Robinhood Markets, Inc. - Q2 2026 10-Q Summary
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended June 30, 2026. Robinhood Markets, Inc. (HOOD) operates a financial services platform enabling customers to trade equities, options, event contracts, futures, and cryptocurrencies. The company continues to expand its product suite, including the launch of Robinhood Chain (a Layer 2 blockchain) and Robinhood Earn (onchain lending) in July 2026, and the acquisition of WonderFi in June 2026 to accelerate Canadian expansion. The company also serves as the broker and initial trustee for Trump Accounts on behalf of the U.S. Department of the Treasury.
Key Financial Metrics
| Metric | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Total Net Revenues | $1,308 million | $989 million | $2,375 million | $1,916 million |
| Net Income (GAAP) | $573 million | $386 million | $919 million | $722 million |
| Net Income Attributable to Robinhood | $561 million | $386 million | $911 million | $722 million |
| Diluted EPS | $0.62 | $0.42 | $1.00 | $0.79 |
| Adjusted EBITDA (Non-GAAP) | $741 million | $549 million | $1,275 million | $1,019 million |
| Operating Cash Flow (YTD) | $2,758 million | $4,151 million | N/A | N/A |
| Total Assets | $56.55 billion | $38.14 billion | N/A | N/A |
| Long-Term Borrowings | $2.17 billion | $0 | N/A | N/A |
Material Changes vs. Prior Period
- Revenue Growth: Total net revenues increased 32% quarter-over-quarter (QoQ) and 24% year-over-year (YoY) for the six-month period. Transaction-based revenues rose 44% QoQ, driven by a 1,460% increase in event contracts revenue ($156M vs $10M) and a 95% increase in equities revenue.
- Cryptocurrency Decline: Cryptocurrency transaction revenues decreased 38% QoQ to $100 million, attributed to lower rebate rates and a 20% decrease in average notional trading volume per trader, partially offset by the Bitstamp acquisition.
- Net Interest Revenues: Increased 9% QoQ to $389 million, primarily driven by an 89% increase in margin interest revenue ($215M) due to higher margin loan balances ($21.6B).
- Deconsolidation of RVI: In June 2026, the company deconsolidated Robinhood Ventures Fund I (RVI) following an IPO and partial sale of its interest. This resulted in a $106 million gain recognized in "Other income, net."
- Acquisitions: The company acquired WonderFi (June 2026, $178M) and finalized the purchase price allocation for Bitstamp (acquired June 2025, $224M). Goodwill increased to $516 million.
- Debt Issuance: In June 2026, the company issued $2.2 billion of 0.00% Convertible Senior Notes due 2029. Proceeds were used to repurchase approximately 2.7 million shares of Class A common stock.
Guidance, Outlook, and Risks
- Outlook: Management expects primary sources of liquidity to be adequate for the next 12 months. The company anticipates that potential future Federal Reserve rate cuts will negatively impact net interest revenues.
- Regulatory Risks: Significant uncertainty remains regarding the regulatory status of cryptocurrencies as securities. The company faces ongoing litigation and regulatory scrutiny regarding event contracts (prediction markets), with states challenging the preemption of state gambling laws by the Commodity Exchange Act. The company has ceased offering new sports-related event contracts in Nevada pending appeals.
- Operational Risks: The company announced a workforce reduction of approximately 10% in June 2026 to maintain a lean operating model. There are risks associated with the integration of new acquisitions (WonderFi, Bitstamp) and the launch of new products like Robinhood Chain and Stock Tokens.
- Legal Proceedings: The company is involved in numerous litigation matters, including class actions regarding best execution, PFOF, cash sweep interest rates, and event contracts. A settlement regarding best execution and PFOF was approved by the court in June 2026.
Investor Verification Checklist
- Event Contract Viability: Verify the status of ongoing litigation and regulatory actions regarding event contracts in key states (e.g., Nevada, Massachusetts, Illinois) and the potential impact on future revenue streams.
- Cryptocurrency Regulatory Status: Monitor SEC and state regulator actions regarding the classification of specific cryptocurrencies as securities, which could force delistings and impact transaction revenues.
- Interest Rate Sensitivity: Assess the impact of potential Federal Reserve rate cuts on the company's net interest revenue, which constitutes a significant portion of total revenue.
- Convertible Note Dilution: Review the terms of the $2.2 billion convertible notes issued in June 2026, including the conversion price ($174.42) and the effectiveness of the capped call transactions in mitigating dilution.
- Acquisition Integration: Evaluate the financial performance and integration progress of recent acquisitions (WonderFi, Bitstamp, TradePMR) and the associated goodwill impairment risks.