Robinhood Markets, Inc.
For the period ended Mar 31, 2026. Filed Apr 29, 2026.
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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, 2026 · Filed Apr 29, 2026
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 2025-09-30; filed 2025-11-06.
0001783879-25-000310
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-29.
0001783879-26-000062
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 129 previous paragraphs and 96 current paragraphs.
57 unchanged; 25 reworded; 13 added; 47 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 22 previous and 25 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 (13)
Current report
•net income attributable to Robinhood increased 4% to $350 million, compared to $336 million;
Current report
•diluted EPS increased 3% to $0.38, compared to $0.37;
Current report
•ARPU increased 8% to $157 compared to $145; and
Current report
•Robinhood Gold Subscribers increased 36% to 4.34 million compared to 3.19 million.
Current report
Recent Developments
Current report
In April 2026, we announced that Robinhood will serve as broker and sole initial trustee for the Trump Accounts on behalf of the U.S. Department of the Treasury. Robinhood will work with BNY, which has been selected by the U.S. Department of the Treasury as financial agent for Trump Accounts, to develop and operate the infrastructure required for Trump Accounts. This will include providing the necessary technology, building an intuitive front-end experience, creating educational resources, and managing customer support for Trump Accounts. These accounts will leverage Robinhood’s technology and infrastructure to power a standalone web and app experience designed uniquely for this initiative.
Current report
Transaction-based revenues increased by $40 million, primarily driven by increases of $101 million in event contracts, $26 million in equities, and $20 million in options, partially offset by a decrease of $118 million in cryptocurrencies.
Current report
Event contracts revenues increased primarily due to an acceleration in our prediction markets business, reflecting higher trading activity compared to Q1 2025 when the offering was still in its early stage. The increase was partially offset by a $6 million increase of certain match incentives paid to our customers.
Current report
Other revenues increased $31 million, primarily driven by an increase in Robinhood Gold subscription revenues due to growth in Robinhood Gold Subscribers, revenues earned from coin listings, and revenues derived from acquired businesses.
Current report
Operations costs increased by $7 million for the three months ended March 31, 2026, primarily due to a $4 million increase in employee compensation, benefits, and overhead driven by increased average headcount to support the expansion of our business. Additionally, customer experience and other operations expense increased driven by the increase in the size of our customer base.
Current report
Marketing costs increased by $2 millionfor the three months ended March 31, 2026 primarily due to an increase in marketing expenses related to our credit card offerings.
Current report
General and administrative costs increased by $41 million for the three months ended March 31, 2026 primarily due to a$29 million increase in employee compensation, benefits, and overhead expenses driven by increased SBC related to the deemed modification of awards in connection with the CFO transition and increased average headcount to support the expansion of our business. Additionally, legal expenses increased$9 million for the three months ended March 31, 2026 in relation to new product offerings and reserves for legal matters.
Current report
Provision for income taxes increased by $30 million for the three months ended March 31, 2026 primarily due to the growth of the business and decrease in excess tax benefits from SBC.
Removed paragraphs (47)
Previous report
In addition to the measures presented in our unaudited condensed consolidated financial statements, we use the following key performance metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions.
Previous report
•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. Starting in Q1 2025, individuals who are customers of RIAs that use the TradePMR platform, and, starting in June 2025, customers of Bitstamp, are also considered Funded Customers.
Previous report
•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. Starting in June 2025, the fair value of all cryptocurrency includes cryptocurrency on Bitstamp.
Previous report
•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, free stock bonuses, and lending and staking rewards by Bitstamp) 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. Starting in June 2025, Net Deposits include results from Bitstamp. Due to data limitations, we have not included TradePMR client figures in our Net Depositskey performance metric.
Previous report
•Average Revenue Per User (“ARPU”): We define ARPU as total revenue for a given period divided by the average number of Funded Customers on the last day of that period and the last day of the immediately preceding period. Figures in this Quarterly Report represent ARPU annualized for each three-month period presented.
Previous report
•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 report
Glossary Terms
Previous report
•Automated Customer Account Transfer Service (“ACATS”): A system that automates and standardizes procedures for the transfer of assets in a customer account from one brokerage firm and/or bank to another.
Previous report
•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 report
•Churned Customers: A Funded Customer is considered “Churned” if it was ever a New Funded Customer whose account balance (measured as the fair value of assets in the account less any amount due from the user and excluding amounts that are deposited into a Funded Customer account by the Company with no action taken by the unique person) drops to or below zero and has not completed a transaction using any account with a Robinhood entity for at least 45 consecutive calendar days. Negative balances typically result from Fraudulent Deposit Transactions (which occur when users initiate deposits into their accounts, make trades on our platforms using a short-term extension of credit from us, and then repatriate or reverse the deposits, resulting in a loss to us of the credited amount) and unauthorized debit card use, and less often, from margin loans.
Previous report
•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 report
•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 September 30, 2025, a Funded Customer can have multiple Investment Accounts - one or more individual brokerage accounts, a joint investing account, a traditional IRA, a Roth IRA, and/or an RIA custody account using TradePMR’s platform. Investment Accounts do not include Bitstamp as such accounts are not brokerage or other Investment Accounts.
Previous report
•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 report
•New Funded Customers: We define a New Funded Customer as a unique person who became a Funded Customer for the first time during the relevant period.
Previous report
•Notional Trading Volume: We define Notional Trading Volume, or Notional Volume, for any specified asset class as the aggregate dollar value (purchase price or sale price as applicable) of trades executed in that asset class on our platforms over a specified period of time. Crypto Notional Volume includes both Robinhood App Notional Volume and, starting in June 2025, Bitstamp Notional Volume. Robinhood App Notional Volume represents the dollar value of executed crypto trades on the Robinhood platform over a specified period of time. Bitstamp Notional Volume represents the dollar value of executed crypto trades on the Bitstamp platform over a specified period of time. For example, each $1 of transaction value executed between a buyer and seller is counted as $1 of transaction value in the relevant period, rather than $2 if counted for each of the buyer and seller.
Previous report
•Options Contracts Traded: We define Options Contracts Traded as the total number of options contracts bought or sold over a specified period of time. Each contract generally entitles the holder to trade 100 shares of the underlying stock.
Previous report
•Resurrected Customers: A Funded Customer is considered “Resurrected” in a stated period if it was a Churned Customer as of the end of the immediately preceding period and its balance (excluding amounts that are deposited into a Funded Customer account by the Company with no action taken by the unique person) rises above zero or it completes a transaction using its account.
Previous report
•net income increased 271% to $556 million, compared to $150 million;
Previous report
•diluted EPS increased 259% to $0.61 compared to $0.17;
Previous report
◦SBC expense decreased 1% to $78 million compared to $79 million;
Previous report
•ARPU increased 82% to $191 compared to $105; and
Previous report
•Robinhood Gold Subscribers increased 1.69 million, or 77%, to 3.88 million compared to 2.19 million.
Previous report
Key Performance Metrics
Previous report
Transaction-based revenues increased by $411 million and $877 million for the three and nine months ended September 30, 2025, primarily driven by increases of $207 million and $412 million in cryptocurrencies, $102 million and $271 million in options, and $49 million and $92 million in equities. In addition, other transaction-based revenues increased by $53 million and $102 million primarily driven by increased user activities in prediction markets and instant withdrawals.
Previous report
Other revenues increased $44 million and $86 million for the three and nine months ended September 30, 2025 primarily driven by an increase in Robinhood Gold subscription revenues of $19 million and $52 million due to an increase in Robinhood Gold Subscribers. In addition, other revenues increased $26 million and $35 million primarily driven by higher revenues from increased IPO offerings and acquisition related revenues.
Previous report
Operations costs increased by $6 million and $10 million for the three and nine months ended September 30, 2025, primarily due to increases in other operations expense primarily related to costs associated with customer onboarding and account verification due to the growth of our customer base.
Previous report
Marketing costs increased by $43 millionand$116 millionfor the three and nine months ended September 30, 2025 primarily due to higher expenses in digital marketing of$16 million and$51 million and brand marketing of$14 million and$32 million, as we increased our investments in paid marketing channels and other marketing initiatives to promote our brand, products, and services. Other marketing costs increased$9 millionand$19 million primarily due to expenses related to our Robinhood Gold card and keynote events.
Previous report
General and administrative costs increased by $52 million and $65 million for the three and nine months ended September 30, 2025 primarily due to increases of$26 million and$34 million in employee compensation, benefits, and overhead expenses driven by payroll taxes related to the vesting of Market-Based RSUs and increased average headcount. SBC expenses increased$8 million and$24 million primarily driven by expenses recognized for shares granted in connection with acquisitions. SBC expense for the nine months ended September 30, 2024 included an$11 million reversal of previously recognized expenses as a result of the resignation of our co-founder and former Chief Creative Officer. Other general and administrative expenses increased$13 million and$16 million primarily driven by expenses to support business expansion. Additionally, legal expenses increased$12 million for the three months ended September 30, 2025 in relation to new product offerings. These increases were partially offset by decreases of$12 million and$14 million in settlement and penalties associated with certain historical matters.
Previous report
Provision for income taxes increased by $75 million and $158 million for the three and nine months ended September 30, 2025 primarily due the valuation allowance release of the U.S. federal and certain state deferred tax assets in the fourth quarter of 2024 and the growth of the business.
Previous report
On July 4, 2025, the President of the United States signed into law the One Big Beautiful Bill Act (“ OBBBA”). The OBBBA introduces broad changes to the U.S. tax code, including permitting the immediate deduction of domestic research and experimentation expenditures, allowing full expensing of acquired qualified property, and increasing the U.S. tax rate on intangible income derived from foreign sources. We believe the recent tax legislation changes provided under the OBBBA do not materially impact our income tax provision.
Previous report
Net cash provided by operating activities increased $1.33 billion compared to the prior period primarily due to:
Previous report
•an increase of $783 million in net income;
Previous report
•an increase of $4.44 billion in securities loaned due to continuous growth of our securities lending program, as well as market conditions, variable lending and funding activities.
Previous report
•an increase of $2.59 billion in payables to users due to increased customer activities; and
Previous report
•an increase of $1.19 billion cash used to purchase U.S. treasury securities segregated under federal and other regulations; partially offset by a
Previous report
•a increase of $3.84 billion in receivables from users, net due to higher customer margin balance, driven by increased customer activities; and
Previous report
•a increase of $1.27 billion in securities borrowed due to increased customer activities.
Previous report
Net cash provided by investing activities increased $881 million compared to the prior period primarily due to:
Previous report
•an increase of $2.40 billion of cash provided by collections of purchased credit card receivables;
Previous report
•an increase of $1.19 billion of cash, cash equivalents, and segregated cash acquired in business acquisitions;
Showing the first 40 of 47 passages. Open the source sections for the rest.
Reworded paragraphs (25)
Previous wording
This section presents management’s perspective on our financial condition and results of operations, including performance metrics that management uses to assess company performance. The following discussion and analysis is intended to highlight and supplement data and information presented elsewhere in this Quarterly Report, and should be read in conjunction with our interim unaudited condensed consolidated financial statements and notes elsewhere in this Quarterly Report and our audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our 2024 Form 10-K. It is also intended to provide you with information that will assist you in understanding our consolidated financial statements, the changes in key items in those consolidated financial statements from year to year, and the primary factors that accounted for those changes. To the extent that this discussion describes prior performance, the descriptions relate only to the periods listed, which might not be indicative of our future financial outcomes. In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause results to differ materially from management’s expectations. Factors that could cause such differences are discussed in the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors.”
Current wording
It is also intended to provide you with information that will assist you in understanding our consolidated financial statements, the changes in key items in those consolidated financial statements from year to year, and the primary factors that accounted for those changes. To the extent that this discussion describes prior performance, the descriptions relate only to the periods listed, which might not be indicative of our future financial outcomes. In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause results to differ materially from management’s expectations. Factors that could cause such differences are discussed in the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors.”
Previous wording
Data as of and for the three and nine months ended September 30, 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.
Current wording
Data as of and for the three months ended March 31, 2025 and 2026 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
•total net revenues increased 100% to $1,274 million compared to $637 million;
Current wording
•total net revenues increased 15% to $1,067 million compared to $927 million;
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•total operating expenses increased 31% to $639 million compared to $486 million;
Current wording
•total operating expenses increased 18% to $656 million compared to $557 million;
Previous wording
•Adjusted EBITDA (non-GAAP) increased 177% to $742 million compared to$268 million;
Current wording
•Adjusted EBITDA (non-GAAP)increased 14% to $534 million compared to$470 million;
Previous wording
•Funded Customers increased by 2.5 million, or 10%, to 26.8 million compared to 24.3 million, and Investment Accounts increased by 2.8 million, or 11%, to 27.9 million compared to 25.1 million;
Current wording
•Funded Customers increased by 1.7 million, or 6%, to 27.4 million compared to 25.8 million, and Investment Accounts increased by 2.1 million, or 8%, to 29.1 million compared to 27.0 million;
Previous wording
•Total Platform Assets increased 119% to $332.7 billion compared to $152.2 billion, driven by continued Net Deposits, higher equity and cryptocurrency valuations, and acquired assets;
Current wording
•Total Platform Assets increased 39% to $307.3 billion compared to $220.6 billion, driven by continued Net Deposits, higher equity valuations, and acquired assets;
Previous wording
•Net Deposits were $20.4 billion, which translates to an annualized growth rate of 29% relative to Total Platform Assets at the end of the second quarter of 2025, compared to $10.0 billion, which translates to an annualized growth rate of 29% relative to Total Platform Assets at the end of the second quarter of 2024. Over the past twelve months, Net Deposits were $68.3 billion, a growth rate of 45% relative to Total Platform Assets at the end of the third quarter of 2024;
Current wording
•Net Deposits were $17.7 billion, which translates to an annualized growth rate of 22% relative to Total Platform Assets at the end of the fourth quarter of 2025, compared to $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. Over the past twelve months, Net Deposits were $67.8 billion, a growth rate of 31% relative to Total Platform Assets at the end of the first quarter of 2025;
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, 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.
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 EBITDA. Adjusted EBITDA is defined as net income attributable to Robinhood, excluding (i) net income (loss) attributable to non-controlling interests, (ii) interest expenses related to credit facilities, (iii) provision for (benefit from) income taxes, (iv) depreciation and amortization, (v) SBC, (vi) significant legal and tax settlements and reserves, and (vii) 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
Comparison of the Three and Nine Months Ended September 30, 2024 and 2025
Current wording
Comparison of the Three Months Ended March 31, 2025 and 2026
Previous wording
Equities revenues increased primarily driven by a 78% and 73% increase in the average Notional Trading Volume traded per trader and a 24% and 18% increase in the number of users placing equity trades. For the nine months ended September 30, 2025, 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 as a result of a 45% increase in the average Notional Trading Volume traded per trader and a 2% 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. The increase was partially offsetby a$4 million increase of certain match incentives paid to our customers.
Previous wording
Options revenues increased primarily driven by a 27% and 21% increase in the number of users placing option trades and a 6% and 9% increase in Options Contracts Traded per trader. 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 $24 million and $72 million of certain incentives paid to our customers.
Current wording
Options revenues increased due to a 20% increase in Options Contracts Traded per trader. The increase was partially offset by lower option rebate rates due to the mix of ticker symbols traded as different ticker symbols pay different rebate rates. In addition, the increase was partially offset by a $6 million increase of certain incentives paid to our customers.
Previous wording
Cryptocurrencies revenues increased primarily driven by a 92% and 45% increase in the number of users placing cryptocurrency trades and a 36% and 2% increase in the average Notional Trading Volume traded per trader. Additionally, cryptocurrencies revenues increased as a result of a higher rebate rate from crypto market makers. Cryptocurrencies revenues was partially offset by $9 million and $29 million of certain incentives paid to our customers.
Current wording
Cryptocurrencies revenues decreased primarily due to lower cryptocurrency rebate rates from crypto market makers, a 32% decrease in the number of users placing cryptocurrency trades, and a 22% decrease in the average Notional Trading Volume traded per trader, partially offset by cryptocurrencies revenues benefiting from our acquisition of Bitstamp. In addition, the decrease was partially offset by a $6 million decrease of certain incentives paid to our customers.
Previous wording
Net interest revenues increased by $182 million and $290 million for the three and nine months ended September 30, 2025, primarily driven by growth in our interest-earning asset balances and securities lending activities. The increase was partially offset by a decrease in interest revenue on corporate cash and investments driven by lower cash and cash equivalents 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.
Current wording
Net interest revenues increased by $69 million, primarily driven by higher margin interest and net credit card interest, due to increased margin borrowers and the growth in our credit card business. The increase was partially offset by a decrease in interest revenue from securities lending activities, driven by lower collateral balances and higher stock loan interest expense as stock loan balances grew, as well as a decrease in interest revenue on corporate cash and investments driven by 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
(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 September 30, 2025, the off-balance sheet amount funded under the Program agreement was$207 million and the on-balance sheet amount was $535 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.
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 Trust. Robinhood Credit collects interest from customers that carry balances and pays interest on the amount funded through the Trust, with the difference in those amounts resulting in net interest revenues. As of March 31, 2026, the off-balance sheet amount funded under the Program agreement was $216 million and the on-balance sheet amount was $916 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
(5)Includes interest expenses related to our revolving credit facilities; interest expense related to the Credit Card Funding Trust is included in the credit card, net interest yield calculation. 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
(5)Includes interest expenses related to our revolving credit facilities; interest expense related to the Trust is included in the credit card, net interest yield calculation. 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
Brokerage and transaction costs increased by $17 million and $40 million for the three and nine months ended September 30, 2025. Brokerage and transaction costs included a $6 million and $13 million increase in other brokerage and transactions costs primarily related to credit card network and processing fees and a $5 million and $9 million increase in employee compensation, benefits, and overhead expenses due to increased average headcount to continue to support the growth and expansion of our business. Instant withdrawals expenses increased $4 million and $11 million as a result of higher customer activities. Additionally, market data expenses increased $2 million and $6 million primarily due to higher trading volumes.
Current wording
Brokerage and transaction costs increased by $10 million for the three months ended March 31, 2026, primarily due to a $4 million increase in employee compensation, benefits, and overhead expenses due to increased average headcount to continue to support the growth and expansion of our business and a $4 million increase in other brokerage and transactions costs primarily related to credit card processing fees.
Previous wording
Technology and development costs increased by $32 million and $55 million for the three and nine months ended September 30, 2025, primarily due to increases of $23 million and $25 million in employee compensation, benefits, and overhead expenses due to increased average headcount to support the expansion into new products. Additionally, software and tool expenses increased by $8 million and $23 million, and cloud infrastructure services increased by $5 million and $18 million primarily to support integration from acquisitions and the continued growth of our business. These increases were partially offset by decreases in SBC of $8 million and $21 million attributed to higher values for stock awards issued in prior periods.
Current wording
Technology and development costs increased by $27 million for the three months ended March 31, 2026, primarily due to $13 million in software and tool expenses driven by the integration of acquired businesses and continued growth of our business. Additionally employee compensation, benefits, and overhead expenses increased $8 million due to increased average headcount to support the expansion into new products.
Previous wording
Provision for credit losses costs increased by$3 million and$21 million for the three and nine months ended September 30, 2025, primarily driven by an increase in credit card related provision for credit losses mainly due to higher balances in purchased credit card receivables.
Current wording
Provision for credit losses costs increased by$12 million for the three months ended March 31, 2026, primarily driven by an $18 million increase in credit card related provision for credit losses mainly due to higher balances in purchased credit card receivables, partially offset by adecrease in brokerage related losses of $6 million due to decreased fraud activity.
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, 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.
Current wording
Our principal sources of liquidity are cash flows generated from operations and our cash, cash equivalents, investments, and stablecoin. 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 DTC, the NSCC, OCC, and the 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, 2025, we had cash and cash equivalents of $4.33 billion and held-to-maturity investments of $53 million. Refer to Note 7 - 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, 2026, we had cash and cash equivalents of $5.0 billion and stablecoin of $153 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, 2025, we had committed revolving credit facilities with a total borrowing capacity of up to $3.775 billion and a borrowing capacity for our Credit Card Funding Trust of up to $650 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.
Current wording
As of March 31, 2026, we had committed revolving credit facilities with a total borrowing capacity of up to $4.875 billion and a borrowing capacity for the Trust of up to $1.250 billion. 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
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.
Current wording
Our broker-dealer subsidiaries (RHS, RHF, and TradePMR) are subject to the Net Capital Rule, 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 Net Capital Rule.
Previous wording
Our Futures Commission Merchant (“FCM”) subsidiary, 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.
Current wording
Our FCM subsidiary, 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.
Previous wording
There have been no material changes to our critical accounting estimates during the nine months ended September 30, 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.
Current wording
There have been no material changes to our critical accounting estimates during the three months ended March 31, 2026, as compared to those disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Estimates” in our 2025 Form 10-K.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
This section presents management’s perspective on our financial condition and results of operations, including performance metrics that management uses to assess company performance. The following discussion and analysis is intended to highlight and supplement data and information presented elsewhere in this Quarterly Report, and should be read in conjunction with our interim unaudited condensed consolidated financial statements and notes elsewhere in this Quarterly Report and our audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our 2025 Form 10-K.