Group 1 - The SEC has closed its investigation into Robinhood's crypto unit and will not pursue action, following a similar decision regarding Coinbase [1] - Coinbase opted to fight the SEC's lawsuit, while Robinhood chose to avoid trading the most scrutinized crypto assets, although it launched a staking service in Europe [3] - The SEC, under former chair Gary Gensler, had been investigating crypto exchanges over their treatment of crypto assets like staking, which Gensler viewed as a security [2] Group 2 - The crypto industry, including exchanges like Coinbase and Robinhood, aims to leverage the current regulatory environment to establish clearer regulations under a more crypto-friendly administration [4] - There are concerns within the industry about whether it will adopt sensible regulations or revert to a less regulated environment [4]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced and qualified news journalists who produce independent content [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The news team delivers insights across various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Industry Overview - Fintech is transforming financial services, making them faster, cheaper, and more accessible through innovations like digital payments, mobile banking, AI, and blockchain [1][2] - The sector is experiencing rapid growth, particularly among Millennials and Gen Z, driven by convenience and innovation [2] Market Potential - Fintech revenues are projected to reach $1.5 trillion by 2030, indicating significant investment opportunities for long-term gains [3] - Traditional financial institutions are heavily investing in fintech products to remain competitive, creating opportunities for investors [4] Key Companies Robinhood - Robinhood democratized finance with commission-free trading and has expanded its offerings to include stock and ETF trading, options trading, cryptocurrency transactions, and retirement accounts [6][7] - The company plans to expand internationally and develop AI-powered investment tools, aiming for a comprehensive financial service platform [8] - The Zacks Consensus Estimate for Robinhood's 2025 sales and EPS suggests year-over-year growth of 25.3% and 38.5%, respectively [9] Moody's - Moody's has integrated advanced analytics and AI into its risk assessment capabilities, enhancing its position in financial analytics [10][11] - The company has introduced cloud-based platforms for efficient data processing, improving decision-making for financial professionals [12] - Moody's is expected to achieve year-over-year growth of 6.7% in sales and 11.4% in EPS by 2025 [14] Upstart - Upstart utilizes AI to improve lending efficiency by evaluating non-traditional data points, allowing broader access to credit [15][16] - The company earns revenue through referral fees and has expanded into auto lending and is exploring small business loans and mortgages [16] - The Zacks Consensus Estimate for Upstart's 2025 sales and EPS indicates substantial growth of 59.3% and 775%, respectively [18]

Company Insights - Robinhood Markets Inc (NASDAQ:HOOD) has seen a significant increase in its stock price, currently trading at $52.83, marking a 2.4% rise and poised to end a four-day losing streak [2] - The company has experienced a remarkable year-over-year performance, boasting a 269.4% increase, and is not far from its three-year high of $62.09 reached on February 13 [2] - The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Robinhood's crypto unit without taking any action, which follows the SEC's recent decision to drop its lawsuit against Coinbase Global [3] Market Sentiment - Options traders are exhibiting a bullish sentiment towards Robinhood, as indicated by a 50-day call/put volume ratio of 3.31, which is higher than 98% of readings from the past year [1] - The security's score of 84 suggests that Robinhood tends to deliver larger-than-expected price movements compared to the options market's low volatility expectations [1]

Core Viewpoint - Robinhood Markets has experienced a significant increase in stock price, rising nearly 300% over the past 52 weeks, driven by strong earnings and a boom in cryptocurrency trading [1][2]. Financial Performance - In Q4, Robinhood reported $1 billion in revenue, exceeding Wall Street estimates by approximately $54 million, with earnings per share of $1.01, more than double the consensus estimates [2]. - The company saw a 733% increase in cryptocurrency transaction revenues, supported by a 393% rise in crypto notional trading volume from Q3 2024 [3]. Business Drivers - Robinhood's diversified business model allows it to earn from options, stocks, and crypto, reducing dependency on any single revenue stream [8]. - The firm has tripled its assets under custody since 2020, with net interest revenue growing by 526% during the same period [9]. - Retirement assets under custody increased sevenfold in the past year, and Gold Subscribers grew by 86% [10]. Market Outlook - Analysts have updated their price targets for Robinhood, with an average target suggesting a potential rise of 24% from the current stock price [12]. - The company is well-positioned to benefit from the generational wealth transfer expected over the next 20 years, targeting younger investors [10][11].

Group 1: Bridgewater Associates' Investment Activities - Bridgewater Associates, founded by Ray Dalio, significantly increased its holdings in major stocks during Q4, as revealed in its Form 13F filing [1] - The firm acquired an additional 2.1 million shares of Robinhood Markets, benefiting from a nearly 153% rise in Robinhood's share price since September 30 [2][3] - Bridgewater also added over 1.1 million shares of PayPal, nearly doubling its position, despite PayPal's stock facing challenges and a 13% drop post-earnings report [5][6] Group 2: Robinhood Markets - Robinhood has seen a surge in crypto trading volume, which spiked by 455%, contributing to a significant increase in average revenue per user, now at $164 [3] - The company has nearly $200 billion in assets under custody and has increased its revenues by more than ten times over the past five years, appealing to Gen Z and millennial investors [3] Group 3: PayPal and the Payments Industry - Bridgewater's investment in PayPal is part of a broader bullish stance on the payments industry, which includes positions in Visa and Global Payments [6] - The payments sector is expected to benefit from ongoing economic growth and digitalization trends, with Visa leading in card networks and PayPal dominating digital wallets [6] Group 4: AT&T and Telecom Sector - Bridgewater increased its stake in AT&T by nearly 5.2 million shares, indicating a preference for AT&T over its competitors Verizon and T-Mobile [7] - AT&T's commitment to fiber optics positions it as a leader in broadband, with a stock return of 22% since the start of Q4 and a strong growth in broadband margins [8]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Robinhood Markets, Inc. (HOOD), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank to make informed investment decisions [1][4]. Group 1: Brokerage Recommendations for Robinhood Markets - Robinhood Markets has an average brokerage recommendation (ABR) of 1.82, indicating a consensus between Strong Buy and Buy, with 52.6% of recommendations being Strong Buy and 10.5% being Buy [2][12]. - The article suggests that relying solely on brokerage recommendations may not be prudent, as studies indicate these recommendations often fail to guide investors effectively towards stocks with high potential for price appreciation [4][9]. Group 2: Limitations of Brokerage Recommendations - Brokerage analysts tend to exhibit a positive bias in their ratings due to the vested interests of their firms, leading to a disproportionate number of favorable ratings compared to negative ones [5][9]. - The ABR is not always up-to-date, while the Zacks Rank, which is based on earnings estimate revisions, provides a more timely and reliable indicator of a stock's near-term price performance [11][10]. Group 3: Zacks Rank and Earnings Estimates - The Zacks Consensus Estimate for Robinhood Markets has increased by 14.7% over the past month, indicating growing optimism among analysts regarding the company's earnings prospects [12]. - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank of 1 (Strong Buy) for Robinhood Markets, suggesting a strong potential for price appreciation [13].

Part I [Business Overview](index=7&type=section&id=ITEM%201.%20BUSINESS) Robinhood democratizes finance through a mobile-first platform offering diverse financial services, expanding globally while focusing on active traders and next-gen wallet share [Company Overview](index=7&type=section&id=Company%20Overview) Robinhood's core mission is to democratize finance for all, guided by values emphasizing safety, customer focus, and high performance - Robinhood's mission is to **democratize finance for all**, creating a modern financial services platform for everyone, regardless of wealth, income, or background[21](index=21&type=chunk)[22](index=22&type=chunk) - The company's **core values** include Safety First, Radical Customer Focus, Participation Is Power, One Robinhood, High Performance, First-Principles Thinking, and being Lean and Disciplined[23](index=23&type=chunk)[29](index=29&type=chunk) [Products and Features](index=8&type=section&id=Our%20Products%20And%20Features) Robinhood continuously expands its product offerings, including a new desktop platform, international brokerage services, futures trading, and premium Gold subscription features - Introduced **Robinhood Legend**, a customizable browser-based desktop trading platform, in Q4 2024, aiming to make it the most state-of-the-art desktop platform for trading[26](index=26&type=chunk) - Expanded brokerage services to the **U.K.** in 2024, offering commission-free trading of U.S. stocks, options, fractional shares, and more, with plans to expand the offering in 2025[34](index=34&type=chunk) - Launched **futures trading** in January 2025, offering access to stock indexes, energy, currency, metals, and crypto futures with low commission rates[35](index=35&type=chunk) - Offers **cryptocurrency trading** in all U.S. states and largest territories, and in select EU jurisdictions, supporting **22 cryptocurrencies** in the U.S. and offering staking exclusively for EU customers[36](index=36&type=chunk)[37](index=37&type=chunk)[40](index=40&type=chunk) - The **Robinhood Gold subscription** offers premium features including a higher interest rate on cash sweep, a **3% match on IRA contributions**, bigger instant deposits, and access to the Robinhood Gold Card[47](index=47&type=chunk)[49](index=49&type=chunk) [Technology and Innovation](index=14&type=section&id=Our%20Technology) Robinhood leverages a self-clearing system and focuses on AI and blockchain technology to transform financial infrastructure and reduce operational costs - The company operates a **self-clearing system** for stocks, ETFs, and options, providing greater control and oversight over clearing and settlement functions[52](index=52&type=chunk) - Robinhood is strategically focused on two major platform shifts: **Artificial Intelligence (AI)** and **cryptocurrency/blockchain technology**, expecting to introduce its first AI-native advisory products in the coming year[53](index=53&type=chunk)[56](index=56&type=chunk) - The company believes cryptocurrency and blockchain will fundamentally transform financial infrastructure through **tokenization**, reducing the need for traditional intermediaries and lowering operational costs[56](index=56&type=chunk) [Growth Strategies](index=16&type=section&id=Our%20Growth%20Strategies) Robinhood's growth strategies target becoming the leading platform for active traders, increasing wallet share among the next generation, and building a global financial ecosystem - The company's growth is centered on **three key strategies**: becoming the 1 platform for active traders, achieving 1 in wallet share for the next generation, and building the 1 global financial ecosystem[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - To attract active traders, Robinhood is focusing on **new product innovations** (e.g., 24 Hour Market), **expanding asset classes** (index options, futures), and improving trading tools, particularly on the Robinhood Legend platform[58](index=58&type=chunk)[60](index=60&type=chunk) - **International expansion** is a key priority, with plans to extend products like options trading to the U.K. in 2025 and opening an office in Singapore as its APAC headquarters[62](index=62&type=chunk) [Human Capital](index=19&type=section&id=Human%20Capital) Robinhood employs approximately 2,300 full-time staff, fostering a high-performance culture with variable incentive pay and strong employee resource group engagement - As of December 31, 2024, Robinhood had approximately **2,300 full-time employees**[76](index=76&type=chunk) - The company fosters a **high-performance culture** with all employees eligible for **variable incentive pay** (bonus and/or equity) linked to individual and company performance[74](index=74&type=chunk)[79](index=79&type=chunk) - Robinhood supports **ten Employee Resource Groups (ERGs)** which engage about **60%** of its employees as of year-end 2024[78](index=78&type=chunk) [Regulation](index=21&type=section&id=Regulation) Robinhood operates under extensive regulation by the SEC, FINRA, and state authorities, with evolving oversight for cryptocurrency and emerging AI technologies - The company's broker-dealer subsidiaries (RHS and RHF) are subject to **extensive regulation by the SEC and FINRA**, including strict **net capital requirements** under Rule 15c3-1[87](index=87&type=chunk)[88](index=88&type=chunk) - Cryptocurrency operations are primarily regulated at the **state level in the U.S.** (RHC as a money transmitter) and by various authorities in the EU (RHEU), with the landscape rapidly evolving, including the implementation of the **Markets in Crypto-Assets Regulation (MiCA)** in the EU[93](index=93&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - The company is subject to **emerging regulations around Artificial Intelligence**, such as the EU's AI Act and various state-level laws in California, which govern the use, transparency, and privacy of AI technologies[108](index=108&type=chunk) [Risk Factors](index=26&type=section&id=ITEM%201A.%20RISK%20FACTORS) Robinhood faces significant risks from transaction-based revenue scrutiny, interest rate volatility, intense competition, rapid expansion, and complex regulatory and legal challenges, compounded by cryptocurrency market uncertainties and concentrated founder voting power - A large portion of revenue is **transaction-based** (PFOF and crypto rebates), which is sensitive to trading volumes, market maker relationships, and heightened **regulatory scrutiny**, including potential new rules or bans on PFOF[113](index=113&type=chunk)[128](index=128&type=chunk)[133](index=133&type=chunk) - The business is subject to **extensive and changing laws and regulations**, and the company is frequently involved in **regulatory investigations and litigation**, which could result in substantial costs and changes to business practices[115](index=115&type=chunk)[179](index=179&type=chunk)[185](index=185&type=chunk) - Cryptocurrency operations face **extreme price volatility**, a high degree of uncertainty regarding their **legal status as securities** in the U.S., and significant **custody risks** related to safeguarding private keys[115](index=115&type=chunk)[255](index=255&type=chunk)[259](index=259&type=chunk) - The **multi-class stock structure** concentrates **over 50% of the voting power** with the company's founders, limiting the influence of Class A common stockholders on corporate matters[116](index=116&type=chunk)[349](index=349&type=chunk) [Cybersecurity](index=84&type=section&id=ITEM%201C.%20CYBERSECURITY) Robinhood maintains a comprehensive cybersecurity program aligned with NIST CSF, overseen by the CSO and Board, with formal processes for risk management and incident disclosure - The cybersecurity program is managed by the **Chief Security Officer (CSO)** and is aligned with the **NIST Cybersecurity Framework (NIST CSF)**, with annual maturity assessments conducted by third-party consultants[362](index=362&type=chunk) - **Board-level oversight** is provided by the **Safety Committee**, which is composed of independent directors and receives quarterly updates on cybersecurity risks and threats[366](index=366&type=chunk)[369](index=369&type=chunk) - A **Materiality Assessment Committee (MAC)**, consisting of the CFO, CLO, and CBO, is responsible for determining if a cybersecurity incident is material and requires public disclosure[368](index=368&type=chunk) Part II [Market for Common Equity and Shareholder Matters](index=88&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%2C%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) Robinhood's Class A common stock trades on Nasdaq, with no cash dividends paid, and the company initiated a $1 billion share repurchase program in May 2024 - The company has **never declared or paid cash dividends** and does not anticipate doing so in the foreseeable future, intending to retain earnings for business growth[379](index=379&type=chunk) Share Repurchases in Q4 2024 | Period | Total Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares Remaining for Purchase (in millions) | | :--- | :--- | :--- | :--- | | Oct 2024 | 797,990 | $25.23 | $882 | | Nov 2024 | 2,787,976 | $25.35 | $812 | | Dec 2024 | 1,757,949 | $38.90 | $743 | | **Total Q4** | **5,343,915** | **$29.79** | **$743** | - On May 28, 2024, the Board of Directors approved a share repurchase program authorizing the company to repurchase up to **$1 billion** of its Class A common stock[382](index=382&type=chunk) [Management's Discussion and Analysis (MD&A)](index=91&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Robinhood achieved a significant turnaround in FY2024 with **$1.41 billion net income** and **58% revenue growth**, driven by transaction and interest revenues, alongside strong growth in key customer and asset metrics [Overview and Key Performance Metrics](index=91&type=section&id=Overview%20and%20Key%20Performance%20Metrics) Robinhood's FY2024 financial performance shows significant revenue and net income growth, alongside strong increases in funded customers, assets under custody, and net deposits FY 2024 Financial Highlights vs. FY 2023 | Metric | FY 2024 | FY 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Net Revenues | $2.95 billion | $1.87 billion | 58% | | Net Income (Loss) | $1.41 billion | ($0.54 billion) | NM | | Diluted EPS | $1.56 | ($0.61) | NM | | Adjusted EBITDA (Non-GAAP) | $1.43 billion | $0.54 billion | 167% | Key Performance Metrics (as of Dec 31) | Metric | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Funded Customers | 25.2 million | 23.4 million | 8% | | Assets Under Custody (AUC) | $192.9 billion | $102.6 billion | 88% | | Net Deposits (Annual) | $50.5 billion | $17.1 billion | 195% | | Average Revenue Per User (ARPU) | $122 | $80 | 53% | | Gold Subscribers | 2.64 million | 1.42 million | 86% | - Net income for 2024 included a **$369 million deferred tax benefit** from the release of the company's valuation allowance and a **$55 million benefit** from a regulatory settlement accrual reversal[395](index=395&type=chunk) [Results of Operations](index=99&type=section&id=Results%20of%20Operations) Robinhood's 2024 operations saw substantial growth in transaction-based revenues, particularly cryptocurrencies, and net interest revenues, while operating expenses decreased significantly Transaction-Based Revenues (in millions) | Category | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Options | $760 | $505 | 50% | | Cryptocurrencies | $626 | $135 | 364% | | Equities | $177 | $104 | 70% | | Other | $84 | $41 | 105% | | **Total** | **$1,647** | **$785** | **110%** | Net Interest Revenues (in millions) | Category | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Margin interest | $319 | $243 | 31% | | Interest on segregated cash & deposits | $261 | $210 | 24% | | Cash Sweep | $179 | $123 | 46% | | Securities lending, net | $94 | $79 | 19% | | **Total Net Interest Revenues** | **$1,109** | **$929** | **19%** | Operating Expenses (in millions) | Category | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Brokerage and transaction | $164 | $146 | 12% | | Technology and development | $818 | $805 | 2% | | Operations | $112 | $116 | (3)% | | Provision for credit losses | $76 | $43 | 77% | | Marketing | $272 | $122 | 123% | | General and administrative | $455 | $1,169 | (61)% | | **Total Operating Expenses** | **$1,897** | **$2,401** | **(21)%** | - The **61% decrease** in General and Administrative expenses was primarily due to a **$485 million SBC charge** in 2023 for the 2021 Founders Award Cancellation that did not recur in 2024, and a **$155 million decrease** in settlements and penalties[439](index=439&type=chunk) [Liquidity and Capital Resources](index=106&type=section&id=Liquidity%20and%20Capital%20Resources) Robinhood maintains strong liquidity with substantial cash and credit facilities, and its subsidiaries exceed regulatory net capital requirements - As of December 31, 2024, the company had **$4.33 billion in cash and cash equivalents**, $398 million in held-to-maturity investments, and $361 million in stablecoin[443](index=443&type=chunk) - The company has access to **$3.00 billion in committed revolving credit facilities** and up to $300 million in borrowing for its Credit Card Funding Trust as of year-end 2024[444](index=444&type=chunk) Regulatory Net Capital (as of Dec 31, 2024) | Subsidiary | Net Capital (in millions) | Required Net Capital (in millions) | Excess Net Capital (in millions) | | :--- | :--- | :--- | :--- | | RHS | $2,540 | $178 | $2,362 | | RHF | $248 | $0.25 | $247.75 | | RHD | $40 | $1 | $39 | [Critical Accounting Estimates](index=109&type=section&id=Critical%20Accounting%20Estimates) Key accounting estimates involve credit loss allowances, valuation of business combination assets, income tax valuation allowances, and fair value of share-based compensation - Key estimates include the **allowance for credit losses**, valuation of assets in business combinations (goodwill and intangibles), **income tax valuation allowances**, and the **fair value of share-based compensation**, particularly for market-based awards[453](index=453&type=chunk)[454](index=454&type=chunk)[456](index=456&type=chunk) - The company tests **goodwill for impairment** annually or when triggering events occur, using a qualitative assessment followed by a quantitative test if necessary[457](index=457&type=chunk) - Significant judgment is required to determine the **valuation allowance against deferred tax assets**, considering historical loss experience and expectations of future earnings[460](index=460&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=112&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Robinhood's primary market risk is interest rate fluctuations, with a **100 basis point increase** potentially boosting annual net revenues by **$188 million**, alongside managed market-related credit risk Annualized Impact of Interest Rate Changes on Net Revenues (in millions) | Basis Point Change | Estimated Impact as of Dec 31, 2024 | | :--- | :--- | | +150 bps | $282 | | +100 bps | $188 | | +50 bps | $94 | - The company is exposed to **market-related credit risk** from securities collateralizing margin receivables and securities lending activities. This risk is managed by requiring customers to maintain collateral, daily monitoring of margin levels, and credit approvals for counterparties[476](index=476&type=chunk) [Financial Statements and Supplementary Data](index=114&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section presents Robinhood's audited consolidated financial statements for FY2024, with an unqualified auditor opinion, detailing key notes on business combinations, tax allowances, share repurchases, and legal contingencies [Report of Independent Registered Public Accounting Firm](index=115&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Ernst & Young LLP issued an unqualified opinion on Robinhood's FY2024 financial statements and internal control over financial reporting - Ernst & Young LLP issued an **unqualified opinion** on the consolidated financial statements and on the company's internal control over financial reporting as of December 31, 2024[481](index=481&type=chunk)[492](index=492&type=chunk) - The critical audit matter identified was "**Transaction-based revenues**" due to the complexity and significant volume of transactions processed by the company's IT systems[488](index=488&type=chunk) [Consolidated Financial Statements](index=119&type=section&id=Consolidated%20Financial%20Statements) This section provides Robinhood's consolidated balance sheet and statement of operations data for the fiscal years presented Consolidated Balance Sheet Data (in millions) | | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$26,187** | **$17,624** | | Cash and cash equivalents | $4,332 | $4,835 | | Receivables from users, net | $8,239 | $3,495 | | **Total Liabilities** | **$18,215** | **$10,928** | | Payables to users | $7,448 | $5,097 | | Securities loaned | $7,463 | $3,547 | | **Total Stockholders' Equity** | **$7,972** | **$6,696** | Consolidated Statement of Operations Data (in millions) | | FY 2024 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | | Total net revenues | $2,951 | $1,865 | $1,358 | | Total operating expenses | $1,897 | $2,401 | $2,369 | | **Net income (loss)** | **$1,411** | **($541)** | **($1,028)** | | **Diluted EPS** | **$1.56** | **($0.61)** | **($1.17)** | [Notes to the Consolidated Financial Statements](index=127&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Key notes detail business combinations, income tax valuation allowance release, share repurchase programs, and significant legal and regulatory contingencies - **Business Combinations (Note 3):** Acquired X1 Inc. (now Robinhood Credit) on July 3, 2023, for **$104 million**. Announced pending acquisitions of Bitstamp (approx. **$200M**) and TradePMR (approx. **$300M**), expected to close in H1 2025[616](index=616&type=chunk)[617](index=617&type=chunk)[621](index=621&type=chunk) - **Income Taxes (Note 9):** Released the valuation allowance on most U.S. deferred tax assets in 2024, resulting in a net deferred tax benefit of **$369 million**[656](index=656&type=chunk) - **Stockholders' Equity (Note 13):** Repurchased and retired **$608 million** of stock from the USMS in August 2023. Initiated a new **$1 billion** share repurchase program in May 2024, with **$257 million** repurchased by year-end[694](index=694&type=chunk)[696](index=696&type=chunk) - **Commitments & Contingencies (Note 16):** The company is involved in numerous legal and regulatory matters, including a **Wells Notice** from the SEC regarding its crypto business, ongoing litigation related to the Early 2021 Trading Restrictions, and a **$45 million settlement** with the SEC in January 2025 covering various operational and compliance issues[727](index=727&type=chunk)[731](index=731&type=chunk)[733](index=733&type=chunk) [Controls and Procedures](index=175&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management and Ernst & Young LLP concluded that Robinhood's disclosure controls and internal control over financial reporting were effective as of December 31, 2024 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2024[746](index=746&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of December 31, 2024, a conclusion supported by an **unqualified audit report** from Ernst & Young LLP[748](index=748&type=chunk)[749](index=749&type=chunk)

MENLO PARK, Calif., Feb. 14, 2025 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. ("Robinhood") (NASDAQ:HOOD) today reported select monthly operating data for January 2025: Funded Customers at the end of January were 25.5 million (up approximately 310 thousand from December 2024, up approximately 2 million year-over-year).Assets Under Custody (AUC) at the end of January were $204 billion (up 6% from December 2024, up 99% year-over-year). Net Deposits were $5.6 billion in January, translating to a 35% annualized ...

Robinhood (NASDAQ: HOOD ) had a strong Q4 report, but management has lofty goals which may be unattainable. That said, the platform is well-positioned to continue as the dominant retail investor platform. However, I'm not a bull right now as I don't consider the business modelOliver Rodzianko is an investment analyst specializing in the technology sector, grounded in timeless value principles. His expertise spans AI, semiconductors, software, and renewable energy, with a focus on companies that demonstrate ...