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Thank you to everyone for joining Robinhood's Q2 26 earnings call. Whether you are tuning into the livestream or here with us in person. With us today are chairman and CEO, Vladimir Tenev; CFO, Shiv Kumar Verma; and VP of Corporate Finance and Investor Relations, Chris Koegel. Vladimir and Shiv will offer opening remarks and then open the call to Q&A. During the Q&A portion of the call, we will answer questions from the audience, which includes institutional research analysts, finance content creators who may hold an ownership position in Robinhood, and both institutional and retail shareholders. As a reminder, today's call will contain forward looking statements. Actual results could differ materially from our current expectations and we may not provide updates unless legally required. Potential risk factors that could cause differences, including regulatory developments that we continue to monitor, are described in the press release we issued today, the earnings presentation, and our SEC filings, all of which can be found at investors.robinhood.com. Today's discussion will also include non-GAAP financial measures. Reconciliations to the GAAP measures we consider most directly comparable can be found in the earnings presentation. With that, please welcome Vladimir and Shiv.
Wow. Thank you, guys, for joining. Thanks for the warm welcome, and it is awesome to see a packed house in here. We are back again at NASDAQ in New York City, taking a big bite out of the big apple with Shiv here and Chris. Largest audience yet for an earnings event. I remember Shiv last year, it was when we did the first event with analysts in person. And we were worried, would anyone come? And not too many people did, but the people that did had a lot of fun and now I am glad to see the word has spread. So it is really great to see shareholders, analysts, buy side and sell side, content creators in the audience here. It has been about five years actually, I think exactly five years since we rang the bell at the NASDAQ. And in that time, we have really accomplished significant growth and we have delivered for our customers. In that time period since IPO, total platform assets have quadrupled and adjusted EBITDA has more than 8x. But one thing has not changed: why we exist. Robinhood exists to make everyone an owner. And I think that is a unique vision. I do not think a lot of companies are going after us. It is a powerful vision, not just for each individual customer, but I think also for society at large. I think a society without ownership broadly distributed is very fragile. And we think broad ownership is essential to free, stable and prosperous society. Because when more people have a stake in the outcome, more skin in the game, they are literally invested in the outcome, and we want more people to be invested in the companies of our great country. And I think we have just scratched the surface for what we can do there. To achieve our aspirations of making everyone an owner, we are focused on three things. Number one, being number one in active traders, which will allow customers to own any tradable asset. Number two is being the leader in wallet for the next generation, bringing ownership to the entire family — so the whole family and really lifelong ownership. And then number three, building the leading global financial ecosystem, which is really about expanding the ownership that we have been able to contribute to in the U.S. worldwide. Billions of people around the world could benefit. So in Q2, our continued product velocity across these three arcs led to a bunch of records. On the active trader front, the core business is humming, which drove market share gains and record volumes across not just equities but also options and prediction markets in the quarter. Also, I have to highlight, Rothera started supporting Robinhood prediction markets and has rapidly become a top three DCM, so top three designated contract market in the U.S. We also launched the first version of Agentic trading, which allows customers to build AI agents to trade equities, options and crypto and to have access to Robinhood tools and features. We are very excited about that. So looking at wallet share, trust accounts have officially launched, which is a historic step towards enabling broad financial ownership from birth. We are honored to serve as broker and sole initial trustee, helping millions of American children become owners of our great economy from day one. We also crossed an exciting milestone for the Robinhood Gold Card: one million cardholders. That is a number we are very excited about. Actually, the Gold Card is now driving over $17 billion in annualized purchase volume, so it is being heavily used. I think a lot of people in this room maybe have them. Plus, we broke $3 billion in banking deposits since we began rolling out just last November. And all this put together contributed to record net deposits. Customers are continuing to trust us with more and more of their assets, which in turn helped drive total platform assets to record levels in the quarter as well. Finally, global financial ecosystem: we closed our acquisition of WonderFi in Canada. We received our capital market services license in Singapore. And at our crypto and international event The World is Flat, we introduced a suite of products including Robinhood Chain, which is the first chain purpose built for real world assets. We have been seeing a lot of great initial traction on all these products, but in particular the chain. We saw over $12 billion in DEX volume after launch, which made it one of the largest chains by transaction over the past week. It was also the fastest chain to get to 100 million transactions; we are well north of 150 million transactions at this point, which is very, very cool. Also, customers deposited over $200 million into Robinhood Earn. Remember, Robinhood Earn is our stable coin lending product that is powered by Robinhood Chain and our stable coin USDG. It allows customers to earn 7% APY, which is a competitive rate. So $200 million so far and it has just been a few weeks. Stock tokens, which I am perhaps the most excited about. We are very excited about bringing ownership of real world assets to everyone in the world. Stock tokens are available in more than 120 countries, which allow many people around the globe to experience the idea of ownership. Tokenization makes it possible to expand exposure to high quality assets like U.S. stocks to every single person with an Internet connection. So if you have a smartphone, you have an Internet connection, you can connect to our blockchain; you can get exposure to US stocks. And that is very exciting. Overall, we are now serving over one million accounts outside the U.S., and we are very much at the beginning there. So continued product velocity across these three arcs led to record results in Q2: record revenues of $1.3 billion, that is up 32% from last year; record net deposits of $22 billion, which is a 28% annualized growth rate; and record Gold subscribers of 4.8 million, which is now a 17% attach rate relative to our net funded accounts. Now, I will hand it over to Shiv to discuss our results in more detail. Shiv?
All right. Well, thanks Vladimir. Before getting to the results, I wanted to share three big takeaways from the quarter. To start, the core business is going strong. Net deposits were a record $22 billion, a 28% growth rate. And we drove new records across equities, options, prediction markets, and margin. It is also great to see top of funnel growth picked up as we added nearly one million funded customers in the quarter. Second, this led to both record revenues, up 32% year over year, but also another quarter of strong profitability with 57% adjusted EBITDA margins. So we are continuing to drive strong top line growth and profitability at scale. And lastly, we are dialed in on expenses. So we are lowering and tightening our outlook, even as our core businesses grew to new highs, and we layered on new products. So let's review our Q2 results compared to a year ago. As we said before, revenues grew 32% to a record $1.3 billion and this was driven by strong growth across the business. Transaction volumes increased to record levels across the majority of our asset classes and we drove market share to new highs. Interest earning assets also grew; we had records across margin, our credit card book, and Robinhood Banking. And finally, other revenues were up as Gold subscribers reached an all time high of 4.8 million and we started generating revenues for our work on the trust accounts. And while product velocity continues to increase and revenues continue to grow to new highs, we also stayed disciplined on cost. So adjusted OpEx and SBC was $641 million as we managed expenses well below our prior outlook range, all while including costs related to two new businesses, Rothera and WonderFi, that were not included in our prior outlook. As we look to the rest of the year, while we are adding costs related to Rothera and WonderFi, we also continue to get even more efficient in how we operate. And this is allowing us to both self-fund Rothera and WonderFi costs but also remove additional costs from the system. So we are lowering and tightening our 2026 outlook for adjusted OpEx and SBC to a range of $2.675 billion to $2.775 billion. We believe it is a competitive advantage to not only be a growth company that can invest for the long term, but also leverage our lean and disciplined operating model to self-fund a meaningful amount of these new investments. So you take it all together, the strong top line growth and expense discipline we drove in Q2 flowed to the bottom line. Adjusted EBITDA was $741 million up 35% year over year, and a 57% margin. Earnings per share was $0.62, up 48% year over year. So if we turn to capital allocation, there are a few items top of mind. In June, we opportunistically raised $2.2 billion of capital to give us even more flexibility to invest for future growth. We believe we have a massive opportunity ahead of us, and the capital gives us even more capacity to go after it. We raised this capital on attractive terms for shareholders, with both the 0% coupon and no net dilution until our share price exceeds $300. And even while raising capital, we are prudently managing our share count. Year to date, we have repurchased 7.5 million shares for $664 million. And as we said before, denominator matters. So overall, we are really proud of the results we drove in Q2 and Q3 is also off to a good start. July average daily volumes compared to a record Q2 are in a similar area for equities, options and event contracts. And July net deposits are tracking towards the $4 billion area and this does not yet include deposits into the trust accounts. So stepping back, we feel great about all the products we are shipping and the growth that we are driving. But we have also heard from some investors that it can be difficult to know which growth areas to focus on. So I wanted to share three areas that we think are important for measuring progress and success on our long term vision. First, net deposits. Customers continue to trust us with their hard earned deposits at over 20% growth rates. As we drive strong net deposit growth, assets compound, and this leads to strong business growth. Second, rule of 40. We are driving double digit revenue growth with strong adjusted EBITDA margins — a combination that has made us more than a rule of 80 company the past few years. We think it is important to be both a growth company and a company that operates with strong margins, and all of this at our scale of over $5 billion of annual revenue, which is quite rare. And third, $100 million ARR businesses. We are excited to share we are now up to 13 businesses that have reached this level, as we rapidly ship for customers, including two more that we added just this quarter: Robinhood Lending and the credit card. As we build out a family of financial apps, we plan to add even more $100 million ARR businesses in the year to come. So if we keep making progress on these areas quarter after quarter, year after year, the financial results should follow and take care of themselves. As we have shared before, our financial north star remains the same: maximize earnings per share and free cash flow per share for shareholders over time. So before we move to Q&A, I am actually going to turn it back over to Vladimir to show us a few of these great products that we have recently built. Vladimir?
Thanks, Shiv. I want to try something a little bit different, if I may. A lot of you are probably familiar with our main app. But over the past few years, we have really expanded from a single trading app to a broader system. So what I wanted to do was just show you, give you a little tour of some of the other family of apps that we have built and we have really been improving upon very recently. So here they are: our four apps. I will not show you the main one, but why don't we start with this one here, trust accounts. So again, this has been an incredible collaboration between Treasury and National Design Studio, Robinhood teams and BNY. And I believe it is the best digital experience the government has ever delivered. Actually, Secretary Bazzano a couple of days ago said this was like the best product launch that the government has ever done. And I think that is high praise because I mean, NASA I think would be in that list. Anyway, this is my kids' trust account. So if you notice, you can select your kid there. One of the things that I think we have done really well — and maybe you will recognize some of the design language and inspiration from Robinhood — is showing the magic of compound interest that is front and center. So you not only see the account values today, but you can see what happens by age 18. And you can simulate, okay, if I add $50 or $130 per month, what can we expect to happen with compounding to age 18? You can even extend it to age 60 for retirement age. What we really wanted to do was illustrate how magical it is and get people thinking long term. You can scroll down here and you can actually get a feeling for the companies that are in the low cost ETFs. And then this is my favorite thing: contribution flow. So we have this awesome illustration and we make it super easy to contribute. So if you want to do $5, my Robinhood checking account is linked, and you have the coin animation that fills up your piggy bank. You can make it a recurring contribution. And actually, the level of the coins in the piggy bank is a nice little detail: it corresponds exactly to how close you are to your annual giving limit of $5,000. You can also share here. So this is a QR code. You can easily share with friends or put on a registry or have for birthdays. You can share this link at the bottom directly too, and folks can just contribute without even having an account through Apple Pay. I think that is cool. Here's the educational content and we try to make it easy to just go through and learn the basics about the stock market and investing. That is the idea. There is plenty more coming. We think it can be the best charitable giving vehicle, so we are working hard on that. Michael Dell, as you guys know, gave a very large donation with his wife, Susan, and many others as well. We are working to make it easy for employers to donate. There is a $2,500 tax-free employer limit per year which Robinhood is participating in. If you do not have it, I definitely recommend picking it up and getting it for your children or grandchildren. And you should expect that it just continues to get better and better. So that is the trust accounts app, and again, great collaboration between Treasury, National Design Studio, BNY and our team. Take a look at the banking app, that is the second one up here. We believe we are building the best digital banking experience in the market. You can get a sense of the premium art deco feel and we wanted to build a banking experience with no compromises. Usually, neo banks have sacrifices that you have to make from the experience being purely digital, but we want it to be a true private banking product. One of the things people love about it most is your APY. So we have now made it so that you can earn high APYs on both checking and savings just by setting up direct deposit and being a Gold subscriber, no minimums. People really love not having to concentrate on moving their funds back and forth to make sure the bulk of their money is earning the highest yield. So we just give you 3.5% automatically on every account and customers love it. So far about 40% of customers are signed up for direct deposit, which is a great attach rate. You can also see down here we have got the rewards menu. We have done a redesign to make it easier to get into: 3% cash back, you can upgrade to the Gold Card and we have all sorts of other reward redemptions. And then down here, that is the family tab. So you can add family members. This is really the first banking product where the family is the first class citizen. And then all of your transactions are down here. So really, think this is a key part of building a financial ecosystem for our customers. Customers direct deposit into banking, can spend with their credit card, cash back flows back into brokerage, which kickstarts or turbocharges their investing. We make it incredibly easy to do that. Also, just one note, we just started rolling out the Platinum card and it is looking really good. I think we have gone through a lot of the feedback that we had on launch, and I encourage you guys maybe after earnings to check out the website because it is looking really good. All right. Let me show now the third one, which is the Robinhood wallet. As part of our announcements at The World is Flat, we launched Robinhood Chain Mainnet, and of course a robust chain like Robinhood Chain needs a robust wallet to match. So let me show you how customers are using it. Now I will do a caveat: I will show a lot of features that actually are not available in the U.S. These are really ex-U.S. products. So think of it that way. They are not available here, but people in over 120 countries outside can actually use them. You will see right away similar design language to Robinhood, but everything is powered by crypto technology. One of the tabs we have on the bottom there is perpetual futures. The wallet itself is well integrated into Robinhood Chain. Through our partnership with Leiter, you can, if you are an active trader outside the U.S., get leveraged exposure to not just crypto perps, but also commodity perps and single stock perps as well. We make it easy to add funds, deposit and withdraw, and place trades. The other thing I am very excited about is stock tokens. So here, I will show you what they look like. This is NVIDIA. If you are a customer outside the U.S., you can get exposure to NVIDIA through stock tokens. They have certain advantages over traditional stocks: they are tradable 24/7, including Saturdays and holidays, and you can even send it on chain. You can see the address; you can receive just like you would any crypto. This makes it really easy to expand ownership worldwide. All you need is an Internet connection and to be connected to the blockchain. Looking ahead, we are going to continue to push on this. We are working on adding lots more stocks and really pushing on tokenization of other real world assets. We have a lot of momentum here and a lot to do. There is plenty of other products in the pipeline. We have our third annual Hood Summit in a couple months, The Engines of Creation live from Houston, Texas, so stay tuned for that. I think that will be very exciting. With that, Chris, unless you want me to show more apps, we can go to Q&A.
Thank you very much, Vladimir and Shiv. For the Q&A session, we are going to start by answering shareholder questions from Say Technologies. And after the Say questions, we will turn to live questions from our audience and then go to the dial-in participants. So I am going to kick it off with our first question from Say; who should be joining us live. Zach, are you joining us?
Zach. I see him. But I do see a blinking cursor. Hello? Do you guys hear me? Oh, there you are. Hey, everyone. Happy to be here. Just wanted to know, what is the goal of Robinhood Social and when will it go live to the general public?
Thanks for the question. I also noticed you are on Robinhood Social, if I am not mistaken. And there was some discussion on Robinhood Social about this question. So it is very full circle. The goal with Robinhood Social is actually Robinhood up until now has largely been a tool to place trades, but the idea for the trade would typically come from outside. You would get the idea somewhere from the real world and then come and place the trade. And so we asked ourselves, can we actually help customers learn from one another? Can we take advantage of the large community that we built? And can we make it so that we can help you with idea generation? So far, we are seeing great early signs. One of the advantages that we have compared to other social media platforms is since we have the trading data, we can make sure that everything is validated and when you say you have made a trade, it is actually real and you can see that the customer actually has the portfolio that they claim they have. We are adding more and more features. The goal is to get it out to everyone by the end of the quarter. And what we are doing is we are just iterating and making sure everything like the feed ranking algorithm, all of the functionality in the posts are tuned before we make it available to everyone. But we like what we are seeing, so we feel pretty good about rolling it out before the end of the quarter. Thank you.
All right. Thank you for your questions, Zach. Next question is coming from John.
分析師問答
Hey, all. Hey, Shiv and Vladimir. Thanks for taking my question. Mine's on the Clarity Act, and I understand it is still moving through the Senate. So things could change. But could you maybe — if something similar were to pass, could you give an idea of what would be the most impactful aspects of that to Robinhood? And if there are delays, any impacts as well?
Yeah. Totally. I will field that one. So I think the Clarity Act is very important because while the current administration has been great and really is the first crypto-forward administration that is embracing the new technology, we want the foundation of the industry in the U.S. to be durable. We do not want the floor to be shifting out from under us every four to eight years and new rules to be put in place. In order for the industry to really grow, stability from regulatory stability is necessary. And that happens through legislation. We saw that with GENESIS, and I think Clarity takes it one step further. In particular, one of the things that we have been pushing hard on, as you saw earlier, is tokenization. We have been investing in our tokenized offerings. We think that is going to be a big industry. We are pushing that out of the U.S. You see some of the advantages already just in the past year from v1 of our tokenized products to v2: it is now fully on chain, it is 24/7 trading, fractionalization by default. There are lots of advantages. We think it would be a shame if the U.S. did not get to benefit from all those advantages. So we are excited about that. But also, we are not standing still. We are pushing hard on our on-chain and traditional centralized products. We are making sure we continue to innovate overseas in some areas; otherwise, with Robinhood Earn and other on chain products in the U.S. we think we will be good regardless. Of course, clarity is going to be very, very important to making the most out of all of these products that we have been building.
Cool. Thanks for taking my question.
All right. Thanks, John. And the last question from Say comes from Joe.
Can you give us an update on early traction with the trust accounts since the July launch? Specifically the number of accounts opened, assets flowing in, and how you are thinking about long term contributions to net deposits and assets under custody?
Yeah, great question. We have been very pleased with the progress thus far. Seven million children have signed up. We have seen nearly $1.5 billion in contributions into trust accounts already, and again, that is before a lot of the philanthropic contributions have started flowing in. So we think that this is going to get to tens of millions and we are working aggressively to do that. We believe it will continue to grow very rapidly from here.
And it will take continued hard work. The great thing about programs that have success is people want a lot more things and they want them quickly. With our partners, we are working hard to deliver: making it so that employers can fund the trust accounts of their employees, making a great philanthropic experience. For folks that want to donate and to be philanthropic, there are actually poor options available right now; there is not a default option. You have to evaluate charities and figure out if they are being wasteful with their fees and if the money actually gets where you want it to get. I think this can provide a default, great, low cost mechanism. So we are excited about that, and it is just the beginning.
All right. Thank you, Vladimir. That concludes the Say portion of our Q&A. So we are now going to go to Q&A from our live audience. We ask that each person limit their questions to one. Please raise your hand if you would like to ask a question. All right. Can we get the mic to Dan Dolev?
Hi. Dan Dolev at Mizuho. Congrats, Vladimir. Congrats, Shiv. Amazing quarter. I think what surprised us the most on the positive side was the amazing growth in the funded accounts. Maybe you could shed some light on what part of that is structural, what you are doing, and maybe a quick update on the progress in Europe and how that is going. So very impressive there. Thank you.
Yeah. I am happy to start with that one. Thank you. So we said on the last quarter we were making a concerted effort on top of funnel, and it is really great to see the progress. The million funded customers is the most we have added in a quarter in nearly five years since the IPO. There was a variety of different things, so it was not any one thing. A really strong macro market backdrop definitely helped. We had a lot of new products that came out — banking and credit card, for example — those contributed strong organic growth. We also had the SpaceX IPO, which helped. We had an acquisition in the quarter which provided a couple hundred thousand accounts. We continue to grow overseas. So what it is showing is just the power of the ecosystem or the family of financial apps that Vladimir was saying. In any given time, there may be a couple different vectors that are growing, and this quarter we saw a lot of them hit at the same time. We are going to keep focusing on this, so whether it is through new products or marketing, it is going to be one of our top KPIs going forward.
More to do.
All right. Moving from the front row to the second row, Daniel Fannon.
Yeah. Thanks. So wanted to talk on prediction markets and how you are thinking about sustainability as we exit the World Cup and bridge to football season, just how you think about the long term durability of this kind of asset class and what you are seeing outside of maybe some of the sports stuff related to macro or bigger events.
Yeah. Absolutely. I think that the great thing about prediction markets is there are events all the time. You mentioned football season that is coming up. There are also the midterms, which I think are extremely important and will be a topic of discussion and of course customers are going to want to trade them and hedge their portfolios. There are events consistently. So we are gearing up for that. We are making product improvements constantly and pricing improvements. Rothera has gone live and I think the World Cup was really a proof of concept there. We are looking to scale that rapidly and make it much bigger with the goal of providing great pricing to our customers. That is really how we think about it: can we route to multiple venues with the goal of making sure as a customer you get the best deal possible on Robinhood.
All right. Thanks, Daniel. Next to David Smith.
Hey. Thank you. In the past, you have spoken about how it is typical for new customers to come to Robinhood based on interest in one particular product, then engage with you for more products over time as they become more familiar with your offerings. With the really strong prediction market engagement we saw in June and seemingly continuing into July, can you help us get a sense of how much came from existing prediction markets users, existing Robinhood customers who maybe were new to prediction markets, and also from new customers who joined Robinhood in the past month or two to transact with you in this product?
I am happy to take that. So we have said before, when you come to Robinhood to do one thing, you tend to do more. A couple of things we will point you to: new customers still sign up for Gold about 40-50%. So customers come in, their journey is they come for something — equities, prediction markets, crypto, banking — they discover Gold, then they discover other products. What we are seeing is regardless of what product you come in for, you tend to sign up for Gold and you tend to adopt others. One thing we looked at: if you are a prediction markets customer, for example, you are actually more likely to have a retirement account with Robinhood. Any vector you come in — whether it is banking, prediction markets, credit card — tends to lead to adoption of others. The last number we shared was we had about 1.5 million people that have used prediction markets. That number is now closer to 2 million, so it continues to grow nicely. The main takeaway is it is across all of the different products, and people are coming in and adopting multiple products at the same time.
On the marketing side, we continue to see strong ROIs and it is diversified: strong ROIs on prediction markets, but also Gold and some of the active trader offerings as well. We are in the fortunate position of having it work really well across multiple fronts.
All right. Next, Devin Ryan in the front row.
Thanks so much, Devin Ryan with Citizens. Hey, Shiv. Question, Vladimir. You mentioned version one of Agentic. It is still fairly new, but can you talk about what you are learning with customers that are using that? How is the investment performance there, anything else interesting that you are seeing with their behaviors? And how does that then map to version 2.0? I know you guys are very focused on bringing these capabilities to all of your customers, and that is probably where it becomes a much bigger deal for Robinhood. So how do we think about mapping that out and what that will look like and when? Thanks.
Since we are the first major platform doing this, we wanted to start fairly conservatively. We started with stocks and also started with the Agentic account being separate from your main account. Typically customers funded with a relatively small amount of money and linked their agent. We have expanded it since then so now options are tradable with Agentic as well. We have seen customers do really interesting things: they can put together really complex and sophisticated strategies. Crypto is coming soon as well, and we are going to expand the toolkit to cover as much as possible from the entire Robinhood ecosystem. We have had over 100,000 people actually integrate and open up Agentic accounts, which has been very cool. The AUM in Agentic or the trading volumes have also been growing. In terms of friction, one piece has been that not everyone loves, surprisingly, going to a codex or Claude code and stitching together these two apps. You have to have quite a bit of sophistication in order to do that. We are thinking about how to make that even easier. Also, in many cases the models themselves are not familiar with being used for trading, so sometimes they will resist and they will say, well, I do not know, I do not really want to trade, and you have to work hard to get it to do what you want. We are hard at work addressing those things and others.
All right. Next, Chris Blue sitting next to Devin Ryan.
Thanks for the question. Christian Blue with Autonomous. I think you called out Rothera as a top three DCM. I am just trying to think through longer term how your vision around having a DCM, having retail distribution — is there a possibility here that you could further build that out, whether it is perps or traditional futures to take on maybe the top two DCMs out there?
Obvioulsy we are top three after one month, but the goal would be to keep growing that. We are not satisfied just with where we are after a couple of months. The roadmap on the Rothera side — not speaking for them because it is a joint venture — is to continue to grow and add more capabilities. They are definitely focused right now on prediction markets and event contracts, but over time you should see that expanding. We also have perps not just on chain, but through our Bitstamp exchange overseas where we have been rapidly increasing the scope of the perps offerings, now offering commodity perps. That inventory should expand and grow over time as well. Our customers through the Robinhood retail apps will have access to the best products from multiple exchange providers and our job will be to stitch that together and make it really clear what the costs are and also make those costs as low as possible for customers. It can also be a B2B business over time, so we can onboard additional FCMs. Right now we are laser focused on making sure that a Robinhood customer gets a great experience, but when you think longer term, there is no reason why this cannot be a large institutional business as well.
Chris, if you will hand the mic to Ramsey behind you, that would be great.
Hi. Ramsey El-Assal from Cantor. Thanks for taking my question. Now building on some of your comments and some of the prior questions: now that Robinhood Chain is live and thriving, how should we think about the broader DeFi roadmap for you guys? You have tokenized assets, Robinhood Earn, perps in your wallet. What other on-chain services could be the next growth opportunities? I am thinking maybe lending and borrowing or other yield generating products.
We already have that through partners: you can build lending and borrowing pools on chain. People have started building really interesting stuff. One of the cool things about seeing so much volume — fastest chain to 100 million transactions — is a lot of other chains have to do a lot of work to get third parties to integrate. We were fortunate to get major wallets and protocols to integrate with us over the past couple of weeks because they saw the volume, and that in turn has driven developer activity. We have been among the top chains in terms of developer activity. Some interesting things are developers building things that compose with real world assets, the RWAs. All kinds of things that utilize the stock tokens in ways we have not thought of. Our roadmap is making the infrastructure better and better, making the APIs cleaner, block speed and block times are quite good. We will continue adding RWAs, more stock tokens, expanding to other asset classes which we are already working on. Our unique contribution is supplying RWAs as a key primitive of the chain and making sure those work really well and then seeing what other developers can do to compose them.
All right. Thank you, Vladimir. Ramzi, right behind you, James Yaro has his hand up.
James Yarrow, Goldman Sachs. Thanks for taking the question. Wanted to touch a little bit more on perps in the U.S. — the appetite to add them in the U.S. brokerage, what are the hurdles to rolling them out, and are you looking to roll them out in the near term, CFTC approval permitting?
We have been in conversations with the CFTC and they have been constructive. We are making progress. I do not have specific details to share, but we feel really good about our customers having a great perps experience. We already have it in Europe, so the work is not a large amount of work to bring it to the U.S.
All right. Thanks. Can you pass the mic immediately to your left?
Hi. I am Daniel with Crossroads. Are there plans to add support for foreign stocks? Right now investors have to buy ETFs to get exposure to certain foreign companies.
Yes, in short, yes. Obviously it is on our roadmap. Over time you should expect that as a Robinhood customer you will have access not only to U.S. stocks worldwide but to foreign stocks as well, including in the U.S. We are going to build out a marketplace and our common infrastructure could be a real asset there. Unfortunately, it is not something we can snap our fingers and be connected everywhere instantly, but it is definitely top of mind. Customers — especially active traders — always want more things, so we are always busy and we love that.
All right. Let's pass the mic to the right and back one row. Thank you.
Hey, Vladimir. Hey, Shiv. John from Artemis. Congrats on launching Robinhood Chain: $15 billion of monthly trading volume, 2 plus million monthly transacting users, I think close to $500 million of stablecoin supply. What could go right with Robinhood Chain? Because you could offer the opportunity of having the Robinhood app to everyone globally. What could go right?
I think a lot could go right. Thank you for the question and for your content and analysis. I have been enjoying it. We built Robinhood Chain to be purpose built for real world assets. Our unique contribution is the real world assets and we are doing the difficult work on the liquidity side and regulatory side to make sure we safely bring these assets on chain and make them useful. We started with a first set of stock tokens and will grow that over time, make them fully DeFi-enabled, and we are already working on other types of real world assets. Developers are starting to do interesting things we had not thought of. Our job is to give them better and better tools. The enthusiasm has been great, but there is much more to do and we have to keep building and making sure it is the most useful chain for developers and traders.
All right. Thanks, John. Can you pass the mic a couple rows up to Craig? Thank you.
Hi, Craig Maurer with FT Partners. In the quarter you had a disclosure in the deck showing that you are trending toward roughly $4 billion in July net deposits — that is down quite a bit from June and is the lowest of the year. Any commentary around that? Does it have anything to do with the drawdown in semiconductors and what has been happening in the market? Thanks.
I am happy to take that. Our goal is 20% on an annual basis and I do not look at any particular quarter or month in isolation. There will be things that change from time to time. If you look year to date, including July, we are still well north of that 20% growth. We had a really strong Q2. Net deposits will fluctuate due to macro, product launches, seasonality — summer tends to be a little slower — and promotions. We are focused on delivering for customers and over the fullness of a year or longer we should be growing about 20%. Everything we are seeing indicates that still happening. In terms of the health of the customer, very healthy engagement. Our customers tend to be techno-optimists and younger; they tend to use drawdowns as opportunities to buy. On down days or down months we tend to see strong net buying, which is what we saw in Q2 and continue to see. As I shared, July average daily volumes are very similar to the Q2 average. Continuing to see strong net deposits and the health of the customer is very strong.
I would add we have long term tailwinds to that growth. It is not just short term things like promos and macro. We are building more durable engines. Banking has been a great success and it is still early; it is not yet fully integrated into the main app or the ecosystem so we have more room. Advisor network could be a strong RIA integration channel and RIAs are a good durable source of net deposits. We have seen good growth from multiple brokerage accounts and trusts are rolling out, which could drive deposits from higher net worth individuals. As we add these things and support them, that should be a durable tailwind for our business and net deposit growth.
All right. Craig, pass up one row to Alexander?
Thanks for taking my question. Peter Thiel once said when asked if he regretted selling at a $100 billion valuation that each 10x up to $100 billion he saw as equal difficulty, but $100 billion to a trillion he imagined would be significantly harder. As Robinhood approaches that $100 billion market cap, how do you think about the difficulty of the next 10x? Could getting to a trillion actually be easier because of scale and operating leverage you have built? What will it take for Robinhood to surpass market caps of legacy financial institutions? And do you see AI supercharging your global plans?
Getting to a trillion will be very, very difficult; I do not think a financial company has ever hit a trillion market cap, but I think it can be done. There are a lot of new things changing rapidly that we are on the forefront of: expanding our brokerage internationally; agentic finance — building great tools for agents and potentially seeing a world where a lot of activity goes through that; using Robinhood Chain to make all assets available to billions worldwide; private markets — Robinhood Ventures Fund 1 and Fund 2 focused on early stage; we want to be there for individual investors to have exposure to companies at the earliest possible stages across the entire life cycle. Put all these things together I see multiple axes that the company could 10x, and we will pursue them.
We do not comment on the stock price specifically, but we believe we can 10x the business over the next 10 years through a lot of the vectors Vladimir shared. When you look at assets, assets are the greatest predictor of what is going to happen in financial performance. We are nearly $400 billion today. Some competitors are in the tens of trillions of assets, so there is no reason we cannot grow meaningfully. That is just the core brokerage. Then you go to retirement, banking, crypto, international, and B2B — everywhere you look there are large TAMs. We have built a 10-year roadmap and if we execute on that we have a really cool opportunity in front of us.
I will just add it was not long ago that Apple was the first company to hit a trillion. There will be multiple trillion dollar companies. I have no doubt Robinhood will be a trillion dollar company.
All right. Let's see. Ahmed, do you want to take a question?
Sure. Vlad and Shiv, congrats on a great quarter. I do not know how I am going to follow up that question. Congrats on a great hoodie. Very, very nice. I think what I am observing in the quarter, especially as someone who has been looking at the business over the past five years, is really strong engagement: AUM at almost $400 billion, Gold attachment rate at 17% and all-time high on Gold subscribers. Why do you think the engagement is becoming so strong? Do you think customers are so willing to adopt the credit card, agentic services, try out tokens on Robinhood Chain? What about the flywheel is working and what can you do to sustain that flywheel for the next 10 years to hopefully get to that trillion dollar market cap?
I think the products have to be good. The credit card value proposition is hard to argue with: 3% cash back on all categories, great UI, virtual cards — the experience is really good. We have had iterations of products and not everything has worked instantly; there is been many versions. What we found is there is a flywheel: we get a customer in, they become a Gold subscriber, they look at all the products we offer. If those products are competitive or better, they will adopt them. A decent chunk of their earnings, if we get direct deposit, goes into Robinhood; they spend time on the platform and use us for many things. When we add something new they are likely to see it and take advantage of it. We have to put the right products in front of the right customers at the right times and make the entire experience coherent. That orchestration is becoming a hard problem because the app is constantly changing; the orchestration into one financial tool is an increasing source of focus. Each individual piece, even if a customer is not using ten Robinhood products, should be world class. If we deliver that and stitch them together nicely, there is plenty more room.
All right. We are going to shift over to the Zoom Q&A now. The first person asking a question on Zoom is Steven Chubak from Wolfe. Steven?
Hi. Evening, Vladimir and Shiv, and thanks for taking my question. Sorry I could not be there in person — missing out. I wanted to ask on the updated expense guidance. At the start of the year you guided to 18% expense growth, of which about 10% was earmarked to support new product launches, 5% to support the core business and 3% for acquisitions. There have been a lot of moving pieces underpinning the new expense guidance. Can you better explain how the buckets have evolved under the new guidance and whether it still contemplates a similar level of investment to support some of the more nascent growth initiatives?
Great question. The exciting part is we are able to self-fund a lot of the growth initiatives, so we are still growing. That is not changing. Vladimir just shared a lot of the different products and apps we are working on, and we are still a growth company. The nice thing is because we run lean and disciplined we can self-fund many of these projects. The savings are from all three buckets a little bit; some is coming from M&A where we are being more efficient. The new M&A actually was not included in the earlier outlook and we fully self-funded those. On the core business, teams are working hard to deliver fast but efficiently so we had some savings there. In new initiatives, not only are we making sure that we invest what we planned, but we have actually added some relative to where we started. Putting it all together, we are halfway through the year and trending well. The lean and disciplined nature is showing through so we thought it was the right time to lower and tighten the outlook. The takeaway is we are still growing but able to do it more efficiently.
All right. The next question is from Craig Siegenthaler at Bank of America.
Vlad, Shiv. Hope you guys are doing well. Congrats on the MAS license in Singapore. I think you also have two small brokerages live in Indonesia. Where are you in the product rollout in Asia, what will the rollout look like relative to the U.S. offering? Also, what countries can you passport into from Singapore?
This is for our centralized offerings. Now that we have the chain and DeFi offerings, we are live in many countries for those. For centralized brokerage offerings, we did get approval in Singapore and we are working hard to bring everything we possibly can within what is permissible by MAS. What we learned from the UK is it is better to get more at once rather than launching equities, then options, then margin. For subsequent launches we try to get more of the overall Robinhood ecosystem live at launch. The teams are getting close and that is generally the strategy in other regions. Singapore will be the Southeast Asia and APAC hub so we should be able to passport to lots of other countries in the region, while some markets like Indonesia will require direct licensure depending on local opportunities.
Thank you, Vladimir. The next question is from Alexander Markgraff from KeyBanc.
Hey, guys. Thanks for taking the question. A two-part question on Robinhood Chain and DeFi product expansion. Vladimir, how do you think the effort to engage customers and the touch points change for DeFi products? Does it force you to reevaluate how you interact with and capture the minds and wallets of customers? Shiv, anything to share from a monetization standpoint — how should we think about those relationships versus the existing customer relationships?
On engagement, many of those customers hang out on Twitter and listen to podcasts, which are two areas I am somewhat active in. We are always looking for more channels; I am not very active on TikTok but willing to adjust if needed. It has been fun and we will continue to meet customers where they are.
Engagement is also coming from developers themselves. When you build a great product, people find it. That is one of the beauties of Robinhood: given our scale and distribution, great products tend to do well. On monetization, per transaction for on-chain transactions we make a few basis points on average, and we share approximately half of it with Arbitrum, which is the L2 we built on top of. As it grows over a couple of quarters we will break it down more specifically, but think of it as a few basis points on transactions with roughly a 50% revenue share to the ecosystem partner.
All right. Thank you, Vladimir and Shiv. Next is Brian Bedell at Deutsche Bank.
Thanks. Vlad, Shiv. How are you? My question is on Rothera specifically: with Cboe filing with the SEC to launch certain products, what is the interest in Rothera launching these in the near term, and how are you thinking about migrating more of the event contracts at Robinhood to Rothera such as NFL? What is the game plan for the rest of the year?
On the Cboe financial KPI contract, my understanding is those fall under the securities-based regime so I am not sure Rothera would be launching those right now. Robinhood connects to a wide range of counterparties: we first connected to ForecastEx, then Kalshi, and of course Rothera is a joint venture with SIG. That does not mean we will not make those products available to customers. We have an interest and the products are useful. You should expect in the near to medium term more flow will go through Rothera. We are still making sure it can scale; after one month it is already doing tremendous volume, but you should expect more and more to go through there.
All right. Next question from Patrick Moley at Piper Sandler.
Hi, guys. Following up on perps in the U.S., I am a little confused why you all are not being more aggressive with launching perps in the U.S. You submitted a comment letter supporting the CFTC allowing perps in the U.S. and have competitors moving in this direction. What is the source of hesitation? Are you worried about leverage, cannibalization of other products, or is it a deliberate choice to let others take regulatory first mover risk?
I do not think it is any of those things. We are in the fortunate position of having lots of great products and seeing huge opportunity. We launched 13 new products recently and we had two new businesses reach $100 million ARR in the past quarter. We like perps and intend to offer them to our customers. I did not give a timeline at earnings; absence of a timeline should not be interpreted as lack of intent. We intend to be aggressive but we avoid giving specific timelines on an earnings call.
All right. Next question is from Benjamin Budish at Barclays.
Hey. Good evening, thanks for taking my question. Shiv, could you unpack the July commentary a little more? You said ADV was trending similar to Q2. On a product-by-product basis — equities, options — should we assume similar to Q2? Any color on take rates — particularly for options that can bounce around — and crypto? What drove the fee rate improvement in Q2 and what are you seeing in Q3?
Happy to. For July, ADVs for equities, options, and prediction markets are all in a similar area to Q2, so healthy engagement across those. Crypto is probably a little bit slower than Q2 to start. For take rates in July they are in a similar area to the Q2 average, so use that as a starting point. What drove improvement: rates are an output metric with many inputs — mix shift, volatility, contract types for equities and options; for crypto it depends on institutional participation and customer tiers. Big picture, July is in the same ZIP code as the Q2 average for most asset classes.
All right. The next question is from Edward Engel at Compass Point.
Hey, guys. Thanks. We know you are focused on bringing more volumes onto Rothera prediction markets but we saw reports you are exploring partnerships with other exchanges. Do you see opportunity to improve economics by partnering with different exchanges or is the focus more to bring activity under Rothera?
It is both. We are invested in Rothera and think the economics are great and intend to push more flow there. At the same time, we have always connected to additional counterparties to diversify and make sure customers have multiple options and we are not reliant on any one counterparty.
All right. The next question is from Andrew Hardy at BTIG.
Hi, Vlad and Shiv. Sorry I cannot be there in person; my wife's due next week, so congrats. We are looking forward to setting up the trust account soon. You mentioned there is more to do on top of funnel growth. What areas are you focusing on for customer acquisition going forward? Also, the SEC removal of the pattern day trading rule — did you see any benefit in the quarter and are you doing anything to draw back customers who left in the past?
On top of funnel, we focus on product improvements to make onboarding clean, especially as we add multiple products and accounts. Getting customers to share the product is always an opportunity. As banking scales and the card is getting north of a million cardholders, can we make it even easier for folks signing up for brokerage to get the card and turn that into an active driver of growth in both directions? There are many opportunities we have not fully explored yet.
On the pattern day trading rule, we are pleased the SEC removed an antiquated rule that penalized small balance customers for the way they trade. It was a nice tailwind in June when the rule went through. We probably had an outsized benefit relative to peers given our customers have smaller balances. Customers are using it, coming back and adopting it. We are seeing it in NPS surveys and other methods where customers who had left are pleased they are allowed to trade again.
All right. Thank you. The next question is from Gav at Wolfe Research on Zoom.
Hey, Vladimir and Shiv. Great to see you guys. Wanted to talk about AI agents and agentic trading. This is one of the most fascinating things you have rolled out in a long time. I have already hooked it up; I have Claude in there trading. I could really see this driving additional volumes as it goes on. What milestones are you looking forward to for agentic trading, and do you think this could swell volumes beyond human trading? Also, will you give AI Agentic trading access to prediction markets?
On the product side, the goal is to give it access to all the tools a human trader would have on Robinhood. We are opening access for traders and developers to all of the capabilities where it makes sense. The team has been cooking on Agentic; we were early to market but there is so much more that can be done. We look forward to sharing more, including at the active trader event we have coming up. Prediction markets access is something we are thinking about; the roadmap is to give agents access to as many relevant products as make sense, while building the right guardrails.
All right. I think we can finish strong here. Vlad, would you like to offer any closing remarks?
First off, thank you for all the engagement from institutional, sell side, retail and our content creators. I am really proud of the community that has coalesced around the company. The team has been working incredibly hard. The roadmap is full and there is a lot to do. Hopefully see some of you at the next Hood Summit in Houston, Texas. Thank you.