Robinhood Markets, Inc.
For the period ended Mar 31, 2025. Filed May 1, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 1, 2025
HOOD$80.91+3.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-31.
0001783879-24-000296
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0001783879-25-000145
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 108 previous paragraphs and 127 current paragraphs.
54 unchanged; 40 reworded; 32 added; 14 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 21 previous and 22 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (32)
Current report
Our acquisition of TradePMR closed in February 2025. As a result, we are now reporting Total Platform Assets which includes our previously reported Assets Under Custody key performance metric. Total Platform Assets is our previously reported Assets Under Custody metric plus assets managed by RIAs using TradePMR’s platform that are not custodied by us (and therefore would not have been included in the previously reported Assets Under Custody metric). Additionally, we have included total RIA customers in our Funded Customers key performance metric, their accounts in the definition of Investment Accounts, and the appropriate RIA customer balances in our Cash Sweep and Margin Book additional operating metrics. Due to data limitations, we have not included RIA client figures in our Net Deposits key performance metric.
Current report
•net income increased 114% to $336 million, compared to $157 million;
Current report
•diluted EPS increased 106% to $0.37 compared to $0.18;
Current report
•total operating expenses increased 21% to $557 million compared to $460 million;
Current report
◦SBC expense increased 18% to $73 million compared to $62 million;
Current report
•Total Platform Assets increased 70% to $220.6 billion compared to $129.6 billion, primarily driven by continued Net Deposits and the acquisition of TradePMR.
Current report
•ARPU increased 39% to $145 compared to $104; and
Current report
•Robinhood Gold Subscribers increased 1.51 million, or 90%, to 3.19 million compared to 1.68 million.
Current report
(i) Acquired customers and acquired assets relate to those obtained from the acquisition of TradePMR in February 2025.
Current report
(ii) RIA assets relates to the assets obtained from the acquisition of TradePMR in February 2025.
Current report
Other revenues increased $19 million primarily driven by an increase in Robinhood Gold subscription revenues of $15 million due to an increase in Robinhood Gold Subscribers.
Current report
Brokerage and transaction costs increased by $15 million primarily driven by a $7 million increase in other brokerage and transactions costs related to credit card network fees and a $6 million increase in instant withdrawals expense as a result of higher customer activities.
Current report
Technology and development costs increased by $18 million primarily due to a $7 million increase in cloud infrastructure services to meet higher capacity requirements for our platforms to support increased trading volumes and a $7 million increase in software and tools utilized in delivering our products and improving internal operations.
Current report
Operations costs increased by $3 million with no material changes to note.
Current report
Provision for credit losses
Current report
Provision for credit losses costs increased by $8 million primarily due to a$5 million increase in brokerage related expenses primarily as a result of fraudulent activities. Credit card related provision for credit losses increased$3 million primarily due to higher balances in purchased credit card receivables.
Current report
General and administrative costs increased $15 million primarily due to anincrease of $12 million in SBC expenses 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. Additionally, other professional fees increased by $5 million primarily due to costs incurred in connection with the TradePMR acquisition. These increases were partially offset by a decrease of$7 million inlegal expenses associated with certain historical regulatory matters.
Current report
Operating activities
Current report
Net cash provided by operating activities increased $1.27 billion compared to the prior period primarily due to:
Current report
•an increase of $179 million in net income;
Current report
•an increase of $397 million due to maturities of U.S. treasury securities segregated under federal and other regulations compared to a decrease of $692 million in the prior year due to cash used to purchase U.S. treasury securities segregated under federal and other regulations;
Current report
•a decrease of $1.31 billion in payables to users due to increased customer activities.
Current report
Investing activities
Current report
Net cash provided by investing activities increased $56 million compared to the prior period primarily due to:
Current report
•an increase of $500 million of cash provided by collections of purchased credit card receivables;
Current report
•an increase of $171 million driven by no purchases of held-to-maturity investments during the period;
Current report
•an increase of $54 million of cash provided by the maturities of held-to-maturity investments; and
Current report
•a decrease of $520 million due to cash used for purchases of credit card receivables; and
Current report
•a decrease of $150 million due to cash used for the acquisition of TradePMR, net of cash and cash equivalents acquired.
Current report
Financing activities
Current report
Net cash used in financing activities increased $387 million compared to the prior period primarily due to:
Current report
•an increase of $322 million of cash used for share repurchases; and
Removed paragraphs (14)
Previous report
•net income was $150 million, or diluted EPS of $0.17, compared to a net loss of $85 million, or diluted EPS of -$0.09;
Previous report
•total operating expenses decreased 10% to $486 million compared to $540 million;
Previous report
◦SBC expense decreased 5% to $79 million compared to $83 million;
Previous report
•AUC increased 76% to $152.2 billion compared to $86.5 billion, driven by continued Net Deposits and higher equity and cryptocurrency valuations;
Previous report
•ARPU increased 31% to $105 compared to $80; and
Previous report
•Gold Subscribers increased 65% to 2.19 million compared to 1.33 million;
Previous report
Other revenues increased $13 million and $33 million for the three and nine months ended September 30, 2024 as a result of increased Gold subscription revenues of $8 million and $22 million due to an increase in Gold Subscribers. For the nine months ended September 30, 2024, other revenues also increased by $6 million from Sherwood Media LLC (“Sherwood Media”) advertising revenue, which was launched during the second quarter of 2023.
Previous report
Brokerage and transaction costs remained flat for both the three and nine months ended September 30, 2024. Other brokerage and transaction costs increased by$5 million and $15 million due to higher expenses related to our instant withdrawals feature driven by higher activities. Additionally, employee compensation, benefits, and overhead increased by$1 million and $4 million driven by increased average headcount to continue support brokerage business. These increases were offset bydecreases of$8 million and$22 million in broker-dealer transaction expenses as we began to pass option trading fees onto users starting in the fourth quarter of 2023.
Previous report
Technology and development costs increased by $3 million and $2 million for the three and nine months ended September 30, 2024 primarily due to increases in cloud infrastructure expenses of $9 million and $31 million to meet increased capacity requirements for our platforms to support higher trading volumes. These increases were partially offset by decreases in employee compensation, benefits, and overhead of $7 million and $21 million and SBC of $3 million and $17 million, driven by reduced average headcount as part of our efforts to improve efficiency and operating costs.
Previous report
Operations costs increased by $9 million and $21 million for the three and nine months ended September 30, 2024, primarily due to increases of $6 million and $30 million of provision for credit card losses.
Previous report
General and administrative costs decreased by $97 million and $651 millionfor the three and nine months ended September 30, 2024, primarily due to decreases of $94 million and$95 million insettlements and penalties and$8 million and$18 million in legal expenses associated with certain historical regulatory matters. In addition, other SBC decreased by $1 million and $64 million attributed to stock awards becoming fully vested in prior periods. The decrease for the nine months ended September 30, 2024 was also due tothe 2021 Founders Award Cancellation of $485 million which occurred during the first quarter in 2023.
Previous report
Provision for income taxes decreased by $7 million for the three months ended September 30, 2024 primarily due to the decrease in our current U.S. federal and state taxes payable as a result of an increase in excess tax benefits from share-based compensation, offset by the change in valuation allowance on our U.S. federal and state deferred tax assets.
Previous report
If the improvements in the U.S. operating results continue, we believe a reasonable probability exists that, within the next 24 months, sufficient positive evidence may become available to reach a conclusion that a significant portion of the U.S. valuation allowance would no longer be required.
Previous report
Cash used in investing activities decreased $397 million compared to the prior period. The change was primarily driven by a decrease of $182 million from fewer purchases of held-to-maturity investments and an increase of $272 million related to proceeds from maturities of held-to-maturity investments.
Reworded paragraphs (40)
Previous wording
Data as of and for the three and nine months ended September 30, 2023 and 2024 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.
Current wording
Data as of and for the three months ended March 31, 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.
Previous wording
•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.
Current wording
•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. Individuals who are customers of RIAs that use the TradePMR platform are also considered Funded Customers as of the end of the period.
Previous wording
•Assets Under Custody (“AUC”): We define AUC as the sum of the fair value of all equities, options, cryptocurrency and cash held by users in their accounts, net of receivables from users, as of a stated date or period end on a trade date basis. Net Deposits and net market gains (losses) drive the change in AUC in any given period.
Current wording
•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 any given period.
Previous wording
•Net Deposits: We define Net Deposits as all cash deposits and asset transfers from customers, as well as dividends, interest, and cash and assets earned in connection with Company promotions (such as account transfer and retirement match incentives and free stock bonuses) received by customers, net of reversals, customer cash withdrawals, margin interest, Gold subscription fees, and other assets transferred out of our platforms (assets transferred in or out include debit card transactions, Automated Customer Account Transfer Service transfers, and custodial crypto wallet transfers) for a stated period. Prior to the second quarter of 2024, Net Deposits did not include inflows from cash and assets earned in connection with Company promotions and prior to January 2024, Net Deposits did not include inflows from dividends and interest or outflows from Robinhood Gold subscription fees and margin interest, although we have not restated amounts in prior periods as the impact to those figures was immaterial.
Current wording
•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 and free stock bonuses) 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. Prior to the second quarter of 2024, Net Deposits did not include inflows from cash or assets earned in connection with Company promotions, although we have not restated amounts in prior periods as the impact to those figures was immaterial.
Previous wording
•Gold Subscribers: We define a 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.
Current wording
•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.
Previous wording
•Cash Sweep: We define Cash Sweep as the period-end aggregate balances in our brokerage sweep program (i.e., 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.
Current wording
•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.
Previous wording
•Growth Rate and Annualized Growth Rate with respect to Net Deposits: When used with respect to Net Deposits, “growth rate” and “annualized growth rate” provide information about Net Deposits relative to total AUC. “Growth rate” is calculated as aggregate Net Deposits over a specified 12 month period, divided by AUC 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 AUC for the immediately preceding quarter.
Current wording
•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.
Previous wording
•Investment Accounts: We define an Investment Account as a funded individual brokerage account, a funded joint investing account, or a funded individual retirement account (“IRA”). As of September 30, 2024, a Funded Customer can have up to four Investment Accounts - individual brokerage account, joint investing account (which launched in July 2024), traditional IRA, and Roth IRA.
Current wording
•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 March 31, 2025, a Funded Customer can 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.
Previous wording
•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).
Current wording
•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.
Previous wording
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. We pioneered commission-free stock trading with no account minimums, which has since been adopted by the rest of the industry, and we continue to build relationships with our customers by introducing new products that further expand access to the financial system. 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.
Current wording
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.
Previous wording
•total net revenues increased 36% to $637 million compared to $467 million;
Current wording
•total net revenues increased 50% to $927 million compared to $618 million;
Previous wording
•Adjusted EBITDA (non-GAAP) increased 96% to $268 million compared to$137 million;
Current wording
•Adjusted EBITDA (non-GAAP) increased 90% to $470 million compared to$247 million;
Previous wording
•Funded Customers increased 4% to 24.3 million compared to 23.3 million, and Investment Accounts increased by 1.5 million to 25.1 million;
Current wording
•Funded Customers increased by 1.9 million, or 8%, to 25.8 million compared to 23.9 million, and Investment Accounts increased by 2.6 million, or 11%, to 27.0 million compared to 24.4 million;
Previous wording
•Net Deposits were $10.0 billion, an annualized growth rate of 29% relative to AUC at the end of the second quarter of 2024, compared to $4.0 billion, an annualized growth rate of 18% relative to AUC at the end of the second quarter of 2023. Over the past twelve months, Net Deposits were $39.0 billion, a growth rate of 45% relative to AUC at the end of the third quarter of 2023;
Current wording
•Net Deposits were $18.0 billion, which translates to an annualized growth rate of 37% relative to Total Platform Assets at the end of the fourth quarter of 2024, compared to $11.2 billion, which translates to an annualized growth rate of 44% relative to Total Platform Assets at the end of the fourth quarter of 2023. Over the past twelve months, Net Deposits were $57.3 billion, a growth rate of 44% relative to Total Platform Assets at the end of the first quarter of 2024.
Previous wording
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 (loss) to Adjusted EBITDA, please see “—Non-GAAP Financial Measures” below.
Current wording
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.
Previous wording
(2)The following table sets out the components of AUC by type of asset:
Current wording
(2)The following table sets out the components of Total Platform Assets by type of asset:
Previous wording
The following table describes the changes within AUC:
Current wording
The following table describes the changes within Total Platform Assets:
Previous wording
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 (loss), 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 (loss), 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 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.
Current wording
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.
Previous wording
The following table presents a reconciliation of net income (loss), which is the most directly comparable GAAP measure, to Adjusted EBITDA:
Current wording
The following table presents a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net income:
Previous wording
Comparison of the Three and Nine Months Ended September 30, 2023 and 2024
Current wording
Comparison of the Three Months Ended March 31, 2024 and 2025
Previous wording
Transaction-based revenues increased by $134 million and $390 million for the three and nine months ended September 30, 2024, primarily driven by increases of $38 million and $176 million in cryptocurrencies, $78 million and $154 million in options, and $10 million and $37 million in equities.
Current wording
Transaction-based revenues increased by $254 million primarily driven by increases of $126 million in cryptocurrencies, $86 million in options, and $17 million in equities.
Previous wording
Cryptocurrencies revenues increased as a result of a 57% and 77% increase in the average Notional Trading Volume traded per trader and a 31% and 32% increase in the number of users placing cryptocurrency trades. In addition, cryptocurrencies revenues benefited from a higher rebate rate from crypto market makers (an increase was effective in May 2024).
Current wording
Cryptocurrencies revenues increased as a result of a higher rebate rate from crypto market makers (a rebate increase was effective in May 2024). Additionally, cryptocurrencies revenue increased as a result of a 45% increase in the number of users placing cryptocurrency trades, partially offset by a 14% decrease in the average Notional Trading Volume traded per trader and $21 million of incentives paid to our customers.
Previous wording
Options revenues increased due to a 23% and 20% increase in the number of users placing option trades and a 47% and 37% increase in Options Contracts Traded. In addition, we experienced higher option rebate rates due to the mix of ticker symbols traded as different ticker symbols pay different rebate rates. Option revenues decreased by $17 million and $25 million due to match incentives paid to our customers (Refer to Note 3 - Revenues to our unaudited condensed consolidated financial statements in this Quarterly Report for more information).
Current wording
Options revenues increased due to a 46% increase in Options Contracts Traded and a 25% increase 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 of incentives paid to our customers.
Previous wording
Equities revenues increased primarily driven by a 41% and 32% increase in the average Notional Trading Volume traded per trader and a 14% and 15% 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.
Current wording
Equities revenues increased primarily driven by a 56% increase in the average Notional Trading Volume traded per trader and a 17% 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.
Previous wording
Net interest revenues increased by $23 million and $120 million for the three and nine months ended September 30, 2024. These increases were driven by growth in our total interest-earning assets balance. These increases were offset by decreases in interest revenues earned from corporate cash and investments driven by lower cash and cash equivalents balances and lower short-term interest rate environment. In September 2024, the Federal Reserve lowered interest rates by 50 basis points, which will negatively impact our net interest revenues and adversely impact our customers’ returns on their cash deposits.
Current wording
Net interest revenues increased by $36 million, primarily driven by growth in most of our interest-earning asset balances and securities lending activities. The increase was partially offset by a decrease in interest on corporate cash and investments driven by lower cash and deposits 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.
Previous wording
(1)Includes cash and cash equivalents, cash, cash equivalents, and securities segregated under federal and other regulations, deposits with clearing organizations, and investments.
Current wording
(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.
Previous wording
(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; 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 September 30, 2024,$202 million was off-balance sheet and$107 million was on-balance sheet. The balance for June 30, 2023 is based on Robinhood Credit’s acquisition date of July 3, 2023. 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.
Current wording
(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 March 31, 2025, the off-balance sheet amount funded under the Program agreement was$206 million and the on-balance sheet amount was$223 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.
Previous wording
(4) Annualized yield is calculated by annualizing revenue/expense for the given period and dividing by the applicable average asset balance.
Current wording
(4) Annualized yield is calculated by annualizing revenue for the given period and dividing by the applicable average asset balance.
Previous wording
Marketing costs increased by $31 million and$111 millionfor the three and nine months ended September 30, 2024, primarily due to higher expenses in digital marketing of $15 million and $61 million, brand marketing of $3 millionand$19 million as well as other marketing of $5 million and$15 million, as we increased our investments in paid marketing channels and other marketing initiatives to promote our brand, products, and services. In addition, employee compensation, benefits, and overhead increased by$4 million and$8 million driven by increased average headcount to support increased marketing initiatives.
Current wording
Marketing costs increased by $38 million primarily due to higher expenses in digital marketing of $25 million and brand marketing of $5 million, as we increased our investments in paid marketing channels and other marketing initiatives to promote our brand, products, and services.
Previous wording
Provision for income taxes increased by $2 million for the nine months ended September 30, 2024 primarily due to the increase in our current U.S. federal and state taxes payable as a result of business growth, offset by the change in valuation allowance on our U.S. federal and state deferred tax assets.
Current wording
Provision for income taxes increased by $30 million for the three months ended March 31, 2025 primarily due to the valuation allowance release on the U.S. federal and certain state deferred tax assets in the fourth quarter of 2024 and the growth of the business.
Previous wording
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 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, and the Options Clearing Corporation (“OCC”)). 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.
Current wording
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 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.
Previous wording
As of September 30, 2024, our cash and cash equivalents were $4.61 billion, which included a $750 million liquid investment portfolio of available-for-sale securities. Held-to-maturity investments maturing within one year can also be a source of liquidity and were $527 million as of September 30, 2024. See Note 6 - Investments and Fair Value Measurement, to our unaudited condensed consolidated financial statements in this Quarterly Report for further information.
Current wording
As of March 31, 2025, we had cash and cash equivalents of $4.42 billion and held-to-maturity investments of $192 million. Refer to Note 7 - Investments and Fair Value Measurement, to our unaudited condensed consolidated financial statements in this Quarterly Report for further information.
Previous wording
As of September 30, 2024, we had a total of $3.00 billion in committed revolving credit facilities and a borrowing amount up to $100 million for our Credit Card Funding Trust. See Note 10 - Financing Activities and Off-Balance Sheet Risk, to our unaudited condensed consolidated financial statements in this Quarterly Report for further information.
Current wording
As of March 31, 2025, we had committed revolving credit facilities with a total borrowing capacity of up to $3.65 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.
Previous wording
(2) Robinhood match incentives commitments represent non-cancelable future match payments on eligible cash deposits made by Robinhood Gold users. The future match payments are forfeited if deposits are not held on the platform during the specific earning period.
Current wording
(2) 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.
Previous wording
Our broker-dealer subsidiaries (RHF and RHS) 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.
Current wording
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.
Previous wording
The table below summarizes the net capital, capital requirements, and excess net capital of RHS and RHF as of periods presented:
Current wording
The table below summarizes the net capital, capital requirements, and excess net capital of RHS, RHF, TradePMR, and RHD as of periods presented:
Previous wording
As of September 30, 2024, our broker-dealer subsidiaries were in compliance with their respective regulatory capital requirements.
Current wording
As of March 31, 2025, these subsidiaries were in compliance with their respective regulatory capital requirements.
Previous wording
Cash provided by operating activities increased $1.02 billion primarily driven by increased net income of $1.07 billion, partially offset by a decrease in non-cash add-backs driven by higher SBC expense in 2023 as a result of the 2021 Founders Award Cancellation. Further, changes in operating assets and liabilities had a positive impact on our cash provided by operating activities. These changes primarily included an increase in securities loaned due to continuous growth in our securities lending program. The increase was offset by an increase in receivables from users, net due to higher customer margin balance, driven by increased customer activities.
Current wording
•an increase of $967 million in securities loaned due to continuous growth of our securities lending program; and
Previous wording
Cash used in financing activities decreased $452 million compared to the prior period primarily driven by a $511 million decrease in funds spent on common stock repurchases and $95 million in borrowings under our Credit Card Funding Trust to purchase credit card receivables. The decrease was partially offset by an increase of $146 million in taxes paid related to net share settlement of equity awards.
Current wording
•an increase of $80 million of cash used for taxes related to net share settlement of equity awards.
Previous wording
There have been no material changes to our critical accounting estimates during the nine months ended September 30, 2024, as compared to those disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Estimates” in our 2023 Form 10-K.
Current wording
There have been no material changes to our critical accounting estimates during the three months ended March 31, 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.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Our FCM subsidiary, Robinhood Derivatives, LLC (“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.