HOODNasdaqSecurity Brokers, Dealers & Flotation CompaniesUS GAAP · USD

Robinhood Markets, Inc.

Robinhood Markets, Inc. is a U.S.-based financial services company built around a mobile-first brokerage platform for retail investors. Through its app and related products, it provides stock, options, cryptocurrency, futures, cash management, retirement, and advisory services, with operations centered in the United States and a growing set of adjacent wealth and trading tools.

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Revenue4,473m USD
+51.6 %y/y
Net income1,883m USD
+33.5 %y/y
Free cash flow1,638m USD
+1,143.3 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

01,0002,0003,0004,0005,000m USD2020: 959 m USD20202021: 1,815 m USD20212022: 1,358 m USD20222023: 1,865 m USD20232024: 2,951 m USD20242025: 4,473 m USD20254,473
RevenueOperating profit (EBIT)

Business

Share of revenue
Brokerage trading45 %

Equity, options, futures, and event-contract trading executed through the Robinhood platform.

Cryptocurrency services20 %

Crypto trading and related transaction-based services offered to retail users.

Net interest revenues20 %

Interest earned on margin loans, customer cash, securities lending, and related balances.

Subscription and other revenues10 %

Robinhood Gold, advertising, proxy, ACATS, listing, and other platform fees.

Wealth management and advisory5 %

Robinhood Strategies and TradePMR custodial and portfolio management services.

Products

Reported · share of revenue
58.9%20.2%FY2025100 %
  • Transaction Based Revenues58.9 %
  • Cryptocurrencies20.2 %
  • Equities6.8 %
  • Other Transaction Based Revenues6.8 %
  • Gold Subscription Revenues4.0 %
  • Other3.4 %

Source: 10-K/A FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Robinhood serves retail investors who use the app to trade, save, and invest, including many first-time brokerage customers. It also targets more active traders who use options, crypto, and other sophisticated products, as well as customers who subscribe to premium features like Robinhood Gold. Through TradePMR, the company also serves registered investment advisers and their end clients.

Retail brokerage customers

Individuals buying and selling stocks, ETFs, options, and cash products through the app; core users of the platform.

Active traders

Higher-frequency users trading options, crypto, futures, and event contracts, generating disproportionate trading activity.

Robinhood Gold subscribers

Customers paying for premium features, margin-related benefits, and enhanced tools.

Retirement account holders

Customers using IRAs and related match incentives to save and invest for long-term goals.

RIAs and advisory clients

Registered investment advisers using TradePMR for custody, portfolio management, and administration.

Strategy

Robinhood’s strategy is to deepen engagement with retail customers by broadening the product set beyond basic stock trading into options, crypto, futures, retirement, and wealth management. The company also aims to increase monetization through premium subscriptions, interest-bearing balances, and advisory services while retaining its active trading base and attracting new users. Product development, customer feedback, and technology-driven simplicity remain central to its competitive position.

Broaden the product suiteMedium term

More products increase customer engagement and revenue sources beyond basic brokerage activity.

Deepen monetization of existing usersShort term

Higher usage and premium adoption improve revenue without relying only on new account growth.

Retain active tradersShort term

A relatively small group of active users contributes a disproportionate share of trading volume.

Build wealth management capabilitiesMedium term

Advisory and custodial services broaden the platform into longer-duration client relationships.

Geography

Robinhood is primarily a U.S. business, with its customer base, regulatory framework, and core operating footprint centered in the United States. The company’s disclosures emphasize U.S. securities, derivatives, and crypto markets, and its regulatory exposure is tied mainly to U.S. broker-dealer, SEC, FINRA, and state oversight. Any international exposure is limited relative to the domestic platform and is not presented as a major revenue geography in the provided disclosures.

Risks

Robinhood depends on customer growth, trading activity, and engagement, so revenue can weaken if users trade less or migrate to competitors. The business is also exposed to regulatory, market-structure, cybersecurity, and crypto-specific risks because it operates a regulated brokerage platform that holds customer assets and processes high-volume transactions. Rapid product expansion adds operational complexity and increases the chance that systems, compliance controls, or third-party providers fail.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Regulatory and compliance risk1Cryptocurrency market and legal risk2Customer attrition or lower engagement3Technology outage or cybersecurity breach4Credit and counterparty risk5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Regulatory and compliance riskImpact: HighLikelihood: High

    Broker-dealer, advisory, and crypto activities are heavily regulated and enforcement can require costly changes.

    ExposureSECFINRAState regulatorsTradePMR
  2. Cryptocurrency market and legal riskImpact: HighLikelihood: High

    Crypto trading volumes are volatile and token classification rules remain uncertain.

    Exposure: Crypto trading and related services

  3. Customer attrition or lower engagementImpact: HighLikelihood: Medium

    Trading and interest revenue depend on users continuing to fund accounts and trade actively.

    Exposure: Retail brokerage and premium subscriptions

  4. Technology outage or cybersecurity breachImpact: HighLikelihood: Medium

    The platform relies on proprietary and third-party systems to process trades and protect sensitive data.

    ExposureTrading platformCustomer dataCustodial services
  5. Credit and counterparty riskImpact: MediumLikelihood: Low

    Margin lending, cash sweep, and consumer credit products can create losses if customers default or counterparties fail.

    ExposureMargin loansCredit card receivablesSecurities lending

Accounting

Judgemental items
Transaction-based revenue recognition

Brokerage, options, futures, event-contract, and crypto revenues depend on trade timing and volume.

Impact: Quarterly revenue can swing with market activity and customer trading patterns.

Net interest revenue

Interest income and expense depend on customer balances, margin loans, securities lending, and funding costs.

Impact: Changes in rates and balances can materially change reported revenue mix.

Allowance for credit losses

The company estimates losses on margin loans, credit card receivables, and related exposures.

Impact: Provision changes affect earnings and reflect credit quality assumptions.

Match incentives and promotions

Retirement and transfer incentives are recognized as reductions to revenue.

Impact: Promotions can lower reported revenue and complicate period comparisons.

Fair value and crypto-related measurements

Crypto and other financial instruments can require fair value judgments and sensitivity to market prices.

Impact: Volatility can affect both revenue and balance-sheet values.

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Last updated: 24/09/2026