Robinhood Markets, Inc.
For the period ended Dec 31, 2025. Filed Feb 18, 2026.
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FY2025 · Filed Feb 18, 2026
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FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS
| PAGE | |
|---|---|
| Report of Independent Registered Public Accounting Firm (PCAOB ID: 42) | 127 |
| Consolidated Balance Sheets | 129 |
| Consolidated Statements of Operations | 130 |
| Consolidated Statements of Comprehensive Income (Loss) | 131 |
| Consolidated Statements of Cash Flows | 132 |
| Consolidated Statements of Stockholders’ Equity | 134 |
| Notes to the Consolidated Financial Statements | |
| Note 1 - Description of Business and Summary of Significant Accounting Policies | 137 |
| Note 2 - Recent Accounting Pronouncements | 151 |
| Note 3 - Business Combinations | 152 |
| Note 4 - Goodwill and Intangible Assets | 155 |
| Note 5 - Revenues | 157 |
| Note 6 - Allowance for Credit Losses | 158 |
| Note 7 - Investments and Fair Value Measurement | 160 |
| Note 8 - Income Taxes | 165 |
| Note 9 - Property, Software, and Equipment, net | 168 |
| Note 10 - Securities Borrowing and Lending | 169 |
| Note 11 - Financing Activities and Off-Balance Sheet Risk | 170 |
| Note 12 - Common Stock and Stockholders' Equity | 173 |
| Note 13 - Net Income (Loss) per Share | 178 |
| Note 14 - Leases | 179 |
| Note 15 - Commitments & Contingencies | 180 |
To the Shareholders and the Board of Directors of Robinhood Markets, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Robinhood Markets, Inc. (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), stockholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 18, 2026 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
| Description of the Matter | Transaction-based revenuesAs discussed in Note 1 and Note 5 to the consolidated financial statements, the Company recognized transaction-based revenues of $2,628 million for the year ended December 31, 2025, of which $2,326 million is comprised of revenues earned from routing user orders to market makers when the performance obligation is satisfied, which is at the point in time when a routed order is executed by the market maker. The Company’s transaction-based revenues from routing user orders are earned from various market makers, and involve several inputs from the Company’s information technology environment to calculate the revenue recognized.Auditing transaction-based revenues from routing user orders was complex and involved significant audit effort to identify, test, and evaluate the inputs to record transaction-based revenues from routing user orders. |
|---|---|
| How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the revenue recognition process for transaction-based revenues from routing user orders. With the involvement of our information technology professionals, we identified and tested the relevant inputs from the information technology environment used to process and record transaction-based revenues earned from routing user orders and tested the relevant information technology general controls over the Company’s information technology environment. Our audit procedures included, among others, testing on a sample basis the completeness and accuracy of the underlying data and calculations used to record transaction-based revenues from routing user orders, obtaining external confirmation of revenue recognized and transaction price from market makers, and comparing revenue recognized to cash receipts. |
/s/Ernst & Young LLP
We have served as the Company’s auditor since 2017.
San Francisco, California
February 18, 2026
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.