AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 3/6 · 18/10/2026
Moat25
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 1/4 · Self-clearing and routing are useful capabilities, but relative superiority is unproven and competitors have copied central offerings.
durability · 1/4 · Match friction expires with the earning period, while imitation and limited intellectual-property protection constrain durable differentiation.
customer dependency · 1/4 · Retirement and paid subscription adoption show engagement indirectly, but standardized transfers and temporary incentives do not establish deep dependency.
erosion resilience · 1/4 · Product adoption is encouraging, but realized imitation and aggressive pricing show fragile protection. Trading dependence adds exposure without proving realized customer losses.
Pricing power50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Higher crypto rebates and option-fee pass-through demonstrate some monetization ability. Lower margin rates and customer incentives offset that evidence; equity rebate weakness was mix-driven.
retention · 2/4 · Record paid subscriptions, retirement relationships and card spending support repeat demand indirectly. Cohort retention is unavailable, and deposit friction is incentive-dependent.
margin resilience · 2/4 · Realized fee pass-through and rising first-half earnings support resilience, but lower lending rates and customer incentives show offsets. The passages do not isolate pricing-driven margins across a full cycle.
contractual freedom · 2/4 · Subscription terms, customer cash-sweep rates and implemented fee pass-through demonstrate some discretion. Advisory agreements permit termination without penalty, and aggressive competition limits practical freedom.
Predictability—
Missing exact annual revenue, free cash flow or FCF margin; operating cash flow and capex must both be reported for all five years.
Financial strength—
Missing required inputs: debtFcfGrade, netDebtEbitGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- interestCoverageGrade
- 100.00
- currentRatioGrade
- 40.95
- Current ratio (x)
- 1.26
- cashInterestPaid
- 31.00
- cashInterestCoverage
- 52.84
Capital allocation—
Missing required inputs: operatingReturn, cashConversionGrade. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- 0.38
- 3-year average SBC / revenue (%)
- 21.27
Management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Positive operating cash generation and actual repurchases coexist with convertible financing, growing contractual commitments, higher weighted-average shares and a failed investment. Brokerage cash movements and missing acquisition-return evidence prevent a stronger conclusion.
incentive alignment · 2/4 · Actual four-year equity grants, operating and financial bonus measures, clawbacks and restrained 2025 CEO compensation support alignment. Time-based vesting does not require operating outperformance, and complete executive ownership is unavailable.
execution · 3/4 · Reported retirement growth, paid subscription adoption, card usage and advisory scaling demonstrate strong commercial execution. Early reserve-computation implementation adds operational evidence; settled compliance failures limit confidence in consistent execution.
governance · 2/4 · Annual director elections, independent committees and clawbacks provide concrete safeguards. Founder voting-control succession provisions and realized compliance settlements temper the assessment; current voting concentration is not established.
Evidence
For example, some of our competitors have quickly adopted, or are seeking to adopt, some of our key offerings and services, including commission-free trading, fractional share trading, no account minimums, and IRA match since their introduction on our platforms in order to compete with us.
Risk factors: competitors adopting key offerings · Filed 18/02/2025
We continue to experience aggressive price competition in our markets and we might not be able to match the marketing efforts or prices of our competitors.
Risk factors: ongoing aggressive price competition · Filed 18/02/2025
64 Table of Contents (3) Robinhood match incentives commitments represent non-cancelable future match payments on eligible cash deposits made by Robinhood Gold Subscribers.
Commitments: eligible Gold deposit match payments · Filed 30/07/2026
The future match payments are forfeited if deposits are not held on the platform during the specific earning period.
Commitments: forfeiture of future match payments · Filed 30/07/2026
Robinhood Retirement assets under custody doubled in 2025 to $26.5 billion across approximately 1.8 million funded accounts.
CEO letter: 2025 retirement assets and funded accounts · Filed 22/04/2026
We made Robinhood Gold even better, with subscribers reaching a record 4.2 million by the end of the year, and launched Robinhood Banking, which has already crossed $1.5 billion in deposits from nearly 100,000 Funded Customers.
CEO letter: Gold subscribers and banking deposits · Filed 22/04/2026
•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.
Metric definitions: standardized account asset transfers · Filed 18/02/2025
Furthermore, as part of the March 2025 FINRA Settlement, RHS resolved multiple matters with FINRA, including RHS’s supervision of its clearing system technology, improper rejection of certain ACATS requests, improper effectuation of trades in securities during trading halts, execution of trades during extraordinary market volatility at prices that were above or below specified price bands, and the maintenance and reporting of inaccurate or incomplete trade, order, and position data to FINRA, FINRA TRF, CAT, and OCC, and RHS’s AML program, registration of required personnel, and supervision of trading in associated persons’ brokerage accounts.
Risk factors: matters resolved in March 2025 FINRA settlement · Filed 30/07/2026
Our self-clearing services allow us to clear and settle trades across stocks, ETFs, and options without relying on a third-party clearing firm, an approach that provides increased internal visibility and stronger oversight and control over clearing and settlement functions.
Technology: self-clearing capabilities · Filed 18/02/2025
•Order Routing System. We built a proprietary order routing system that uses statistical models to evaluate past orders and execution quality data, and automatically routes customer orders to the market makers that have historically given customers the best prices.
Technology: proprietary order routing · Filed 18/02/2025
The Gold Card has more than 700,000 customers with over $10 billion in annualized spend.
CEO letter: Gold Card customers and annualized spending · Filed 22/04/2026
On the wealth management front, we launched Robinhood Strategies—our digital advisory service—and scaled it to more than $1.5 billion in assets under management across more than 250,000 Funded Customers.
CEO letter: advisory launch and adoption · Filed 22/04/2026
However, these laws, agreements, and procedures provide only limited protection.
Intellectual property: limited protection · Filed 18/02/2025
Our results of operations are heavily reliant on the level of trading activity on our platforms and Net Deposits.
Risk factors: reliance on trading activity and net deposits · Filed 30/07/2026
In addition, cryptocurrencies revenues benefited from a higher rebate rate from crypto market makers (a rebate increase was effective in May 2024).
2024 revenue discussion: increased crypto rebate rate · Filed 18/02/2025
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.
2024 revenue discussion: lower equity rebates from trading mix · Filed 18/02/2025
These increases were partially offset by a decrease of $16 million in broker-dealer transaction expenses mainly due to passing option trading fees onto users starting in the fourth quarter of 2023.
2024 expenses: option trading fees passed to users · Filed 18/02/2025
•an increase of $4.29 billion in receivables from users driven by higher margin balance due to lower rates;
2024 cash flows: margin balances increased following lower rates · Filed 18/02/2025
Robinhood Gold Robinhood Gold: Our paid subscription service ($5/month or $50/year) offers customers a suite of powerful tools, data, and features designed to take their investing to the next level.
Product highlights: Gold subscription prices · Filed 22/04/2026
Its provision of those services to the Funds can be terminated without penalty as specified in the investment advisory agreement.
Fund advisory agreements: termination without penalty · Filed 30/07/2026
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.
Cash Sweep: spread determined by bank rates and customer program terms · Filed 18/02/2025
65 Table of Contents Cash Flows The following table summarizes our cash flow activities: Six Months Ended June 30, (in millions) 2025 2026 Cash provided by (used in): Operating activities $ 4,151 $ 2,758 Investing activities 841 (1,054) Financing activities (703) 2,086 Operating activities (in millions) 2025 to 2026 Change Changes to net cash provided by (used in) operating activities were primarily due to: Increase in securities loaned due to continued growth of our securities lending program, as well as market conditions, variable lending and funding activities $ 3,733 Increase in payable to users primarily driven by higher customer free credit balance 3,248 Increase in net income after adjusting for non-cash items 157 Increase in securities borrowed due to increased customer activities (705) Increase in receivables from users primarily driven by higher customer margin receivables (3,176) Increase in securities segregated under federal and other regulations (3,772) Decrease in working capital primarily driven by increase in receivables from brokers, dealers, and clearing organizations and increase in deposits with clearing organizations (878) $ (1,393) Investing activities (in millions) 2025 to 2026 Change Changes to net cash provided by (used in) investing activities were primarily due to: Increase due to lower cash paid associated with business and asset acquisitions $ 150 Increase in proceeds from sales of investment 28 Increase in purchases of non-marketable securities (220) Cash derecognized upon deconsolidation of RVI (220) Increase in purchases of credit card receivables offset by collections during the year (256) Decrease in proceeds received from maturities of held-to-maturity investments (266) Decrease in cash, cash equivalents, and segregated cash acquired in business acquisitions (1,098) Other (13) $ (1,895) 66 Table of Contents Financing activities (in millions) 2025 to 2026 Change Changes to net cash provided by (used in) financing activities were primarily due to: Proceeds from issuance of convertible senior notes $ 2,200 Decrease in cash paid for taxes related to net share settlement of equity awards 349 Proceeds received from issuance of RVI common stock in connection with initial public offering, net of offering costs 312 Increase in borrowings by the Credit Card Funding Trust to purchase credit card receivables 278 Increase in contributions from noncontrolling interests 41 Increase in repayments on borrowings by the Credit Card Funding Trust (25) Purchase of Capped Calls (123) Increase in cash paid for repurchases of common stock of RHM (218) Other (25) $ 2,789 Critical Accounting Estimates Our unaudited condensed consolidated financial statements are prepared in accordance with GAAP.
Cash flows: operating cash, financing, investments and repurchases · Filed 30/07/2026
Commitments The following table summarizes our short- and long-term material cash requirements for contractual obligations as of June 30, 2026: Payments Due by Period (in millions) Total Remainder of 2026 2027-2028 2029-2030 Thereafter Convertible notes $ 2,200 $ — $ — $ 2,200 $ — Purchase commitments(1) 1,287 180 574 471 62 Credit Card Funding Trust borrowing principal and interest 959 959 — — — Operating lease commitments(2) 336 21 94 86 135 Robinhood match incentives commitments(3) 9 9 — — — Total $ 4,791 $ 1,169 $ 668 $ 2,757 $ 197 _______________ (1) Purchase commitments are determined based on the non-cancelable quantities or termination amounts to which we are contractually obligated.
Commitments: June 2026 debt and contractual cash requirements · Filed 30/07/2026
The following table presents the calculation of basic and diluted EPS: (in millions, except for per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2026 2025 2026 Class A Class B Class A Class B Class A Class B Class A Class B Basic EPS: Numerator Net income $ 336 $ 50 $ 503 $ 70 $ 627 $ 95 $ 807 $ 112 Less: Net income attributable to non-controlling interests — — 10 2 — — 7 1 Net income attributable to Robinhood common stockholders $ 336 $ 50 $ 493 $ 68 $ 627 $ 95 $ 800 $ 111 Denominator Weighted-average common shares outstanding - basic 767 115 790 109 767 116 789 110 Basic EPS $ 0.44 $ 0.44 $ 0.62 $ 0.62 $ 0.82 $ 0.82 $ 1.01 $ 1.01 Diluted EPS: Numerator Net income $ 336 $ 50 $ 503 $ 70 $ 627 $ 95 $ 807 $ 112 Less: Net income attributable to non-controlling interests — — 10 2 — — 7 1 Net income attributable to Robinhood common stockholders 336 50 493 68 627 95 800 111 Reallocation of net income as a result of conversion of Class B to Class A common stock 50 — 68 — 95 — 111 — Reallocation of net income (loss) to Class B common stock — (2) — (1) — (3) — (2) Net income attributable to Robinhood common stockholders for diluted EPS $ 386 $ 48 $ 561 $ 67 $ 722 $ 92 $ 911 $ 109 Denominator Weighted-average common shares outstanding - basic 767 115 790 109 767 116 789 110 Dilutive effect of stock options and unvested shares 27 — 13 — 28 — 14 — Conversion of Class B to Class A common stock 115 — 109 — 116 — 110 — Weighted-average common shares outstanding - diluted 909 115 912 109 911 116 913 110 Diluted EPS $ 0.42 $ 0.42 $ 0.62 $ 0.62 $ 0.79 $ 0.79 $ 1.00 $ 1.00 42 Table of Contents The following potential common shares were excluded from the calculation of diluted EPS because their effect would have been anti-dilutive or issuance of such shares is contingent upon the satisfaction of certain conditions that were not satisfied by the end of the period: (in millions) Three Months Ended June 30, Six Months Ended June 30, 2025 2026 2025 2026 Convertible Notes — 13 — 13 Employee Incentive Plans 7 — 7 — Total anti-dilutive securities 7 13 7 13 Our Capped Calls were also excluded from the calculation of diluted net income per share as the effect would have been antidilutive.
EPS note: earnings and weighted-average shares · Filed 30/07/2026
(5)Partially as a result of the termination of the stock purchase agreement, the advances made to Ziglu accounted for as non-marketable equity securities were impaired to a carrying value of zero.
Appendix: Ziglu advances impaired to zero · Filed 22/04/2026
The People Committee granted time-based equity awards to our non-CEO named executive officers (“NEOs”) that vest quarterly over four years.
Executive compensation: granted four-year time-based equity awards · Filed 22/04/2026
The People Committee shifted the 2025 cash incentive plan’s measures to include International Net Funded Accounts in addition to total net revenues, adjusted net income, Net Deposits, and Gold Subscriber growth.
Executive compensation: adopted 2025 bonus measures · Filed 22/04/2026
Our CEO continues to receive a modest base salary, did not participate in our annual cash incentive program, and did not receive any new equity grants in 2025.
Executive compensation: actual 2025 CEO compensation arrangements · Filed 22/04/2026
Maintain robust clawback policies allowing recoupment of incentive-based compensation paid to executive officers in the event of certain detrimental conduct, as well as in the case of certain accounting restatements in accordance with applicable Nasdaq listing standards.
Compensation practices: clawback policies · Filed 22/04/2026
Fully Independent Committees. We have four standing committees of the Board of Directors, each comprising all independent directors.
Governance: independent standing committees · Filed 22/04/2026
All of our directors are elected on an annual basis.
Governance: annual director elections · Filed 22/04/2026
Notwithstanding the foregoing, in the event such natural person is a founder, to the extent (i) a person designated by such founder and approved by a majority of the independent directors then in office or (ii) the other founder, in each case, has or shares voting control over the shares of Class B common stock held by the deceased or disabled founder, such shares will be treated as being held of record by such person or other founder and will not convert into shares of Class A common stock as a result of such founder’s death or total disability.
Capital structure: founder voting-control succession exception · Filed 18/02/2025
RHS, along with RHF, paid a penalty totaling $26 million and agreed to pay restitution and to certain undertakings to resolve these investigations, among others.
Risk factors: paid FINRA penalty and restitution obligations · Filed 30/07/2026
We proactively started implementing these daily computations and began making any required deposits in January 2026.
Regulatory compliance: daily reserve computations implemented early · Filed 30/07/2026
The increase was offset by $43 million of match incentives paid to our customers.
2024 options revenue: customer match incentives · Filed 18/02/2025
Our current and potential future competition principally comes from incumbent brokerages, established financial technology companies, venture-backed financial technology firms, banks, cryptocurrency exchanges, asset management firms, financial institutions, consumer financial service providers and technology platforms.
Competition: generic categories of competitors · Filed 30/07/2026
The testnet launched in February 2026 with the mainnet to follow later in the year.
Product highlights: blockchain testnet and planned mainnet · Filed 22/04/2026
