Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This section presents management’s perspective on our financial condition and results of operations, including performance metrics that management uses to assess company performance. The following discussion and analysis is intended to highlight and supplement data and information presented elsewhere in this Quarterly Report, and should be read in conjunction with our interim unaudited condensed consolidated financial statements and notes elsewhere in this Quarterly Report and our audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our 2024 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, 2024 and 2025 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.

Key Performance Metrics

In addition to the measures presented in our unaudited condensed consolidated financial statements, we use the following key performance metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions.

Funded Customers:** We define a Funded Customer as a unique person who has at least one account with a Robinhood entity and, within the past 45 calendar days (a) had an account balance that was greater than zero (excluding amounts that are deposited into a Funded Customer account by the Company with no action taken by the unique person) or (b) completed a transaction using any such account. Individuals who share a funded joint investing account (which launched in July 2024) are each considered to be a Funded Customer. Starting in Q1 2025, individuals who are customers of RIAs that use the TradePMR platform, and, starting in June 2025, customers of Bitstamp, are also considered Funded Customers.
Total Platform Assets**: We define Total Platform Assets as the sum of the fair value of all equities, options, cryptocurrency, futures (including options on futures, swaps, and event contracts), cash held by users in their accounts, net of receivables from users (previously reported as Assets Under Custody), and any such assets managed by RIAs using TradePMR’s platform that are not custodied by Robinhood, as of a stated date or period end on a trade date basis. Net Deposits and net market gains (losses) drive the change in Total Platform Assets in

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any given period. Starting in June 2025, the fair value of all cryptocurrency includes cryptocurrency on Bitstamp.

Net Deposits:** We define Net Deposits as all cash deposits and asset transfers from customers, as well as dividends, interest, and cash or assets earned in connection with Company promotions (such as account transfer and retirement match incentives, free stock bonuses, and lending and staking rewards by Bitstamp) received by customers, net of reversals, customer cash withdrawals, margin interest, Robinhood Gold subscription fees, and assets transferred off of our platforms for a stated period. Starting in June 2025, Net Deposits include results from Bitstamp. Due to data limitations, we have not included TradePMR client figures in our Net Deposits key performance metric.
Average Revenue Per User (“ARPU”)**: We define ARPU as total revenue for a given period divided by the average number of Funded Customers on the last day of that period and the last day of the immediately preceding period. Figures in this Quarterly Report represent ARPU annualized for each three-month period presented.
Robinhood Gold Subscribers: We define a Robinhood Gold Subscriber as a unique person who has at least one account with a Robinhood entity and who, as of the end of the relevant period (a) is subscribed to Robinhood Gold and (b) has made at least one Robinhood Gold subscription fee payment.

Glossary Terms

Automated Customer Account Transfer Service (“ACATS”)**: A system that automates and standardizes procedures for the transfer of assets in a customer account from one brokerage firm and/or bank to another.
Cash Sweep: We define Cash Sweep as the period-end total amount of participating users’ uninvested brokerage cash that has been automatically “swept” or moved from their brokerage accounts into deposits for their benefit at a network of program banks. This is an off-balance-sheet amount. Robinhood earns a net interest spread on Cash Sweep balances based on the interest rate offered by the banks less the interest rate given to users as stated in our program terms. This includes balances from customers of RIAs using TradePMR’s platform.
Churned Customers: A Funded Customer is considered “Churned” if it was ever a New Funded Customer whose account balance (measured as the fair value of assets in the account less any amount due from the user and excluding amounts that are deposited into a Funded Customer account by the Company with no action taken by the unique person) drops to or below zero and has not completed a transaction using any account with a Robinhood entity for at least 45 consecutive calendar days. Negative balances typically result from Fraudulent Deposit Transactions (which occur when users initiate deposits into their accounts, make trades on our platforms using a short-term extension of credit from us, and then repatriate or reverse the deposits, resulting in a loss to us of the credited amount) and unauthorized debit card use, and less often, from margin loans.

*•*Growth Rate and Annualized Growth Rate with respect to Net Deposits: Growth rate is calculated as aggregate Net Deposits over a specified 12-month period, divided by Total Platform Assets for the fiscal quarter that immediately precedes such 12-month period. Annualized growth rate is calculated as Net Deposits for a specified quarter multiplied by 4 and divided by Total Platform Assets for the immediately preceding quarter.

Investment Accounts: We define an Investment Account as a funded individual brokerage account, a funded joint investing account, a funded individual retirement account (“IRA”), or an account with an RIA using TradePMR’s platform. As of June 30, 2025, a Funded Customer can

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have up to five Investment Accounts - individual brokerage account, joint investing account (which launched in July 2024), traditional IRA, Roth IRA, and RIA custody account using TradePMR’s platform. Does not include Bitstamp as such accounts are not brokerage or other Investment Accounts.

Margin Book: We define Margin Book as our period-end aggregate outstanding margin loan balances receivable (i.e., the period-end total amount we are owed by customers on loans made for the purchase of securities, supported by a pledge of assets in their margin-enabled brokerage accounts). This includes margin loan balances from customers of RIAs using TradePMR’s platform.
New Funded Customers: We define a New Funded Customer as a unique person who became a Funded Customer for the first time during the relevant period.
Notional Trading Volume: We define Notional Trading Volume for any specified asset class as the aggregate dollar value (purchase price or sale price as applicable) of trades executed in that asset class on our platforms over a specified period of time. Robinhood App Crypto Notional Trading Volume represents the dollar value of executed trades on the Robinhood platform over a specified period of time. Starting in June 2025, Bitstamp Exchange Crypto Notional Trading Volume represents the dollar value of executed trades on the Bitstamp platform over a specified period of time. For example, each $1 of transaction value executed between a buyer and seller is counted as $1 of transaction value in the relevant period, rather than $2 if counted for each of the buyer and seller.
Options Contracts Traded:** We define Options Contracts Traded as the total number of options contracts bought or sold over a specified period of time. Each contract generally entitles the holder to trade 100 shares of the underlying stock.
Resurrected Customers: A Funded Customer is considered “Resurrected” in a stated period if it was a Churned Customer as of the end of the immediately preceding period and its balance (excluding amounts that are deposited into a Funded Customer account by the Company with no action taken by the unique person) rises above zero or it completes a transaction using its account.

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, 2025, as compared to the three months ended June 30, 2024:

total net revenues increased 45% to $989 million compared to $682 million;
net income increased 105% to $386 million, compared to $188 million;
diluted EPS increased 100% to $0.42 compared to $0.21;
total operating expenses increased 12% to $550 million compared to $493 million;

◦SBC expense decreased 9% to $78 million compared to $86 million;

Adjusted EBITDA (non-GAAP) increased 82% to $549 million compared to $301 million;
Funded Customers increased by 2.3 million, or 10%, to 26.5 million compared to 24.2 million, and Investment Accounts increased by 2.6 million, or 10%, to 27.4 million compared to 24.8 million;
Total Platform Assets increased 99% to $278.6 billion compared to $139.7 billion, driven by continued Net Deposits, acquired assets, and higher equity and cryptocurrency valuations;
Net Deposits were $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, compared to $13.2 billion, which translates to an annualized growth rate of 41% relative to Total Platform Assets at the end of the first quarter of 2024. Over the past twelve months, Net Deposits were $57.9 billion, a growth rate of 41% relative to Total Platform Assets at the end of the second quarter of 2024;
ARPU increased 34% to $151 compared to $113; and
Robinhood Gold Subscribers increased 1.50 million, or 76%, to 3.48 million compared to 1.98 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

Pending WonderFi Acquisition

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, and is expected to close in the second half of 2025.

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Key Performance Metrics

Key performance metrics for the relevant periods were as follows:


	Three Months Ended June 30,
	2024		2025		% Change
Funded Customers(1) (in millions)	24.2		26.5		10	%
Total Platform Assets(2) (in billions)	$	139.7	$	278.6	99	%
Net Deposits (in billions)	$	13.2	$	13.8	NM
Growth Rate with respect to Net Deposits	41%		25%		NM
ARPU (in dollars)	$	113	$	151	34	%
Robinhood Gold Subscribers (in millions)	1.98		3.48		76	%

(1)The following table describes the annual changes within Funded Customers:


	Three Months Ended June 30,
(in millions)	2024	2025	% Change
Beginning Funded Customers	23.9	25.8	8	%
New Funded Customers	0.5	0.6	20	%
Resurrected Customers	0.1	0.1	—	%
Acquired customers(i)	—	0.5	NM
Churned Customers	(0.3)	(0.5)	67	%
Ending Funded Customers	24.2	26.5	10	%

(2)The following table sets out the components of Total Platform Assets by type of asset:


	Three Months Ended June 30,
(in billions)	2024		2025		% Change
Equities	$	96.3	$	160.1	66	%
Cryptocurrencies	20.7		41.1		99	%
Options and futures	1.1		2.0		82	%
RIA assets	—		42.9		NM
Cash held by Customers	26.6		41.8		57	%
Receivables from Customers (primarily margin balances)	(5.0)		(9.3)		86	%
Total Platform Assets	$	139.7	$	278.6	99	%

The following table describes the changes within Total Platform Assets:


	Three Months Ended June 30,
(in billions)	2024		2025		% Change
Beginning Total Platform Assets	$	129.6	$	220.6	70	%
Acquired assets(i)	—		8.9		NM
Net Deposits	13.2		13.8		NM
Net market gains (losses)	(3.1)		35.3		NM
Ending Total Platform Assets	$	139.7	$	278.6	99	%

(i) Acquired customers and acquired assets relate to those obtained from the acquisition of Bitstamp in June 2025.

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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 earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”). Adjusted EBITDA is defined as net income, excluding (i) interest expenses related to credit facilities, (ii) provision for (benefit from) income taxes, (iii) depreciation and amortization, (iv) SBC, (v) significant legal and tax settlements and reserves, and (vi) other significant gains, losses, and expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses) that we believe are not indicative of our ongoing results. This non-GAAP financial information is presented for supplemental informational purposes only, should not be considered in isolation or as a substitute for, or superior to, financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies.

The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount and timing of these items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods and competitors less meaningful. We believe Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Moreover, Adjusted EBITDA is a key measurement used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.

The following table presents a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net income:


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2025		2024		2025
Net income	$	188	$	386	$	345	$	722
Add:
Interest expenses related to credit facilities	6		8		12		14
Provision for income taxes	3		56		8		91
Depreciation and amortization	18		21		35		41
EBITDA (non-GAAP)	215		471		400		868
Add:
SBC	86		78		148		151
Adjusted EBITDA (non-GAAP)	$	301	$	549	$	548	$	1,019

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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,
2024			2025			2024			2025
Revenues:
Transaction-based revenues	$	327		$	539		$	656		$	1,122
Net interest revenues	285			357			539			647
Other revenues	70			93			105			147
Total net revenues	682			989			1,300			1,916

Operating expenses(1):
Brokerage and transaction	40			48			75			98
Technology and development	209			214			405			428
Operations	28			29			56			60
Provision for credit losses	18			28			34			52
Marketing	64			99			131			204
General and administrative	134			132			252			265
Total operating expenses	493			550			953			1,107

Other income, net	2			3			6			4
Income before income taxes	191			442			353			813
Provision for income taxes	3			56			8			91
Net income	$	188		$	386		$	345		$	722

(1)Includes SBC expense as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2025		2024		2025
Brokerage and transaction	$	3	$	3	$	5	$	5
Technology and development	52		39		96		83
Operations	2		2		4		3
Marketing	1		2		3		4
General and administrative	28		32		40		56
Total SBC expense	$	86	$	78	$	148	$	151

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Comparison of the Three and Six Months Ended June 30, 2024 and 2025

Revenues

Transaction-Based Revenues


	Three Months Ended June 30,						Six Months Ended June 30,
(in millions, except for percentages)	2024		2025		% Change		2024		2025		% Change
Transaction-based revenues:
Options	$	182	$	265	46	%	$	336	$	505	50	%
Cryptocurrencies	81		160		98	%	207		412		99	%
Equities	40		66		65	%	79		122		54	%
Other	24		48		100	%	34		83		144	%
Total transaction-based revenues	$	327	$	539	65	%	$	656	$	1,122	71	%
Transaction-based revenues as a % of total net revenues:
Options	27%		26%				26%		27%
Cryptocurrencies	12%		16%				16%		22%
Equities	6%		7%				6%		6%
Other	4%		5%				2%		4%
Total transaction-based revenues	49%		54%				50%		59%

Transaction-based revenues increased by $212 million and $466 million for the for the three and six months ended June 30, 2025, primarily driven by increases of $83 million and $169 million in options, $79 million and $205 million in cryptocurrencies, and $26 million and $43 million in equities.

Options revenues increased primarily driven by 9% and 11% increases in Options Contracts Traded per trader and 17% and 19% increases in the number of users placing option trades. In addition, we experienced higher option rebate rates due to the mix of ticker symbols traded as different ticker symbols pay different rebate rates. The increase was partially offset by $26 million and $48 million of incentives paid to our customers.

Cryptocurrencies revenues increased primarily driven by a 38% and 40% increase in the number of users placing cryptocurrency trades. Additionally, cryptocurrencies revenues increased as a result of a higher rebate rate from crypto market makers. Cryptocurrencies revenues was partially offset by $8 million and $20 million of incentives paid to our customers.

Equities revenues increased primarily driven by a 83% and 70% increase in the average Notional Trading Volume traded per trader and a 13% and 14% increase in the number of users placing equity trades. The increase was partially offset by lower equity rebate rates due to the mix of ticker symbols traded as different ticker symbols pay different rebate rates.

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Net Interest Revenues


	Three Months Ended June 30,								Six Months Ended June 30,
(in millions, except for percentages)	2024			2025			% Change		2024			2025			% Change
Net interest revenues:
Margin interest	$	73		$	114		56	%	$	145		$	224		54	%
Interest on segregated cash, cash equivalents, securities, and deposits	68			77			13	%	126			133			6	%
Cash Sweep	44			60			36	%	83			108			30	%
Interest on corporate cash and investments	66			46			(30)	%	136			95			(30)	%
Securities lending, net	34			54			59	%	49			77			57	%
Credit card, net	6			13			117	%	12			23			92	%
Interest expenses related to credit facilities	(6)			(8)			33	%	(12)			(14)			17	%
Other	—			1			NM		—			1			NM
Total net interest revenues	$	285		$	357		25	%	$	539		$	647		20	%
Net interest revenues as a % of total net revenues:
Margin interest	11		%	12		%			11		%	12		%
Interest on segregated cash, cash equivalents, securities, and deposits	10		%	8		%			10		%	7		%
Cash Sweep	6		%	6		%			6		%	6		%
Interest on corporate cash and investments	10		%	5		%			10		%	5		%
Securities lending, net	5		%	5		%			4		%	4		%
Credit card, net	1		%	1		%			1		%	1		%
Interest expenses related to credit facilities	(1)		%	(1)		%			(1)		%	(1)		%
Other	—		%	—		%			—		%	—		%
Total net interest revenues	42		%	36		%			41		%	34		%

Net interest revenues increased by $72 million and $108 million for the three and six months ended June 30, 2025, primarily driven by growth in our interest-earning asset balances and securities lending activities. The increase was partially offset by a decrease in interest revenue on corporate cash and investments driven by lower cash and cash equivalents balances and 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, 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%

Three Months Ended March 31, 2025
March 31, 2025	$	8,802	$	9,763	$	28,187	$	429		$	47,181
December 31, 2024	7,909		9,943		26,064		391			44,307
Average(3)	8,449		10,070		26,717		402			45,638
Revenue (expense)	$	110	$	105	$	48	$	10		$	273	$	23	$	(6)	$	—	$	290
Annualized yield(4)	5.21%		4.17%		0.72%		9.95		%	2.39%								2.54%

Three Months Ended June 30, 2024
June 30, 2024	$	4,956	$	10,164	$	20,858	$	212		$	36,190
March 31, 2024	4,115		10,328		19,049		197			33,689
Average(3)	4,431		10,249		19,823		201			34,704
Revenue (expense)	$	73	$	134	$	44	$	6		$	257	$	34	$	(6)	$	—	$	285
Annualized yield(4)	6.59%		5.23%		0.89%		11.94%			2.96%								3.28%
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
Annual yield(4)	5.20%		4.10%		0.76%		9.96%			2.40%								2.66%
Six Months Ended June 30, 2024
June 30, 2024	$	4,956	$	10,164	$	20,858	$	212		$	36,190
December 31, 2023	3,458		10,107		16,352		205			30,122
Average(3)	4,094		10,099		18,650		202			33,045
Revenue (expense)	$	145	$	262	$	83	$	12		$	502	$	49	$	(12)	$	—	$	539
Annual yield(4)	7.08%		5.19%		0.89%		11.88%			3.04%								3.26%

(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 Credit Card Funding Trust. Robinhood Credit collects interest from customers that carry balances and pays interest on the amount funded through the Credit Card Funding Trust, with the difference in those amounts resulting in net interest revenues. As of June 30, 2025, the off-balance sheet amount funded under the Program agreement was $202 million and the on-balance sheet amount was $360 million. Refer to Note 10 - 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 Credit Card Funding Trust is included in the credit card, net interest yield calculation. Refer to Note 10 - 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)	2024			2025			% Change		2024			2025			% Change
Other revenues:
Robinhood Gold subscription revenues	$	26		$	44		69	%	$	49		$	82		67	%
Proxy revenues	38			36			(5)	%	45			45			—	%
Other	6			13			117	%	11			20			82	%
Total other revenues	$	70		$	93		33	%	$	105		$	147		40	%
Other revenues as a % of total net revenues:
Robinhood Gold subscription revenues	4		%	4		%			4		%	4		%
Proxy revenues	6		%	4		%			3		%	2		%
Other	—		%	1		%			1		%	2		%
Other revenues as a % of total net revenues	10		%	9		%			8		%	8		%

Other revenues increased $23 million and $42 million for the three and six months ended June 30, 2025 primarily driven by an increase in Robinhood Gold subscription revenues of $18 million and $33 million due to an increase in Robinhood Gold Subscribers.

Operating Expenses


	Three Months Ended June 30,								Six Months Ended June 30,
(in millions, except for percentages)	2024			2025			% Change		2024			2025			% Change
Operating expenses:
Brokerage and transaction	$	40		$	48		20	%	$	75		$	98		31	%
Technology and development	209			214			2	%	405			428			6	%
Operations	28			29			4	%	56			60			7	%
Provision for credit losses	18			28			56	%	34			52			53	%
Marketing	64			99			55	%	131			204			56	%
General and administrative	134			132			(1)	%	252			265			5	%
Total operating expenses	$	493		$	550		12	%	$	953		$	1,107		16	%
Percent of total net revenues:
Brokerage and transaction	5		%	5		%			6		%	5		%
Technology and development	31		%	22		%			31		%	22		%
Operations	4		%	3		%			4		%	3		%
Provisions for credit losses	3		%	3		%			3		%	3		%
Marketing	9		%	10		%			10		%	11		%
General and administrative	20		%	13		%			19		%	14		%
Total operating expenses	72		%	56		%			73		%	58		%

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Brokerage and Transaction


	Three Months Ended June 30,					Six Months Ended June 30,
(in millions)	2024		2025		% Change	2024		2025		% Change
Employee compensation, benefits, and overhead, excluding SBC	$	9	$	13	44%	$	18	$	22	22%
Market data expenses	6		8		33%	12		16		33%
Instant withdrawals	5		5		—%	8		14		75%
Customer statements	3		4		33%	7		8		14%
SBC	3		3		—%	5		5		—%
Other	14		15		7%	25		33		32%
Total	$	40	$	48	20%	$	75	$	98	31%

Brokerage and transaction costs increased by $8 million and $23 million for the three and six months ended June 30, 2025. For the six months ended June 30, 2025, brokerage and transaction costs included an $8 million increase in other brokerage and transactions costs primarily related to credit card network fees and a $6 million increase in instant withdrawals expense as a result of higher customer activities. Employee compensation, benefits, and overhead expenses increased $4 million for both the three and six months ended June 30, 2025 due to increased average headcount to continue to support our brokerage business. Additionally, market data expenses increased $2 million and $4 million for the three and six months ended June 30, 2025 primarily due to higher trading volumes.

Technology and Development


	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2024		2025		% Change		2024		2025		% Change
Employee compensation, benefits, and overhead, excluding SBC	$	75	$	73	(3)	%	$	149	$	150	1	%
Cloud infrastructure services	46		53		15	%	89		103		16	%
SBC	52		39		(25)	%	96		83		(14)	%
Software and tools	30		38		27	%	58		73		26	%
Other	6		11		83	%	13		19		46	%
Total	$	209	$	214	2	%	$	405	$	428	6	%

Technology and development costs increased by $5 million and $23 million for the three and six months ended June 30, 2025, primarily due to increases in software and tool expenses of $8 million and $15 million and cloud infrastructure services of $7 million and $14 million to improve software infrastructure and meet increased capacity requirements for our platforms to support higher trading volumes. These increases were partially offset by decreases in SBC of $13 million for both the three and six months ended June 30, 2025 attributed to higher values for stock awards issued in prior periods.

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Operations


	Three Months Ended June 30,					Six Months Ended June 30,
(in millions)	2024		2025		% Change	2024		2025		% Change
Employee compensation, benefits, and overhead, excluding SBC	$	17	$	17	—%	$	36	$	36	—%
Customer experience	5		5		—%	9		11		22%
SBC	2		2		—%	4		3		(25)%
Other	4		5		25%	7		10		43%
Total	$	28	$	29	4%	$	56	$	60	7%

Operations costs increased by $1 million and $4 million for the three and six months ended June 30, 2025, with no material changes to note.

Provision for credit losses


	Three Months Ended June 30,					Six Months Ended June 30,
(in millions)	2024		2025		% Change	2024		2025		% Change
Provision for credit losses - credit card related	$	14	$	19	36%	$	24	$	32	33%
Provision for credit losses - brokerage related	4		9		125%	10		20		100%
Total	$	18	$	28	56%	$	34	$	52	53%

Provision for credit losses costs increased by $10 million and $18 million for the three and six months ended June 30, 2025, primarily due to increases of $5 million and $10 million in brokerage related expenses primarily due to an increase in customer fraud and abuse. Credit card related provision for credit card losses increased by $5 million and $8 million primarily due to higher balances in purchased credit card receivables.

Marketing


	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2024		2025		% Change		2024		2025		% Change
Digital marketing	$	31	$	41	32	%	$	59	$	94	59	%
Brand marketing	10		23		130	%	27		45		67	%
Employee compensation, benefits, and overhead, excluding SBC	8		11		38	%	15		20		33	%
Marketing incentives	3		3		—	%	6		8		33	%
Creative services	1		3		200	%	5		7		40	%
SBC	1		2		100	%	3		4		33	%
Other	10		16		60	%	16		26		63	%
Total	$	64	$	99	55	%	$	131	$	204	56	%

Marketing costs increased by $35 million and $73 million for the three and six months ended June 30, 2025 primarily due to higher expenses in digital marketing of $10 million and $35 million and brand marketing of $13 million and $18 million, as we increased our investments in paid marketing channels and

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other marketing initiatives to promote our brand, products, and services. Other marketing costs increased $6 million and $10 million primarily due to expenses related to our Robinhood Gold card and keynote events.

General and Administrative


	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2024		2025		% Change		2024		2025		% Change
Employee compensation, benefits, and overhead, excluding SBC	$	61	$	68	11	%	$	118	$	126	7	%
SBC	28		32		14	%	40		56		40	%
Other professional fees	11		15		36	%	23		32		39	%
Legal expenses	28		14		(50)	%	49		28		(43)	%
Settlements and penalties	5		3		(40)	%	7		5		(29)	%
Other	1		—		(100)	%	15		18		20	%
Total	$	134	$	132	(1)	%	$	252	$	265	5	%

General and administrative costs decreased $2 million for the three months ended June 30, 2025 and increased by $13 million for the six months ended June 30, 2025. The increase for the six months ended June 30, 2025 was primarily due to an increase of $16 million in SBC expenses primarily due to a reversal of $11 million of previously recognized expenses in the prior year as a result of the resignation of our co-founder and former Chief Creative Officer, and an increase of $9 million in other professional fees primarily due to costs incurred in connection with the TradePMR and Bitstamp acquisitions. Additionally, employee compensation, benefits, and overhead expenses increased $7 million and $8 million for the three and six months ended June 30, 2025 driven by increased average headcount. These increases were partially offset by decreases of $14 million and $21 million of legal expenses associated with certain historical matters for the three and six months ended June 30, 2025.

Provision for Income Taxes


	Three Months Ended June 30,					Six Months Ended June 30,
(in millions)	2024		2025		% Change	2024		2025		% Change
Provision for income taxes	$	3	$	56	NM	$	8	$	91	NM

Provision for income taxes increased by $53 million and $83 million for the three and six months ended June 30, 2025 primarily due the valuation allowance release of the U.S. federal and certain state deferred tax assets in the fourth quarter of 2024 and the growth of the business.

On July 4, 2025, the President of the United States signed into law OBBBA. The OBBBA introduces broad changes to the U.S. tax code, including permitting the immediate deduction of domestic research and experimentation expenditures, allowing full expensing of acquired qualified property, and increasing the U.S. tax rate on intangible income derived from foreign sources. We believe the recent tax legislation changes provided under the OBBBA will not materially impact our income tax provision.

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, and investments. Other sources of future funds may include potential borrowing under our

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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 Depository Trust Company (“DTC”), the NSCC, the Options Clearing Corporation (“OCC”), and the Commodity Futures Trading Commission (“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, 2025, we had cash and cash equivalents of $4.16 billion and held-to-maturity investments of $134 million. Refer to Note 7 - 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, 2025, we had committed revolving credit facilities with a total borrowing capacity of up to $3.775 billion and a borrowing capacity for our Credit Card Funding Trust of up to $400 million. Refer to Note 10 - Financing Activities and Off-Balance Sheet Risk 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, 2025:


	Payments Due by Period
(in millions)	Total		Remainder of 2025		2026-2027		2028-2029		Thereafter
Operating lease commitments(1)	$	182	$	3	$	57	$	53	$	69
Purchase commitments(2)	594		222		365		6		1
Robinhood match incentives commitments(3)	80		34		46		—		—
Credit Card Funding Trust borrowing principal and interest	236		236		—		—		—
Total	$	1,092	$	495	$	468	$	59	$	70

(1) Operating lease commitments include tenant improvement allowance incentives amortized over the lease terms from 2025 to 2026.

(2) 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 and data services and business insurance.

(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.

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Regulatory Capital Requirements

Our broker-dealer subsidiaries (RHS, RHF, and TradePMR) are subject to Rule 15c3-1 (the “SEC Uniform Net Capital Rule”) under the Exchange Act, 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 SEC Uniform Net Capital Rule.

Our Futures Commission Merchant (“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, 2025
(in millions)	Net Capital		Required Net Capital		Net Capital in Excess of Required Net Capital
RHS	$	2,886	$	215	$	2,671
RHF	260		0.25		260
RHD	49		5		44
TradePMR	8		0.25		8

As of June 30, 2025, these subsidiaries were in compliance with their respective regulatory capital requirements.

Cash Flows

The following table summarizes our cash flow activities:


	Six Months Ended June 30,
(in millions)	2024		2025
Cash provided by (used in):
Operating activities	$	(569)	$	4,151
Investing activities	(59)		841
Financing activities	(72)		(703)

Operating activities

Net cash provided by operating activities increased $4.72 billion compared to the prior period primarily due to:

an increase of $377 million in net income;
an increase of $199 million due to maturities of U.S. treasury securities segregated under federal and other regulations compared to a decrease of $547 million in the prior year due to cash used to purchase U.S. treasury securities segregated under federal and other regulations; and
a decrease of $3.63 billion in securities loaned due to variable lending and funding activities.

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Investing activities

Net cash provided by investing activities increased $900 million compared to the prior period primarily due to:

an increase of $1.30 billion of cash provided by collections of purchased credit card receivables;
an increase of $1.19 billion of cash, cash equivalents, and segregated cash acquired in business acquisitions;
an increase of $302 million driven by no purchases of held-to-maturity investments during the period;
a decrease of $1.46 billion due to cash used for purchases of credit card receivables; and
a decrease of $393 million due to cash used for consideration transferred for business acquisitions.

Financing activities

Net cash used in financing activities increase $631 million compared to the prior period primarily due to:

an increase of $446 million of cash used for share repurchases; and
an increase of $273 million of cash used for taxes related to net share settlement of equity awards.

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, 2025, as compared to those disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Estimates” in our 2024 Form 10-K.

Recent Accounting Pronouncements

See Item 1 of Part I, “Unaudited Financial Statements — Note 2 - Recent Accounting Pronouncements.”

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