Robinhood Markets, Inc. Robinhood Investor Presentation Disclaimers Investor Presentation March 2, 2026 About Robinhood Robinhood Markets, Inc. (NASDAQ: HOOD) transformed financial services by introducing commission-free stock trading and democratizing access to the markets for millions of investors. Today, Robinhood, through its subsidiaries, lets you trade stocks, options, futures, swaps (which include event contracts), and crypto, invest for retirement, earn with Robinhood Gold, and access an expert-mana ...

Core Insights - Robinhood Markets reported significant growth in Q4 2025, with total net revenues reaching $1.28 billion, a 27% increase from Q4 2024, despite challenges in cryptocurrency trading [2][3] - The company is evolving into a broader financial services provider, achieving record figures in revenue, user engagement, and asset management [1] Financial Performance - Transaction-based revenues increased by 15% to $776 million, with options trading up 41% to $314 million and equities up 54% to $94 million, while cryptocurrency revenues fell 38% to $221 million [2] - Net interest revenues rose 39% to $411 million, and net income was $605 million, with diluted EPS at $0.66, down from $1.01 the previous year but above analyst expectations [3] - For the full year, net revenues surged 52% to $4.5 billion, and net income increased by 33% to $1.9 billion, resulting in an EPS of $2.05 [3] User Metrics - Funded customers reached 27 million, a 7% year-over-year increase, and Robinhood Gold subscribers grew by 58% to 4.2 million [4] - Assets under custody increased by 68% to $324 billion, driven by record net deposits of $68.1 billion over the past year [4] Product Innovations - The company launched prediction markets with 12 billion event contracts traded in 2025 and expanded retirement accounts, banking services, and international offerings [5] - Executives expressed optimism about the future, aiming to create a comprehensive "Financial SuperApp" [6] Market Response - Despite strong financial results, Robinhood's stock fell approximately 8% in after-hours trading due to revenues falling short of Wall Street's expectations [7] - Analysts noted concerns over decelerating growth rates and a decline in monthly active users amid a slowdown in the crypto market [7] Analyst Outlook - Analysts remain generally bullish on Robinhood's prospects, with a consensus price target between $123 and $146, indicating potential upside of 50% to 70% [8] - Higher-end forecasts reach $180, driven by opportunities in prediction markets and international expansion, with most ratings leaning towards "Buy" [9]

Core Insights - Robinhood reported record fourth-quarter revenue of $1.28 billion, a 27% increase year-over-year, although it fell short of the Street estimate of $1.34 billion [2] - The company achieved fourth-quarter earnings per share of 66 cents, surpassing the consensus estimate of 62 cents per share [2] Revenue Breakdown - Transaction-based revenues for the fourth quarter were $776 million [2] - Net interest revenue reached $411 million, up 39% year-over-year, while other revenue was $96 million, up 109% year-over-year, driven by Robinhood Gold subscription revenue of approximately $50 million [2] Customer Metrics - Robinhood had 4.2 million Gold subscribers at the end of the fourth quarter and 27.0 million funded customers, an increase of 1.8 million in the quarter [3] - The average revenue per user was $191 in the fourth quarter, reflecting a 16% year-over-year increase [3] Annual Performance - For the full year, Robinhood reported a record revenue of $4.5 billion, a 52% increase year-over-year, with diluted earnings per share of $2.05 [3] - The company recorded $68 billion in net deposits for the full year, with total platform assets rising 68% year-over-year to $324 billion [4] Future Outlook - The company provided guidance for 2026 operating expenses and SBC of $2.6 billion to $2.725 billion, aimed at accelerating product development and driving net deposit growth [6] - Preliminary January 2026 data showed net deposits of $4.5 billion, a 17% year-over-year increase [6] Trading Activity - In January, Robinhood reported 200 million options contracts traded, a 20% year-over-year increase, and equity notional trading volumes of $227 billion, up 57% year-over-year [7] - Event contracts traded in January reached a new monthly record of 3.4 billion [7] Revenue by Segment - Other transaction revenue was $147 million, up over 300%, while options revenue was $314 million, a 41% year-over-year increase [8] - Equities revenue was $94 million, up 54% year-over-year, but cryptocurrencies revenue decreased by 38% to $221 million [8] Market Reaction - Following the earnings report, Robinhood shares fell 7.6% to $79.10 in after-hours trading, within a 52-week trading range of $29.66 to $153.86 [10]

Financial Performance - Robinhood reported record revenues of $4.5 billion for 2025, a 52% increase year-over-year, with Q4 revenues reaching $1.28 billion, up 27% year-over-year [8][3] - The company achieved a record diluted EPS of $2.05 for 2025, compared to $1.56 in 2024, with Q4 diluted EPS at $0.66, down from $1.01 in Q4 2024 [8][3] - Net income for 2025 was $1.9 billion, an increase from $1.4 billion in 2024, while Q4 net income was $605 million, down from $916 million in Q4 2024 [8][3] Customer Growth and Engagement - Funded customers increased by 1.8 million, or 7%, year-over-year, totaling 27 million [3] - Investment accounts grew by 2.2 million, or 8%, year-over-year, reaching 28.4 million [3] - Robinhood Gold subscribers reached a record 4.2 million, reflecting a 58% increase year-over-year [3][5] Revenue Streams - Transaction-based revenues rose 15% year-over-year to $776 million, driven by significant increases in options revenue (up 41% to $314 million) and equities revenue (up 54% to $94 million), while cryptocurrency revenue decreased by 38% to $221 million [3] - Net interest revenues increased by 39% year-over-year to $411 million, primarily due to growth in interest-earning assets [3] - Other revenues surged 109% year-over-year to $96 million, largely from Robinhood Gold subscription revenue, which grew by 56% to $50 million [3] Operating Expenses - Total operating expenses increased by 25% year-over-year to $2.38 billion, with adjusted operating expenses and share-based compensation rising 17% to $2.27 billion [8][3] - The increase in operating expenses was mainly attributed to marketing and growth investments, as well as acquisition-related expenses [3] Strategic Initiatives - Robinhood expanded its product offerings, particularly in Prediction Markets, with over 12 billion event contracts traded in 2025 [4] - The company established a joint venture, Rothera, LLC, to develop an independent, CFTC-licensed exchange and clearinghouse [4] - Robinhood's international expansion included launching a stocks and shares ISA in the UK and acquiring a brokerage and crypto firm in Indonesia [6] Market Position - Robinhood is positioned as the 1 platform for active traders, with significant growth in trading volumes and product offerings [4] - The company aims to deepen customer adoption of its retirement, advisory, and banking services, enhancing its share of wallet among long-term investors [5]