, 2025:
•total net revenues increased 32% to $1,308 million compared to $989 million;
•net income attributable to Robinhood increased 45% to $561 million, compared to $386 million;
•diluted EPS increased 48% to $0.62, compared to $0.42;
•total operating expenses increased 33% to $734 million compared to $550 million;
•Adjusted EBITDA (non-GAAP) increased 35% to $741 million compared to $549 million;
•Funded Customers increased by 1.9 million, or 7%, to 28.4 million compared to 26.5 million, and Investment Accounts increased by 2.5 million, or 9%, to 29.9 million compared to 27.4 million;
•Total Platform Assets increased 32% to $368.7 billion compared to $278.6 billion, primarily driven by continued Net Deposits and higher equity valuations, partially offset by lower cryptocurrency valuations;
•Net Deposits were $21.7 billion, which translates to an annualized growth rate of 28% relative to Total Platform Assets at the end of the first quarter of 2026, compared to $13.8 billion, which translates to an annualized growth rate of 25% relative to Total Platform Assets at the end of the first quarter of 2025. Over the past twelve months, Net Deposits were $75.7 billion, a growth rate of 27% relative to Total Platform Assets at the end of the second quarter of 2025;
•ARPU increased 24% to $187 compared to $151; and
•Robinhood Gold Subscribers increased 39% to 4.84 million compared to 3.48 million.
Adjusted EBITDA is a non-GAAP financial measure. For more information about Adjusted EBITDA, including the definition and limitations of such measure, and a reconciliation of net income to Adjusted EBITDA, please see “—Non-GAAP Financial Measures” below.
Recent Developments
Workforce Reduction
On June 16, 2026, we announced a reduction in force as part of our efforts to maintain a high performance culture, further accelerate product velocity, and remain lean and disciplined. This reduction in force involved approximately 10% of our full-time employees, and additionally involved the closure of a small number of open roles across the Company.
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Key Performance Metrics
Key performance metrics for the relevant periods were as follows:
Three Months Ended June 30,
2025 2026 % Change
Funded Customers(1) (in millions) 26.5 28.4 7 %
Total Platform Assets(2) (in billions) $ 278.6 $ 368.7 32 %
Net Deposits (in billions) $ 13.8 $ 21.7 NM
Annualized Growth Rate with respect to Net Deposits 25% 28% NM
ARPU (in dollars) $ 151 $ 187 24 %
Robinhood Gold Subscribers (in millions) 3.48 4.84 39 %
________________
(1)The following table describes the annual changes within Funded Customers:
Three Months Ended June 30,
(in millions) 2025 2026 % Change
Beginning Funded Customers 25.8 27.4 6 %
New Funded Customers 0.6 0.9 50 %
Resurrected Customers 0.1 0.2 100 %
Acquired customers 0.5 0.3 NM
Churned Customers (0.5) (0.4) (20) %
Ending Funded Customers 26.5 28.4 7 %
(2)The following table sets out the components of Total Platform Assets by type of asset:
Three Months Ended June 30,
(in billions) 2025 2026 % Change
Equities $ 160.1 $ 265.5 66 %
Cryptocurrencies 41.1 26.3 (36) %
Options and futures 2.0 2.9 45 %
RIA assets 42.9 50.0 17 %
Cash held by Customers 41.8 45.6 9 %
Receivables from Customers (primarily margin balances) (9.3) (21.6) 132 %
Total Platform Assets $ 278.6 $ 368.7 32 %
The following table describes the changes within Total Platform Assets:
Three Months Ended June 30,
(in billions) 2025 2026 % Change
Beginning Total Platform Assets $ 220.6 $ 307.3 39 %
Acquired assets 8.9 0.7 NM
Net Deposits 13.8 21.7 NM
Net market gains 35.3 39.0 10 %
Ending Total Platform Assets $ 278.6 $ 368.7 32 %
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Non-GAAP Financial Measures
Adjusted EBITDA
We collect and analyze operating and financial data to evaluate the health of our business, allocate our resources and assess our performance. In addition to total net revenues, net income, and other results under GAAP, we utilize non-GAAP calculations of Adjusted EBITDA. Adjusted EBITDA is defined as net income attributable to Robinhood, excluding (i) net income (loss) attributable to non-controlling interests, (ii) interest expenses related to debt obligations, (iii) provision for (benefit from) income taxes, (iv) depreciation and amortization, (v) SBC, (vi) significant legal and tax settlements and reserves, and (vii) other significant gains, losses, and expenses (such as impairments, restructuring charges, and business acquisition-, or disposition-related expenses) that we believe are not indicative of our ongoing results. This non-GAAP financial information is presented for supplemental informational purposes only, should not be considered in isolation or as a substitute for, or superior to, financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies.
The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount and timing of these items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods and competitors less meaningful. We believe Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Moreover, Adjusted EBITDA is a key measurement used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.
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The following table presents a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net income:
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2025 2026 2025 2026
Net income attributable to Robinhood $ 386 $ 561 $ 722 $ 911
Net income (loss) attributable to non-controlling interests — 12 — 8
Net income 386 573 722 919
Add:
Interest expenses related to debt obligations 8 10 14 18
Provision for income taxes 56 136 91 201
Depreciation and amortization 21 23 41 46
EBITDA (non-GAAP) 471 742 868 1,184
Add:
SBC 78 105 151 197
Restructuring charges — 23 — 23
Less:
Gain on deconsolidation of RVI (1) — (106) — (106)
Unrealized and realized gains in equity securities (2) — (23) — (23)
Adjusted EBITDA (non-GAAP) $ 549 $ 741 $ 1,019 $ 1,275
_______________
(1) The $106 million gain from deconsolidation excludes a $17 million unrealized gain recognized in net income earlier in the current period, which was reflected in the carrying value of RVI at deconsolidation and is presented separately as a realized gain.
(2) For the three and six months ended June 30, 2026, primarily related to investments held by RVI.
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Results of Operations
The following table summarizes our unaudited condensed consolidated statements of operations data:
(in millions) Three Months Ended June 30, Six Months Ended June 30,
2025 2026 2025 2026
Revenues:
Transaction-based revenues $ 539 $ 776 $ 1,122 $ 1,399
Net interest revenues 357 389 647 748
Other revenues 93 143 147 228
Total net revenues 989 1,308 1,916 2,375
Operating expenses(1):
Brokerage and transaction 48 62 98 122
Technology and development 214 256 428 497
Operations 29 57 60 95
Provision for credit losses 28 56 52 92
Marketing 99 104 204 211
General and administrative 132 199 265 373
Total operating expenses 550 734 1,107 1,390
Other income, net 3 135 4 135
Income before income taxes 442 709 813 1,120
Provision for income taxes 56 136 91 201
Net income $ 386 $ 573 $ 722 $ 919
Less: Net income (loss) attributable to non-controlling interests — 12 — 8
Net income attributable to Robinhood $ 386 $ 561 $ 722 $ 911
_______________
(1)Includes SBC expense as follows:
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2025 2026 2025 2026
Brokerage and transaction $ 3 $ 2 $ 5 $ 5
Technology and development 39 48 83 88
Operations 2 1 3 2
Marketing 2 3 4 5
General and administrative 32 51 56 97
Total SBC expense $ 78 $ 105 $ 151 $ 197
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Comparison of the Three and Six Months Ended June 30, 2025 and 2026
Revenues
Transaction-Based Revenues
Three Months Ended June 30, Six Months Ended June 30,
(in millions, except for percentages) 2025 2026 % Change 2025 2026 % Change
Transaction-based revenues:
Options $ 265 $ 342 29 % $ 505 $ 602 19 %
Event contracts 10 156 NM 13 260 NM
Cryptocurrencies 160 100 (38) % 412 234 (43) %
Equities 66 129 95 % 122 211 73 %
Other 38 49 29 % 70 92 31 %
Total transaction-based revenues $ 539 $ 776 44 % $ 1,122 $ 1,399 25 %
Transaction-based revenues as a % of total net revenues:
Options 26% 26% 27% 25%
Event contracts 1% 12% 1% 11%
Cryptocurrencies 16% 8% 22% 10%
Equities 7% 10% 6% 9%
Other 4% 3% 3% 4%
Total transaction-based revenues 54% 59% 59% 59%
Transaction-based revenues increased by $237 million and $277 million, for the three and six months ended June 30, 2026, primarily driven by increases of $146 million and $247 million in event contracts, $77 million and $97 million in options, and $63 million and $89 million in equities, partially offset by decreases of $60 million and $178 million in cryptocurrencies.
Options revenues increased due to a 43% and 32% increase in Options Contracts Traded per trader. The increase was partially offset by lower option rebate rates due to the mix of ticker symbols traded as different ticker symbols pay different rebate rates.
Event contracts revenues increased primarily due to an acceleration in our prediction markets business, reflecting higher trading activity compared to the same period in 2025 when the offering was still in its early stage.
Cryptocurrencies revenues decreased primarily due to lower cryptocurrency rebate rates from crypto market makers, a 16% and 24% decrease in the number of users placing cryptocurrency trades, and a 20% and 21% decrease in the average Notional Trading Volume traded per trader, partially offset by cryptocurrencies revenues benefiting from our acquisition of Bitstamp.
Equities revenues increased primarily due to a 56% and 51% increase in the average Notional Trading Volume traded per trader and a 13% and 6% increase in the number of users placing equity trades. Additionally, equities revenues increased as a result of higher equity rebate rates due to the mix of ticker symbols traded as different ticker symbols pay different rebate rates.
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Net Interest Revenues
Three Months Ended June 30, Six Months Ended June 30,
(in millions, except for percentages) 2025 2026 % Change 2025 2026 % Change
Net interest revenues:
Margin interest $ 114 $ 215 89 % $ 224 $ 408 82 %
Interest on segregated cash, cash equivalents, securities, and deposits, net 77 60 (22) % 133 118 (11) %
Cash Sweep 60 41 (32) % 108 86 (20) %
Credit card, net 13 40 208 % 23 72 213 %
Interest on corporate cash and investments 46 31 (33) % 95 65 (32) %
Securities lending, net 54 10 (81) % 77 14 (82) %
Interest expenses related to credit facilities (8) (10) 25 % (14) (18) 29 %
Other 1 2 100 % 1 3 200 %
Total net interest revenues $ 357 $ 389 9 % $ 647 $ 748 16 %
Net interest revenues as a % of total net revenues:
Margin interest 12 % 17 % 12 % 17 %
Interest on segregated cash, cash equivalents, securities, and deposits, net 8 % 5 % 7 % 5 %
Cash Sweep 6 % 3 % 6 % 3 %
Credit card, net 1 % 3 % 1 % 3 %
Interest on corporate cash and investments 5 % 2 % 5 % 3 %
Securities lending, net 5 % 1 % 4 % 1 %
Interest expenses related to credit facilities (1) % (1) % (1) % (1) %
Other — % — % — % — %
Total net interest revenues 36 % 30 % 34 % 31 %
Net interest revenues increased by $32 million and $101 million for the three and six months ended June 30, 2026, primarily driven by higher margin interest and net credit card interest, due to increased margin borrowers and the growth in our credit card business, as well as higher accretion income on investments. The increase was partially offset by a decrease in interest revenue from securities lending activities driven by a relatively unfavorable average rate on higher stock loan balances, as well as a decrease in interest revenue on Cash Sweep, corporate cash and investments driven by a lower short-term interest rate environment. We anticipate any potential future rate cuts by the Federal Reserve will negatively impact our net interest revenues and adversely affect our customers’ returns on cash deposits.
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The following table summarizes interest-earning assets, the revenue generated by these assets, and their respective annualized yields:
(in millions, except for annualized yield) Margin Book Cash and deposits(1) Cash Sweep (off-balance sheet) Credit card, net(2) Total interest-earning assets Securities lending, net Interest expenses related to credit facilities(5) Other Total net interest revenues
Three Months Ended June 30, 2026
June 30, 2026 $ 21,641 $ 18,687 $ 29,707 $ 1,457 $ 71,492
March 31, 2026 16,953 16,669 26,023 1,132 60,777
Average(3) 19,015 18,001 28,020 1,347 66,383
Revenue (expense) $ 215 $ 91 $ 41 $ 40 $ 387 $ 10 $ (10) $ 2 $ 389
Annualized yield(4) 4.52% 2.02% 0.59% 11.88 % 2.33% 2.34%
Three Months Ended March 31, 2026
March 31, 2026 $ 16,953 $ 16,669 $ 26,023 $ 1,132 $ 60,777
December 31, 2025 16,823 10,995 32,786 1,040 61,644
Average(3) 17,344 13,974 29,019 1,084 61,421
Revenue (expense) $ 193 $ 92 $ 45 $ 32 $ 362 $ 4 $ (8) $ 1 $ 359
Annualized yield(4) 4.45% 2.63% 0.62% 11.81 % 2.36% 2.34%
Three Months Ended June 30, 2025
June 30, 2025 $ 9,457 $ 14,045 $ 32,719 $ 562 $ 56,783
March 31, 2025 8,802 9,763 28,187 429 47,181
Average(3) 8,912 11,815 30,148 513 51,388
Revenue (expense) $ 114 $ 123 $ 60 $ 13 $ 310 $ 54 $ (8) $ 1 $ 357
Annualized yield(4) 5.12% 4.16% 0.80% 10.14% 2.41% 2.78%
Six Months Ended June 30, 2026
June 30, 2026 $ 21,641 $ 18,687 $ 29,707 $ 1,457 $ 71,492
December 31, 2025 16,823 10,995 32,786 1,040 61,644
Average(3) 18,355 15,890 28,876 1,228 64,349
Revenue (expense) $ 408 $ 183 $ 86 $ 72 $ 749 $ 14 $ (18) $ 3 $ 748
Annual yield(4) 4.45% 2.30% 0.60% 11.73% 2.33% 2.32%
Six Months Ended June 30, 2025
June 30, 2025 $ 9,457 $ 14,045 $ 32,719 $ 562 $ 56,783
December 31, 2024 7,909 9,943 26,064 391 44,307
Average(3) 8,623 11,111 28,468 462 48,664
Revenue (expense) $ 224 $ 228 $ 108 $ 23 $ 583 $ 77 $ (14) $ 1 $ 647
Annualized yield(4) 5.20% 4.10% 0.76% 9.96% 2.40% 2.66%
__________
(1) Includes cash and cash equivalents, restricted cash, segregated cash, cash equivalents, and securities under federal and other regulations, deposits with clearing organizations, and investments.
(2) Credit card, net consists of i) an off-balance sheet amount representing customer principal amounts funded by Coastal Bank under the Program Agreement. Under the Program Agreement, Robinhood Credit collects interest from customers that carry a balance and pays interest on the amount funded by Coastal Bank, with the difference between those amounts resulting in net interest revenue and ii) an on-balance sheet amount representing purchased credit card receivables by the Trust. Robinhood Credit collects interest from customers that carry balances and pays interest on the amount funded through the Trust, with the difference in those amounts resulting in net interest revenues. As of June 30, 2026, the off-balance sheet amount funded under the Program agreement was $214 million and the on-balance sheet amount was $1,243 million. Refer to Note 11 - Financing Activities and Off-Balance Sheet Risk to our unaudited condensed consolidated financial statements in this Quarterly Report for more information.
(3) Average balance rows represent the simple average of month-end balances in a given period.
(4) Annualized yield is calculated by annualizing revenue for the given period and dividing by the applicable average asset balance.
(5) Includes interest expenses related to our revolving credit facilities; interest expense related to the Trust is included in the credit card, net interest yield calculation. Refer to Note 11 - Financing Activities and Off-Balance Sheet Risk to our unaudited condensed consolidated financial statements in this Quarterly Report for more information.
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Other Revenues
Three Months Ended June 30, Six Months Ended June 30,
(in millions, except for percentages) 2025 2026 % Change 2025 2026 % Change
Other revenues:
Gold subscription revenues $ 44 $ 54 23 % $ 82 $ 104 27 %
Proxy revenues 36 42 17 % 45 50 11 %
Other 13 47 262 % 20 74 270 %
Total other revenues $ 93 $ 143 54 % $ 147 $ 228 55 %
Other revenues as a % of total net revenues:
Gold subscription revenues 4 % 4 % 4 % 4 %
Proxy revenues 4 % 3 % 2 % 2 %
Other 1 % 4 % 2 % 4 %
Other revenues as a % of total net revenues 9 % 11 % 8 % 10 %
Other revenues increased $50 million and $81 million for the three and six months ended June 30, 2026, primarily driven by increases in Robinhood Gold subscription revenues due to growth in Robinhood Gold Subscribers, service revenues earned from Trump Accounts, and revenues earned from coin listings.
Operating Expenses
Three Months Ended June 30, Six Months Ended June 30,
(in millions, except for percentages) 2025 2026 % Change 2025 2026 % Change
Operating expenses:
Brokerage and transaction $ 48 $ 62 29 % $ 98 $ 122 24 %
Technology and development 214 256 20 % 428 497 16 %
Operations 29 57 97 % 60 95 58 %
Provision for credit losses 28 56 100 % 52 92 77 %
Marketing 99 104 5 % 204 211 3 %
General and administrative 132 199 51 % 265 373 41 %
Total operating expenses $ 550 $ 734 33 % $ 1,107 $ 1,390 26 %
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Brokerage and Transaction
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2025 2026 % Change 2025 2026 % Change
Employee compensation, benefits, and overhead $ 16 18 13% $ 27 33 22%
Market data expenses 8 13 63% 16 23 44%
Instant withdrawals 5 9 80% 15 19 27%
Other 19 22 16% 40 47 18%
Total $ 48 $ 62 29% $ 98 $ 122 24%
Percent of total net revenues: 5 % 5 % 5 % 5 %
Brokerage and transaction costs increased by $14 million and $24 million for the three and six months ended June 30, 2026, primarily due to a $5 million and $7 million increase in market data expense driven by an increase in customer volume. In addition, employee compensation, benefits, and overhead expenses increased $2 million and $6 million due to the growth and expansion of our business. Other brokerage and transactions costs increased $3 million and $7 million primarily related to increases in credit card processing fees.
Technology and Development
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2025 2026 % Change 2025 2026 % Change
Employee compensation, benefits, and overhead $ 112 $ 142 27 % $ 233 $ 271 16 %
Cloud infrastructure services 53 54 2 % 103 107 4 %
Software and tools 38 50 32 % 73 98 34 %
Other 11 10 (9) % 19 21 11 %
Total $ 214 $ 256 20 % $ 428 $ 497 16 %
Percent of total net revenues: 22 % 20 % 22 % 21 %
Technology and development costs increased by $42 million and $69 million for the three and six months ended June 30, 2026, primarily due to a $30 million and $38 million increase in employee compensation, benefits, and overhead expenses driven by recent acquisitions and the launch of new products. Additionally, software and tools expenses increased by $12 million and $25 million driven by continued growth of our business and the integration of acquired businesses.
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Operations
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2025 2026 % Change 2025 2026 % Change
Employee compensation, benefits, and overhead $ 19 $ 30 58% $ 39 $ 54 38%
Customer experience 5 18 260% 11 25 127%
Other 5 9 80% 10 16 60%
Total $ 29 $ 57 97% $ 60 $ 95 58%
Percent of total net revenues: 3 % 4 % 3 % 4 %
Operations costs increased by $28 million and $35 million for the three and six months ended June 30, 2026, primarily due to a $13 million and $14 million increase in customer experience costs to support Trump Accounts. Employee compensation, benefits, and overhead increased by $11 million and $15 million driven by the increased growth and expansion of our business. Additionally, other operations expense increased by $4 million and $6 million driven by the increase in transaction volume.
Provision for credit losses
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2025 2026 % Change 2025 2026 % Change
Provision for credit losses - credit card related $ 19 $ 51 168% $ 32 $ 82 156%
Provision for credit losses - brokerage related 9 5 (44)% 20 10 (50)%
Total $ 28 $ 56 100% $ 52 $ 92 77%
Percent of total net revenues: 3 % 4 % 3 % 4 %
Provision for credit losses increased by $28 million and $40 million for the three and six months ended June 30, 2026, primarily due to a $32 million and $50 million increase in credit card-related provision for credit losses driven by higher balances of purchased credit card receivables consistent with the growth of our credit card business, partially offset by a decrease in reserve rates, benefitting from improved recovery rates. In addition, brokerage related provision for credit losses decreased by $4 million and $10 million due to decreased fraud activity.
Marketing
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2025 2026 % Change 2025 2026 % Change
Digital marketing $ 41 $ 52 27 % $ 94 $ 103 10 %
Employee compensation, benefits, and overhead 13 15 15 % 24 27 13 %
Brand marketing 23 7 (70) % 45 26 (42) %
Other 22 30 36 % 41 55 34 %
Total $ 99 $ 104 5 % $ 204 $ 211 3 %
Percent of total net revenues: 10 % 8 % 11 % 9 %
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Marketing costs increased by $5 million and $7 million for the three and six months ended June 30, 2026 primarily due to an increase in marketing expenses related to our prediction markets and credit card offerings, offset by an decrease in brand marketing expenses due to lower campaign spend compared to the same periods in 2025.
General and Administrative
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2025 2026 % Change 2025 2026 % Change
Employee compensation, benefits, and overhead $ 100 $ 129 29 % $ 182 $ 240 32 %
Legal expenses 14 21 50 % 28 44 57 %
Other professional fees 15 24 60 % 32 41 28 %
Other 3 25 733 % 23 48 109 %
Total $ 132 $ 199 51 % $ 265 $ 373 41 %
Percent of total net revenues: 13 % 15 % 14 % 16 %
General and administrative costs increased by $67 million and $108 million for the three and six months ended June 30, 2026 primarily due to a $29 million and $58 million increase in employee compensation, benefits, and overhead expenses driven by increased SBC related to the modification of executive awards related to senior leadership transitions and the growth and expansion of our business. Additionally, other general and administrative expenses increased $22 million and $25 million and legal expenses increased $7 million and $16 million for the three and six months ended June 30, 2026 in relation to new product offerings and reserves for legal matters.
Other income, net
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2025 2026 % Change 2025 2026 % Change
Other income, net $ 3 $ 135 NM $ 4 $ 135 NM
Other income, net increased by $132 million and $131 million for the three and six months ended June 30, 2026 primarily driven by a $106 million gain recognized as a result of the deconsolidation of RVI and a $23 million gain from equity securities primarily related to investments held by RVI during the three and six months ended June 30, 2026. Refer to Note 4 - Deconsolidation of RVI of our unaudited condensed consolidated financial statements in this Quarterly Report for more information.
Provision for Income Taxes
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2025 2026 % Change 2025 2026 % Change
Provision for income taxes $ 56 $ 136 143 % $ 91 $ 201 121 %
Provision for income taxes increased by $80 million and $110 million for the three and six months ended June 30, 2026 primarily due to the growth of the business and decrease in excess tax benefits from SBC.
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Liquidity and Capital Resources
Sources and Uses of Funds
Our principal sources of liquidity are cash flows generated from operations and our cash, cash equivalents, investments, and stablecoin. Other sources of future funds may include potential borrowing under our revolving lines of credit and potential issuance of new debt or equity. Our liquidity needs are primarily to support and invest in our core business, including investing in new ways to serve our customers, potentially seeking strategic acquisitions to leverage existing capabilities and further build our business, and for general capital needs (including capital requirements imposed by regulators and SROs and cash deposit and collateral requirements under the rules of the DTC, the NSCC, OCC, and the CFTC. Based on our current level of operations, we believe our primary sources of liquidity will be adequate to meet our current liquidity needs for the next 12 months.
Liquid Assets
As of June 30, 2026, we had cash and cash equivalents of $5.4 billion and stablecoin of $155 million. Refer to Note 8 - Investments and Fair Value Measurement, to our unaudited condensed consolidated financial statements in this Quarterly Report for further information.
Revolving Credit Facilities and Credit Card Funding Trust
As of June 30, 2026, we had committed revolving credit facilities with a total borrowing capacity of up to $4.875 billion and a borrowing capacity for the Trust of up to $1.550 billion. Refer to Note 11 - Financing Activities and Off-Balance Sheet Risk to our unaudited condensed consolidated financial statements in this Quarterly Report for further information.
RVI Deconsolidation
On June 25, 2026, we sold a portion of our ownership interest in RVI, generating cash proceeds of $22 million. Refer to Note 4 - Deconsolidation of RVI, to our unaudited condensed consolidated financial statements in this Quarterly Report for further information.
Commitments
The following table summarizes our short- and long-term material cash requirements for contractual obligations as of June 30, 2026:
Payments Due by Period
(in millions) Total Remainder of 2026 2027-2028 2029-2030 Thereafter
Convertible notes $ 2,200 $ — $ — $ 2,200 $ —
Purchase commitments(1) 1,287 180 574 471 62
Credit Card Funding Trust borrowing principal and interest 959 959 — — —
Operating lease commitments(2) 336 21 94 86 135
Robinhood match incentives commitments(3) 9 9 — — —
Total $ 4,791 $ 1,169 $ 668 $ 2,757 $ 197
_______________
(1) Purchase commitments are determined based on the non-cancelable quantities or termination amounts to which we are contractually obligated. These primarily relate to commitments for cloud infrastructure, data services and business insurance.
(2) Operating lease commitments include tenant improvement allowances, which are amortized as a reduction of lease expense over the shorter of the estimated useful life of the improvements or the respective lease term.
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(3) Robinhood match incentives commitments represent non-cancelable future match payments on eligible cash deposits made by Robinhood Gold Subscribers. The future match payments are forfeited if deposits are not held on the platform during the specific earning period.
In addition to lease and purchase commitments, we have two committed financing agreements: one with a contractual term of 30 days and a daily minimum commitment of $25 million and another with a contractual term of 21 days with a daily minimum commitment of $35 million.
Regulatory Capital Requirements
Our broker-dealer subsidiaries (RHS, RHF, and TradePMR) are subject to the Net Capital Rule, administered by the SEC and FINRA, which requires the maintenance of minimum net capital, as defined. Net capital and the related net capital requirements may fluctuate on a daily basis. RHS and RHF compute net capital under the alternative method as permitted by the Net Capital Rule.
Our FCM subsidiary, RHD, is subject to CFTC Regulation 1.17, administered by the CFTC and the NFA, which requires the maintenance of minimum net capital, as defined by CFTC Regulation 1.17. Net capital and the related net capital requirements may fluctuate on a daily basis.
The table below summarizes the net capital, capital requirements, and excess net capital of RHS, RHF, RHD, and TradePMR as of periods presented:
June 30, 2026
(in millions) Net Capital Required Net Capital Net Capital in Excess of Required Net Capital
RHS $ 3,947 $ 504 $ 3,443
RHF 196 0.25 196
RHD 435 9 426
TradePMR 13 0.25 13
As of June 30, 2026, these subsidiaries were in compliance with their respective regulatory capital requirements.
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Cash Flows
The following table summarizes our cash flow activities:
Six Months Ended June 30,
(in millions) 2025 2026
Cash provided by (used in):
Operating activities $ 4,151 $ 2,758
Investing activities 841 (1,054)
Financing activities (703) 2,086
Operating activities
(in millions) 2025 to 2026 Change
Changes to net cash provided by (used in) operating activities were primarily due to:
Increase in securities loaned due to continued growth of our securities lending program, as well as market conditions, variable lending and funding activities $ 3,733
Increase in payable to users primarily driven by higher customer free credit balance 3,248
Increase in net income after adjusting for non-cash items 157
Increase in securities borrowed due to increased customer activities (705)
Increase in receivables from users primarily driven by higher customer margin receivables (3,176)
Increase in securities segregated under federal and other regulations (3,772)
Decrease in working capital primarily driven by increase in receivables from brokers, dealers, and clearing organizations and increase in deposits with clearing organizations (878)
$ (1,393)
Investing activities
(in millions) 2025 to 2026 Change
Changes to net cash provided by (used in) investing activities were primarily due to:
Increase due to lower cash paid associated with business and asset acquisitions $ 150
Increase in proceeds from sales of investment 28
Increase in purchases of non-marketable securities (220)
Cash derecognized upon deconsolidation of RVI (220)
Increase in purchases of credit card receivables offset by collections during the year (256)
Decrease in proceeds received from maturities of held-to-maturity investments (266)
Decrease in cash, cash equivalents, and segregated cash acquired in business acquisitions (1,098)
Other (13)
$ (1,895)
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Financing activities
(in millions) 2025 to 2026 Change
Changes to net cash provided by (used in) financing activities were primarily due to:
Proceeds from issuance of convertible senior notes $ 2,200
Decrease in cash paid for taxes related to net share settlement of equity awards 349
Proceeds received from issuance of RVI common stock in connection with initial public offering, net of offering costs 312
Increase in borrowings by the Credit Card Funding Trust to purchase credit card receivables 278
Increase in contributions from noncontrolling interests 41
Increase in repayments on borrowings by the Credit Card Funding Trust (25)
Purchase of Capped Calls (123)
Increase in cash paid for repurchases of common stock of RHM (218)
Other (25)
$ 2,789
Critical Accounting Estimates
Our unaudited condensed consolidated financial statements are prepared in accordance with GAAP. The preparation of these unaudited condensed consolidated financial statements requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities on our unaudited condensed consolidated financial statements and accompanying notes. The SEC has defined a company’s critical accounting policies as the ones that are most important to the portrayal of the company’s financial condition and results of operations, and which require the company to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. We also have other key accounting policies, which involve the use of estimates, judgments, and assumptions that are significant to understanding our results. Although we believe that our estimates, assumptions, and judgments are reasonable, they are based upon information presently available. Actual results might differ significantly from these estimates under different assumptions, judgments, or conditions.
There have been no material changes to our critical accounting estimates during the six months ended June 30, 2026, as compared to those disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Estimates” in our 2025 Form 10-K.
Recent Accounting Pronouncements
See Item 1 of Part I, “Unaudited Financial Statements — Note 2 - Recent Accounting Pronouncements.”
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