Robinhood(HOOD) - 2025 Q4 - Annual Results

Order Flow and Market Structure - Non-directed orders accounted for 100% of all orders, with market orders representing 42.65% of non-directed orders[1] - The report indicates a significant reliance on non-directed order flow across various venues, highlighting the competitive landscape in order routing[3] - The overall market structure indicates a significant reliance on Non-Directed Orders for trading activities across various venues[17] - Non-directed orders accounted for 100% of all orders, with market orders making up 39.05% of Non-Directed Orders[17] - Non-directed orders accounted for 100% of all orders, with market orders making up 43.77% of non-directed orders[30] - Non-directed orders accounted for 100% of all orders, with market orders making up 37.55% of non-directed orders[41] - The total non-directed orders accounted for 100% of all orders processed during the reporting period[53] - Non-directed orders accounted for 100% of all orders, with market orders representing 1.4% of non-directed orders[59] - The total non-directed orders accounted for 100% of all orders, with market orders as 1.72% and marketable limit orders as 27.31%[80] Payment Structures and Revenue - Virtu Americas, LLC processed 46.32% of non-directed order flow, with net payments received for marketable orders totaling $608,042.28[2] - Citadel Securities LLC reported net payments received for marketable limit orders of $552,285.94, accounting for 10.30% of non-directed orders[2] - Citadel Securities LLC processed net payments of $5,490,536.35, with a net payment per hundred shares of $14.0017[13] - Jane Street Capital received net payments totaling $3,898,260.82, with a net payment per hundred shares of $11.0785[13] - Two Sigma Securities, LLC had net payments of $1,349,790.70, with a net payment per hundred shares of $13.8405[13] - The total net payment received for marketable limit orders was $21,177,144.33, averaging 37.44 cents per hundred shares[22] - Payments received for non-marketable limit orders totaled $18,882,702.94, averaging 46.95 cents per hundred shares[22] - Payments for other orders amounted to $5,232,412.69, averaging 43.61 cents per hundred shares[22] - The revenue-sharing agreement between Robinhood Financial LLC and Robinhood Securities LLC allows RHS to pass 80% of revenue from order routing to RHF, enhancing profitability[82] Market Orders and Limit Orders - The overall marketable limit orders accounted for 38.58% of total orders[12] - Marketable limit orders constituted 16.27% of Non-Directed Orders, while Non-Marketable Limit Orders made up 38.58%[17] - Marketable limit orders constituted 12.25% of non-directed orders, while non-marketable limit orders represented 34.33%[30] - The summary indicates that marketable limit orders constituted 38.54% of non-directed orders, while non-marketable limit orders made up 33.76%[41] - The average net payment received for marketable limit orders across various venues was approximately $12,933,977.20[54] - The percentage of non-marketable limit orders was reported at 55.18%[53] Company-Specific Performance - Virtu Americas, LLC reported net payments received for Market Orders at $2,925,958.74, translating to 12.36 cents per hundred shares[17] - Jane Street Capital's net payments for Market Orders reached $3,898,260.82, or 11.08 cents per hundred shares[17] - Citadel Securities LLC generated net payments of $5,490,536.35 for Market Orders, equating to 14.00 cents per hundred shares[17] - Hudson River Trading (HRT) reported net payments of $1,438,220.39 for Market Orders, which is 9.48 cents per hundred shares[17] - Two Sigma Securities, LLC's net payments for Market Orders were $1,349,790.70, or 13.84 cents per hundred shares[17] - G1 Execution Services, LLC received net payments of $1,164,252.86 for Market Orders, translating to 15.95 cents per hundred shares[17] Future Outlook and Strategic Initiatives - The company plans to expand its market presence by enhancing its technology infrastructure to support increased trading volumes[59] - Future guidance indicates a projected revenue growth of 20% year-over-year, driven by new product offerings and market expansion strategies[59] - The overall market environment remains favorable, with a focus on strategic partnerships and potential acquisitions to enhance service offerings[59] Order Routing and Execution - Robinhood Financial LLC routes customer orders to its affiliated clearing firm, Robinhood Securities, LLC, which executes a portion of such orders in a principal capacity[44] - Robinhood Securities passes 80% of the revenue received from third-party market centers to Robinhood Financial, reflecting a significant revenue-sharing model[44] - RHS routes customer orders to its affiliated clearing firm, Robinhood Securities, LLC (RHS), which connects to various third-party market centers[60] - RHS does not execute held orders in a principal capacity, which excludes them from certain statistics[71] - Customers granted RHF discretion regarding price and time of execution for certain orders, which are classified as "not held" orders[71]