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美國
證券交易委員會
華盛頓特區20549
______________________
形式 10-Q
______________________
(標記一)
☒根據1934年《證券交易法》第13或15(D)條規定的季度報告
截至本季度末 2024年9月30日
或
☐根據1934年《證券交易法》第13或15(D)條提交的過渡報告
對於從_
委員會文件號： 001-40691
______________________
Robinhood Markets，Inc.
(註冊人的確切姓名載於其章程)
______________________
特拉華州 46-4364776
(述明或其他司法管轄權
公司或組織)		 (美國國稅局僱主
識別號碼)
柳樹路85號
門洛帕克, 鈣 94025
(主要執行機構地址，包括郵政編碼)
(844) 428-5411
(註冊人的電話號碼，包括區號)

根據該法第12(B)條登記的證券：
每個班級的標題交易符號註冊的每個交易所的名稱
A類普通股
每股面值0.0001美元		引擎蓋納斯達克股市有限責任公司
用複選標記表示註冊人(1)是否在過去12個月內(或註冊人被要求提交此類報告的較短期限內)提交了1934年《證券交易法》第13條或15(D)節要求提交的所有報告，以及(2)在過去90天內是否符合此類提交要求。是 ☒*不是。o

用複選標記表示註冊人是否已在過去12個月內(或在註冊人被要求提交此類文件的較短時間內)以電子方式提交了根據S-T法規第405條(本章232.405節)要求提交的每個交互數據文件。是 ý*不是。o

用複選標記表示註冊人是大型加速申報公司、加速申報公司、非加速申報公司、較小的報告公司或新興成長型公司。請參閱《交易法》第12b-2條規則中「大型加速申報公司」、「加速申報公司」、「較小申報公司」和「新興成長型公司」的定義。

大型加速文件服務器 ý**文件管理器加速運行o使用非加速文件管理器。o規模較小的報告公司。☐ 新興成長型公司 ☐

如果是一家新興的成長型公司，用複選標記表示註冊人是否已選擇不使用延長的過渡期來遵守根據《交易所法》第13(A)節提供的任何新的或修訂的財務會計準則。☐

用複選標記表示註冊人是否是空殼公司(如《交易法》第12b-2條所定義)。o*不是。☒
截至2024年10月24日，發行人A類和B類普通股已發行股數爲 763,562,814 和 120,412,875.



目錄
第一部分-財務信息
頁
第1項。
第二項。
第三項。
第四項。
第1項。
第1A項。
第二項。
第三項。
第四項。
第五項。
第六項。








1

有關前瞻性陳述的警示說明
Robinhood Markets，Inc.的本10-Q表格季度報告（本「本季度報告」）（連同其子公司「我們」、「我們」、「RHM」、「Robinhood」或「公司」）包含前瞻性陳述（聯邦證券法中使用的該短語），涉及重大風險和不確定性。前瞻性陳述通常與未來事件或我們未來的財務或運營業績有關。在某些情況下，您可以識別前瞻性陳述，因爲它們包含「相信」、「可能」、「將」、「應該」、「預期」、「計劃」、「預期」、「可能」、「意圖」、「目標」、「項目」、「考慮」、「估計」、「預測」、「潛在」或「繼續」等詞語的負面內容或涉及我們預期的其他類似術語或表達，戰略、計劃或意圖。本季度報告包括以下方面的前瞻性陳述：
•我們對法律和監管程序和調查的期望；
•我們打算繼續擴大我們在美國以外的業務；

•我們對即將進行的對Bitstamp Ltd.(「Bitstamp」)的收購的期望；

•如果我們在美國的經營業績繼續改善，我們相信存在一個合理的可能性，即在未來24個月內，可能會有足夠的積極證據，得出結論，即不再需要很大一部分美國估值津貼；

•回購計劃(定義如下)和我們目前對時間的預期；以及

•我們相信，根據我們目前的運營水平，我們的主要流動性來源將足以滿足未來12個月我們目前的流動性需求。
我們的前瞻性陳述受許多已知和未知的風險、不確定性、假設和其他因素的影響，這些風險、不確定性、假設和其他因素可能會導致我們未來的實際結果、業績或成就與本季度報告中明示或暗示的任何未來結果大不相同。報告的結果不應被視爲未來業績的指標。導致我們的前瞻性陳述具有不確定性的因素包括：
•在目前的規模下，我們有限的運營經驗；
•有效管理我們業務的難度，包括我們的員工規模，以及下降或負增長的風險;
•我們的財務業績和關鍵指標在每個季度的波動；
•我們對基於交易的收入的依賴，包括訂單流付款（「PFOF」），以及對PFOF和類似做法實施新的或擬議的法規或禁令;
•我們對利率波動和快速變化的利率環境的風險敞口；
•難以以合理的條件籌集額外資本(以提供流動性需求並支持業務增長和目標)，如果有的話；
•需要維持監管機構和自律組織(「SRO」)所要求的資本水平；







2
目錄表
•我們可能會錯誤處理我們代表客戶持有的現金、證券和加密貨幣的風險，以及我們在清算職能中可能出現的處理、操作或技術錯誤的責任；
•負面宣傳對我們的品牌和聲譽的影響；
•影響全球金融市場的商業、經濟或政治狀況變化或系統性市場事件可能損害我們業務的風險;
•我們對關鍵員工和熟練勞動力的依賴;
•遵守廣泛、複雜和不斷變化的監管環境的困難，以及調整我們的業務模式以應對新的或修改後的法律法規的必要性;
•未決訴訟和監管調查出現不利發展的可能性;
•競爭的影響；
•我們需要創新和投資新產品、服務、技術和地理位置，以吸引和留住客戶並加深他們與我們的接觸，以保持增長;
•我們對第三方執行一些關鍵功能的依賴以及處理、運營或技術故障可能損害我們平台的可用性或穩定性的風險;
•網絡安全事件、盜竊、數據泄露和其他在線攻擊的風險;
•根據隱私法處理客戶數據的難度;
•作爲一家受監管的金融服務公司，我們需要建立和維護有效的合規和風險管理基礎設施;
•與將人工智能（「AI」）技術融入我們的一些產品和流程相關的風險;
•加密貨幣價格和交易量的波動性;
•我們的平台和服務可能被利用來促進非法支付的風險;以及
•未來在公開市場上大量出售A類普通股的風險，或者可能發生這種情況的看法，可能會導致我們的股票價格下跌。
由於這些風險和不確定性有些是無法預測或量化的，有些是我們無法控制的，因此您不應依賴我們的前瞻性陳述作爲對未來事件的預測。有關可能影響我們的業務和財務業績的潛在風險和不確定性的更多信息，請參閱本季度報告中題爲「風險因素」的部分以及我們提交給美國證券交易委員會(「美國證券交易委員會」)的其他文件，所有這些文件都可以在美國證券交易委員會的網站www.sec.gov上查閱。此外，我們的經營環境競爭激烈，瞬息萬變；新的風險和不確定因素可能不時出現，我們不可能預測所有風險，也不可能確定所有不確定因素。我們的前瞻性陳述中反映的事件和情況可能無法實現，實際結果可能與前瞻性陳述中預測的結果大不相同。除非另有說明，否則所有前瞻性陳述都是在我們提交本季度報告之日作出的，並基於我們目前掌握的信息和估計。儘管我們相信我們的前瞻性陳述中反映的預期是合理的，但我們不能保證未來的結果、業績或成就。除法律另有規定外，羅賓漢不承擔因任何新信息、未來事件、環境變化或其他原因而更新本季度報告中的任何陳述的義務。您應該在閱讀本季度報告時使用







3
目錄表
了解我們的實際未來結果、績效、事件和情況可能與我們的預期存在重大差異。
我們使用投資者關係網站(可訪問Investors.robinhood.com/view)的「概述」選項卡及其新聞編輯室(可訪問News room.aboutrobinhood.com)，以廣泛、非排他性的方式向公衆披露信息，以實現美國證券交易委員會的監管公平披露(“REG。Fd“)。除了我們的新聞稿、美國證券交易委員會備案文件、公開電話會議和網絡廣播外，投資者還應該定期關注這些網頁，因爲在這些網頁上發佈的信息可能被視爲重要信息。我們網站的內容不打算以引用的方式併入本季度報告或我們提交給美國證券交易委員會的任何其他報告或文件中，對我們網站的任何提及都只是非主動的文本參考。







4
目錄表
ROBINHOOD MARKETS，INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(未經審計)
十二月三十一日，9月30日，
(in百萬，份額和每股數據除外）20232024
資產
流動資產：
現金及現金等價物$4,835 $4,611 
現金和現金等值物根據聯邦法規和其他法規分開4,448 5,547 
經紀人、交易商和清算組織的佣金89 139 
來自用戶的評論，net3,495 5,546 
借入的證券1,602 3,704 
在結算機構的存款338 464 
與用戶加密貨幣保障義務相關的資產14,708 19,456 
用戶持有的零碎股份1,592 2,201 
持有至到期投資413 527 
預付費用63 86 
延期客戶匹配激勵措施11 73 
其他流動資產196 251 
流動資產總額31,790 42,605 
財產、軟件和設備、網絡120 133 
商譽175 179 
無形資產，淨額48 39 
非流動持有至到期投資73 — 
非當前延期客戶匹配激勵措施19 159 
其他非流動資產，包括非流動預付費用美元4 截至2023年12月31日和美元22 截至2024年9月30日
107 130 
總資產$32,332 $43,245 
負債和股東權益
流動負債：
應付賬款和應計費用$384 $443 
應付款給用戶5,097 6,264 
借出證券3,547 7,306 
用戶加密貨幣保障義務
14,708 19,456 
零碎股份回購義務1,592 2,201 
其他流動負債217 288 
流動負債總額25,545 35,958 
其他非流動負債91 79 
總負債25,636 36,037 
承付款和或有事項(附註14)
股東權益：
優先股，$0.0001 面值。 210,000,000 授權股份， 不是 截至2023年12月31日和2024年9月30日已發行和發行的股份。
— — 
A類普通股，$0.0001 面值。 21,000,000,000 授權股份， 745,401,862 截至2023年12月31日已發行和發行的股份; 21,000,000,000 授權股份， 761,992,964 截至2024年9月30日已發行和發行的股份。
— — 
B類普通股，$0.0001 面值。 700,000,000 授權股份， 126,760,802 截至2023年12月31日已發行和發行的股份; 700,000,000 授權股份， 121,616,044 截至2024年9月30日已發行和發行的股份。
— — 
C類普通股，$0.0001 面值。 7,000,000,000 授權股份， 不是 截至2023年12月31日和2024年9月30日已發行和發行的股份。
— — 
額外實收資本12,145 12,158 
累計其他綜合收益(虧損)(3)1 
累計赤字(5,446)(4,951)
股東權益總額
6,696 7,208 
總負債和股東權益$32,332 $43,245 
見未經審計簡明合併財務報表附註。







5
目錄表
ROBINHOOD MARKETS，INC.
簡明合併業務報表
(未經審計)
截至三個月
9月30日，		九個月結束
9月30日，
(in百萬，份額和每股數據除外）2023202420232024
收入：
基於交易的收入$185 $319 $585 $975 
淨利息收入251 274 693 813 
其他收入31 44 116 149 
淨收入合計467 637 1,394 1,937 
運營費用：
經紀和交易 39 39 114 114 
技術與發展202 205 608 610 
運營41 50 119 140 
營銷28 59 79 190 
一般和行政230 133 1,036 385 
總運營支出540 486 1,956 1,439 
其他收入(費用)，淨額(2)2 — 8 
所得稅前收入(虧損)(75)153 (562)506 
所得稅撥備10 3 9 11 
淨收益(虧損)$(85)$150 $(571)$495 
普通股股東應占淨收益(虧損)：
基本信息$(85)$150 $(571)$495 
稀釋$(85)$150 $(571)$495 
普通股股東每股淨收益(虧損)：
基本信息$(0.09)$0.17 $(0.64)$0.56 
稀釋$(0.09)$0.17 $(0.64)$0.55 
用於計算普通股股東每股淨收益(虧損)的加權平均股數：
基本信息895,108,790 884,108,545 898,999,464 880,182,573 
稀釋895,108,790 905,544,750 898,999,464 903,555,592 
見未經審計簡明合併財務報表附註。







6
目錄表
ROBINHOOD MARKETS，INC.
簡明綜合全面收益表(損益表)
(未經審計)
截至三個月
9月30日，		九個月結束
9月30日，
(單位：百萬)2023202420232024
淨收益(虧損)$(85)$150 $(571)$495 
其他全面收益（虧損），扣除稅後：
外幣：折算— 1 — 1 
對沖工具淨損失：
期內對沖工具淨虧損(1)— (4)— 
淨利潤中包含的淨收益的重新分類調整
— — — 3 
對沖工具淨收益（損失）(1)— (4)3 
合計及其他綜合稅項收入(虧損)，稅項淨額(1)1 (4)4 
綜合收益總額（虧損）$(86)$151 $(575)$499 
見未經審計簡明合併財務報表附註。







7
目錄表
ROBINHOOD MARKETS，INC.
簡明合併現金流量表
(未經審計)
九個月結束
9月30日，
(單位：百萬)20232024
經營活動：
淨收益(虧損)$(571)$495 
淨收入（虧損）與經營活動提供（使用）的淨現金進行調節的調整：
折舊及攤銷54 55 
信貸損失準備金29 57 
基於股份的薪酬790 227 
其他(27)— 
經營資產和負債變化：
經紀人、交易商和清算組織的佣金13 (50)
來自用戶的評論，net(502)(1,971)
借入的證券(687)(2,102)
在結算機構的存款(89)(126)
當期和非當期預付費用26 (41)
當前和非當前延期客戶匹配激勵措施(10)(202)
其他流動和非流動資產10 (11)
應付賬款和應計費用145 28 
應付款給用戶(376)1,167 
借出證券1,411 3,759 
其他流動和非流動負債5 (42)
經營活動提供的淨現金221 1,243 
投資活動：
購買財產、軟件和設備(1)(9)
內部開發軟件的資本化(14)(26)
購買持有至到期的投資(651)(469)
持有至到期投資的到期日收益167 439 
信用卡融資信託購買信用卡應收賬款— (239)
收取購買的信用卡應收賬款— 130 
業務收購，扣除收購現金和現金等值物(90)(6)
資產購置，扣除購置現金— (3)
其他10 1 
投資活動所用現金淨額(579)(182)
融資活動：
根據員工股票購買計劃發行普通股的收益9 10 
與股權獎勵的股份淨額結算有關的已支付稅款(9)(155)
債務發行成本的支付(10)(14)
利用信貸安排20 12 
償還信貸安排(20)(12)
信用卡融資信託借款— 95 
信用卡融資信託還款— (1)
沿海銀行向客戶收取的本金髮生變化(3)(15)
A類普通股回購(608)(97)
行使股票期權所得，扣除回購後的淨額2 10 
融資活動所用現金淨額(619)(167)
外匯匯率變動對現金及現金等價物的影響— 1 
現金、現金等值物、單獨現金和限制現金淨增加（減少）(977)895 
現金、現金等值物、獨立現金和限制現金，期末9,357 9,346 
現金、現金等值物、獨立現金和限制現金，期末$8,380 $10,241 
期末現金、現金等值物、獨立現金和受限制現金對賬：
期末現金和現金等價物$4,889 $4,611 
期末分離現金及現金等值物3,448 5,547 
期末其他流動資產中的受限制現金26 67 
期末其他非流動資產中的受限制現金17 16 
現金、現金和等價物、分離現金和受限現金，將於本季度末結束$8,380 $10,241 
補充披露：
支付利息的現金$8 $12 
支付所得稅的現金，扣除收到的退款後的淨額$9 $14 
見未經審計簡明合併財務報表附註。







8
目錄表
ROBINHOOD MARKETS，INC.
簡明合併股東權益報表
(未經審計)
    
普通股其他內容
已繳費
資本
累計的其他綜合
收入(虧損)
累計
赤字
股東權益總額
(單位：百萬，不包括股份數量)股份量
截至2023年6月30日的餘額909,694,702 $— $12,581 $(3)$(5,391)$7,187 
淨虧損— — — — (85)(85)
與股票期權行使相關發行的股票，扣除回購328,963 — — — — — 
在限制股單位結算時發行普通股，扣除被扣留的股份7,808,470 — (4)— — (4)
A類普通股回購及註銷(55,273,469)— (611)— — (611)
其他綜合損失變化
— — — (1)— (1)
基於股份的薪酬— — 88 — — 88 
截至2023年9月30日的餘額862,558,666 $— $12,054 $(4)$(5,476)$6,574 


普通股其他內容
已繳費
資本
累計的其他綜合
收入(虧損)
累計
赤字
股東權益總額
(單位：百萬，不包括股份數量)股份量
截至2024年6月30日餘額884,545,769 $— $12,223 $— $(5,101)$7,122 
淨收入— — — — 150 150 
與股票期權行使相關發行的股票，扣除回購412,471 — 2 — — 2 
A類普通股的回購和報廢 (5,012,195)— (97)— — (97)
在限制股單位結算時發行普通股，扣除被扣留的股份3,662,963 — (56)— — (56)
其他全面收益變動
— — — 1 — 1 
基於股份的薪酬— — 86 — — 86 
截至2024年9月30日餘額883,609,008 $— $12,158 $1 $(4,951)$7,208 
見未經審計簡明合併財務報表附註。









9
目錄表
ROBINHOOD MARKETS，INC.
簡明合併股東權益報表
(未經審計)

普通股其他內容
已繳費
資本
累計的其他綜合
收入(虧損)
累計
赤字		股東權益總額
(單位：百萬，不包括股份數量)股份量
截至2022年12月31日的餘額892,751,571 $— $11,861 $— $(4,905)$6,956 
淨虧損— — — — (571)(571)
與股票期權行使相關發行的股票，扣除回購1,125,929 — 2 — — 2 
與員工購股計劃相關的普通股發行1,225,069 — 9 — — 9 
在限制股單位結算時發行普通股，扣除被扣留的股份22,729,566 — (9)— — (9)
A類普通股回購及註銷(55,273,469)— (611)— — (611)
其他綜合損失變化
— — — (4)— (4)
基於股份的薪酬— — 802 — — 802 
截至2023年9月30日的餘額862,558,666 $— $12,054 $(4)$(5,476)$6,574 

普通股其他內容
已繳費
資本
累計的其他綜合
收入(虧損)
累計
赤字		股東權益總額
(單位：百萬，不包括股份數量)股份量
截至2023年12月31日的餘額872,162,664 $— $12,145 $(3)$(5,446)$6,696 
淨收入— — — — 495 495 
與股票期權行使相關發行的股票，扣除回購2,237,944 — 10 — — 10 
A類普通股的回購和報廢 (5,012,195)— (97)— — (97)
與員工購股計劃相關的普通股發行1,555,893 — 10 — — 10 
在限制股單位結算時發行普通股，扣除被扣留的股份12,664,702 — (155)— — (155)
其他全面收益變動
— — — 4 — 4 
基於股份的薪酬— — 245 — — 245 
截至2024年9月30日餘額883,609,008 $— $12,158 $1 $(4,951)$7,208 
見未經審計簡明合併財務報表附註。







10
目錄表
ROBINHOOD MARKETS，INC.
簡明合併財務報表附註
(未經審計)

注1：業務說明和主要會計政策摘要
羅賓漢於2013年11月22日在特拉華州註冊成立。我們最重要的全資子公司是：
•羅賓漢金融有限責任公司(「RHF」)，註冊介紹性經紀交易商；
•羅賓漢證券有限責任公司(「RHS」)，註冊結算經紀交易商；
•Robinhood Crypto，LLC(「RHC」)，它爲用戶提供購買、銷售和轉移加密貨幣的能力，並負責保管用戶在我們的RHC平台上持有的用戶加密貨幣；
•Robinhood Credit，Inc.(「Robinhood Credit」)，提供帶有某些獎勵的信用卡；以及
•Robinhood Money，LLC，提供消費卡和消費帳戶，幫助客戶投資、儲蓄和賺取回報。
作爲用戶的代理，我們通過負責交易執行的做市商進行交易，爲通過我們的平台買賣期權、加密貨幣和股票提供便利。在執行交易時，法律要求用戶以現金從交易對手那裏購買期權、加密貨幣或股票，或將期權、加密貨幣或股票以現金出售給交易對手，具體取決於交易。只有當交易雙方的用戶和做市商都有具有約束力的、匹配的法律義務時，我們才會爲交易提供便利和確認。我們的用戶擁有他們在我們平台上交易的證券的所有權，包括抵押按金貸款的證券，因此，此類證券不會在我們未經審計的精簡綜合資產負債表中列報，但用戶持有的零碎股份除外。我們的用戶也擁有他們在我們的平台上交易的加密貨幣的所有權(這些貨幣都不允許以按金的形式購買，也不作爲按金貸款的抵押品)。然而，隨着我們通過美國證券交易委員會員工會計公告121(「SAB121」)，我們確認了一項負債，以反映我們的保護義務以及我們在資產負債表上與我們爲用戶託管的加密貨幣相關的相應資產。
陳述的基礎
所附未經審計簡明綜合財務報表乃根據美國公認會計原則(「公認會計原則」)及美國證券交易委員會中期財務報告規則及規定編制。簡明綜合財務報表未經審核，管理層認爲包括所有調整，包括爲公平列報中期業績所需的正常經常性調整及應計項目。所列期間的經營業績不一定代表截至2024年12月31日的整個會計年度或任何未來期間的預期結果。這些未經審計的簡明綜合財務報表應與本公司截至2023年12月31日的年度報告Form 10-K(「2023年Form 10-K」)中包含的經審計年度綜合財務報表及附註一併閱讀。
除以下披露外，我們在2023年Form 10-k表中包括的經審計綜合財務報表中所述的重大會計政策沒有實質性變化。未經審計的簡明綜合財務報表包括RHM及其全資子公司的賬目。所有公司間餘額和交易均已註銷。







11
目錄表
對上期數額進行了某些重新分類，以符合本期的列報方式。 該等重新分類的影響對未經審核簡明綜合財務報表整體的列報並不重大，並且對之前報告的總資產、總負債和淨利潤（虧損）沒有影響。
預算的使用
根據公認會計原則編制未經審核簡明綜合財務報表時，管理層須作出影響未經審核簡明綜合財務報表及附註所呈報金額的估計及假設。我們的估計是基於歷史經驗和其他我們認爲在這種情況下是合理的假設。編制本公司未經審核的簡明綜合財務報表時使用的假設和估計包括但不限於：收入確認、基於股份的薪酬(「SBC」)、信貸損失準備的確定、用戶加密貨幣保障義務和相應資產的估值、投資估值、內部開發軟件的資本化、財產、軟件和設備的使用壽命、無形資產的估值和使用壽命、用於計算經營租賃使用權資產和相關負債的增量借款率、長期資產減值、對沖有效性的確定、不確定的稅收狀況、所得稅、應計和或有負債。實際結果可能與這些估計不同，並可能對我們的經營業績產生重大不利影響。
收入和信用風險的集中度
收入集中程度
我們從個人做市商那裏獲得的基於交易的收入超過總收入的10%，具體如下：
截至三個月
9月30日，		九個月結束
9月30日，
2023202420232024
做市商：
城堡證券有限責任公司11 %14 %12 %13 %
所有其他個別低於10%的26 %36 %28 %37 %
總收入佔總收入的百分比：37 %50 %40 %50 %

信用風險的集中度
我們從事各種交易和經紀活動，交易對手主要包括經紀自營商、銀行和其他金融機構。如果我們的交易對手不履行他們的義務，我們可能會面臨風險。違約風險取決於交易對手的信譽。通過票據交換所促成的股票和期權交易中的交易對手違約，通常會在票據交換所的成員之間擴散，而不是完全由我們來承擔。我們的政策是在必要時審查每一交易對手的信用狀況。
可變利息實體
我們評估我們在實體中的所有權、合同和其他利益，以確定我們在實體中是否擁有可變利益。這些評估是複雜的，涉及判斷，以及使用基於現有歷史和預期信息的估計和假設，以及其他因素。如果我們確定我們持有合同或所有權權益的實體是可變利益實體(「VIE」)，並且我們是主要受益人，我們將在合併財務報表中合併該實體。VIE的主要受益者是滿足以下兩個標準的一方：(1)有權作出對VIE的經濟表現影響最大的決定；







12
目錄表
以及(2)有義務承擔損失或有權獲得在任何一種情況下可能對VIE產生重大影響的利益。我們不斷監測利益或與實體關係的任何變化是否會影響我們是否仍然是主要受益人的確定，並要求我們修改之前的結論。
資產收購
不符合企業定義的收購被計入資產收購。我們將收購成本，包括直接和增量交易成本，按相對公允價值原則分配給收購的個人資產和承擔的負債。商譽不在資產收購中確認。
附註2：最近的會計聲明
最近採用的會計公告
截至2024年9月30日止九個月內，沒有采用對我們未經審計的簡明綜合財務報表和相關披露產生重大影響的新會計公告。
最近發佈的尚未採用的會計公告
2023年10月，財務會計準則委員會發布了會計準則更新2023-06《信息披露改進：響應美國證券交易委員會信息披露更新和簡化倡議的編纂修正案》。這項修訂將影響各種披露領域，包括現金流量表、會計變更和錯誤更正、每股收益、債務、股權、衍生品和金融資產轉移。本指導意見中的修改將自美國證券交易委員會從S-X條例或S-k條例中刪除相關披露之日起生效，如果美國證券交易委員會未在2027年6月30日之前取消適用的披露要求，則本指導意見中的修改將不再有效。禁止提前領養。我們目前正在評估修正案對我們綜合財務報表的影響。
2023年11月，FASB發佈了會計準則更新2023-07，「分部報告(主題280)：對可報告分部披露的改進」。指引中的修訂改善了可報告分部的披露要求，主要是通過加強對重大分部費用的披露。本指導意見適用於2023年12月15日之後的財政年度，以及2024年12月15日之後的財政年度內的過渡期。允許及早領養。我們預計採納這一指導意見不會對我們的綜合財務報表和相關披露產生實質性影響。
2023年12月，FASB發佈了會計準則更新2023-09，「所得稅(主題740)：所得稅披露的改進」。本指導意見要求每年披露費率調節中的具體類別，併爲符合數量門檻的調節項目提供補充信息。該指導意見適用於2024年12月15日之後的年度期間。允許及早領養。我們預計採納這一指導意見不會對我們的綜合財務報表和相關披露產生實質性影響。
2024年3月，美國證券交易委員會通過了美國證券交易委員會第34-99678號和第33-11275號新聞稿《加強和規範與氣候有關的投資者披露》(以下簡稱《最終規則》)下的最終規則，要求註冊者在註冊聲明和年度報告中提供某些與氣候有關的信息。最終規則要求，除其他事項外，在經審計的財務報表附註中披露惡劣天氣事件和其他自然條件的影響，並在某些情況下披露與碳抵消和可再生能源信用或證書有關的金額。最終規則的披露要求將開始逐步實施







13
目錄表
從2025財年開始的年度期間。2024年4月，美國證券交易委員會終局規則繼續生效。我們目前正在評估最終規則的影響。
注3：收入
收入分解
下表列出了我們按收入來源分列的收入：
截至三個月
9月30日，		九個月結束
9月30日，
(單位：百萬)2023202420232024
基於交易的收入：
選項$124$202$384 $538 
加密貨幣236192 268 
股票273779 116 
其他111930 53 
基於交易的總收入185319585 975 
淨利息收入：
按金利息6783177 228 
公司現金和投資的利息
7567217 203 
獨立現金、證券和存款的利息5961156 187 
現金清掃354686 129 
證券借貸，淨額171970 68 
信用卡，淨值444 16 
與信貸安排有關的利息支出(6)(6)(17)(18)
淨利息收入總額251274693 813 
其他收入
金牌訂閱收入
20 28 55 77 
代理收入8 8 53 53 
其他3 8 8 19 
其他收入合計
$31 $44 $116 $149 
淨收入合計$467$637$1,394 $1,937 
羅賓漢比賽激勵措施
我們爲客戶對其退休帳戶的合格繳款提供匹配激勵，並不時爲向我們平台的其他資產轉移提供激勵。我們還爲Robinhood Gold用戶的符合條件的現金存款提供匹配。退休繳款和資產轉移的匹配是預先支付的，如果收款人在指定時間內沒有在其帳戶中持有繳款資金或轉移的資產，則將被沒收。這些激勵措施被推遲並在指定持有期內確認爲收入減少。符合條件的現金存款在指定的盈利期內按月按比例支付。如果在指定的盈利期內平台上沒有持有按金，未來的比賽付款將被沒收。這些比賽是







14
目錄表
賺取時確認爲收入的減少。比賽按比例分配給某些收入類別。截至2023年9月30日和2024年9月30日的三個月和九個月， 不是 損傷已被認識到。

全額有價證券借貸

對於我們的全額證券出借計劃，我們從參與用戶那裏借入全額股票並將其借給第三方(「全額證券出借」)，我們根據對這些證券的需求從出借某些證券獲得收入，部分收入支付給參與用戶，這些支付被記錄爲利息支出。下表列出了全額證券借貸所賺取的利息收入和支付的利息費用：
截至三個月
9月30日，		九個月結束
9月30日，
(單位：百萬)2023202420232024
利息收入$12 $20 $35 $60 
利息開支(2)(3)(5)(9)
全額證券借貸，淨額
$10 $17 $30 $51 
合同餘額
當我們根據合同無條件有權開具發票和接受付款時，合同應收款被確認，當收到現金時，合同應收款被取消確認。來自做市商的應收交易收入在經紀商、交易商和結算組織的應收賬款中報告，而與發行人代理收入相關的其他應收收入在未經審計的簡明綜合資產負債表中在其他流動資產中報告。
合同負債主要由未賺取的訂閱收入組成，當用戶在我們履行業績義務之前提前匯出現金付款時確認，並在未經審計的簡明綜合資產負債表上作爲其他流動負債記錄。
下表列出了所示期間的合同應收款和負債：
(單位：百萬)合同應收款合同責任
期初，2024年1月1日$87 $4 
期末，2024年9月30日106 9 
本期間的變化$19 $5 
我們合同應收賬款的年初和期末餘額之間的差異主要是由於交易量增加以及我們的業績和交易對手付款之間的時間差異導致的交易收入增加。截至2024年9月30日止九個月，我們確認了包含在年初合同負債餘額中的所有收入。
注4：企業合併和資產收購
尚未完成對Bitstamp的收購
2024年6月，我們達成協議收購Bitstamp的所有未發行股權，Bitstamp是一家面向零售和機構客戶的全球規模加密貨幣交易所。我們將支付的總代價預計約爲美元200 百萬，視購買價格習慣調整而定







15
目錄表
協議中規定並以現金支付。此次收購須遵守慣例完成條件，包括監管機構批准，預計將於2025年上半年完成。
資產收購
2024年1月3日，我們以大約$收購了MNA Holdco LLC及其子公司Marex North America LLC(MNA)的所有流通股和MNA持有的許可證32000萬美元(扣除所需現金#美元后的淨額125(億美元)，這被確定爲資產收購。獲得的許可證被確認爲無限期無形資產。
注5：信貸損失準備
信貸損失準備--與經紀業務相關
與經紀業務相關的信貸損失準備主要涉及因欺詐存款交易而來自用戶的應收賬款的無擔保餘額、按金貸款虧損以及代理收入應收賬款準備金。欺詐性存款交易發生在這樣的情況下：用戶將存款存入他們的帳戶，使用我們的短期信貸在我們的平台上進行交易，然後匯回或撤銷存款，導致我們損失貸記金額。下表彙總了與經紀業務有關的信貸損失準備，即在未經審計的簡明綜合資產負債表中淨額減少的用戶應收款：
截至三個月
9月30日，		九個月結束
9月30日，
(單位：百萬)2023202420232024
期初餘額$20 $15 $18 $15 
信貸損失準備金3 6 18 16 
覈銷(7)(6)(20)(16)
期末餘額$16 $15 $16 $15 
信用損失備抵-信用卡相關
我們有二 與信用卡相關的信用損失撥備類型：i）與表外信用卡應收賬款相關的撥備，在未經審計的簡明綜合資產負債表上列爲應付賬款和應計費用的一部分，和ii）與購買的信用卡應收賬款和應收客戶利息相關的撥備，在未經審計的簡明綜合資產負債表上顯示爲來自用戶的應收賬款減少額。信用卡相關信用損失撥備代表管理層對信用卡應收賬款剩餘預期壽命內信用風險的預期信用損失的估計。信用卡應收賬款津貼考慮了內部和外部來源的信息，包括歷史收款數據、FICO隊列的沖銷趨勢以及市場數據。當餘額未償超過時，我們會註銷餘額







16
目錄表
180 天或當我們認爲餘額無法收回時。表外信用卡應收賬款的核銷被歸類爲向海岸銀行支付的信用損失付款。
下表總結了與表外信用卡應收賬款相關的撥備：

截至三個月
9月30日，		九個月結束
9月30日，
(單位：百萬)
2023202420232024
期初餘額$— $34 $— $32 
收購Robinhood Credit的年初餘額16 — 16 — 
信貸損失準備金10 11 10 30 
向海岸銀行支付信貸損失(4)(8)(4)(26)
復甦— 1 — 2 
期末餘額$22 $38 $22 $38 

下表總結了與購買信用卡應收賬款相關的津貼和 應收客戶利息:

截至三個月
9月30日，		九個月結束
9月30日，
(單位：百萬)
2023202420232024
期初餘額$— $3 $— $1 
信貸損失準備金1 6 1 11 
覈銷
— (1)— (4)
期末餘額$1 $8 $1 $8 
注6：投資和公允價值衡量
投資
可供出售
截至2023年12月31日和2024年9月30日，我們有美元5001000萬美元和300萬美元750 在未經審計的簡明綜合資產負債表上分類爲現金等值項目的百萬可供出售定期存款。這些投資在購買時的期限爲三個月或更短，總市值等於攤銷成本。參閱 金融工具的公允價值 詳情如下。







17
目錄表
持有至到期
下表總結了我們持有至到期投資：
2023年12月31日
(單位：百萬)攤銷成本信貸損失準備未實現收益未實現虧損公允價值
債務證券：
公司債務證券$205 $— $— $(1)$204 
美國國債202 — — — 202 
美國政府機構證券42 — — — 42 
存單34 — — — 34 
商業票據3 — — — 3 
持有至到期的投資總額$486 $— $— $(1)$485 
2024年9月30日
(單位：百萬)攤銷成本信貸損失準備未實現收益未實現虧損公允價值
債務證券：
美國國債$426 $— $1 $(1)$426 
公司債務證券91 — — — 91 
美國政府機構證券10 — — — 10 
持有至到期的投資總額$527 $— $1 $(1)$527 
有幾個不是 截至2024年9月30日的三個月和九個月內持有至到期投資的銷售。







18
目錄表
下表按合同期限列出了持有至到期投資的攤銷成本和公允價值;最長期限爲兩年：
2023年12月31日
(單位：百萬)1年內1至2年總
攤餘成本
債務證券：
公司債務證券$153 $52 $205 
美國國債184 18 202 
美國政府機構證券39 3 42 
存單34 — 34 
商業票據3 — 3 
持有至到期的投資總額$413 $73 $486 
公允價值
債務證券：
公司債務證券$152 $52 $204 
美國國債184 18 202 
美國政府機構證券39 3 42 
存單34 — 34 
商業票據3 — 3 
持有至到期的投資總額$412 $73 $485 
2024年9月30日
(單位：百萬)1年內1至2年總
攤餘成本
債務證券：
美國國債$426 $— $426 
公司債務證券91 — 91 
美國政府機構證券10 — 10 
持有至到期的投資總額$527 $— $527 
公允價值
債務證券：
美國國債$426 $— $426 
公司債務證券91 — 91 
美國政府機構證券10 — 10 
持有至到期的投資總額$527 $— $527 







19
目錄表
金融工具的公允價值
按公允價值經常性計量的金融資產和負債在我們未經審計的簡明綜合資產負債表中列示如下：
2023年12月31日
(單位：百萬)1級2級3級總
資產
現金等價物：
定期存款$— $500 $— $500 
貨幣市場基金146 — — 146 
清算組織存款：
美國國債(1)
50 — — 50 
其他流動資產：
安定康20 — — 20 
股權證券--擁有的證券10 — — 10 
其他非流動資產：
貨幣市場基金-託管帳戶2 — — 2 
與用戶加密貨幣保障義務相關的資產— 14,708 — 14,708 
用戶持有的零碎股份1,592 — — 1,592 
金融資產總額$1,820 $15,208 $— $17,028 
負債
用戶加密貨幣保障義務$— $14,708 $— $14,708 
零碎股份回購義務1,592 — — 1,592 
財務負債總額$1,592 $14,708 $— $16,300 







20
目錄表
2024年9月30日
(單位：百萬)1級2級3級總
資產
現金等價物：
定期存款$— $750 $— $750 
貨幣市場基金60 — — 60 
美國國債8 — — 8 
其他流動資產：
安定康21 — — 21 
股權證券--擁有的證券14 — — 14 
其他非流動資產：
貨幣市場基金-託管帳戶2 — — 2 
與用戶加密貨幣保障義務相關的資產— 19,456 — 19,456 
用戶持有的零碎股份2,201 — — 2,201 
金融資產總額$2,306 $20,206 $— $22,512 
負債
用戶加密貨幣保障義務$— $19,456 $— $19,456 
零碎股份回購義務2,201 — — 2,201 
財務負債總額$2,201 $19,456 $— $21,657 
____________________________
(1) 截至12月31日的年度。2023年，美國國債被質押給清算組織，以滿足我們證券貸款計劃的按金要求。
不需要按公允價值計量或報告的某些金融工具的公允價值在我們未經審計的簡明綜合資產負債表中列示如下：
2023年12月31日
(單位：百萬)1級2級3級總
資產
持有至到期投資：
公司債務證券$— $204 $— $204 
美國國債202 — — 202 
美國政府機構證券— 42 — 42 
存單— 34 — 34 
商業票據— 3 — 3 
持有至到期的投資總額$202 $283 $— $485 







21
目錄表
2024年9月30日
(單位：百萬)1級2級3級總
資產
持有至到期投資：
美國國債$426 $— $— $426 
公司債務證券— 91 — 91 
美國政府機構證券— 10 — 10 
持有至到期的投資總額$426 $101 $— $527 
持有至到期投資所使用的公允價值來自獨立定價服務，代表由定價模型使用市場方法確定的公允價值，該方法考慮了可觀察到的市場數據，如利率波動性、相關收益率曲線、信用利差和來自做市商和實時交易系統的價格。管理層在全面評估所提供的公允價值的合理性時，審查定價服務所採用的估值方法和質量控制。
截至2024年9月30日止九個月內，我們沒有轉入或轉出第三級資產或負債。
受保護的用戶加密貨幣
受保護的用戶加密貨幣如下：
十二月三十一日，9月30日，
(單位：百萬)20232024
比特幣(BTC)$6,149 $9,416 
乙醚(ETH)3,761 4,014 
狗狗(Dogecoin)3,319 4,001 
其他1,479 2,025 
用戶加密貨幣保障義務及相應資產總額$14,708 $19,456 
用戶加密貨幣保障義務和相應資產的公允價值是根據觀察到的市場定價確定的，該定價代表截至2023年12月31日和2024年9月30日對每種加密貨幣交易執行的最後價格。
注7：衍生品和對沖活動
2023年，我們進入 二 被指定爲與我們應收按金相關的利率風險的現金流對沖的利率下限。 一 名義金額爲美元的利率下限2 10億美元自2023年6月30日起生效。另一個名義金額爲美元1 10億美元自2024年1月1日起生效。兩個利率下限的期限均爲 六個月.截至2024年9月30日，公司已 不是 衍生品和對沖活動。

由於截至2024年9月30日止九個月內就對沖項目收取或支付的利息付款，因此與利率下限相關的累計其他全面收益（虧損）（「AOCI」）中報告的金額重新分類至淨利息收入。







22
目錄表
下表彙總了AOCI在我們未經審計的簡明合併財務報表上確認的損益金額：

截至三個月
9月30日，		九個月結束
9月30日，
(單位：百萬)2023202420232024
指定爲對沖工具的衍生工具：
衍生品損失包括在 成效考覈
$(1)$— $(4)$— 
損失從AOCI重新分類爲有效性評估中包含的淨利息收入
— — — 3 
總
$(1)$— $(4)$3 

下表概述了AOCI的組成部分，包括未經審核簡明綜合財務報表中的對沖活動：
截至三個月
9月30日，		九個月結束
9月30日，
(單位：百萬)2023202420232024
期初餘額$(3)$— $— $(3)
外幣折算：
改敘前的其他全面收入— 1 — 1 
重新分類後的其他綜合收益，扣除稅款— 1 — 1 
對沖工具：
重新分類前的其他全面損失(1)— (4)— 
淨利息收入中包含的淨收益的重新分類調整（扣除稅）— — — 3 
重新分類後的其他全面收益（虧損），扣除稅款(1)— (4)3 
期末餘額$(4)$1 $(4)$1 













23
目錄表
注8：所得稅
截至三個月
9月30日，		九個月結束
9月30日，
(單位：百萬，百分比除外)2023202420232024
所得稅前收入(虧損)
$(75)$153 $(562)$506 
所得稅撥備10 3 9 11 
實際稅率(12.7)%1.9 %(1.5)%2.2 %
本公司於中期的稅項撥備乃按估計年度有效稅率(「ETR」)厘定，並就期間產生的個別項目作出調整。在每個季度，我們都會更新估計的年度ETR，並對今年迄今的撥備進行計算。
截至2023年9月30日和2024年9月30日的三個月和九個月，ETR低於美國聯邦法定稅率，主要是由於我們的美國聯邦和州遞延所得稅資產的全額估值津貼被當前應付稅款抵消。
淨遞延所得稅資產稅收利益的實現取決於該項目預計可扣稅或應稅期間具有適當性質的未來應稅收入水平。根據截至2024年9月30日止九個月內現有的客觀證據，我們認爲，在存在足夠的積極證據支持估值備抵逆轉之前，剩餘美國聯邦、州和某些外國淨遞延稅資產的稅收優惠很可能無法實現。
由於1986年修訂的《國稅法》以及類似的國家規定的所有權變更限制，淨營業虧損和貸記結轉的使用可能受到相當大的年度限制。年度限制可能會導致淨營業虧損和使用前的稅收抵免到期。
2024年6月，加州州長簽署了參議院第167號法案（「SB 167」），該法案暫時暫停使用加州淨運營虧損，並對我們可以利用這些稅收抵免抵減所得稅的業務激勵稅收抵免設置上限，以及參議院第175號法案（「SB 175」），允許收回暫停的抵免。我們相信，根據第167條和第175條規定的最近稅收立法變化不會對我們的所得稅撥備產生重大影響，也不會改變我們對截至2024年9月30日加州遞延所得稅資產估值津貼的評估。
注9：證券借貸
我們的證券借貸交易受與其他經紀自營商訂立的可強制執行的總淨額結算安排的約束；但我們並不淨額計算證券借貸交易的淨額。因此，與證券借貸活動相關的活動在我們未經審計的簡明綜合資產負債表中以毛額列示。
當我們從用戶和第三方借入全額支付的證券時，我們向我們的用戶和第三方提供現金抵押品，這代表了我們對提供給我們的用戶和第三方的抵押品的權利，並在我們未經審計的精簡綜合資產負債表上被記錄爲「借出的證券」這一資產。當我們將證券借給第三方時，我們收到現金作爲抵押品，這代表了我們歸還抵押品的義務，並在我們未經審計的精簡綜合資產負債表上被記錄爲「借出的證券」，這是一種負債。
下表列出了截至2023年12月31日和2024年9月30日與我們的證券借貸活動相關的某些餘額：







24
目錄表
十二月三十一日，9月30日，
(單位：百萬)20232024
資產借入的證券
向用戶提供用於證券借入交易的現金抵押品總額
$1,602 $3,704 
合併資產負債表中的抵銷總額— — 
合併資產負債表中列報的資產金額1,602 3,704 
合併資產負債表上未抵消的總額：
爲用戶和第三方提供用於證券借入交易的現金抵押品
1,602 3,704 
從用戶和第三方借入證券的公允價值
(1,536)(3,614)
淨額$66 $90 
負債借出證券
從證券借貸交易對手方收到的現金抵押品總額
$3,547 $7,306 
合併資產負債表中的抵銷總額
— — 
綜合資產負債表中列報的負債額3,547 7,306 
合併資產負債表上未抵消的總額：
從證券借貸交易對手方收到的現金抵押品
3,547 7,306 
抵押給交易對手的證券的公允價值
(3,188)(6,842)
淨額$359 $464 
我們獲得證券的條款允許我們向他人抵押和/或轉讓證券。截至2023年12月31日和2024年9月30日，我們被允許重新抵押公允價值爲美元的證券4.78 億和$7.48 與用戶簽訂的按金帳戶協議下，價值10億美元。截至2023年12月31日，我們被允許重新抵押公允價值爲 非物質的 我們根據與第三方的主證券貸款協議（「MSLA」）借入的餘額。截至2024年9月30日，已有 不是 根據MSLA向第三方借款重新抵押的證券。根據全額支付證券貸款計劃，截至2023年12月31日和2024年9月30日，我們被允許借入公允價值爲美元的證券14.03 億和$29.43 億美元，包括公允價值爲美元的證券1.543億美元和3,000美元3.61我們從用戶那裏借了10億美元。
截至2023年12月31日和2024年9月30日，我們已重新抵押證券，公允價值爲美元3.193億美元和3,000美元6.84 十億美元，每種情況下都是根據《MSLA》和與第三方的定期證券借貸協議。此外，截至2023年12月31日和2024年9月30日，我們已重新承諾美元6761000萬美元和300萬美元1.22 與清算組織簽訂的按金帳戶協議下允許金額的10億美元，以滿足存款要求。     
注10：融資活動和表外風險
循環信貸安排
RHM 2024年3月信貸協議
於2024年3月22日，RHM與銀行銀團訂立第二份經修訂及重述的信貸協議(「RHM 2024年3月信貸協議」)，修訂及重申於2019年10月訂立及其後經修訂的無擔保循環信貸額度(詳情請參閱2023年10-k表格附註13-融資活動及表外風險)。RHM 2024年3月的信貸協議的初始承諾爲$750 百萬美元，到期日爲3月22日，







25
目錄表
2027.在RHm 2024年3月信貸協議中描述的情況下，總承諾可能會增加最多美元187.51000萬美元，總承諾額高達800萬美元937.5 萬RHm 2024年3月信貸協議項下的借款將按相當於替代基本利率或調整後期限SOFR（「有擔保隔夜融資利率」）加上適用的按金利率的年利率計算利息 1.50%.就RHm信貸協議而言，替代基本利率是以下三者中的最高者：（i）當時有效的最優惠利率，（ii）當時有效的紐約聯邦儲備銀行利率加上 0.5%及(Iii)調整後期限SOFR，爲期一個月，另加利息1.0%。調整後的術語SOFR比率等於由術語SOFR管理人發佈的術語SOFR加上術語SOFR調整。術語SOFR調整是0.10%。如果調整後的期限SOFR比率小於下限0%，該費率應視爲等於下限。RHm有義務支付承諾費，按每年的費率計算，相當於 0.252024年3月RHM信貸協議任何未使用金額的%。
RHS 2024年3月信貸協議
於2024年3月22日，我們的全資附屬公司RHS與作爲借款人、貸款方的RHS以及作爲行政代理的摩根大通銀行訂立了第三份經修訂及重新簽署的信貸協議(「RHS 2024年3月信貸協議」)，修訂及重申2.1751000億美元364天 2023年3月簽訂的高級有擔保循環信貸融資（更多信息請參閱2023年10-k表格注13 -融資活動和資產負債表外風險）。
RHS 2024年3月的信貸協議規定364天 高級有擔保循環信貸安排，總承諾額爲美元2.251000億美元。在RHS 2024年3月信貸協議所述的情況下，總承諾額最高可增加$1.125200億美元，總承諾額爲3.3751000億美元。信貸安排下的借款必須指明爲A檔、B檔、C檔或其組合。A部分貸款以用戶以按金方式購買的證券爲擔保，主要用於融資按金貸款。B部分貸款以國家證券結算公司(「NSCC」)返還NSCC按金存款以及指定抵押品帳戶中的現金和財產作爲擔保，並用於滿足NSCC的存款要求。C部分貸款的擔保是有權從借款人的任何儲備帳戶中返還符合條件的資金以及指定抵押品帳戶中的現金和財產，並用於滿足經修訂的1934年證券交易法(「交易法」)第15c3-3條規定的準備金要求。
RHS 2024年3月信貸協議項下的借款將按年利率計算利息，利率等於（i）Daily Simple SOFR加上 0.10%（定義見RHS 2024年3月信貸協議）、（ii）聯邦基金有效利率（定義見RHS 2024年3月信貸協議）和（iii）隔夜銀行融資利率（定義見RHS 2024年3月信貸協議），在每種情況下，自貸款啓動之日起加上適用的按金利率。適用的按金率爲 1.25A檔貸款及2.50b組和C組貸款的%。未提取的承諾將按每年相當於 0.50%.
RHS 2024年3月的信貸協議要求RHS保持最低合併有形淨資產和最低超額淨資本，並對RHS總借記項目的最低淨資本進行規定限制。此外，RHS 2024年3月信貸協議包含某些習慣性的肯定和否定契約，包括對債務、優先權、基本面變化、資產出售、限制性付款、投資和與附屬公司交易的限制，但有某些例外情況。RHS 2024年3月信貸協議項下的到期金額可能會在RHS 2024年3月信貸協議中定義的「違約事件」時加速支付，例如未能在到期時支付根據該協議所欠的金額、違反契約、陳述的重大不準確或發生破產或無力償債，在某些情況下會有補救期。
截至2023年12月31日和2024年9月30日，已有 沒有 未償還借款，並且我們遵守了循環信貸安排下的所有契約（如適用）。







26
目錄表
信用卡融資信託
根據海岸社區銀行（「海岸銀行」）計劃協議（下文討論）的條款，Robinhood Credit有能力購買海岸銀行發起並持有一段時間的信用卡應收賬款。Robinhood Credit繼續從客戶那裏賺取利息，並使用這些購買的信用卡應收賬款作爲信託結構下的抵押品，在正常業務過程中獲得債務融資。爲了幫助促進這些交易，我們創建了一個名爲信用卡融資信託（「信託」）的VIE。
我們是信託的主要受益人，因爲通過我們作爲服務者和管理者的角色，我們有權指導對信託經濟績效最顯着影響的活動，並且由於擁有信託的所有股權，我們有權獲得利益或承擔損失的義務。因此，我們將信託合併到簡明合併財務報表中。該信託的幾乎所有資產和負債都是未經審計的簡明綜合資產負債表中所購買的信用卡應收賬款（包括在應收用戶賬款中）和未償還借款（包括在其他流動負債中）。
我們在信託中面臨的損失風險僅限於信託持有的淨資產的公允價值，包括與購買的信用卡應收賬款相關的預期信用損失（參見注5 -信用損失備抵）。對於信託來說，債權人對我們的一般信用沒有追索權，信託的負債只能通過信託的資產來結算。此外，信託的資產只能用於償還信託的義務。
該信託的信用卡應收賬款具有與沿海銀行擁有的其他表外信用卡應收賬款相似的風險和特徵，並且承保標準相同。因此，該等資產的表現預計將與其他可比信用卡應收賬款相似。
截至2024年9月30日，該信託已達成一項借入最多美元的安排100 百萬美元，將於2025年4月到期。該安排下的借款按SOFR加年率計算利息 2.75未償借款低於美元的%50 百萬，SOFR加 2.50未償借款超過美元的%50 萬截至2024年9月30日的九個月內，我們購買了美元239 百萬信用卡應收賬款。截至2024年9月30日，扣除信用損失撥備後，尚未收回的已購買信用卡應收賬款的公允價值爲美元99 百萬，未償還借款本金和利息餘額爲美元941000萬美元。有幾個不是 截至2023年12月31日止年度，根據該安排購買的信用卡應收賬款或借款。截至2024年9月30日止三個月和九個月，信託的相關利息收入和費用分別爲 非物質的.
表外風險
沿海銀行計劃協議
根據我們與海岸銀行之間最近於2023年11月修訂的計劃協議（「計劃協議」），海岸銀行可提供高達美元的資金300 百萬信用卡應收賬款。Robinhood Credit根據當月平均預付款餘額，按聯邦基金利率加上利潤率向海岸銀行支付利息 3.75第一美元的%1501000萬美元和3.00超過美元的金額的%1501000萬美元。

信用卡應收賬款和沿海銀行的資金屬於資產負債表外，因爲沿海銀行是合法貸方和發起人、客戶與債權人之間存在債權人-借款人關係的一方以及應收賬款的合法所有者。截至2024年9月30日，計劃協議項下融資的表外信用卡應收賬款爲美元202 萬








27
目錄表
交易結算

在正常業務過程中，我們從事涉及證券交易結算和融資的活動。用戶證券交易按結算日期記錄。自2024年5月起，股票結算日期已從 兩 交易日期後的工作日 一 交易日後的一個工作日，而期權的結算日期在交易日後的一個工作日保持不變。如果交易另一方無法履行其合同義務，這些活動可能會使我們面臨表外風險。在此類情況下，我們可能需要以現行市場價格購買金融工具以履行我們的義務。
注11：普通股票和股東股票
優先股
截至2024年9月30日，未指定優先股條款， 沒有 優先股已發行。
普通股
我們有三 授權普通股類別：A類、B類和C類。我們A類普通股的持有者有權 一 對我們股東投票的所有事項進行每股投票，我們b類普通股的持有者有權 10 對我們股東投票的所有事項進行每股投票，除非適用法律另有要求，否則我們C類普通股的股東無權對我們股東投票的任何事項進行投票。我們的A類普通股和b類普通股的持有人作爲一個類別一起投票，除非我們的修訂和重述的公司證書（我們的「章程」）或適用法律另有要求。
權證
截至2024年9月30日，未行使的認購證包括購買認購證 14.3 百萬股A類普通股，行使價爲美元26.60 每股該認購證將於2031年2月12日到期，可通過持有人選擇以現金或淨股份結算來行使。總而言之，所有期權的最高購買金額爲美元380 萬截至2024年9月30日，該等認購權尚未行使。
股份回購計劃
2024年5月28日，我們宣布董事會批准了一項股份回購計劃（「回購計劃」），授權公司回購最多美金1 億美金的已發行A類普通股。雖然回購計劃沒有到期日，但我們仍然預計將在一段時間內完成 兩 到 三年.截至2024年9月30日的三個月內，公司回購了 5 以美金收購我們的百萬股A類普通股97 萬
回購交易的時間和金額將由我們根據我們對市場狀況、股價和其他因素的評估不時酌情確定。回購交易可以使用多種方法進行，例如公開市場股票回購，包括使用符合《交易法》第10 b5 -1條規定資格的交易計劃，或其他金融安排或交易。回購計劃並不要求我們有義務收購任何特定的







28
目錄
A類普通股的數量和回購計劃可能會根據我們的決定隨時暫停或終止。所有回購的股份隨後將退役。
股權激勵計劃
2021年綜合激勵計劃
我們的2021年綜合激勵計劃（「2021年計劃」）於2021年7月27日生效，並規定授予股票獎勵（例如期權，包括激勵股票期權、非法定股票期權、股票增值權、限制性股票獎勵、限制性股票單位（「RSU」）、績效單位和其他基於股票的獎勵）和基於現金的獎勵。
截至2024年9月30日，總計 448 根據我們的修訂和重述的2013年股票計劃（經修訂）、2020年股權激勵計劃（經修訂）和2021年計劃，已授權發行100萬股股票，其中 146 根據該計劃已發行了100萬股股票， 45 在行使或結算該計劃項下未償還股權獎勵後保留發行100萬股股份，並且 257 根據2021年計劃，仍有000萬股股票可供新贈款。
基於時間的RSU
我們授予在滿足基於時間的服務條件後歸屬的RSU（「基於時間的RSU」）。 下表總結了截至2024年9月30日的九個月內與我們的基於時間的RSU相關的活動，這是我們授予全公司年度更新補助金的時期：
的受限制股份單位的數目加權-平均授予日期公允價值
於2023年12月31日未歸屬34,551,998 $14.99 
授予16,910,355 17.56 
既得(20,646,236)16.43 
沒收(6,203,621)15.33 
2024年9月30日未歸屬24,612,496 $15.46 
基於市場的RSU
2019年和2021年，我們向創始人授予了RSU，根據RSU，歸屬取決於股價目標的實現以及每位受益人在規定服務期內的持續就業（「基於市場的RSU」）。
2023年2月，我們取消了2021年市場化RSU 35.5 百萬股未歸屬股份（「2021年創始人獎取消」）。我們認出了美金485 截至2023年9月30日的九個月內，與取消有關的MBC費用為百萬美金，該費用已計入我們未經審計的簡明經營報表的一般和行政費用。無需進一步費用







29
目錄
與這些獎項相關的獎項在取消後得到了認可。沒有授予與取消相關的其他付款、重置股權獎勵或福利。
下表總結了截至2024年9月30日的九個月內與我們基於市場的RSU相關的活動：
有資格獲得背心(1)
沒有資格獲得背心(2)
RSU總數加權平均授予日公允價值
未歸屬於2023年12月31日345,796 22,130,926 22,476,722 $25.67 
授與— — — 
既得(230,532)— (230,532)2.34 
被沒收(3)
(115,264)(11,065,463)(11,180,727)25.79 
2024年9月30日未歸屬— 11,065,463 11,065,463 $26.04 
________________
(1)代表在實現股價目標後有資格歸屬並在滿足基於時間的服務要求後歸屬的RSU。
(2)代表因股價目標尚未實現而尚未有資格歸屬的RSU。
(3)這個11 沒收的100萬股股票反映了我們聯合創始人兼前首席創意官在2024年第一季度辭職的影響。
基於股份的薪酬
下表列出了SRC在所示期間未經審計的簡明綜合經營報表：
截至三個月
9月30日，		九個月結束
9月30日，
(單位：百萬)2023202420232024
經紀和交易$2 $2 $6 $7 
技術和發展 51 48 161 144 
運營3 1 6 5 
營銷1 3 3 6 
一般和行政26 25 614 65 
總(1)
$83 $79 $790 $227 
________________
(1)截至2023年9月30日的三個月和九個月，TBC費用主要包括美元70 億和$218 與基於時間的RSU和$相關的百萬10 億和$563 與基於市場的RSU相關的百萬。截至2024年9月30日的三個月和九個月，TBC費用主要包括美元76 億和$225 與基於時間的RSU和 非物質的 金額和負美元8 百萬美元與基於市場的RSU相關，因爲一部分基於市場的RSU在前期完全歸屬，並且扣除了美元11 與2024年第一季度我們的聯合創始人兼前首席創意官辭職後沒收的未歸屬獎勵相關的先前確認的費用轉回百萬美元。
我們將與內部開發軟件相關的TBC費用資本化爲美元7 億和$18 截至2024年9月30日的三個月和九個月內爲百萬美元，而爲美元5 億和$12 上年同期爲百萬美元。
截至2024年9月30日，已有 $310萬 預計將在加權平均期內確認的未確認的TBC費用 0.89 年
.







30
目錄
注12：每股淨收入（損失）
下表列出了每股基本收益和稀釋後收益(虧損)的計算方法：
(in百萬，份額和每股數據除外）截至9月30日的三個月，截至9月30日的9個月，
2023202420232024
A類B類A類B類A類B類A類B類
每股基本盈利（「每股盈利」）：
分子
淨收益(虧損)$(73)$(12)$129 $21 $(490)$(81)$425 $70 
普通股股東應占淨收益(虧損)$(73)$(12)$129 $21 $(490)$(81)$425 $70 
分母
加權平均已發行普通股-基本767,981,843 127,126,947 761,931,947 122,176,598 771,585,189 127,414,275 756,319,103 123,863,470 
基本每股收益$(0.09)$(0.09)$0.17 $0.17 $(0.64)$(0.64)$0.56 $0.56 
稀釋每股收益：
分子
淨收益(虧損)$(73)$(12)$129 $21 $(490)$(81)$425 $70 
b類普通股轉爲A類普通股後淨利潤的重新分配— — 21 — — — 70 — 
淨利潤重新分配至b類普通股— — — — — $— — (1)
稀釋後每股收益的淨利潤（虧損）$(73)$(12)$150 $21 $(490)$(81)$495 $69 
分母
加權平均已發行普通股-基本767,981,843 127,126,947 761,931,947 122,176,598 771,585,189 127,414,275 756,319,103 123,863,470 
股票期權和非既得股的攤薄效應— — 21,436,205 — — — 23,373,019 — 
B類轉換爲A類普通股— — 122,176,598 — — — 123,863,470 — 
加權平均已發行普通股-稀釋767,981,843 127,126,947 905,544,750 122,176,598 771,585,189 127,414,275 903,555,592 123,863,470 
稀釋每股收益$(0.09)$(0.09)$0.17 $0.17 $(0.64)$(0.64)$0.55 $0.55 
以下潛在普通股被排除在每股稀釋淨收益（虧損）的計算之外，因爲它們的影響具有反稀釋性，或者此類股份的發行取決於期末未滿足的某些條件的滿足：
 截至三個月
9月30日，		九個月結束
9月30日，
2023202420232024
基於時間的RSU45,066,880 746,083 45,066,880 774,579 
以市場爲基礎的RSU22,591,988 11,065,463 22,591,988 11,065,463 
股票期權13,668,390 — 13,668,390 — 
認股權證14,278,034 14,278,034 14,278,034 14,278,034 
員工購股計劃(「ESPP」)
838,958 — 838,958 — 
總反稀釋證券96,444,250 26,089,580 96,444,250 26,118,076 







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目錄表
注13：租賃
我們的經營租賃由辦公設施組成，我們沒有任何融資租賃。 未經審計的簡明綜合資產負債表上確認的租賃資產和負債如下：
十二月三十一日，9月30日，
(單位：百萬)分類20232024
租賃使用權資產：
經營性租賃資產其他非流動資產$68 $63 
租賃負債：
流動經營租賃負債其他流動負債20 22 
非流動經營租賃負債其他非流動負債89 78 
租賃總負債$109 $100 
與租賃有關的現金流如下：
九個月結束
9月30日，
(單位：百萬)20232024
營運現金流：
經營租賃負債付款$32 $20 
補充現金流數據：
取得使用權資產所產生的租賃負債$— $5 
注14：承諾與義務
我們會受到正常業務過程中出現的或有事項的影響，包括與法律、監管、非所得稅和其他事項相關的或有事項。當我們確定可能發生損失並且損失金額可以合理估計時，我們會按照管理層的最佳估計記錄或有損失的應計。如果合理估計是一個範圍，並且該範圍內的金額不被認爲比任何其他金額更好的估計，則根據該範圍的最低金額記錄應計。如果不可能發生損失，或無法合理估計可能發生的損失，則不記錄應計。意外開支的應計金額總計爲美元190 截至2023年12月31日，百萬美元175 截至2024年9月30日，百萬。我們認爲，截至每個此類日期，已進行足夠的應計，爲我們所知且我們可以合理估計金額的可能損失撥備。
法律和監管事項
證券行業以及我們經營的許多其他行業受到嚴格監管，我們業務的許多方面都涉及巨大的責任風險。過去幾年，涉及經紀、加密貨幣和信用卡行業的訴訟和監管調查有所增加。訴訟已經包括並可能在未來包括集體訴訟，這些訴訟通常尋求巨額賠償，在某些情況下甚至是懲罰性賠償。聯邦和州監管機構、交易所、其他SRO或國際監管機構調查與監管合規相關的問題，這些問題可能導致







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執法行動。我們還定期接受監管審計和檢查，這些審計和檢查過去並可能導致執法調查或行動。
我們在訴訟中被列爲被告，並且不時受到威脅，或者在仲裁和行政訴訟中被列爲被告。這些事項的結果本質上是不確定的，有些事項可能會導致不利的判決或裁決，包括處罰、禁令或其他救濟，而且我們也可能會因爲訴訟的不確定性和風險而決定解決問題。
關於下文討論的事項，我們相信，根據目前的了解，截至2024年9月30日合理可能且能夠合理估計的任何損失（超過應計金額，如果適用）總體上不會對我們的業務、財務狀況、經營成果或現金流產生重大不利影響。然而，對於下文披露的許多事項，尤其是處於早期階段的事項，我們無法合理估計合理可能的損失（或損失範圍）（如果有的話）。此外，法律訴訟的最終結果涉及判決和固有的不確定性，無法確定地預測。任何針對我們的判決或任何不利和解都可能對我們的業務、財務狀況、經營業績和現金流產生重大不利影響。爲了抵禦法律和監管索賠，我們還可能產生大量的法律費用，這些費用在發生時計入費用。
以下描述了某些懸而未決的事項，其中至少有合理可能發生重大損失。我們打算繼續大力捍衛這些問題。
最佳執行、訂單流付款和收入來源民事訴訟
從2020年12月開始，針對RHM、RHF和RHS提起了多起假定的證券欺詐集體訴訟。五案件在加利福尼亞州北區的美國地區法院合併。2021年5月提交了一份修訂的合併申訴，指控我們違反了《交易法》第10(B)條和各種州法律訴訟理由，指控我們違反了最佳執行義務，並通過發佈與執行交易和收入來源(包括PFOF)有關的客戶通信中的誤導性聲明和遺漏，誤導了假定的類別成員。原告尋求未指明的金錢損害、恢復原狀、歸還和其他救濟。2022年2月，法院批准了羅賓漢提出的在不妨礙的情況下駁回修改後的合併申訴的動議。2022年3月，原告提交了第二份合併的修訂後的起訴書，指控只違反了《交易法》第10(B)條，羅賓漢動議駁回了這一指控。2022年10月，法院部分批准了羅賓漢的動議，部分駁回了該動議。2022年11月，羅賓漢提出了對訴狀的判決動議，法院於2023年1月駁回了這一動議。2024年3月，原告提出了一項要求等級認證的動議，羅賓漢對此表示反對。
國家監管事項
某些州監管機構已對RHF的期權交易和相關客戶通信和顯示、期權和按金交易審批流程、2020年3月2日至3日和2020年3月9日我們美國股票交易平台的服務中斷（「2020年3月中斷」）以及2020年6月之前的客戶支持進行了調查。RHF已與以下各方達成和解並支付和解 46 各州總計美元9.2 百萬美元，並可能與其餘國家達成和解，作爲與這些問題相關的多國解決方案的一部分，費用約爲美元1 萬金融業監管局（「FINRA」）此前曾進行過調查，並就其中許多問題與RHF達成和解。
紐約總檢察長正在對經紀執行質量進行調查，馬薩諸塞州證券部門（「MSD」）正在審查RHF的客戶投訴監管。我們正在配合這些調查。







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目錄表
經紀執法事宜
FINRA執法人員正在進行的調查除其他外，涉及以下事項：RHS向貿易報告機制、場外報告機制、訂單審計跟蹤系統和綜合審計跟蹤系統報告適用的零星股票交易；RHS向大型期權頭寸報告系統報告持有重要期權頭寸的帳戶；處理某些通過自動客戶帳戶轉移系統從Robinhood轉移資產的請求；對FINRA提出的電子藍單請求的答覆；在2022年12月處理Cosmo Health，Inc.的25股1股反向拆分交易時，第三方通知的延遲以及我們經紀系統和運營中的流程故障(「2022年第4季度處理錯誤」)；RHS和RHS遵守FINRA對成員人員的註冊要求；涉及社交媒體影響者和附屬公司的營銷；某些交易訂單的套取價格；RHS和RHF遵守最佳執行義務；RHS遵守FINRA規則6190、5260和6121；RHS和RHF遵守有關交付所需文件的規定；與RHS和RHF對技術的監督；源代碼報告；客戶投訴監督和限制問題；以及對FINRA規則3210的遵守有關的事項。我們正在配合這些調查。

RHS已收到SEC執法部門關於其遵守SHO法規的交易報告和與證券借貸、零碎股票交易、2022年第四季度處理錯誤以及對電子藍皮書請求的回應有關的其他要求的請求，之前也收到過來自FINRA審查人員的類似請求，包括有關空頭報告的請求。RHS和RHF還收到了SEC執法部門和FINRA執法人員提出的有關RHS和RHF遵守記錄保存要求的請求，包括有關頻道外通信的請求。我們正在配合這些調查。

羅賓漢加密貨幣很重要
RHC收到了加州總檢察長辦公室（「CAGO」）的傳票，要求提供有關RHC交易平台、業務和運營、客戶資產託管、客戶披露和代幣列表等信息。2024年8月31日，RHC與CAGO達成和解以解決此事，我們爲此支付了美元3.9 萬該和解涉及RHC的某些披露以及2018年1月至2022年4月期間根據加州公司代碼第29520和29505條交付客戶的加密貨幣資產。

RHC還收到了美國證券交易委員會的調查傳票，涉及RHC的加密貨幣上市、加密貨幣託管和平台運營等主題。RHC正在配合這項調查。2024年5月4日，RHC收到SEC工作人員（「SEC工作人員」）的「威爾斯通知」（「2024年5月威爾斯通知」），稱SEC工作人員已告知RHC，其已做出「初步決定」建議SEC對RHC提起強制執行行動，指控其違反《交易法》第15（a）條和第17 A條。潛在的行動可能涉及民事禁令訴訟、公共行政訴訟和/或停止程序，並可能尋求補救措施，包括禁令、停止令、交出、判決前利息、民事罰款以及譴責、撤銷和活動限制。

帳戶收購、反洗錢和網絡安全問題
FINRA執法部門和SEC執法部門正在調查帳戶收購（即，未經授權的行爲者成功登錄客戶帳戶的情況），以及反洗錢合規性和網絡安全問題。SEC執法部門還在調查我們在2021年11月經歷的數據安全事件，當時一名未經授權的第三方通過電話對一名客戶支持員工進行了社交工程，並獲得了對某些客戶支持系統的訪問權限（「2021年11月數據安全事件」）。2024年3月，FINRA結束了對2021年11月數據安全事件的調查。美國證券交易委員會執法部門和美國聯邦存款保險公司（「FDIC」）也在調查與遵守《電子資金轉移法》相關的問題。我們正在配合這些調查。







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短信訴訟
2021年8月，庫珀·摩爾（Cooper Moore）對RHF提起推定集體訴訟，指控RHF在未經華盛頓州居民同意的情況下發起或協助向華盛頓州居民傳輸商業電子短信，違反了華盛頓州法律。該投訴尋求未具體說明的法定和三倍的金錢損害賠償、禁令救濟以及律師費和費用。該案目前正在美國華盛頓西區地方法院等待審理。RHF提出駁回投訴的動議。2022年2月，摩爾和安德魯·吉列（Andrew Gillette）提出了修改後的投訴，但RHF再次駁回該投訴。2022年8月，法院駁回了RHF的駁回動議。雙方原則上達成和解解決此事，並於2024年7月最終批准了美元9 百萬和解。

馬薩諸塞州證券部事關重大
2020年12月，MSD對RHF提起行政訴訟，這源於MSD於2020年7月發起的一項調查。起訴書聲稱三對馬薩諸塞州違反證券法的指控，涉及被指控的不道德和不誠實的行爲或做法，未能進行監管，以及未能按照馬薩諸塞州受託責任標準行事，該標準於2020年3月6日生效，生效日期從2020年9月1日開始。除其他事項外，MSD聲稱我們的產品功能和營銷策略、停機和期權交易審批流程違反了馬薩諸塞州的證券法。MSD隨後提交了一份修改後的申訴，要求除其他外，禁令救濟(永久停止和停止令)、譴責、恢復原狀、歸還、任命獨立顧問、行政罰款和吊銷RHF在馬薩諸塞州的運營許可證。如果RHF失去在馬薩諸塞州的經營執照，我們將無法在馬薩諸塞州獲得任何新客戶，我們預計我們在馬薩諸塞州的現有客戶將無法繼續使用我們平台上提供的任何服務或產品(除平倉外)，我們可能會被迫將這些客戶的帳戶轉移到其他經紀自營商。此外，吊銷RHF的馬薩諸塞州執照可能會引發類似的取消資格或其他州監管機構限制或限制RHF註冊的程序。吊銷RHF在馬薩諸塞州經營的許可證將導致RHF和RHS受到FINRA和美國證券交易委員會的法定取消資格，這將導致RHF需要經過美國證券交易委員會審查從FINRA獲得救濟才能繼續成爲FINRA成員，RHS可能需要從FINRA或其他SRO獲得救濟。
2021年4月，RHF向馬薩諸塞州法院提出申訴和動議，要求初步禁令和宣佈救濟，尋求禁止MSD行政訴訟，並質疑馬薩諸塞州受託責任標準的合法性。2021年9月，雙方提出交叉動議，要求對訴狀進行部分判決。2022年3月，法院做出了有利於RHF的裁決，宣佈馬薩諸塞州的受託責任規定是非法的。2023年8月，馬薩諸塞州最高司法法院推翻了馬薩諸塞州高等法院的裁決。2024年1月，我們與MSD解決了與某些產品功能和營銷策略的監督、2020年3月的停機和我們的期權交易審批程序以及2021年11月的數據安全事件有關的問題，在該事件下，我們支付了7.5此外，他還聘請了一名獨立顧問，負責審查FINRA獨立機構關於某些應用程序特徵的建議、政策和程序以及網絡安全措施的執行情況。獨立顧問的審查已經完成，RHF已執行其所有建議。RHF已經駁回了州法院的訴訟。
2021年初的貿易限制很重要
從2021年1月28日開始，由於NCC提高了RHS的存款要求，以應對前所未有的市場波動，特別是某些證券，RHS暫時限制或限制其客戶購買某些證券，包括GameStop Corp.和AMC Entertainment Holdings，Inc.，在我們的美國交易平台上（「2021年初交易限制」）。







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與2021年初的貿易限制有關的一些個人和推定的集體訴訟是針對RHM、RHF和RHS等公司在各個聯邦和州法院提起的。2021年4月，多地區訴訟司法小組發佈了一項命令，集中了一項動議中確定的聯邦案件，該動議旨在移交、協調或合併向佛羅里達州南區美國地區法院提起的與2021年初貿易限制有關的訴訟。法院隨後將原告對羅賓漢的索賠分爲三部分：聯邦反壟斷索賠、聯邦證券法索賠和州法律索賠。2021年7月，原告提出合併申訴，要求與聯邦反壟斷和州法律部分相關的未指明的金錢損害賠償。聯邦反壟斷起訴書聲稱違反了《謝爾曼法》第一條；州法律起訴書聲稱存在疏忽和違反受託責任主張。2021年8月，我們採取行動駁回了這兩起投訴。
2021年9月，原告提交了一份修改後的投訴，主張州法律指控疏忽、違反受託責任、侵權干預合同和商業關係、民事共謀以及違反誠信和公平交易契約和隱含的注意義務。2022年1月，法院以偏見駁回了州法律投訴。2023年8月，美國第十一巡迴上訴法院維持了地方法院的命令。
2021年11月，法院毫無偏見地駁回了聯邦反壟斷投訴。2022年1月，原告就聯邦反壟斷部分提出了修改後的投訴，Robinhood駁回了修改後的投訴。2022年5月，法院以偏見駁回了聯邦反壟斷投訴。2024年6月，美國第十一巡迴上訴法院維持了地方法院的命令。
2021年11月，聯邦證券部分的原告提起訴訟，指控違反了《交易法》第9(A)和第10(B)條。起訴書要求未指明的金錢損害賠償、費用和費用，以及其他救濟。2022年1月，我們採取行動駁回了聯邦證券法的申訴。2022年8月，法院部分批准和部分駁回了羅賓漢的駁回動議。2023年11月，法院在沒有偏見的情況下駁回了原告要求等級認證的動議。2024年4月，法院駁回了原告關於許可提交新的等級認證動議的動議。2024年5月28日，羅賓漢通知法院，已與原告以個人身份原則上達成和解。羅賓漢隨後通知法院，其中一名原告不願簽署和解協議，並要求給予更多時間與該人談判。2024年8月14日，法院駁回了這一領先地位，並點名了原告的索賠。2024年10月，Robinhood通知法院，它正在與律師協商剩餘的個別證券訴訟，這些訴訟涉及強制仲裁大部分剩餘的證券索賠和正在進行的實質性和解談判。
RHM、RHF、RHS以及我們的聯合創始人兼首席執行官(首席執行官)弗拉基米爾·特內夫等人已收到美國加利福尼亞州北區檢察官辦公室(USAO)、美國司法部(DoJ)、反壟斷司、美國證券交易委員會執法部、FINRA、紐約州總檢察長辦公室、其他州總檢察長辦公室和多個州證券監管機構發出的與2021年初交易限制調查和審查相關的信息請求，在某些情況下還收到傳票和作證請求。此外，美國國稅局還執行了相關的搜查令，以獲取特涅夫的手機。根據具體的客戶投訴，已經進行了幾次詢問。我們還收到了來自美國證券交易委員會執行部和FINRA的請求，涉及在2021年1月25日當週內員工交易某些受2021年初交易限制的證券，包括GameStop Corp.和AMC Entertainment Holdings，Inc.。這些事項包括與是否有任何員工在決定實施2021年初交易限制之後和2021年1月28日公開宣佈2021年初交易限制之前進行的這些證券交易有關的請求。我們正在配合這些調查。FINRA執法部門還要求提供與員工交易相關的一般政策、程序和監管信息。







36
目錄表
IPO訴訟
2021年12月，菲利普·戈盧博斯基向美國加州北區地區法院提起了一項可能的集體訴訟，起訴RHM、簽署Robinhood首次公開募股(IPO)招股文件的高管和董事以及Robinhood的IPO承銷商。原告的申索基於Robinhood首次公開發售文件中被指違反經修訂的1933年證券法(「證券法」)第11及12(A)條的虛假或誤導性陳述。原告要求未指明的補償性損害賠償，撤銷股東的股票購買，以及對律師費和費用的裁決。2022年2月，某些所謂的羅賓漢股東提交了申請，要求法院指定爲主要原告，在這一問題上代表假定的階層，並於2022年3月，法院任命了主要原告。2022年6月，原告提交了修改後的起訴書。2022年8月，羅賓漢提出動議，要求駁回這一申訴。2023年2月，法院在沒有偏見的情況下批准了羅賓漢的動議。2023年3月，原告提交了第二份修改後的起訴書。2024年1月，法院批准了羅賓漢的動議，在沒有修改許可的情況下駁回第二次修改後的申訴。2024年2月，原告向第九巡迴法院提出上訴通知，上訴目前正在審理中。
2022年1月，羅伯特·齊託（Robert Zito）代表Robinhood在美國特拉華州地方法院對Robinhood IPO時的董事提出了衍生投訴。原告指控違反信託義務、浪費公司資產、不當致富以及違反《交易法》第10（b）條。原告的主張基於Robinhood IPO發行文件中虛假或誤導性陳述的指控，原告尋求判給公司未具體說明的損害賠償和賠償、禁令救濟以及律師費和費用的裁決。2022年3月，地方法院暫停了該訴訟，等待Robinhood在上述Golubowski證券訴訟中提出的駁回動議得到解決。
2022年8月，一名股東致信RHm董事會，要求董事會代表公司追究與2021年初交易限制、Robinhood IPO發行文件和2021年11月數據安全事件有關的不當行爲指控的訴訟原因。董事會已成立需求審查委員會，負責審查需求。
薪酬透明度訴訟
2024年7月，RHm、RHY和RHC在一起推定集體訴訟中被起訴，標題如下 約翰·米利托訴羅賓漢市場公司et. al.指控Robinhood違反了華盛頓的《同工同酬和機會法》，因爲該公司的一些招聘信息據稱未能包含工資標準或薪資範圍。該投訴尋求未具體說明的法定損害賠償總額、律師費和費用、禁令救濟和宣告救濟。該案目前仍在華盛頓金縣高等法院審理，等待向華盛頓最高法院提出認證問題。
現金清理訴訟
2024年10月，RHm、RHF和RHS在一起推定集體訴訟中被起訴，標題如下 Dey訴Robinhood Markets，Inc. et.阿爾。， 在美國加州北區地方法院審理。原告聲稱違反受託義務、重大過失、疏忽性虛假陳述和遺漏、違反善意和交易的隱含契約以及違反加州不公平競爭法，理由是被告未能向非Robinhood Gold經紀帳戶持有人支付合理利率的現金餘額被掃過以計劃銀行存款計劃。除其他外，該投訴尋求對該類別的認證、未指定的金錢、懲罰性、三倍和法定損害賠償、律師費和費用、禁令救濟和宣告救濟。









37
目錄表
項目2.管理層對財務狀況和經營成果的討論和分析
這一部分介紹了管理層對我們的財務狀況和運營結果的看法，包括管理層用來評估公司業績的業績指標。以下討論和分析旨在突出和補充本季度報告中其他地方提供的數據和信息，應與本季度報告中其他地方的中期未經審計的簡明綜合財務報表和附註、經審計的綜合財務報表和相關附註以及2023 Form 10-k中「管理層對財務狀況和經營結果的討論和分析」標題下的討論一併閱讀。它還旨在爲您提供信息，幫助您了解我們的合併財務報表、這些合併財務報表中的關鍵項目每年的變化，以及導致這些變化的主要因素。在本討論描述以前業績的範圍內，描述僅涉及所列期間，這可能不表明我們未來的財務結果。除歷史信息外，本次討論還包含前瞻性陳述，涉及風險、不確定性和假設，這些風險、不確定性和假設可能導致結果與管理層的預期大不相同。可能導致這種差異的因素在標題爲「關於前瞻性陳述的告誡」和「風險因素」的章節中進行了討論。
截至2023年和2024年9月30日的三個月和九個月的數據來自本季度報告開頭的未經審計的簡明綜合財務報表。任何中期業績不應被解釋爲對任何完整財年或未來時期業績的推斷。
在本季度報告中，我們可以互換地指代「用戶」和「客戶」，指在我們平台上持有帳戶的個人。
關鍵績效指標
除了未經審計的簡明綜合財務報表中列出的措施外，我們還使用以下關鍵績效指標來幫助我們評估我們的業務、識別影響我們業務的趨勢、制定業務計劃並做出戰略決策。
•資助客戶： 我們將資助客戶定義爲在Robinhood實體擁有至少一個帳戶的獨特人員，並且在過去45個日曆日內（a）帳戶餘額大於零（不包括公司存入資助客戶帳戶且該獨特人員未採取任何行動的金額）或（b）使用任何此類帳戶完成交易。 共享受資助聯合投資帳戶（於2024年7月推出）的個人均被視爲受資助客戶。
•託管資產（「AU」）：我們將UC定義爲截至指定日期或交易日期末用戶在其帳戶中持有的所有股票、期權、加密貨幣和現金的公允價值之和，扣除來自用戶的應收賬款。淨存款和淨市場收益（損失）會推動任何特定時期內的AUDA變化。
•淨存款： 我們將淨存款定義爲所有現金存款和來自客戶的資產轉移，以及與公司促銷相關的股息、利息以及現金和資產（例如帳戶轉移和退休匹配激勵和免費股票獎金）由客戶收到，扣除逆轉、客戶提款、按金利息、黃金訂閱費，以及轉出我們平台的其他資產（轉出的資產







38
目錄表
包括借記卡交易、自動客戶帳戶轉賬服務轉賬和託管加密貨幣錢包轉賬）。2024年第二季度之前，淨存款不包括與公司促銷活動相關的現金和資產流入，2024年1月之前，淨存款不包括股息和利息的流入或Robinhood Gold訂閱費和按金利息的流出，儘管我們沒有重報前期的金額，因爲對這些數字的影響並不重大。
•每用戶平均收入（「ARPU」）：我們將ARPU定義爲給定時期的總收入除以該時期最後一天和上一時期最後一天的平均受資助客戶數量。本季度報告中的數據代表每個三個月期間的年化ARPU。
•黃金訂閱者： 我們將Gold訂閱者定義爲至少在Robinhood實體擁有一個帳戶的獨特個人，並且在相關期限結束時（a）訂閱了Robinhood Gold並且（b）已支付至少一筆Robinhood Gold訂閱費。
術語表術語
•自動客戶帳戶轉移服務（「ACATS」）：一種自動化並自動化將客戶帳戶中的資產從一家經紀公司和/或銀行轉移到另一家經紀公司和/或銀行的程序的系統。
•現金清掃：我們將現金清理定義爲經紀清理計劃中的期末總餘額（即，參與用戶未投資的經紀現金的期末總額，已自動從其經紀帳戶「掃走」或轉移到程序銀行網絡中爲其利益的存款中）。這是表外金額。Robinhood根據銀行提供的利率減去我們計劃條款中規定的向用戶提供的利率，從Cash Sweep餘額中賺取淨利差。
•流失客戶： 如果受資助客戶是帳戶餘額的新受資助客戶，則被視爲「流失」（衡量爲帳戶中資產的公允價值減去任何應收用戶金額，但不包括公司存入資助客戶帳戶且未採取任何行動的金額）降至或低於零，並且至少連續45個日曆日未使用Robinhood實體的任何帳戶完成交易。負餘額通常是由於欺詐性存款交易（當用戶向其帳戶發起存款，使用我們的短期信貸延期在我們的平台上進行交易，然後匯回或沖銷存款，導致我們損失貸方金額）和未經授權的借記卡使用（較少）來自按金貸款。
•淨存款增長率和年化增長率： 當用於淨存款時，「增長率」和「年化增長率」提供了有關淨存款相對於總UC的信息。「增長率」的計算方式是指定12個月期間的淨存款總額除以該12個月期間之前的財政季度的AUDA。「年化增長率」的計算方式是指定季度的淨存款乘以4併除以上一季度的UC。
•投資帳戶： 我們將投資帳戶定義爲有資金的個人經紀帳戶、有資金的聯合投資帳戶或有資金的個人退休帳戶（「IRA」）。截至2024年9月30日，受資助客戶最多可以擁有四個投資帳戶-個人經紀帳戶、聯合投資帳戶（於2024年7月推出）、傳統IRA和Roth IRA。
•按金簿： 我們將按金賬簿定義爲期末應收未償還按金貸款餘額總額（即，客戶欠我們的貸款期末總金額







39
目錄表
用於購買證券，並以按金經紀帳戶中的資產抵押爲支持）。
•新資助客戶： 我們將新資助客戶定義爲在相關時期首次成爲資助客戶的獨特人士。
•名義交易量： 我們將任何指定資產類別的名義交易量定義爲指定時間段內該資產類別執行的交易的總美元價值（購買價或出售價，如適用）。
•交易的期權合同： 我們將交易的期權合同定義爲在指定時間段內買入或賣出的期權合同總數。每份合同通常賦予持有人交易100股標的股票的權利。
•復活的客戶： 如果受資助客戶在上一個時期結束時是「流失客戶」，並且其餘額（不包括公司存入受資助客戶帳戶且未採取任何行動的金額）上升到零以上或使用其帳戶完成交易，則被視爲在指定時期內「復活」。

概述
Robinhood的成立信念是，應該歡迎每個人參與我們的金融體系。我們正在爲每個人創建現代金融服務平台，無論他們的財富、收入或背景如何。
我們的使命是爲所有人實現金融民主化。我們使用技術以一種簡單方便的方式爲客戶提供金融系統訪問權限。我們相信投資應該是熟悉和歡迎的，具有簡單的設計和直觀的界面，以便客戶能夠實現他們的目標。我們從Robinhood應用程序中的革命性、大膽的品牌和設計開始，使數百萬人的投資變得觸手可及。我們首創了無帳戶最低限額的免佣金股票交易，此後已被行業其他公司採用，並且我們繼續通過推出進一步擴大金融系統准入的新產品來與客戶建立關係。通過這些努力，我們相信我們已經使投資具有文化相關性和可理解性，我們的平台正在使我們的客戶能夠成爲長期投資者並更好地控制他們的財務。
財務業績和績效
截至2024年9月30日止三個月，與截至2023年9月30日止三個月相比：
•總淨收入增長36%至63700萬美元，而爲46700萬美元;
•淨利潤爲15000萬美元，稀釋後每股收益爲0.17美元，而淨虧損爲8500萬美元，稀釋後每股收益爲-0.09美元;
•總運營費用從54000萬美元下降10%至48600萬美元;







40
目錄表
◦TBC費用下降5%， 7900萬美元，而8300萬美元;
•調整後EBITDA（非GAAP）增加 96%至 26800萬美元 相比 13700萬美元;
•融資客戶從2，330萬增加4%，達到2，430萬，投資客戶增加150萬，達到2，510萬;
•受淨存款持續以及股票和加密貨幣估值上升的推動，AU增長76%，達到1522億美元，而爲865億美元;
•2024年第二季度末，淨存款爲100億美元，相對於UC的年化增長率爲29%，而2023年第二季度末淨存款爲40億美元，相對於UC的年化增長率爲18%。過去12個月，淨存款爲390億美元，相對於2023年第三季度末的AFC增長率爲45%;
•ARPU增長31%至105美元，而爲80美元;以及
•黃金訂閱人數從133萬增加65%，達到219萬;
調整後EBITDA是一項非GAAP財務指標。有關調整後EBITDA的更多信息，包括該指標的定義和限制，以及淨利潤（損失）與調整後EBITDA的對賬，請參閱下面的「-非GAAP財務指標」。
關鍵績效指標
相關期間的關鍵績效指標如下：
截至三個月
9月30日，
20232024
更改百分比
資助客戶(1) (單位：百萬)
23.3 24.3 4 %
AUC(2) (in數十億）
$86.5 $152.2 76 %
淨存款 (in數十億）
$4.0 $10.0 NM
ARPU (美元)
$80 $105 31 %
黃金訂閱者 (in數百萬）
1.332.19 65 %
________________
(1)下表描述了資助客戶的年度變化：
截至三個月
9月30日，
(單位：百萬)20232024
更改百分比
開始資助客戶23.2 24.2 4 %
新資助客戶0.3 0.4 33 %
復活的客戶0.1 0.1 — %
流失客戶(0.3)(0.4)33 %
結束資助客戶23.3 24.3 4 %







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目錄表
(2)下表列出了按資產類型劃分的UC組成部分：
截至三個月
9月30日，
(以十億計)20232024
更改百分比
股票$61.4 $106.4 73 %
加密貨幣10.2 19.5 91 %
選項0.4 1.2 200 %
客戶持有的現金18.0 30.6 70 %
來自客戶的發票（主要是按金餘額）(3.5)(5.5)57 %
AUC$86.5 $152.2 76 %
下表描述了UC內的變化：
截至三個月
9月30日，
(以十億計)20232024
更改百分比
開始的曲線下面積$88.8 $139.7 57 %
淨存款4.0 10.0 NM
市場淨收益（損失）(6.3)2.5 NM
結束曲線下面積$86.5 $152.2 76 %
非公認會計准則財務指標
調整後的EBITDA
我們收集和分析運營和財務數據，以評估我們業務的健康狀況，分配我們的資源，評估我們的業績。除了按照公認會計原則計算總淨收入、淨收益(虧損)和其他結果外，我們還使用調整後的利息、稅項、折舊和攤銷前收益(「調整後的EBITDA」)的非GAAP計算。調整後的EBITDA被定義爲淨收益(虧損)，不包括(I)與信貸安排相關的利息支出，(Ii)所得稅準備金(收益)，(Iii)折舊和攤銷，(Iv)SBC，(V)重大法律和稅務結算和準備金，以及(Vi)我們認爲不能表明我們持續業績的其他重大收益、虧損和支出(如減值、重組費用和業務收購或處置相關支出)。這種非GAAP財務信息僅用於補充信息目的，不應被視爲取代或優於根據GAAP提供的財務信息，並且可能不同於其他公司使用的類似名稱的非GAAP衡量標準。

上述項目被排除在我們的調整後EBITDA指標之外，因爲這些項目本質上是非現金，或者因爲這些項目的金額和時間不可預測，不是由核心經營業績驅動的，並且使得與前期和競爭對手的比較意義不大。我們相信，調整後EBITDA爲投資者和其他人了解和評估我們的運營業績提供了有用的信息，併爲我們的業務表現的期與期比較提供了有用的衡量標準。此外，調整後EBITDA是我們管理層內部用於做出運營決策（包括與運營費用相關的決策）、評估績效以及執行戰略規劃和年度預算的關鍵衡量標準。







42
目錄表
下表列出了淨利潤（虧損）（最直接可比的GAAP指標）與調整後EBITDA的對賬：
截至三個月
9月30日，		九個月結束
9月30日，
(單位：百萬)2023202420232024
淨收益(虧損)$(85)$150 $(571)$495 
添加：
與信貸融資有關的利息支出 6 6 17 18 
所得稅撥備
10 3 9 11 
折舊及攤銷19 20 54 55 
息稅折舊攤銷前利潤(非公認會計准則)(50)179 (491)579 
添加：TBC
2021年創始人獎取消— — 485 — 
TBC不包括2021年創始人獎取消83 79 305 227 
重要的法律和稅務結算和儲備
104 10 104 10 
調整後的EBITDA(非GAAP)$137 $268 $403 $816 







43
目錄表
經營成果
下表彙總了我們未經審計的簡明合併業務報表數據：
(單位：百萬)截至三個月
9月30日，		九個月結束
9月30日，
2023202420232024
收入：
基於交易的收入$185 $319 $585 $975 
淨利息收入251 274 693 813 
其他收入31 44 116 149 
淨收入合計467 637 1,394 1,937 
運營費用：(1)
經紀和交易 39 39 114 114 
技術與發展202 205 608 610 
運營41 50 119 140 
營銷28 59 79 190 
一般和行政230 133 1,036 385 
總運營支出540 486 1,956 1,439 
其他收入(費用)，淨額(2)2 — 8 
所得稅前收入(虧損)(75)153 (562)506 
所得稅撥備10 3 9 11 
淨收益(虧損)$(85)$150 $(571)$495 
_______________
(1)包括以下TBC費用：
截至三個月
9月30日，		九個月結束
9月30日，
(單位：百萬)2023202420232024
經紀和交易 $2 $2 $6 $7 
技術與發展5148 161 144 
運營3 1 6 5 
營銷1 3 3 6 
一般和行政26 25 614 65 
TBC總費用$83 $79 $790 $227 







44
目錄表
截至2023年9月30日和2024年9月30日的三個月和九個月的比較
收入
基於交易的收入
截至三個月
9月30日，		九個月結束
9月30日，
(除百分比外，以百萬爲單位)20232024更改百分比20232024更改百分比
基於交易的收入：
選項$124$20263 %$384$53840 %
加密貨幣2361165 %92268191 %
股票273737 %7911647 %
其他111973 %305377 %
基於交易的總收入$185$31972 %$585$97567 %
基於交易的收入佔總淨收入的百分比：
選項27%32%28%28%
加密貨幣5%9%7%14%
股票5%6%6%6%
其他3%3%2%2%
基於交易的總收入40%50%43%50%
截至2024年9月30日的三個月和九個月，基於交易的收入增加了1.34億美元和3.9億美元，主要是由於加密貨幣增加了3800萬美元和1.76億美元，期權增加了7800萬美元和1.54億美元，股票增加了1000萬美元和3700萬美元。
由於每位交易員的平均名義交易量增加了57%和77%，以及進行加密貨幣交易的用戶數量增加了31%和32%，加密貨幣收入增加了。此外，加密貨幣收入受益於加密貨幣做市商更高的回扣率（提高於2024年5月生效）。
由於進行期權交易的用戶數量增加了23%和20%，以及交易的期權合同增加了47%和37%，期權收入增加了。此外，由於不同的股票代碼支付不同的回扣率，因此交易的股票代碼混合，我們經歷了更高的期權回扣率。由於向客戶支付匹配激勵，期權收入減少了1700萬美元和2500萬美元（請參閱注3 -本季度報告中未經審計的簡明綜合財務報表的收入了解更多信息）。
股票收入的增長主要是由於每位交易員平均名義交易量增加了41%和32%，以及進行股票交易的用戶數量增加了14%和15%。由於不同的股票代碼支付不同的回扣率，導致股票回扣率下降，導致股票回扣率下降，部分抵消了這一增長。







45
目錄表
淨利息收入
截至三個月
9月30日，		九個月結束
9月30日，
(除百分比外，以百萬爲單位)20232024更改百分比20232024更改百分比
淨利息收入：
按金利息$67 $83 24 %$177 $228 29 %
公司現金和投資的利息75 67 (11)%217 203 (6)%
獨立現金、證券和存款的利息59 61 3 %156 187 20 %
現金清掃35 46 31 %86 129 50 %
證券借貸，淨額17 19 12 %70 68 (3)%
信用卡，淨值4 4 — %4 16 300 %
與信貸安排有關的利息支出(6)(6)— %(17)(18)6 %
淨利息收入總額$251 $274 9 %$693 $813 17 %
淨利息收入佔總淨收入的百分比：
按金利息14 %13 %13 %12 %
公司現金和投資的利息16 %10 %15 %9 %
獨立現金、證券和存款的利息13 %10 %11 %10 %
現金清掃7 %7 %7 %7 %
證券借貸，淨額4 %3 %5 %4 %
信用卡，淨值1 %1 %— %1 %
與信貸安排有關的利息支出(1)%(1)%(1)%(1)%
淨利息收入總額54 %43 %50 %42 %
截至2024年9月30日的三個月和九個月，淨利息收入分別增加了2300萬美元和12000萬美元。這些增長是由我們的生息資產總額增長推動的。這些增長被現金及現金等值物餘額下降以及短期利率環境下降推動的企業現金和投資利息收入下降所抵消。2024年9月，聯儲局將利率下調50個點子，這將對我們的淨利息收入產生負面影響，並對客戶現金存款的回報產生不利影響。








46
目錄表
下表總結了生息資產、這些資產產生的收入以及各自的年化收益率：
(in百萬，年化收益率除外）按金簿
現金和存款(1)
現金清繳
（資產負債表外）
信用卡，淨值 (2)
生息資產總額證券借貸，淨額
與信貸融資有關的利息支出 (5)
淨利息收入總額
截至2024年9月30日的三個月
2024年9月30日$5,499 $11,149 $24,485 $309$41,442 
2024年6月30日4,956 10,164 20,858 21236,190 
平均值(3)
5,350 10,055 22,473 27038,148 
收入（費用）83 128 46 4261 $19 $(6)$274 
年化收益率(4)
6.21%5.09%0.82%5.93%2.74%2.87%
截至2024年6月30日的三個月
2024年6月30日$4,956 $10,164 $20,858 $212$36,190 
2024年3月31日4,115 10,328 19,049 19733,689 
平均值(3)
4,431 10,249 19,823 20134,704 
收入（費用）73 134 44 6257 $34 $(6)$285 
年化收益率(4)
6.59%5.23%0.89%11.94%2.96%3.28%
截至2023年9月30日的三個月
2023年9月30日$3,580 $9,102 $13,563 $197$26,442 
2023年6月30日3,314 10,758 11,903 18426,159 
平均值(3)
3,458 10,057 12,870 19126,576 
收入（費用）67 134 35 4240 $17 $(6)$251 
年化收益率(4)
7.75%5.33%1.09%8.38%3.61%3.78%
截至2024年9月30日的九個月
2024年9月30日$5,499$11,149$24,485$309$41,442 
2023年12月31日3,45810,10716,35220530,122 
平均值(3)
4,51110,07519,95822834,772 
收入（費用）22839012916763 $68 $(18)$813 
年收益率(4)
6.74%5.16%0.86%9.36%2.93%3.12%
截至2023年9月30日的9個月
2023年9月30日$3,580$9,102$13,563$197$26,442 
2022年12月31日3,0899,5305,837N/A18,456 
平均值(3)
3,25510,11910,215N/A23,589 
收入（費用）177373864640 $70 $(17)$693 
年收益率(4)
7.25%4.91%1.12%N/A3.62%3.92%
__________
(1) 包括現金和現金等值物、現金、現金等值物和根據聯邦法規和其他法規分開的證券、清算組織的存款和投資。
(2) 信用卡，淨額包括i)表外金額，代表海岸銀行根據計劃協議提供資金的客戶本金金額。根據計劃協議，Robinhood Credit向持有餘額的客戶收取利息，並就Coastal Bank提供的金額支付利息，這些金額之間的差額產生淨利息收入；ii)資產負債表上的金額，代表信用卡融資信託購買的信用卡應收賬款。Robinhood Credit向攜帶餘額的客戶收取利息，並支付通過信用卡資金信託基金融資的金額的利息，這些金額的差額將產生淨利息收入。自.起2024年9月30日, 20200美元萬是在資產負債表外，10700美元萬一直處於平衡狀態等一下。2023年6月30日的餘額是根據羅賓漢信貸公司2023年7月3日的收購日期計算的。參考注10-本季度報告中未經審計的簡明綜合財務報表的融資活動和表外風險，以了解更多信息。
(3) 平均餘額行代表給定期間月底餘額的簡單平均值。
(4) 年化收益率是通過將給定期間的年化收入/費用除以適用的平均資產餘額來計算的。
(5) 包括與我們的循環信貸安排相關的利息費用;與信用卡融資信託相關的利息費用包括在信用卡淨利息收益率計算中。 參考注10 -本季度報告中未經審計的簡明綜合財務報表的融資活動和表外風險以獲取更多信息。







47
目錄表
其他收入
截至三個月
9月30日，		九個月結束
9月30日，
(除百分比外，以百萬爲單位)20232024更改百分比20232024更改百分比
其他收入：
金牌訂閱收入
$20$2840 %$55$7740 %
代理收入88— %5353— %
其他38167 %819138 %
其他收入合計
$31$4442 %$116$14928 %
其他收入佔總淨收入的百分比：
金牌訂閱收入
4 %5 %4 %4 %
代理收入2 %1 %4 %3 %
其他1 %1 %— %1 %
其他收入佔總淨收入的百分比7 %7 %8 %8 %
截至2024年9月30日的三個月和九個月，其他收入分別增加了1300萬美元和3300萬美元，原因是黃金訂閱者增加導致黃金訂閱收入增加了800萬美元和2200萬美元。截至2024年9月30日的九個月裏，Sherwood Media LLC（「Sherwood Media」）廣告收入的其他收入也增加了600萬美元，該廣告收入於2023年第二季度推出。
運營費用
截至三個月
9月30日，		九個月結束
9月30日，
(除百分比外，以百萬爲單位)20232024更改百分比20232024更改百分比
運營費用：
經紀和交易 $39$39— %$114$114— %
技術與發展2022051 %608610— %
運營415022 %11914018 %
營銷2859111 %79190141 %
一般和行政230133(42)%1,036385(63)%
總運營支出$540$486(10)%$1,956$1,439(26)%
佔總淨收入的百分比：
經紀和交易 8 %6 %8 %6 %
技術與發展43 %32 %44 %31 %
運營9 %8 %9 %7 %
營銷6 %9 %6 %10 %
一般和行政49 %21 %74 %20 %
總運營支出115 %76 %141 %74 %







48
目錄表
經紀和交易
截至三個月
9月30日，		九個月結束
9月30日，
(單位：百萬)20232024更改百分比20232024更改百分比
員工薪酬、福利和管理費用，不包括TBC$8$913%$23 $2717%
市場數據費用6717%17 1912%
客戶結算單3433%11 11—%
SBC22—%6 717%
經紀商交易費用113(73)%29 7(76)%
其他91456%28 4354%
總$39$39—%$114 $114—%
經紀人e和交易成本保持平穩 截至2024年9月30日的三個月和九個月。O其他經紀和交易成本增加 500萬美元和1500萬美元 由於活動增加導致與我們的即時提款功能相關的費用增加。此外，員工薪酬、福利和管理費用增加了 平均員工人數增加推動了100萬美元和400萬美元，以繼續支持經紀業務。這些增加 偏移量的跌幅 8百萬美元 和 從2023年第四季度開始，我們開始將期權交易費轉嫁給用戶，經紀商交易費用爲2200萬美元。
技術與發展
截至三個月
9月30日，		九個月結束
9月30日，
(單位：百萬)20232024更改百分比20232024更改百分比
員工薪酬、福利和管理費用，不包括TBC$74$67(9)%$237$216(9)%
SBC5148(6)%161144(11)%
雲基礎設施服務404923 %10713829 %
軟件和工具30327 %86905 %
其他7929 %172229 %
總計$202$2051 %$608$610— %
截至2024年9月30日的三個月和九個月，技術和開發成本增加了3億美元和200萬美元，主要是由於雲基礎設施費用增加了900萬美元和3100萬美元，以滿足我們平台增加的容量需求，以支持更高的交易量。這些增長被員工薪酬、福利和管理費用減少700萬美元和2100萬美元以及TBC減少300萬美元和1700萬美元部分抵消，這是由於我們努力提高效率和運營成本的一部分減少了平均員工人數。







49
目錄表
運營
截至三個月
9月30日，		九個月結束
9月30日，
(單位：百萬)20232024更改百分比20232024更改百分比
員工薪酬、福利和管理費用，不包括TBC$17$186%$59$54(8)%
信用損失撥備-信用卡相關111755%1141273%
信用損失撥備-經紀相關36100%1816(11)%
客戶體驗44—%1513(13)%
SBC31(67)%65(17)%
其他3433%101110%
總計$41$5022%$119$14018%
截至2024年9月30日的三個月和九個月，運營成本增加了900萬美元和2100萬美元，主要是由於信用卡損失撥備增加了600萬美元和3000萬美元。
營銷
截至三個月
9月30日，		九個月結束
9月30日，
(單位：百萬)20232024更改百分比20232024更改百分比
數字營銷 $11 $26 136 %$24 $85 254 %
品牌營銷2 5 150 %13 32 146 %
員工薪酬、福利和管理費用，不包括TBC5 9 80 %16 24 50 %
羅賓漢轉介計劃
2 4 100 %5 10 100 %
SBC1 3 200 %3 6 100 %
其他7 12 71 %18 33 83 %
總計$28$59111 %$79 $190 141 %
營銷成本增加3100萬美元 和 1.11億美元 截至2024年9月30日的三個月和九個月主要是由於數字營銷費用增加，達到1500萬美元 和 6100萬美元，品牌營銷300萬美元 和1900萬美元以及500萬美元的其他營銷 和 1500萬美元，因爲我們增加了對付費營銷渠道和其他營銷計劃的投資，以推廣我們的品牌、產品和服務。此外， 員工薪酬、福利和管理費用增加 4百萬美元 和 8百萬美元 由平均員工人數增加推動，以支持增加的營銷計劃。







50
目錄表
一般和行政
止三個月
9月30日，		止九個月
9月30日，
(in數百萬）20232024更改百分比20232024%變化
員工薪酬、福利和管理費用，不包括TBC$54 $57 6 %$166 $175 5 %
TBC不包括2021年創始人獎取消26 25 (4)%129 65 (50)%
律師費21 13 (38)%80 62 (23)%
其他專業費用14 11 (21)%30 34 13 %
和解和處罰107 13 (88)%115 20 (83)%
與2021年創始人獎取消相關的TBC— — NM485 — NM
其他8 14 75 %31 29 (6)%
總$230 $133(42)%$1,036 $385 (63)%
一般和行政費用減少9700萬美元和65100萬美元 截至2024年9月30日的三個月和九個月內， 主要原因是減少了9400萬美元 和 9500萬美元 和解和處罰以及 8百萬美元 和 18百萬美元 的法律費用 與某些歷史監管事項相關。此外， 其他TBC減少100萬美元 和 6400萬美元歸因於股票獎勵在前期完全歸屬.截至2024年9月30日止九個月的下降也是由於 2023年第一季度取消的2021年創始人獎爲4.85億美元。
所得稅撥備
止三個月
9月30日，		止九個月
9月30日，
(in數百萬）20232024%變化20232024%變化
所得稅撥備
$10 $3 (70)%$9 $11 22 %
截至2024年9月30日的三個月，所得稅撥備減少了700萬美元，主要是由於股份薪酬的超額稅收利益增加，導致我們當前的美國聯邦和州應付稅款減少，但被我們美國聯邦和州遞延所得稅資產估值津貼的變化所抵消。
截至2024年9月30日的九個月，所得稅撥備增加了200萬美元，主要是由於業務增長導致我們當前的美國聯邦和州應付稅款增加，但被我們美國聯邦和州遞延稅資產估值津貼的變化所抵消。
如果美國經營業績繼續改善，我們相信，在未來24個月內，有足夠的積極證據可以得出結論，即不再需要大部分美國估值備抵。
流動性與資本資源
資金來源及使用情況的
我們的主要流動性來源是運營產生的現金流以及我們的現金、現金等值物和投資。未來資金的其他來源可能包括根據我們的循環信貸額度進行的潛在借款以及可能發行的新債務或股權。我們的流動性需求主要是







51
目錄表
支持和投資我們的核心業務，包括投資以新的方式爲客戶服務，可能尋求戰略收購以利用現有能力並進一步發展我們的業務，以及滿足一般資本需求（包括監管機構和SRO施加的資本要求以及存管信託公司（「DTC」）、NSC規則下的現金存款和抵押品要求，和期權清算公司（「OSC」））。根據我們目前的運營水平，我們相信我們的主要流動性來源將足以滿足我們未來12個月當前的流動性需求。
流動資產
截至2024年9月30日，我們的現金及現金等值項目爲46.1億美元，其中包括7.5億美元的可供出售證券流動投資組合。一年內到期的持有至到期投資也可以成爲流動性來源，截至2024年9月30日，持有至到期投資爲5.27億美元。S乙 注6 -投資和公允價值計量，請參閱本季度報告中未經審計的簡明綜合財務報表以獲取更多信息。
循環信貸設施和信用卡融資信託
截至2024年9月30日，我們的信用卡融資信託擁有總計30億美元的承諾循環信貸安排，借款金額高達1億美元。 看見 注10 -融資活動和資產負債表外風險，請參閱本季度報告中未經審計的簡明合併財務報表，以獲取更多信息。
承付款
下表總結了截至2024年9月30日我們合同義務的短期和長期重大現金需求：
按期間到期的付款
(in數百萬）總2024年剩餘時間2025-20262027-2028此後
經營租賃承諾額$125 $7 $47 $30 $41 
購買承諾(1)
740 130 582 27 1 
羅賓漢匹配激勵承諾(2)
109 15 94 — — 
信用卡融資信託借款本金和利息94 — 94 — — 
總$1,068 $152 $817 $57 $42 
__________
(1) 採購承諾根據我們合同義務的不可取消數量或終止金額確定。這些主要涉及雲基礎設施和數據服務的承諾服務和商業保險。
(2) Robinhood匹配激勵承諾代表Robinhood Gold用戶支付的符合條件的現金按金的不可取消的未來匹配付款.如果在特定盈利期內平台上沒有持有按金，未來的比賽付款將被沒收。
除了租賃和購買承諾外，我們還有兩項承諾融資協議：一項合同期限爲30天，每日最低承諾爲2500萬美元，另一項合同期限爲21天，每日最低承諾爲3500萬美元。

監管資本要求
我們的經紀交易商子公司（RHF和RHS）須遵守由SEC和FINRA管理的《交易所法》下的規則15 c3 -1（「SEC統一淨資本規則」），該規則要求維持最低淨資本（定義）。淨資本和相關淨資本要求可能每天波動。RHS和RHF根據SEC統一淨資本規則允許的替代方法計算淨資本。







52
目錄表
下表總結了RHS和RHF截至所示期間的淨資本、資本要求和超額淨資本：
2024年9月30日
(in數百萬）淨資本所需淨資本淨資本超過規定的淨資本
RHS$2,597 $121 $2,476 
RHF$297 $0.25 $297 
截至2024年9月30日，我們的經紀交易商子公司符合各自的監管資本要求。
現金流
下表概述我們的現金流量活動：
止九個月
9月30日，
(in數百萬）20232024
現金提供方(使用於)：
經營活動$221 $1,243 
投資活動(579)(182)
融資活動(619)(167)
經營活動提供的現金增加了10.2億美元，主要受淨利潤增加10.7億美元的推動，但由於2021年創始人獎取消，2023年TBC費用增加，非現金加回減少部分抵消了這一增長。此外，經營資產和負債的變化對我們的經營活動提供的現金產生了積極影響。這些變化主要包括由於我們的證券貸款計劃的持續增長而貸款證券的增加。由於客戶活動增加，客戶按金餘額增加，導致用戶應收賬款淨增加，抵消了這一增長。
投資活動使用的現金較上年同期減少3.97億美元。這一變化主要是由於持有至到期投資購買減少而減少1.82億美元，以及持有至到期投資到期收益增加2.72億美元。
融資活動中使用的現金與上年同期相比減少了4.52億美元，主要原因是普通股回購支出的資金減少了5.11億美元，以及我們的信用卡融資信託項下用於購買信用卡應收賬款的借款減少了9500萬美元。與股權獎勵淨股份結算相關的已繳稅款增加1.46億美元，部分抵消了這一減少。
關鍵會計估計
我們的未經審計簡明綜合財務報表是根據GAAP編制的。編制該等未經審核的簡明綜合財務報表需要做出估計和假設，這些估計和假設會影響我們未經審核的簡明綜合財務報表和隨附附註中資產和負債、收入和支出的報告金額以及或有負債的相關披露。美國證券交易委員會將公司的關鍵會計政策定義爲對描述公司財務狀況和運營結果最重要的政策，並且需要公司做出最困難和最主觀的判斷，通常是由於需要對本質上不確定的事項進行估計。我們還有其他關鍵會計政策，其中涉及使用對







53
目錄表
了解我們的結果。儘管我們相信我們的估計、假設和判斷是合理的，但它們是基於現有信息。在不同的假設、判斷或條件下，實際結果可能與這些估計存在顯着差異。
與2023年10-k表格「管理層對財務狀況和經營業績的討論和分析-關鍵會計估計」中披露的內容相比，截至2024年9月30日的九個月內，我們的關鍵會計估計沒有發生重大變化。
近期會計公告
請參閱第一部分第1項「未經審計的財務報表-注2 -最近的會計公告」。
項目3.關於市場風險的定量和定性披露
市場風險通常是指由於利率和市場價格波動而可能導致的金融工具價值的潛在變化造成的損失風險。關於這些市場風險的定量和定性披露的信息如下所述。
利率風險
我們面臨的利率變化風險主要與受浮動利率影響的生息資產所賺取的利息收入有關。利息收入受生息資產的分佈和構成以及聯邦基金利率等多種因素的影響。我們使用淨利率敏感性分析，將假設的50、100或150個點子的利率上升或下降應用於我們的生息資產和負債的期末餘額，包括與我們的沿海銀行計劃協議相關的利率敏感表外金額，以評估利率變化可能對總淨收入、淨收入（損失）、和未來12個月內的現金流（在任何所得稅影響之前）。

敏感性分析假設合併資產負債表的資產和負債結構不會因模擬利率變化而改變。此外，該分析沒有考慮任何有關模擬利率變化對我們平台上交易活動的影響的假設。對於我們的現金掃描計劃，我們根據合作銀行提供的利率減去向用戶提供的利率（如我們的計劃條款中所述），從現金掃描餘額中賺取淨利差。對於絕大多數現金清理計劃，我們有能力通過根據從合作銀行收到的利率變化調整向用戶提供的利率來管理我們的淨利差。因此，我們不認爲現金回收餘額受到短期利率風險的影響，敏感性分析不包括現金回收餘額。

每個報告期末假設利率變化對總淨收入、淨收入（損失）和現金流量（不包括任何所得稅影響）的影響將是：

9月30日，
(in數百萬）20232024
50個點子
$66 $86 
100個點子
132 171
150個點子
198 257

在任何所得稅影響之前，總淨收入、淨收入（損失）和現金流的變化將與總淨收入相同，包括淨利息收入，這既體現了以下兩種影響







54
目錄表
任何增量利息收入和利息費用以及利率變化不會對運營費用產生直接影響。與利率變化相關的影響是正相關的、線性的和成比例的。敏感性分析較上一年的變化與生息資產餘額的變化一致。

我們的投資政策和戰略的重點是保存資本和支持我們的流動性需求。我們投資於高評級債務證券，這些證券被視爲持有至到期投資，投資組合的平均期限少於一年，最長期限爲兩年。爲了對與我們的投資組合相關的利率風險進行有意義的評估，我們進行了敏感性分析，以確定利率變化將對投資組合價值產生的影響，假設收益率曲線平行移動100個點子。根據截至2024年9月30日的投資頭寸，假設所有期限的利率上升100個點子並不顯着。只有當我們在到期前出售投資時，任何損失才會實現。
我們還面臨與可變利率信貸安排相關的利率變化風險。欲了解更多信息，請參閱本季度報告未經審計的簡明合併財務報表的註釋10 -融資活動和資產負債表外風險。然而，由於截至2024年9月30日，我們的信貸融資項下沒有未償還借款，因此截至該日，我們與利率變化相關的財務風險有限。
我們制定了全面的利率風險管理政策，正式化了我們管理與業務運營相關的利率風險的方法。該政策規定了政策和程序，我們將根據這些政策和程序識別利率風險敞口、識別和實施適當的對沖策略和對沖工具，並分析對沖策略的有效性。利率工具僅用於對沖目的，而不是用於投機。
我們對利率風險的測量涉及本質上不確定的假設，因此，我們的分析可能無法準確估計利率變化對淨利息收入的實際影響。由於餘額增長或下降、利率變化的時間、幅度和頻率，以及市場條件和管理策略的變化（包括資產和負債組合的變化），實際結果可能與模擬結果不同。
市場相關信用風險
我們間接面臨與證券抵押應收按金相關的股權證券風險，以及與我們的證券借貸活動相關的風險。我們通過要求客戶保持抵押品符合內部和(如適用)監管準則來管理按金和基於證券的貸款的風險。我們每天監控要求的按金水平，並要求我們的客戶在必要時存入額外的抵押品或減少頭寸。我們不斷監控客戶帳戶，以發現過度集中、大額訂單或頭寸以及其他表明我們風險增加的活動。我們通過要求交易對手獲得信貸批准、每天監測借出證券的市值和借入證券的抵押品價值、要求額外現金作爲借出證券的抵押品或在必要時歸還借入證券的抵押品，以及通過參與OCC提供的風險分擔計劃，來管理與證券借貸活動相關的風險。
項目4.控制和程序
信息披露控制和程序的評估
在首席執行官和首席財務官（「CFO」）的參與下，我們的管理層評估了截至本季度報告所涵蓋期末我們披露控制和程序的有效性。「披露控制和程序」一詞，如規則13 a-15（e）所定義







55
目錄表
根據交易法和第15d-15(E)條，是指公司的控制和其他程序，旨在確保公司在根據交易法提交或提交的報告中要求披露的信息在美國證券交易委員會規則和表格指定的時間段內得到記錄、處理、彙總和報告。披露控制和程序包括但不限於控制和程序，旨在確保公司根據交易所法案提交或提交的報告中要求披露的信息被累積並傳達給我們的管理層，包括我們的主要高管和主要財務官，或酌情履行類似職能的人員，以便及時決定所需披露。管理層認識到，任何控制和程序，無論設計和操作得多麼好，都只能爲實現其目標提供合理的保證，管理部門在評估可能的控制和程序的成本-效益關係時必須運用其判斷。基於這樣的評估，我們的首席執行官和首席財務官得出結論，截至本季度報告涵蓋的期間結束時，我們的披露控制和程序是有效的。
財務報告內部控制的變化
截至2024年9月30日的三個月內，我們對財務報告的內部控制（定義見《交易法》第13 a-15（f）條和第15 d-15（f）條）沒有發生對我們對財務報告的內部控制產生重大影響或合理可能產生重大影響的變化。








56
目錄表
第二部分
項目1.法律程序
請參閱第一部分第1項「未經審計的財務報表-註釋14 -承諾和或有事項」。
57
目錄表
第1A項。風險因素
你應該仔細考慮下面描述的風險和不確定性，以及本季度報告中包括的其他信息，包括我們的未經審計的簡明綜合財務報表和相關說明以及「管理層對財務狀況和經營結果的討論和分析」。任何這些風險或不確定性都可能對我們的業務、財務狀況、經營結果和前景產生重大不利影響。在這種情況下，我們A類普通股的交易價格可能會下降，你可能會損失你的全部或部分投資。下面描述的風險和不確定性並不是我們面臨的唯一風險和不確定性。我們沒有意識到或目前認爲無關緊要的其他風險和不確定性也可能對我們的業務產生不利影響。本季度報告中的一些陳述，包括以下風險因素中的陳述，均爲前瞻性陳述。
風險因素摘要
我們的業務面臨許多風險和不確定性，包括下面「風險因素」部分詳細描述的風險和不確定性。我們認爲以下是我們最重大的風險：
•我們的增長可能無法與歷史增長率保持一致。
•以目前規模來看，我們的運營經驗有限，這使我們面臨許多可能對我們的業務產生不利影響的不確定性、風險和困難。
•我們的運營結果和其他運營指標逐季度波動，這使得這些指標難以預測。
•我們過去曾出現過運營虧損，未來可能無法盈利。
•影響基於交易的收入的因素--例如證券定價價差的減少、交易活動總體水平的減少、我們與做市商的業務關係的變化以及對PFOF和類似做法的任何新監管或任何禁令--可能會導致盈利能力下降、合規成本增加和負面宣傳。
•我們直接和間接面臨利率波動的風險，快速變化的利率環境將並可能繼續減少我們的淨利息收入，否則導致盈利能力下降。

•作爲註冊經紀交易商，我們必須遵守SEC指導方針和FINRA規則下的「最佳執行」要求。如果我們未能遵守這些要求，我們可能會受到處罰，並且這些要求未來可能會以可能損害我們業務的方式進行修改。
•不利的媒體報道和其他損害我們品牌和聲譽的事件可能會對我們的收入以及客戶群的規模、參與度和忠誠度產生不利影響。
•我們的業務已經並可能繼續受到影響全球金融市場的商業、經濟或政治狀況變化或系統性市場事件的損害。
•我們未來的成功取決於我們關鍵員工的持續努力以及我們吸引和留住高級管理人員和其他高技能人才的能力。
•我們最近開始在某些國際市場開展業務，並計劃進一步擴大國際業務，這使我們面臨重大的新風險，我們的國際擴張努力可能不會成功。
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•Our business is subject to extensive, complex and changing laws and regulations, and related regulatory proceedings and investigations. Changes in these laws and regulations, or our failure to comply with these laws and regulations, could harm our business.
•We have been subject to regulatory investigations, actions, and settlements and we expect to continue to be subject to such proceedings in the future, which could cause us to incur substantial costs or require us to change our business practices in a materially adverse manner.
•We are involved in numerous litigation matters that are expensive and time consuming, and, if resolved adversely, could expose us to significant liability and reputational harm.
•We operate in highly competitive markets, and many of our competitors have greater resources than we do and may have products and services that are more appealing than ours to our current or potential customers.
•If we fail to retain existing customers or attract new customers, or if our customers decrease their use of our products and services, our revenue will decline.
•If we fail to provide and monetize new and innovative products and services that are adopted by customers, our business may become less competitive and our revenue might decline.
•Our products and services rely on software and systems that are highly technical and have been, and may in the future be, subject to interruption, instability, and other potential flaws due to software errors, design defects, and other processing, operational, and technological failures, whether internal or external.
•We rely on third parties to perform some key functions, and their failure to perform those functions could adversely affect our business, financial condition and results of operations.
•We are incorporating AI technologies into some of our products and processes. These technologies may present business, compliance, and reputational risks.
•Our business could be materially and adversely affected by a cybersecurity breach or other attack involving our computer systems or data or those of our customers or third-party or fourth-party service providers.
•If we do not maintain the net capital levels required by regulators, our broker-dealer business may be restricted and we may be fined or subject to other disciplinary or corrective actions.
•Our compliance and risk management policies and procedures as a regulated financial services company might not be fully effective in identifying or mitigating compliance and risk exposure in all market environments or against all types of risk.
•The prices of most cryptocurrencies are extremely volatile. Fluctuations in the price of various cryptocurrencies might cause uncertainty in the market and could negatively impact trading volumes of cryptocurrencies, and we may not effectively identify, prevent or mitigate cryptocurrency market risks, any of which would adversely affect the success of our business, financial condition and results of operations.
•In the United States, any particular cryptocurrency’s status as a “security” is subject to a high degree of uncertainty and if we have not properly characterized one or more cryptocurrencies, we might be subject to regulatory scrutiny, investigations, fines, and other penalties.
•Cryptocurrency laws, regulations, and accounting standards are often difficult to interpret and are rapidly evolving in ways that are difficult to predict. Changes in these laws and regulations,
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or our failure to comply with them, could negatively impact cryptocurrency trading on our platforms.
•Our support for Crypto Transfers, Robinhood Wallet, Robinhood Connect, the Robinhood Cash Card, Robinhood Credit, Spending Account, and other payments and spending services increases the risk that our platforms could be exploited to facilitate illegal payments, potentially resulting in loss of customer assets, customer disputes, and other liabilities, which could harm our reputation and adversely impact trading volumes and transaction-based revenues.
•Substantial future issuances or sales of shares of our Class A common stock in the public market could result in significant dilution to our stockholders and such issuances or sales, or the perception that they may occur, could cause the trading price of our Class A common stock to fall.
•The multi-class structure of our common stock has the effect of concentrating voting power with our founders, which limits your ability to influence the outcome of matters submitted to our stockholders for approval. In addition, the Founders’ Voting Agreement (as defined below) and any future issuances of our Class C common stock could prolong the duration of our founders’ voting control.
Risks Related to Our Business
We might not grow in line with historical rates.
We have grown rapidly since our founding. However, the circumstances that accelerated the growth of our business in the past, including an extended period of general macroeconomic growth in the U.S., as well as growth in the financial services and technology industries, have slowed in recent years and may not exist in the future. You should not rely on our revenue or key business metrics for any previous quarterly or annual period as any indication of our revenue, revenue growth, key business metrics or key business metrics growth in future periods.

We might experience declines in the growth of our business (or negative growth) as a result of a number of factors, including slowing demand for our platforms, insufficient growth in the number of customers that utilize our platforms, declines in the level of usage of our platforms by existing customers, macroeconomic factors, increasing competition, a decrease in the growth of our overall market, or our failure to continue to capitalize on growth opportunities, including as a result of our inability to scale to meet such growth and economic conditions that have, in some instances, and could continue to reduce financial activity and the maturation of our business, among others. Any failure to successfully address these risks and challenges as we encounter them, will negatively affect our growth. If our revenue growth rate continues to decline, investors’ perceptions of our business and the trading price of our Class A common stock could be adversely affected.

We have limited operating experience at our current scale, which subjects us to a number of uncertainties, risks, and difficulties that could adversely affect our business.

We have expanded our operations rapidly, including continuing to introduce new products and services in our platforms, and have limited operating experience at our current scale, which makes it difficult to evaluate our current business and future prospects, and subjects us to a number of uncertainties, including our ability to plan for, model, and manage potential future growth and risks. As a result of the general downturn in economic conditions and the U.S. equity markets in 2022, we announced two restructurings in April 2022 (the “April 2022 Restructuring”) and August 2022 (the “August 2022 Restructuring”) that impacted approximately 1,100 employees and scaled back hiring plans. As part of our ongoing efforts in the normal course of business, we continuously evaluate whether we are appropriately staffed to be cost efficient. From time to time we have reduced our staff in certain departments as we saw increased productivity and opportunities for greater efficiency under a leaner operating model while continuing to deliver great service and innovation for our customers.
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Such efforts to control costs have in the past resulted, and might in the future continue to result in reduced productivity and deteriorating workforce morale, which can cause our business initiatives to suffer. However, if market conditions improve, we also face a risk that renewed business growth could strain our existing resources, or that we are not able to effectively scale up in response, and we could experience ongoing operating difficulties in managing our business across numerous jurisdictions, including difficulties in hiring, training, and managing a dispersed employee base.

We have also encountered, and will continue to encounter, risks and difficulties frequently experienced by companies in rapidly changing and heavily regulated industries, including challenges associated with achieving market acceptance of our products and services, attracting and retaining customers, and complying with laws and regulations (particularly those that are subject to evolving interpretations and application), as well as increased competition and the complexities of managing expenses as we expand our business. We might fail to adequately address these and other challenges we may face, and our business might be adversely affected if we do not manage these risks successfully.

Our results of operations and other operating metrics fluctuate from quarter to quarter, which makes these metrics difficult to predict.
Our results of operations are heavily reliant on the level of trading activity on our platforms and Net Deposits. In the past, our results of operations and other operating metrics have fluctuated from quarter to quarter, including due to movements and trends in the underlying markets, changes in general economic conditions, interest in investing, and fluctuations in trading levels generally, each of which is outside our control and will continue to be outside of our control. As a result, period-to-period comparisons of our results of operations might not be meaningful, and our past results of operations should not be relied on as indicators of future performance. Further, we are subject to additional risks and uncertainties that are frequently encountered by companies in rapidly evolving markets. Our financial condition and results of operations in any given quarter can be influenced by numerous factors, including the occurrence of any of the risks described elsewhere in this Risk Factors section, many of which we are unable to predict or are outside of our control. Factors contributing to quarterly fluctuations could include, among others:

•our ability to retain and engage existing customers and attract new customers;
•the timing and success of new product and service introductions by us or our competitors, or other changes in the competitive landscape of our market;
•volatility in the market generally or the occurrence of so-called “meme” trading in equities, options, cryptocurrencies, or commodity interests (including event contracts) which can cause our trading volumes to fluctuate;
•fluctuations in interest rates;
•increases in marketing, sales, compensation (for example, due to increased hiring competition for highly skilled personnel), cloud infrastructure, and other operating expenses that we might incur to grow and expand our operations and to remain competitive;
•the timing and amount of non-cash expenses, such as SBC and asset impairments;
•the success of our expansion into new markets;
•trading volume and the prevailing trading prices for cryptocurrencies, which can be highly volatile;
•ceasing support for certain cryptocurrencies on our RHC platform that the SEC or a court has asserted or determined are securities or proactively removing certain cryptocurrencies because they share similarities with such cryptocurrencies;
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•changes in the public’s perception, adoption, and use of cryptocurrencies and other asset classes;
•any inability of customers to place trades, due to system disruptions, outages, or trading restrictions;
•any events that damage customer confidence in Robinhood, such as breaches of security or privacy;
•the impacts of public health threats (including pandemics such as COVID-19), unemployment, and inflation; and
•changes in tax laws or judicial or regulatory interpretations of tax laws, which are recorded in the period such laws are enacted or interpretations are issued, and might significantly affect the effective tax rate of that period.
Any of the factors above or listed elsewhere in this Risk Factors section, or the cumulative effect of some of those factors, could result in significant fluctuations in our results of operations.

We have incurred operating losses in the past and might not be profitable in the future.
In most full year periods since our inception, we have incurred operating losses. Although we have had several quarters of positive GAAP net income since the beginning of 2023 and we generated higher total net revenues for 2023 compared to each of 2019 through 2022, we reported a GAAP net loss for full year 2023 and we might not be able to increase our revenue and/or further reduce our operating expenses by sufficient amounts to generate positive net income in the future.
Factors that affect transaction-based revenue — such as reduced spreads in securities pricing, reduced levels of trading activity generally, changes in our business relationships with market makers, and any new regulation of, or any bans on, PFOF and similar practices — might result in reduced profitability, increased compliance costs, and negative publicity.

A large portion of our revenue is transaction-based, in that we receive consideration in exchange for routing our users’ equity, option, and cryptocurrency trade orders to market makers for execution. With respect to equities and options trading, such fees are known as payment for order flow, or “PFOF.” With respect to cryptocurrency trading, we receive “Transaction Rebates.” Our transaction-based revenue is sensitive to and dependent on trading volumes and therefore tends to decline during periods in which we experience decreased levels of trading generally. Computer-generated buy/sell programs and other technological advances and regulatory changes in the marketplace might continue to tighten spreads on transactions, which could also lead to a decrease in our PFOF earned from market makers. For example, the SEC’s recent adoption of final rules (the “September 2024 Final Rules”) to, among other things, adopt an additional minimum pricing increment, or “tick size,” for the quoting of certain national market system (“NMS”) stocks under Rule 612 of Regulation NMS, reduce the access fee caps for protected quotations under Rule 610 of Regulation NMS and accelerate the implementation of such rules will make the information about smaller-sized orders publicly available and result in the contraction of spreads across several securities, which we expect will lead to a decrease in the PFOF earned from such orders.In addition, the regulatory landscape involving cryptocurrencies is subject to change and is experiencing rapid evolution, and future regulatory actions or policies, including for instance, the assertion of jurisdiction by domestic and foreign regulators and governments over cryptocurrency and cryptocurrency markets, could reduce demand for cryptocurrency trading and might materially decrease our revenue derived from Transaction Rebates in absolute terms and as a proportion of our total revenues. In addition, to the extent that the SEC or a court asserts or determines that any cryptocurrencies supported by our RHC platform are securities, we might not continue to facilitate trading of those cryptocurrencies in the U.S. (including ceasing support for such cryptocurrencies on our RHC platform, for instance, with respect to Cardano, Polygon, and Solana) or it might cause us to proactively remove certain cryptocurrencies from our RHC platform because they share similarities with such cryptocurrencies.

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Risks Related to our Business Relationships with Market Makers

Our PFOF and Transaction Rebate arrangements with market makers are a matter of practice and business understanding and not documented under binding contracts. If any of these market makers were unwilling to continue to receive orders from us or to pay us for those orders (including, for example, as a result of unusually high volatility), we might have little to no recourse and, if there are no other market makers that are willing to receive such orders from us or to pay us for such orders, or if we are unable to find replacement market makers in a timely manner, our transaction-based revenue would be negatively impacted. This risk is particularly heightened for cryptocurrencies because fewer market makers are currently able to execute cryptocurrency trades. For instance, in May 2023, two prominent market makers announced their respective decisions to limit their offerings in cryptocurrency trading within the United States. Without additional market makers supporting cryptocurrencies entering the industry in the United States, the risk that we may be unable to find suitable market makers to support cryptocurrencies is increasingly heightened. Additionally, this risk is heightened for brokerage orders executed outside of regular market hours through Robinhood 24 Hour Market, as currently all brokerage trades executed overnight are routed through one market maker - Virtu Financial, Inc. (“Virtu”). If Virtu becomes unwilling or unable to do business with us in the future, we may be unable to find additional market makers to support Robinhood 24 Hour Market, which could negatively impact our transaction-based revenue. Furthermore, if any of our market makers decide to alter our fee structure, our transaction-based revenue could significantly decrease.

Additionally, disruptions in the services provided by our market makers, whether due to technical malfunctions, operational mishaps, or financial instability of the market makers, or external factors such as regulatory changes or market volatility, have in the past, and may in the future impair our ability to execute our client's orders. Should a market maker venue experience downtime or diminished performance, particularly during peak trading hours, our ability to execute customer orders could be compromised and could have an adverse impact on our business, financial condition and results of operations.

Risks Related to Regulation of PFOF

PFOF practices have drawn heightened scrutiny from the U.S. Congress, the SEC, state regulators, and other regulatory and legislative authorities. For example, in December 2020, we settled an SEC investigation into our best execution and PFOF practices and are defending putative class actions in federal district courts relating to the same factual allegations. Additionally, our PFOF practices were the subject of a line of critical questioning during a February 18, 2021 U.S. Congressional hearing related to the Early 2021 Trading Restrictions, and since July 2023, we have been cooperating with an investigation being conducted by the New York Attorney General concerning brokerage execution quality. We also face the risk that the SEC, other regulatory authorities, or legislative bodies might adopt additional regulation or legislation relating to PFOF practices as a result of such heightened scrutiny or otherwise. For instance, in December 2022, the SEC proposed four separate equity market structure rules (the “December 2022 Rule Proposals”) related to (i) best execution; (ii) order competition, including requiring certain retail equity orders to be exposed in auctions before being internalized; (iii) order execution disclosure; and (iv) order tick size and fee caps. In September 2024, the SEC adopted the September 2024 Final Rules, which related to (i) order execution disclosure and (ii) order tick size and fee caps. The adoption of the September 2024 Final Rules will make the information about smaller-sized orders publicly available and result in the contraction of spreads across several securities, which we expect will lead to a decrease in the PFOF earned from such orders. Although these final and remaining proposed rules related to market structure design do not ban PFOF, the remaining December 2022 Rule Proposals introduce new requirements and will have the indirect effect of making PFOF more difficult or impossible to earn and condensing the revenues we could theoretically earn. Any new or heightened PFOF regulation, including the September 2024 Final Rules and the remaining December 2022 Rule Proposals if adopted as proposed, will result in increased compliance costs and otherwise could materially decrease our transaction-based revenue, might make it more difficult for us to expand our platforms in certain
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jurisdictions, and could require us to make significant changes to our revenue model, which changes might not be successful. Because some of our competitors either do not engage in PFOF or derive a lower percentage of their revenues from PFOF than we do, any such heightened regulation or a ban of PFOF could have an outsized impact on our results of operations. Furthermore, depending on the nature of any new requirements, heightened regulation could also increase our risk of potential regulatory violations and civil litigation, which could result in fines or other penalties, as well as negative publicity.

Risks Related to Negative Publicity Associated with PFOF or our Market Makers

Additionally, any negative publicity surrounding PFOF or Transaction Rebate practices generally, or our implementation of these practices, could harm our brand and reputation. For example, as a result of the Early 2021 Trading Restrictions, we faced allegations that our decision to temporarily prevent our customers from purchasing specified securities was influenced by our relationship with certain market makers. Furthermore, as registered broker-dealers, market makers must comply with rules and regulations that are generally intended to prohibit them from taking advantage of information they obtain while executing orders (e.g., through the prohibition on “front running”). Market makers also have a duty to seek “best execution” of customers’ equity and option orders we send to them. If the market makers we use to execute our customer’s equity and option trades were to violate such rules and regulations and use this data for their own benefit in violation of applicable rules and regulations, it could result in negative publicity for us by association. Developments in any proposals related to the regulation of PFOF or market structure design have generated and might continue to generate negative publicity associated with PFOF. For example, the intra-day trading price of our Class A common stock fell as much as 5.3% on December 14, 2022, the day the December 2022 Rule Proposals were announced.

Additionally, if our customers or potential customers believe that they might get better execution quality (including better price improvement) directly from stock exchanges or from our competitors that have different execution arrangements, or if our customers perceive our PFOF practices to create a conflict of interest between us and them, or if they begin to disfavor the specific market markers with which we do business due to any negative media attention, they might come to have an adverse view of our business model and might decide to limit or cease the use of our platforms. Some customers might prefer to invest through our competitors that do not engage in PFOF or Transaction Rebate practices or engage in them differently than do we. Any such loss of customer engagement as a result of any negative publicity associated with PFOF or Transaction Rebate practices could adversely affect our business, financial condition, and results of operations.

We are directly and indirectly exposed to fluctuations in interest rates, and rapidly changing interest rate environments will and could continue to reduce our net interest revenues and otherwise result in reduced profitability.

A large portion of our revenue comes from interest income earned from our corporate cash and investment portfolio, our securities lending activities, cash sweep, and from interest-rate sensitive assets, including receivables from users’ margin-borrowing and other assets underlying the customer balances we hold on our balance sheets as customer accounts. Interest rates are the key driver of our net interest income and are subject to many factors beyond our control. As interest rates increased starting in 2022, interest income has contributed an increasing share of our total net revenues, net income (loss), and cash flows, prior to any income tax effects. Reductions in interest rates and a return to a low interest rate environment would negatively impact (and the Federal Reserve lowering interest rates in September 2024 will negatively impact) our total net revenues, net income (loss), and cash flows, prior to any income tax effects, and adversely impact our customers’ returns on their cash deposits. Changes to the level or mix of interest earning balances could also negatively impact our total net revenues, net income (loss), and cash flows, prior to any tax income effects, if customers react to the rising interest rate environment by moving cash that would have otherwise been spent on services or products with higher revenue potential for Robinhood into Robinhood accounts that offer customers high interest rates. For a more detailed discussion of interest rate risk and an estimate of how hypothetical 50, 100 or 150 basis point increases or decreases in interest rates to the period end balances of our interest-earning assets and liabilities
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could affect our total net revenues, net income (loss), and cash flows, prior to any income tax effects, see “Quantitative and Qualitative Disclosures about Market Risk—Interest Rate Risk” elsewhere in this report.

Higher interest rates also lead to higher payment obligations by our customers to us and to their creditors under mortgage, credit card, and other consumer and merchant loans, which might reduce our customers’ ability to satisfy their obligations to us, including failing to pay for securities purchased, meet minimum credit card payments, deliver securities sold, or meet margin calls, and therefore lead to increased delinquencies, charge-offs, and allowances for loan and interest receivables, which could have an adverse effect on our net income (loss). Fluctuations in interest rates could adversely impact our customers’ general spending levels and ability and willingness to invest and spend through our platforms.
As registered broker-dealers, we are subject to “best execution” requirements under SEC guidelines and FINRA rules. We could be penalized if we fail to comply with these requirements and these requirements might be modified in the future in a way that could harm our business.

As registered broker-dealers, we are subject to “best execution” requirements under SEC guidelines and FINRA rules, which requires us to obtain the best reasonably available terms for customer orders. We have in the past and continue to be subject to investigations related to our best execution practices. For example, as previously disclosed, in December 2019 and 2020, we settled a FINRA disciplinary action and an SEC investigation, respectively, that related to our best execution practices. We face additional investigations and/or a risk of penalties in the future related to our best execution practices.

We also might be adversely affected in the future by regulatory changes related to our obligations with regard to best execution. In particular, receipt of PFOF and best execution requirements have drawn heightened scrutiny from the U.S. Congress, the SEC, and other regulatory and legislative authorities, who have at times alleged that PFOF arrangements, like those we have with our market makers, can result in harm to customer execution quality. For instance, one of the remaining December 2022 Rule Proposals relates to best execution and proposes to enhance the existing regulatory framework concerning the duty of best execution by, among other things, requiring additional policies and procedures for broker-dealers engaging in certain conflicted transactions with retail customers. There is a risk that these bodies might adopt additional regulation relating to PFOF practices and best execution requirements as a result of such heightened scrutiny or otherwise. Any such regulations could have a material adverse impact on our business and one of our primary sources of revenue.
We might need additional capital to provide liquidity and support business growth and objectives, and this capital might not be available to us on reasonable terms, if at all, might result in stockholder dilution, or might be delayed or prohibited by applicable regulations.

Maintaining adequate liquidity is crucial to our securities brokerage and our money services business operations, including key functions such as transaction settlement, custody requirements, and margin lending. The SEC and FINRA also have stringent rules with respect to the maintenance of specific levels of net capital by securities broker-dealers. We meet our liquidity needs primarily from working capital and cash generated by customer activity, as well as from external debt and equity financing. Despite these resources, increases in the number of customers, and fluctuations in customer cash or deposit balances, as well as market conditions or changes in regulatory treatment of customer deposits, could affect our ability to meet our liquidity needs. We might be adversely affected in the future by regulatory changes related to our obligations with regard to capital maintenance requirements. For example, in July 2023, the SEC proposed amendments to the broker-dealer customer protection rule (SEC Rule 15c3-3) to require certain broker-dealers to compute their customer and broker-dealer reserve deposit requirements, and to make any required deposits, daily rather than weekly. Any such amendments could make it more difficult for us to comply with these regulations. Additionally, there is not definitive guidance on whether or how these rules may apply to cryptocurrencies, and we might be adversely affected in the future if the SEC determines that they do. See the discussion of SAB 121 below in “Cryptocurrency laws, regulations, and accounting standards are often difficult to interpret and are rapidly evolving in ways that are difficult to
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predict. Changes in these laws and regulations, or our failure to comply with them, could negatively impact cryptocurrency trading on our platforms.”

In addition, our clearing and carrying broker-dealer is subject to cash deposit and collateral requirements under the rules of the clearinghouses in which it participates (including DTC, NSCC, and OCC), which requirements fluctuate significantly from time to time based upon the nature and volume of customers’ trading activity and volatility in the market or individual securities. If we fail to meet any such deposit requirements, our ability to settle trades through the clearinghouse may be suspended or we might be forced to restrict trading in certain stocks in order to limit clearinghouse deposit requirements. For example, from January 28 to February 5, 2021, due to increased deposit requirements imposed on our clearing and carrying broker-dealer by NSCC in response to unprecedented market volatility, particularly in certain securities, we implemented the Early 2021 Trading Restrictions. This resulted in negative media attention, customer dissatisfaction, reputational harm, litigation, and regulatory and U.S. Congressional inquiries and investigations, as well as capital raising by us in order to lift the trading restrictions while remaining in compliance with our net capital and deposit requirements. We face a risk that similar events could occur in the future and, if we are unable to satisfy our deposit requirements, the clearinghouse may cease to act for us and may liquidate our unsettled clearing portfolio. We may also need to hold capital and make deposits with respect to event contracts, including presidential election event contracts, in accordance with applicable Commodity Futures Trading Commission (“CFTC”) regulations and ForecastEX, LLC’s Rulebook for Robinhood Derivatives, LLC.

A reduction in our liquidity position could reduce our customers’ confidence in us, which could result in the withdrawal of customer assets and loss of customers, or could cause us to fail to satisfy broker-dealer or other regulatory capital guidelines, which may result in immediate suspension of securities activities, regulatory prohibitions against certain business practices, increased regulatory inquiries and reporting requirements, increased costs, fines, penalties or other sanctions, including suspension or expulsion by the SEC, FINRA or other SROs or state regulators, and could ultimately lead to the liquidation of our broker-dealers or other regulated entities. Factors which might adversely affect our liquidity positions include temporary liquidity demands due to timing differences between brokerage transaction settlements and the availability of segregated cash balances, timing differences between cryptocurrency transaction settlements between us and our cryptocurrency market makers and between us and our cryptocurrency customers, fluctuations in cash held in customer accounts, a significant increase in our margin lending activities, increased regulatory capital requirements, changes in regulatory guidance or interpretations, other regulatory changes, or a loss of market or customer confidence resulting in unanticipated and/or excessive withdrawals or redemptions, or a suspension of redemptions or withdrawals of customer assets.

We might also need additional capital to continue to support our business and any future growth and to respond to competitive challenges, including the need to promote our products and services, develop new products and services, enhance our existing products, services and operating infrastructure, acquire and invest in complementary businesses and technologies, and to fund payments on our obligations at the parent company level, such as the income tax withholding and remittance obligations that arise upon the vesting and/or settlement of our outstanding RSUs, and any debt obligations we might incur. To meet liquidity needs at the parent level, we might need to rely on dividends, distributions and other payments from our subsidiaries. Regulatory and other legal restrictions might limit our ability to transfer funds to or from some subsidiaries. For example, under FINRA rules applicable to RHS, a dividend of over 10% of a member firm’s excess net capital must not be paid without FINRA’s prior written approval.

When available cash is not sufficient, we might seek to engage in equity or debt financings to secure additional funds. However, such additional funding might not be available on terms attractive to us, or at all, and our inability to obtain additional funding when needed could have an adverse effect on our business, financial condition, and results of operations. If we issue equity or convertible debt securities, our stockholders could suffer significant dilution, and the new shares could have rights, preferences and privileges superior to those of our current stockholders. Any debt financing could involve restrictive covenants relating to our capital-raising activities and other financial and operational matters, which might make it more difficult for us to obtain additional capital and to pursue future business opportunities.
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Unfavorable media coverage and other events that harm our brand and reputation could adversely affect our revenue and the size, engagement, and loyalty of our customer base.

Our brand and our reputation are two of our most important assets. Our ability to attract, build trust with, engage, and retain existing and attract new customers might be adversely affected by events that harm our brand and reputation, such as public complaints and unfavorable media coverage about us, our platforms, and our customers, even if factually incorrect or based on isolated incidents.

We receive a high volume of media coverage, which has included, and might continue to include, negative coverage regarding our products and services and the risk of our customers’ misuse or misunderstanding of our products and services, inappropriate or otherwise unauthorized behavior by our customers and litigation or regulatory activity. In addition, given our public profile, any unanticipated system disruptions, outages, technical or security-related incidents, or other performance problems relating to our platforms, such as the March 2020 Outages, the partial service outages and degraded service on our RHC cryptocurrency platform from time to time in mid-April and early May 2021 caused by a surging demand for cryptocurrency trading (the “April-May 2021 Disruptions”), or the November 2021 Data Security Incident are likely to receive extensive media attention. Furthermore, any negative experiences our customers have in connection with their use of our products and services, including as a result of any such performance problems, could diminish customer confidence in us and our products and services, which could result in unfavorable media coverage or publicity. For example, we received customer complaints and significant media attention as a result of the Early 2021 Trading Restrictions.

Damage to our brand and reputation could also be caused by:
•cybersecurity attacks, privacy or data security breaches, or other security incidents, payment disruptions or other incidents that impact the reliability of our platforms;
•actual or alleged illegal, negligent, reckless, fraudulent or otherwise inappropriate behavior by our management team, our other employees or contractors, our customers or third-party service providers or partners as well as complaints or negative publicity about such individuals or companies;
•future restructurings or any similar such reductions or activities in the future;
•any repeat imposition of temporary trading restrictions (similar to our Early 2021 Trading Restrictions), or any outright failure to meet our deposit requirements;
•litigation involving, or regulatory actions or investigations into, our platforms or our business;
•any failures to comply with legal, tax and regulatory requirements;
•any perceived or actual weakness in our financial strength or liquidity;
•any regulatory action that results in changes to, or prohibits us from offering, certain features, products or services;
•any new policies, features, products, or services, or changes to our policies, features, products, or services, that customers or others perceive as overly restrictive, unclear, inconsistent with our values or mission, or not clearly articulated;
•a failure to operate our business in a way that is consistent with our values and mission;
•inadequate or unsatisfactory customer support experiences;
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•negative responses by customers or regulators to our business model or to particular features, products or services;
•a failure to adapt to new or changing customer preferences;
•our decision to offer products viewed by some as controversial, such as presidential election event contracts;
•a prolonged weakness in popular equities or cryptocurrencies specifically or in U.S. or international equity and cryptocurrency markets generally, or a sustained downturn in the U.S. or international economies; and
•any of the foregoing with respect to our competitors, to the extent the resulting negative perception affects the public’s perception of us or our industry as a whole.
These and other events could negatively impact the willingness of our existing customers, and potential new customers, to do business with us, which could adversely affect our trading volumes and number of Funded Customers, as well as our ability to recruit and retain personnel, any of which could have an adverse effect on our business, financial condition, and results of operations, as well as the trading price of our Class A common stock. For instance, on November 8, 2022 (the day that FTX Trading Ltd. (“FTX”), a major international cryptocurrency exchange, halted all non-fiat customer withdrawals from its platform), the intra-day trading price of our Class A common stock fell as much as 18%. And in December 2022, shortly after FTX filed for bankruptcy on November 11, 2022, and following the bankruptcies of several other major cryptocurrency trading venues and lending platforms earlier in 2022, including Three Arrows Capital, Ltd., Voyager Digital Holdings, Inc., and Celsius Network LLC (“Celsius”) (collectively, the “2022 Crypto Bankruptcies”), we received an investigative subpoena from the SEC regarding, among other topics, RHC’s cryptocurrency listings, custody of cryptocurrencies, and platform operations.

We could incur substantial losses from our cash and investment accounts if one or more of the financial institutions that we use fails or is taken over by the FDIC.

We maintain cash and investment accounts, as well as restricted cash as certificates of deposits for facility leases and other contractual obligations, at multiple financial institutions in amounts that are significantly in excess of the limits insured by the FDIC. In spring 2023, certain U.S. banks failed and were taken over by the FDIC (the “2023 Banking Events”). If any of the financial institutions where we hold significant deposits were to fail or be taken over by the FDIC, our ability to access such accounts has in the past and could be in the future temporarily or permanently limited, which could adversely affect our business. In particular, while we have taken steps to help ensure that the loss of all or a significant portion of any uninsured amount would not have an adverse effect on our ability to pay our operational expenses or make other payments, the failure of a financial institution where we hold significant deposits has in the past and may in the future require us to move funds to another bank, which could cause a temporary delay in making payments to our vendors and employees, or under other contractual arrangements, and cause other operational inconveniences. Additionally, any losses or delay in access to funds as a result of such events could have a material adverse effect on our ability to meet contractual obligations, earnings, financial condition, cash flows, and stock price.

Our business has been and might continue to be harmed by changes in business, economic, or political conditions that impact global financial markets, or by a systemic market event.

As we are a financial services company, our business, results of operations, and reputation are directly and indirectly affected by elements beyond our control, such as economic and political conditions including unemployment rates, inflation, tax and interest rates, geopolitical conflicts, such as the Russian invasion of Ukraine and recent ongoing events in the Middle East, financial market volatility (such as we experienced during the COVID-19 pandemic), significant increases in the volatility or trading volume of
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particular securities, cryptocurrencies, or commodity interests (such as we experienced during the meme stock events of early 2021 and the Dogecoin surge of mid-2021), broad trends in business and finance, actual events or concerns involving liquidity, defaults, or non-performance by third-party financial institutions or transactional counterparties (such as the 2023 Banking Events), changes in volume of securities, cryptocurrencies, or commodity interest trading generally (such as the bear markets that developed for equities and crypto in the second quarter of 2022 and continued into 2023 (the “2022 Bear Markets”)) and changes in the markets in which such transactions occur (such as following the 2022 Crypto Bankruptcies), and changes in how such transactions are processed. These elements can arise suddenly and the full impact of such conditions could have an adverse effect on our business results or remain uncertain indefinitely. Because a large percentage of our customers are first time investors, we might be disproportionately affected by declines in investor confidence caused by adverse economic conditions. A prolonged market weakness, such as a slowdown causing reduced trading volume in securities, derivatives, or cryptocurrency markets, has resulted, and could result in the future in reduced revenues and adversely affect our business, financial condition, and results of operations. For example, as a result of the 2022 Bear Markets, for fiscal year 2022, our daily revenue trades for options, equities, and crypto declined by 33%, 49%, and 75%, compared to fiscal year 2021. Conversely, significant upturns in such markets or conditions might cause individuals to be less proactive in seeking ways to improve the returns on their trading or investment decisions and, thus, decrease the demand for our products and services.

Additionally, concerns regarding the U.S. and/or international financial systems, such as in connection with the 2023 Banking Events, could result in less favorable commercial financing terms available to us, including higher interest rates or costs and tighter financial and operating covenants, or systemic limitations on our access to credit and liquidity sources.

Any of these changes could cause our future performance to be uncertain or unpredictable, and could have an adverse effect on our business and results of operations.

Our future success depends on the continuing efforts of our key employees and our ability to attract and retain senior management and other highly skilled personnel.

Our future success depends, in part, on our ability to continue to identify, attract, develop, integrate and retain qualified and highly skilled personnel. In particular, our Co-Founder and CEO, Vladimir Tenev, has been critical to the development and execution of our business, vision, and strategic direction. In addition, we have heavily relied, and expect we will continue to heavily rely, on the services and performance of our senior management team, which provides leadership, contributes to the core areas of our business and helps us to efficiently execute our business. Although we have entered into employment offer letters with some of our key personnel, most of these agreements have no specific duration and are terminable by either party at-will and our senior management team has experienced recent changes. We do not maintain key person life insurance policies on any of our employees.

We also might not be successful in attracting, integrating or retaining qualified personnel to fulfill our current or future needs. In particular, there continues to be particularly high competition in the San Francisco Bay Area for software engineers, computer scientists and other technical personnel. Given our heavy emphasis on SBC, the performance of our stock price has in the past had, and could continue to have a significant impact on our ability to recruit, retain, and motivate highly skilled personnel. Additionally, our working model may negatively impact our ability to retain and recruit highly skilled personnel, especially to the extent other companies continue to allow more flexible remote working models. Attrition and workforce reorganizations and reductions have also and might continue to adversely affect our reputation among job seekers, demoralize our remaining employees, and result in a loss of institutional know-how, reduced productivity, slower customer service response, reduced effectiveness of internal compliance and risk-mitigation programs, and cancellations of or delays in completing new product developments and other strategic projects. For example, in the periods immediately following the April 2022 Restructuring and August 2022 Restructuring, we experienced higher rates of voluntary
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employee attrition and declines in reported employee job satisfaction. We might continue to experience difficulty in hiring and retaining highly skilled employees with appropriate qualifications.

We believe that a critical component of our efforts to attract and retain employees has been our corporate culture of innovation. We have invested substantial time and resources in building our team. As we continue to expand internationally, we will face new challenges to maintain our corporate culture of innovation among a larger number of geographically dispersed and remote employees, as well as other service providers. Failure to preserve our company culture could harm our ability to retain and recruit personnel.

If we are unable to attract, integrate, retain, or effectively replace our key employees and qualified and highly skilled personnel, our ability to effectively focus on and pursue our corporate objectives will decline, and our business and future growth prospects could be harmed.

Future acquisitions of, or investments in, other companies, products, technologies or specialized employees could require significant management attention, disrupt our business, dilute stockholder value, and adversely affect our results of operations.

As part of our business strategy, we have made and might continue to make acquisitions of, or investments in, specialized employees or other compatible companies, products, or technologies. We also have entered into and might continue to enter into relationships with other businesses in order to expand our products and services. Negotiating these transactions can be time-consuming, difficult, and expensive, and our ability to close these transactions might be subject to third-party approvals, such as governmental and other regulatory approvals, which are beyond our control, and may take longer than expected to be obtained, if at all.

For example, in April 2022 we signed a definitive agreement to acquire Ziglu Limited (“Ziglu”), a U.K.-based electronic money institution and crypto asset firm. However, as a result of prolonged regulatory uncertainty, after careful consideration, we notified Ziglu of the termination of the agreement in February 2023. In connection with the termination of the agreement, we took a $12 million impairment charge, in addition to suffering losses from legal fees and other expenses. Additionally, because we had expected Ziglu’s team and technology to help accelerate our international expansion, the termination of the deal delayed our initial plans to expand our operations in Europe, particularly with respect to cryptocurrency trading. Furthermore, in June 2024, we entered into an agreement to acquire Bitstamp, a global cryptocurrency exchange with retail and institutional investors, subject to regulatory approvals and other customary closing conditions. We expect Bitstamp and its team will help us accelerate our international expansion with respect to cryptocurrency trading, however, our ability to close this transaction is subject to customary closing conditions, including regulatory approvals, and if we are unable to complete this transaction, we could be subject to losses from legal fees and other expenses.

In general, our efforts to grow through acquisitions are subject to the risks that we might be unable to find suitable acquisition or investment candidates or to complete acquisitions on favorable terms or in a timely manner, if at all. Moreover, these kinds of acquisitions or investments can result in unforeseen operating difficulties and expenditures prior to and following closing, including disrupting our ongoing operations, diverting management from their primary responsibilities, subjecting us to additional liabilities and/or compliance obligations, increasing our expenses, and adversely impacting our business, financial condition and results of operations. If we acquire businesses or technologies, we might not be able to integrate the acquired personnel, operations, products, and technologies successfully or face challenges in doing so, or effectively manage the combined business following the acquisition. Moreover, the anticipated benefits of any acquisition or investment might not be realized, the acquisition or investment might not perform in accordance with expectations, and we might be exposed to unknown liabilities.

In connection with these types of transactions, we might issue additional equity securities that would dilute our stockholders, use cash that we might need in the future to operate our business, incur debt on
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terms unfavorable to us or that we are unable to repay, incur large charges or substantial liabilities, encounter difficulties integrating diverse business cultures, and become subject to adverse tax consequences, substantial depreciation, or deferred compensation charges.

We recently started operating in certain international markets and plan to further expand our international operations, which exposes us to significant new risks, and our international expansion efforts might not succeed.

We currently only offer select services to the public outside the United States in certain jurisdictions, including brokerage services in the UK through Robinhood UK, Ltd., crypto services in select jurisdictions in the EU through Robinhood Europe, UAB (“RHEC”), and our Robinhood Wallet, which is available in over 150 countries and offered through our Cayman Islands subsidiary, Robinhood Non-Custodial Ltd. We also expect that our pending acquisition of Bitstamp, if completed, will help us accelerate our international expansion, including across the EU, in the U.K. and in certain other countries.

We intend to continue expanding our operations outside of the United States. International expansion requires significant resources and management attention and subjects us to additional regulatory, economic, operational, and political risks on top of those we already face in the United States. There are significant risks and costs inherent in establishing and doing business in international markets, including:

•difficulty establishing and managing international entities, offices, and/or operations and the increased operations, travel, infrastructure, and legal and compliance costs associated with operations, entities, and/or people in different countries or regions;
•the need to understand, interpret and comply with local laws, regulations and customs in multiple jurisdictions, including laws and regulations governing cryptocurrency-related, broker-dealer, money transmitter, or regulated entity practices, some of which might require permissions, registrations, authorizations, licenses or consents, or might be different from, or conflict with, those of other jurisdictions or foreign cybersecurity, data privacy or labor and employment laws;
•the additional complexities of any merger or acquisition activity internationally, which would be new for us and could subject us to additional regulatory scrutiny or approvals;
•the need to adapt, localize, and position our products for specific countries (also known as “product-market fit”);
•increased exposure to foreign fraud vectors;
•increased competition from local providers of similar products and services;
•challenges of obtaining, maintaining, protecting, defending and enforcing intellectual property rights abroad, including the challenge of extending or obtaining third-party intellectual property rights to use various technologies in new countries;
•the need to offer customer support and other aspects of our offering (including websites, articles, blog posts, and customer support documentation) in various languages or locations;
•compliance with anti-bribery and anti-corruption laws, such as the Foreign Corrupt Practices Act (“FCPA”) and equivalent anti-money laundering and sanctions rules and requirements in local markets, by us, our employees, and our business partners;
•the need to recruit and manage staff in new countries and regions to support international operations, and comply with employment law, tax, payroll, and benefits requirements in multiple countries;
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•the need to enter into new business partnerships with third-party service providers in order to provide products and services in the local market, or to meet regulatory obligations;
•varying levels of internet technology adoption and infrastructure, and increased or varying network and hosting service provider costs and differences in technology service delivery in different countries;
•fluctuations in currency exchange rates and the requirements of currency control regulations, which might restrict or prohibit conversion of other currencies into U.S. dollars;
•double taxation of our international earnings and potentially adverse tax consequences due to requirements of or changes in the income and other tax laws of the United States or the international jurisdictions in which we operate; and
•political or social change or unrest or economic instability in a specific country or region in which we operate.
We have limited experience with international legal and regulatory environments and market practices, and we might not be able to penetrate or successfully operate in the markets we choose to enter. In addition, we might incur significant expenses as a result of our international expansion, and we might not be successful, which could lead to substantial losses.

We are exposed to funding transaction losses due to reversals or insufficient funds.

Some of our products and services are paid for by electronic transfer from customers’ bank accounts which exposes us to risks associated with reversals and insufficient funds. Unwinding of funds transfers due to reversals, and insufficient funds could arise from fraud, misuse, unintentional use, settlement delay, or other activities. Also, criminals are using increasingly sophisticated methods to engage in illegal activities, such as counterfeiting and fraud. If we are unable to collect and retain such amounts from the customer, or if the customer refuses or is unable, due to bankruptcy or other reasons, to reimburse us, we bear the loss for the amount of the chargeback, refund, or return.
While we have policies and procedures designed to manage and mitigate these risks, we cannot be certain that such processes will be effective. Our failure to limit returns, including as a result of fraudulent transactions, could lead payment networks or our banking partners to require us to increase reserves, impose penalties on us, charge additional or higher fees, or terminate their relationships with us. These risks may be amplified as we continue to expand our operations internationally and increase our exposure to foreign fraud vectors.
Our working model, which allows a subset of our employees to work remotely, subjects us to heightened operational risks.

We currently have a large segment of employees who work remotely and are not required to come into the office on a daily basis. Allowing employees to work remotely subjects us to heightened operational risks. For example, technologies in our employees’ homes might not be as robust or effective as in our offices and could lead to lower productivity and/or increased vulnerability to cybersecurity attacks or other privacy or data security incidents. There is no guarantee that the data security and privacy safeguards we have put in place will be completely effective or that we will not encounter risks associated with employees accessing company data and systems remotely. Additionally, in June 2024 FINRA’s new Residential Supervisory Location Designation Rule became effective, under which the homes of certain of our employees who work remotely could be treated as “residential supervisory locations” subject to inspections on a regular periodic schedule, which in turn has required certain operational changes and compliance adjustments. Non-compliance with the Residential Supervisory Location Designation Rule could subject us to fines, penalties or enforcement actions. We also face
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challenges due to the need to operate with a dispersed and remote workforce, as well as increased costs related to business continuity initiatives.

Allowing for remote work has in the past made and may continue to make it more difficult for us to preserve our corporate culture of innovation and our employees might have decreased opportunities to collaborate in meaningful ways. Further, we cannot guarantee that requiring a subset of employees to work in-office, or allowing certain employees to continue to work remotely, will not have a negative impact on employee morale or productivity. Any failure to overcome the challenges presented by our working model could harm our future success, including our ability to retain and recruit personnel, innovate and operate effectively, maintain product development velocity, and execute on our business strategy.
Risks Related to Regulation and Litigation
Our business is subject to extensive, complex and changing laws and regulations, and related regulatory proceedings and investigations. Changes in these laws and regulations, or our failure to comply with these laws and regulations, could harm our business.

We are subject to a wide variety of local, state, federal, and international laws, regulations, licensing schemes, and industry standards in the United States, the UK, the EU and in other countries and regions in which we operate. These laws, regulations, and standards govern numerous areas that are important to our business, and include, or might in the future include, those relating to all aspects of the securities industry, financial services, money transmission, the origination, marketing, servicing, and collection of consumer debt, foreign exchange, payments services and products (such as payment processing, settlement services, and credit cards), cryptocurrency, derivatives, trading in shares and fractional shares, fraud detection, consumer protection, anti-money laundering, escheatment, sanctions regimes and export controls, data privacy, data protection, data security, as well as climate risk and environmental impact, including with respect to disclosure of greenhouse gas emissions and other metrics related to climate change.

The substantial costs and uncertainties related to complying with these regulations continue to increase, and our introduction of new products or services, expansion of our business into new jurisdictions or subindustries, acquisitions of other businesses that operate in similar regulated spaces, or other actions that we may take might subject us to additional laws, regulations, or other government or regulatory scrutiny. For example, after launching Sherwood Media, our media subsidiary dedicated to providing news and information about the markets, economics, business, technology, and the culture of money), we received inquiries from FINRA regarding Sherwood Media’s relationship to RHF. In addition, after announcing in March 2024 the launch of the Robinhood Gold Card, which is currently offered via a waitlist through Robinhood Credit exclusively to Gold Subscribers and provides rewards via the Robinhood Gold Credit Card Rewards Program, we received requests for information from the MSD related to the Robinhood Gold subscription service and the Robinhood Gold Card. Regulations are intended to ensure the integrity of financial markets, to maintain appropriate capitalization of broker-dealers and other financial services companies, and to protect customers and their assets. These regulations could limit our business activities through capital, customer protection, and market conduct requirements, as well as restrictions on the activities that we are authorized to conduct.

We operate in a highly regulated industry and, despite our efforts to comply with applicable legal requirements, like all companies in our industry, we must adapt to frequent changes in laws and regulations, and face complexity in interpreting and applying evolving laws and regulations to our business, heightened scrutiny of the conduct of financial services firms and increasing penalties for violations of applicable laws and regulations. We might fail to establish and enforce procedures that comply with applicable legal requirements and regulations. We might be adversely affected by new laws or regulations, changes in the interpretation of existing laws or regulations, or more rigorous enforcement. For instance, since we began to offer presidential election event contracts, the CFTC has been in the process of appealing the U.S. District Court for the District of Columbia’s decision in KalshiEx LLC v.
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Commodity Futures Trading Commission, and should the CFTC succeed on appeal, we may not be able to continue offering presidential election event contracts and potentially could be subject to adverse litigation and regulatory actions for doing so. In addition, the CFTC has proposed a rule amendment that has not been finalized - if adopted by the CFTC, the election event contracts as offered would likely be prohibited. We also might be adversely affected by other regulatory changes related to our obligations with regard to suitability of financial products, supervision, sales practices, application of fiduciary or best interest standards (including the interpretation of what constitutes an “investment recommendation” for the purposes of the SEC’s “Regulation Best Interest” and state securities laws) and best execution in the context of our business and market structure, any of which could limit our business, increase our costs and damage our reputation.

Broker-Dealer Regulation

As broker-dealers, our subsidiaries RHF and RHS are subject to extensive regulation by federal and state regulators and SROs, and are subject to laws and regulations covering all aspects of the securities industry. Federal and state regulators and SROs, including the SEC and FINRA, can among other things investigate, censure or fine us, issue cease-and-desist orders or otherwise restrict our operations, require changes to our business practices, products or services, limit our acquisition activities or suspend or expel a broker-dealer or any of its officers or employees. Similarly, state attorneys general and other state regulators, including state securities and financial services regulators, can bring legal actions on behalf of the citizens of their states to assure compliance with state laws. In addition, criminal authorities such as state attorneys general or the DOJ may institute civil or criminal proceedings against us for violating applicable laws, rules, or regulations.
Money-Transmitter Regulation
As money transmitters, certain of our subsidiaries are subject to regulation, primarily at the state level. We are also subject to regulation by the Consumer Financial Protection Bureau (“CFPB”). We have obtained or are in the process of obtaining licenses to operate as a money transmitter (or as another type of regulated financial services institution, as applicable) in the United States and in the states where this is required. As a licensed money transmitter, we are subject to obligations and restrictions with respect to the movement of customer funds, reporting requirements, bonding requirements, and inspection by state regulatory agencies concerning those aspects of our business considered money transmission. Evaluation of our compliance efforts, as well as the questions of whether and to what extent our products and services are considered money transmission, are matters of regulatory interpretation and could change over time. There are substantial costs and potential product and operational changes involved in maintaining and renewing these licenses, certifications, and approvals, and we could be subject to fines, other enforcement actions, and litigation if we are found to violate any of these requirements. There can be no assurance that we will be able to (or decide to) continue to apply for or obtain any such licenses, renewals, certifications, and approvals in any jurisdictions. In certain markets, we might rely on local banks or other partners to process payments and conduct foreign currency exchange transactions in local currency, and local regulators might use their authority over such local partners to prohibit, restrict, or limit us from doing business. The need to obtain or maintain these licenses, certifications, or other regulatory approvals could impose substantial additional costs, delay or preclude planned transactions, product launches or improvements, require significant and costly operational changes, impose restrictions, limitations, or additional requirements on our business, products, and services, or prevent us from providing our products or services in a given market.
We have been subject to regulatory investigations, actions, and settlements and we expect to continue to be subject to such proceedings in the future, which could cause us to incur substantial costs or require us to change our business practices in a materially adverse manner.

From time to time, we have been and currently are subject, and, given the highly regulated nature of the industries in which we operate, we expect that we will be subject in the future, to a number of legal and regulatory examinations and investigations arising out of our business practices and operations,
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conducted by the DOJ, SEC, FINRA, the CFTC and The National Futures Association or other federal agencies such as the U.S. Department of the Treasury’s Office of Foreign Assets Controls (“OFAC”), the FDIC or CFPB, and state regulatory agencies, such as the MSD, the California Attorney General’s Office, and the New York Department of Financial Services (“NYDFS”), among other authorities. These examinations and investigations have in some instances in the past and might in the future lead to lawsuits, arbitration claims, and enforcement proceedings, as well as other actions and claims, that result in injunctions, fines, penalties, and monetary settlements. For example:

•In June 2021, we resolved multiple matters with FINRA (including investigations into systems outages, our options product offering, and margin-related communications with customers), resulting in censure, fines and restitution of $70 million, and engagement of an independent consultant.
•In connection with the Early 2021 Trading Restrictions, we and our employees, including our Co-founder and CEO, Vladimir Tenev, have received requests for information, and in some cases, subpoenas and requests for testimony from the USAO, the DOJ, Antitrust Division, the SEC Staff, FINRA, the New York Attorney General’s Office, other state attorneys general offices, and a number of state securities regulators. Also, a related search warrant was executed by the USAO to obtain Mr. Tenev’s cell phone. We have also received inquiries from the SEC’s Division of Examinations and Division of Enforcement and FINRA related to employee trading during the week of January 25, 2021 in some of the securities that were subject to the Early 2021 Trading Restrictions, including GameStop Corp. and AMC Entertainment Holdings, Inc., and specifically as to whether any employee trading in these securities may have occurred after the decision to impose the Early 2021 Trading Restrictions and before the public announcement of the Early 2021 Trading Restrictions on January 28, 2021. We are cooperating with these investigations and examinations.
•In August 2022, we settled an NYDFS investigation under which we paid a monetary penalty of $30 million and engaged an independent compliance consultant.
•Since March 2023, we have reached settlements with over 45 state regulators, including, for example, the Alabama Securities Commission, the California Department of Financial Protection and Innovation, the Colorado Division of Securities, the Delaware Department of Justice - Investor Protection Unit, the New Jersey Bureau of Securities, the South Dakota Division of Insurance, and the Texas State Securities Board regarding investigations related to RHF’s options trading and related customer communications and displays, options and margin trading approval process, the March 2020 Outages, and customer support issues prior to June 2020, under which we have agreed to pay a monetary penalty of $200,000 per state. Potential additional state settlements as part of a multi-state settlement related to these issues totaling up to approximately $10 million are possible.
•In January 2024, we settled a matter with the MSD related to supervision of certain product features and marketing strategies, the March 2020 Outages, and our options trading approval process, as well as the November 2021 Data Security Incident, under which we paid a $7.5 million fine and engaged an independent consultant to review, among other things, implementation of the FINRA independent’s recommendations, policies and procedures regarding certain application features, and cybersecurity measures.
•In August 2024, we settled a matter with the California Attorney General’s Office related to among other things, certain disclosures by RHC and delivery of customers’ cryptocurrency assets under California Corporations Code Sections 29520 and 29505 during the period January 2018 through April 2022. We paid a monetary penalty of $3.9 million.
These and other proceedings, some of which are described in Note 14 - Commitments & Contingencies, to our unaudited condensed consolidated financial statements in this Quarterly Report,
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have in the past and might in the future relate to broker-dealer and financial services rules and regulations, including our trading and supervisory policies and procedures, our clearing practices, our trade reporting, our public communications, our compliance with FINRA registration requirements, anti-money laundering and other financial crimes regulations, cybersecurity matters, a particular cryptocurrency’s status as a “security,” and our business continuity plans, among other topics. These sorts of proceedings, inquiries, examinations, investigations, and other regulatory matters might subject us to fines, penalties, and monetary settlements, harm our reputation and brand, require substantial management attention, result in additional compliance requirements, result in certain of our subsidiaries losing their regulatory licenses or ability to conduct business in some jurisdictions (which could, among other things, result in statutory disqualification by FINRA and the SEC), increase regulatory scrutiny of our business, restrict our operations or require us to change our business practices, require changes to our products and services, require changes in personnel or management, delay planned product or service launches or development, limit our ability to acquire other complementary businesses and technologies, or lead to the suspension or expulsion of our broker-dealer or other regulated subsidiaries or their officers or employees.

In connection with litigation settlements, we have in the past and might in the future be required to make expenditures to enhance our compliance activities. For example, in connection with the August 2022 NYDFS settlement, we engaged an independent consultant to perform a comprehensive evaluation of our compliance program and remediation efforts with respect to identified deficiencies and violations. The independent consultant’s evaluation is still ongoing, and resulted in a recommendation to implement enhancements in certain areas identified in the settlement, which require significant effort to implement.

Additionally, while we now offer select services and products in certain countries outside the United States, we are not currently licensed, authorized, or registered in every jurisdiction (and in some cases are not licensed in every state). Under the terms of our customer agreements, we currently offer services only to citizens and permanent residents with a legal address within those jurisdictions where we are authorized and registered, and our application includes features designed to block access to our services from unauthorized jurisdictions. However, to the extent a customer accesses our application or services outside of jurisdictions where we have obtained required governmental licenses and authorization, we face a risk of becoming subject to regulations in that local jurisdiction. A regulator’s investigation as to whether or conclusion that we are servicing customers in its jurisdiction without being appropriately licensed, registered, or authorized could result in fines or other enforcement actions or settlements.

Recent statements by lawmakers, regulators and other public officials have signaled an increased focus on new or additional regulations that could impact our business and require us to make significant changes to our business model and practices.

Various lawmakers, regulators and other public officials have recently made statements about our business and that of other broker-dealers and signaled an increased focus on new or additional laws or regulations that, if acted upon, could impact our business. Over three days in the spring of 2021, the Committee on Financial Services of the U.S. House of Representatives held hearings on the January 2021 market volatility and disruptions surrounding GameStop and other “meme” stocks at which various members of Congress expressed concerns about various market practices, including PFOF and options trading. In his testimony, Chair Gensler indicated that he had instructed the SEC Staff to study, and in some cases make rulemaking recommendations to the SEC regarding, a variety of market issues and practices, including PFOF, digital engagement practices, and whether broker-dealers are adequately disclosing their policies and procedures around potential trading restrictions; whether margin requirements and other payment requirements are sufficient; and whether broker-dealers have appropriate tools to manage their liquidity and risk. Chair Gensler also discussed the use of mobile app features such as rewards, bonuses, push notifications and other prompts. Chair Gensler suggested that such prompts could promote behavior that is not in the interest of the customer, such as excessive trading. Chair Gensler also advised that he had directed the SEC Staff to consider whether expanded
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enforcement mechanisms are necessary. In December 2022, the SEC proposed the December 2022 Rule Proposals, which relate to (i) best execution, (ii) order competition, (iii) order execution disclosure, and (iv) order tick size and fee caps. In September 2024, the SEC adopted equity market structure rules related to (i) order execution disclosure and (ii) order tick size and fee caps. The SEC issued a request for information and public comment on digital engagement practices by broker-dealers and investment advisers in August 2021. In his April 2023 testimony before the U.S. House of Representatives Committee on Financial Services, Chair Gensler stated that he had asked the SEC Staff to make recommendations for rule proposals addressing conflicts that can arise from the use of predictive analytics, in particular conflicts that may arise to the extent advisors or brokers are optimizing their own interests as well as others. On July 26, 2023, the SEC proposed new rules (the “July 2023 Rule Proposals”) that would impose new obligations on registered broker-dealers and investment advisers with respect to their use of certain covered technologies when interacting with investors. In May 2024, Chair Gensler indicated in multiple speeches that the SEC Staff was considering re-proposing modified versions of these rules and the SEC’s Spring 2024 regulatory flexibility agenda published in July 2024 indicates that a second notice of proposed rulemaking on this topic is scheduled for October 2024. However, if adopted as originally proposed, the July 2023 Rule Proposals may require us to modify, limit or discontinue our use of certain technologies and product features—and could significantly change the way that we interact with existing and prospective customers—which may adversely impact our business and revenues. Additionally, from time to time, we have received requests from regulators, including from the SEC, regarding our collection and uses of customer data and related disclosures.

In addition, in 2022, FINRA issued a regulatory notice requesting comment on complex products and options including “whether the current regulatory framework…is appropriately tailored to address current concerns raised by complex products and options.” If FINRA amends its rules to impose additional requirements on firms with respect to determining customer eligibility and/or suitability to trade options, such rule changes could result in fewer Robinhood customers being approved to trade options which could negatively impact our options trading volumes and associated revenues.

Also, in September 2021, FINRA announced that it is reviewing firms’ use of social media marketing, including social media influencers, which is a marketing channel that we actively utilize. In February 2022, FINRA opened an investigation into our use of social media marketing. In February 2023, FINRA provided updated guidance about firms’ practices related to their acquisition of customers through social media channels, as well as firms' sharing of customers’ usage information with affiliates and non-affiliated third parties. In light of this updated guidance, we narrowed the scope of our social media influencer and affiliate publisher programs. Any additional limits that FINRA might impose on our use of this marketing channel could make it more difficult for us to attract new customers, resulting in slower growth.

To the extent that the SEC, FINRA, or other regulatory authorities or legislative bodies adopt additional regulations or legislation in respect of any of these areas or relating to any other aspect of our business, we could face a heightened risk of potential regulatory violations and could be required to make significant changes to our business model and practices, which changes might not be successful. Any of these outcomes could have an adverse effect on our business, financial condition and results of operations.

We are involved in numerous litigation matters that are expensive and time consuming, and, if resolved adversely, could expose us to significant liability and reputational harm.

In addition to regulatory proceedings, we are also involved in numerous other litigation matters, including putative class action lawsuits, and we anticipate that we will continue to be a target for litigation in the future. Potential litigation matters include commercial litigation matters, insurance matters, securities litigation matters, privacy and cybersecurity disputes, intellectual property disputes, contract disputes, consumer protection matters, and employment matters. This risk might be more pronounced
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during market downturns, during which the volume of legal claims and amount of damages sought in litigation and regulatory proceedings against financial services companies have historically increased.

Litigation matters brought against us have in the past and might in the future require substantial management attention and might result in settlements, awards, injunctions, fines, penalties, and other adverse results. A substantial judgment, settlement, fine, penalty, or injunctive relief could be material to our results of operations or cash flows for a particular period, or could cause us significant reputational harm.

For more information about the legal proceedings in which we are currently involved, see Note 14 - Commitments & Contingencies, to our unaudited condensed consolidated financial statements in this Quarterly Report.

We are subject to governmental laws and requirements regarding anti-corruption, anti-bribery, economic and trade sanctions, anti-money laundering, and counter-terror financing that could impair our ability to compete in international markets or subject us to criminal or civil liability if we violate them.

We are required to comply with U.S. economic and trade sanctions administered by OFAC and we have processes in place to facilitate compliance with the OFAC regulations. As part of our customer onboarding process, in accordance with the Customer Identification Program rules under Section 326 of the USA Patriot Act, we screen all potential customers against OFAC watchlists and continue to screen all customers, vendors and employees daily against OFAC watchlists. Although our application includes features designed to block access to our services from sanctioned countries, if our services are accessed from a sanctioned country in violation of trade and economic sanctions, we could be subject to enforcement actions.

We are subject to the FCPA, U.S. and foreign bribery laws, and other U.S. and foreign anti-corruption laws. Anti-corruption and anti-bribery laws have been enforced aggressively in recent years and are interpreted broadly to generally prohibit companies, their employees and their third-party intermediaries from authorizing, offering, or providing, directly or indirectly, improper payments or benefits to recipients in the public sector. These laws also require that we keep accurate books and records and maintain internal controls and compliance procedures designed to prevent any such actions. The failure to comply with any such laws could subject us to criminal or civil liability, cause us significant reputational harm, and have an adverse effect on our business, financial condition, and results of operations.

We are also subject to various anti-money laundering and counter-terrorist financing laws and regulations that prohibit, among other things, our involvement in transferring the proceeds of criminal activities. In the United States, most of our services are subject to anti-money laundering laws and regulations, including the Bank Secrecy Act, as amended, and similar laws and regulations. Regulators in the United States continue to increase their scrutiny of compliance with these obligations. For example, in August 2022, we settled an NYDFS investigation of our cryptocurrency business related primarily to anti-money laundering and cybersecurity-related issues, under which we paid a monetary penalty of $30 million and engaged an independent compliance consultant.

Although our operations are currently concentrated in the United States, we recently started expanding our operations outside of the United States. As we have started to expand internationally, we have become subject to additional non-U.S. laws, rules, regulations, and other requirements regarding economic and trade sanctions, anti-money laundering, and counter-terror financing. In order to comply with applicable laws, we have started to, and will continue to, revise and expand our compliance program, including the procedures we use to verify the identity of our customers and to monitor transactions on our system, including payments to persons outside of the United States. The need to comply with multiple sets of laws, rules, regulations, and other requirements could substantially increase our compliance costs, impair our ability to compete in international markets, and subject us to risk of criminal or civil liability for violations.

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Risks Related to Attracting, Retaining, and Engaging Customers

We operate in highly competitive markets, and many of our competitors have greater resources than we do and may have products and services that are more appealing than ours to our current or potential customers.

The markets in which we compete are evolving and highly competitive, with multiple participants competing for the same customers. 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, and technology platforms. The majority of our competitors have longer operating histories and greater capital resources than we have and offer a wider range of products and services. Some of our competitors, particularly new and emerging technology companies, are not subject to the same regulatory requirements or scrutiny to which we are subject, which could allow them to innovate more quickly or take more risks, placing us at a competitive disadvantage. The impact of competitors with superior name recognition, greater market acceptance, larger customer bases, or stronger capital positions could adversely affect our results of operations and customer acquisition and retention. Our competitors might also be able to respond more quickly to new or changing opportunities and demands and withstand changing market conditions better than we can, especially larger competitors that might benefit from more diversified product and customer bases. 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. In addition, competitors might conduct extensive promotional activities, offer better terms or offer differentiating products and services that could attract our current and prospective customers and potentially result in intensified competition within our markets. 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. In addition, our competitors might choose to forgo PFOF, which could create downward pressure on PFOF and make it more difficult for us to maintain our PFOF arrangements, which are a significant source of our revenue. We might also be subject to increased competition as our competitors enter into business combinations or partnerships, or established companies in other market segments expand to become competitive with our business.

Our ability to compete successfully in the financial services and cryptocurrency markets depends on a number of factors, including, among other things:

•maintaining competitive pricing;
•providing easy-to-use, innovative, and attractive products and services that are adopted by customers;
•retaining customers (such as by providing effective customer support and avoiding outages, security breaches, and trading restrictions);
•recruiting and retaining highly skilled personnel and senior management;
•maintaining and improving our reputation and the market perception of our brand and overall value;
•maintaining our relationships with our counterparties; and
•adjusting to a dynamic regulatory environment.
Our competitive position within our markets could be adversely affected if we are unable to adequately address these factors.

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If we fail to retain existing customers or attract new customers, or if our customers decrease their use of our products and services, our revenue will decline.

We have experienced customer growth in recent years (and significant growth in 2020 and 2021 in particular), including a significant fraction of new customers, often more than 50%, who have told us that Robinhood is their first brokerage account. Our business and revenue growth depends on our efforts to attract new customers, retain existing customers, and increase the amount that our customers use our products and services (including premium services, such as Robinhood Gold). It is particularly important that we retain and engage our most active brokerage customers, who account for a disproportionately large percentage of our brokerage trading volumes. Any erosion of this active customer base would have a disproportionately large negative impact on our revenues, which could cause the trading price of our Class A common stock to decline significantly. We have historically relied significantly on our customers joining organically or through the Robinhood Referral Program, which accounted for over 80% of the customers that joined our platforms in each of 2020, 2021, and 2022, and since 2023 we have started to increase our investment in paid marketing channels. Our efforts to attract and retain customers might fail due to a number of factors, including our customers losing confidence in us or preferring a competitor’s offerings. Additional factors that could lead to a decline in our number of customers or their usage of our products and services or that could prevent us from increasing our number of customers include:

•a decline in our brand and reputation;
•increased pricing for our products and services;
•ineffective marketing efforts or a reduction in marketing activity;
•certain of our customers, due to being new and inexperienced, might be less loyal to our product or less likely to maintain historical trading patterns and interest in investing;
•a broad decline in the equity or other financial markets, which could result in many of these investors feeling discouraged and exiting the markets altogether (such as the 2022 Bear Markets);
•rising inflation resulting in less disposable income for our customers to invest;
•our customers experiencing difficulties using the Robinhood app as intended, due to any number of reasons such as design errors, service outages, or trading restrictions imposed by us;
•our customers experiencing security or data breaches, account intrusions, or other unauthorized access;
•our failure to provide adequate customer service;
•customer resistance to and non-acceptance of cryptocurrencies; and
•customer dissatisfaction with the limited number of cryptocurrencies available on our platforms or with our ceasing support for cryptocurrencies on our RHC platform that the SEC or a court has asserted or determined are securities or our proactively removing certain cryptocurrencies from our RHC platform because they share similarities with such cryptocurrencies.
Our customers may choose to cease using our platforms, products, and services at any time, and may choose to transfer their accounts to another broker-dealer. For example, during the first quarter of 2021 many customers became upset by our imposition of the Early 2021 Trading Restrictions and we saw an increase in customers choosing to transfer their accounts to other broker-dealers. The total value of outbound ACATS, an automated industry system for account asset transfers, was $4.2 billion in the first quarter of 2021, involving 5.2% of AUC from approximately 206,000 accounts, as compared to outbound transfers of $0.5 billion, involving 1.2% of AUC from approximately 24,000 accounts during each quarter of 2020 on average.
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If we fail to provide and monetize new and innovative products and services that are adopted by customers, our business may become less competitive and our revenue might decline.

Our ability to attract, engage, and retain our customers and to increase our revenue depends heavily on our ability to evolve our existing products and services and to create and monetize new products and services that are adopted by customers. Rapid and significant technological changes continue to confront the financial services industry, including developments in the methods in which securities are traded and developments in cryptocurrencies. To keep pace or to innovate we have introduced and might continue to introduce significant changes to our existing products and services or acquire or introduce new and unproven products and services, including using technologies with which we have little or no prior development or operating experience (for instance, presidential election event contracts). Our efforts have been and might continue to be inhibited by industry-wide standards, legal restrictions, incompatible customer expectations, demands, and preferences, or third-party intellectual property rights. Our efforts to innovate have been and might continue to also be delayed or blocked by new or enhanced regulatory scrutiny or technical complications. Incorporating new technologies into our products and services has required and might continue to require substantial expenditures and take considerable time, and we might not be successful in realizing a return on these development efforts in a timely manner or at all. It might be difficult to monetize products in a manner consistent with our brand’s focus on low prices. If we fail to innovate and deliver products and services with market fit and differentiation, or fail to do so quickly enough as compared to our competitors, we might fail to attract and retain customers and maintain customer engagement, causing our revenue to decline. Our international expansion efforts may increase these risks as we expect to adapt our product and service offerings to reflect local regulatory requirements, customer preferences, and other location-specific factors, as discussed in “—Risks Related to Our Business—We recently started operating in certain international markets and plan to further expand our international operations, which exposes us to significant new risks, and our international expansion efforts might not succeed.”

Risks Related to Our Platforms, Systems, and Technology

Our products and services rely on software and systems that are highly technical and have been, and may in the future be, subject to interruption, instability, and other potential flaws due to software errors, design defects, and other processing, operational, and technological failures, whether internal or external.

We rely on technology, including the internet and mobile services, to conduct much of our business activity and allow our customers to conduct financial transactions on our platforms. Our systems and operations, including our cloud-based operations and disaster recovery operations, as well as those of the third parties on which we rely to conduct certain key functions, are vulnerable to disruptions from natural disasters, power and service outages, interruptions or losses, computer and telecommunications failures, software bugs, cybersecurity attacks, computer viruses, malware, distributed denial of service attacks, spam attacks, phishing or other social engineering, ransomware, security breaches, credential stuffing, technological failure, human error, terrorism, improper operation, unauthorized entry, data loss, intentional bad actions, and other similar events and we have experienced such disruptions in the past. Further, we have in the past and might in the future be particularly vulnerable to any such internal technology failures because we rely heavily on our own self-clearing platform, proprietary order routing system, data platforms, and other back-end infrastructure for our operations, and any such failures could have an adverse effect on our reputation, business, financial condition, and results of operations. For example, the Q4 2022 Processing Error, allowed customers, for a limited time, to execute trades selling more shares than they held in their accounts. This caused a temporary short position in that ticker symbol which Robinhood covered out of corporate cash within the same trading day, resulting in a loss of $57 million.

Our products and internal systems also rely on software that is highly technical and complex (including software developed or maintained internally and/or by third parties and also including machine
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learning models) in order to collect, store, retrieve, transmit, manage and otherwise process immense amounts of data. The software on which we rely might contain errors, bugs, vulnerabilities, design defects, or technical limitations that might compromise our ability to meet our objectives. Some such problems are inherently difficult to detect and some such problems might only be discovered after code has been released for external or internal use. Media outlets have in the past and might in the future learn of our plans for features by examining hidden but unprotected images and code in publicly available beta versions of our app, resulting in unwanted publicity prior to our intended announcement dates. For example, this occurred in September 2021 prior to our launch announcement for our crypto transfers feature (“Crypto Transfers”). Such problems might also lead to negative customer experiences (including the communication of inaccurate information to customers), compromised ability of our products to perform in a manner consistent with customer expectations, delayed product introductions, compromised ability to protect data and intellectual property, or an inability to provide some or all of our services.

While we have made, and continue to make, significant investments designed to correct software errors and design defects and to enhance the reliability and scalability of our platforms and operations, the risk of software and system failures and design defects is always present, we do not have fully redundant systems, and we might fail to maintain, expand, and upgrade our systems and infrastructure to meet future requirements and mitigate future risks on a timely basis. It might become increasingly difficult to maintain and improve the availability of our platforms, especially as our platforms and product offerings become more complex and our customer base grows. For instance, we have needed and will continue to need to have adequate capacity and infrastructure on our platform with respect to the rollout, offering, and settlement of presidential election event contracts. We might also encounter technical issues in connection with changes and upgrades to the underlying networks of supported cryptocurrencies. Any number of technical changes, software upgrades, soft or hard forks, cybersecurity incidents, or other changes to the underlying blockchain networks might occur from time to time, causing incompatibility, technical issues, disruptions or security weaknesses to our platforms. If we are unable to identify, troubleshoot, and resolve any such issues successfully, we might no longer be able to support such cryptocurrency, our customers’ assets might be frozen or lost, the security of our hot or cold wallets might be compromised, and our platforms and technical infrastructure might be affected.

In addition, surges in trading volume on our platforms have in the past and might in the future cause our systems to operate at diminished speed or even fail, temporarily or for a more prolonged period of time, which would affect our ability to process transactions and potentially result in some customers’ orders being executed at prices they did not anticipate, executed incorrectly, or not executed at all. For example, we experienced (i) the March 2020 Outages, which resulted in some of our customers being unable to buy and sell securities and other financial products on our U.S. trading platform for a period of time, and (ii) the April-May 2021 Disruptions, which resulted in some of our customers being unable to buy and sell cryptocurrencies for a period of time. Our platforms have otherwise in the past and might in the future experience outages. The March 2020 Outages resulted in putative class action lawsuits, arbitrations, and regulatory examinations and investigations. We provided remediation to many of our customers impacted by the March 2020 Outages through cash payments, resulting in out-of-pocket losses to us of approximately $3.6 million. Disruptions to, destruction of, improper access to, breach of, instability of, or failure to effectively maintain our information technology systems (including our data processing systems, self-clearing platform, and order routing system) that allow our customers to use our products and services, and any associated degradations or interruptions of service could result in damage to our reputation, loss of customers, loss of revenue, regulatory or governmental investigations, civil litigation, and liability for damages. In addition, our customer service team from time to time experiences backlogs responding to customer support requests. These backlogs have compounded when we have experienced any market outages, provider network disruptions, or platform outages or errors, including, for example, in connection with the March 2020 Outages and the April-May 2021 Disruptions, and may compound in the future as a result of such events. Frequent or persistent interruptions, or perceptions of such interruptions whether true or not, in our products and services could cause customers to believe that our products and services are unreliable, leading them to switch to our competitors or to otherwise avoid our products and services. Additionally, our insurance policies might be insufficient to cover a claim made against us by any such customers affected by any disruptions, outages, or other performance or infrastructure problems.

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Our success depends in part upon continued distribution through app stores and effective operation with mobile operating systems, networks, technologies, products, hardware and standards that we do not control.

A substantial majority of our customers’ activity on our platforms occurs on mobile devices. We are dependent on the interoperability of our app with popular mobile operating systems, networks, technologies, products, hardware, and standards that we do not control, such as the Android and iOS operating systems. Any changes, bugs or technical issues in such systems, new generations of mobile devices or new versions of operating systems, or changes in our relationships with mobile operating system providers, device manufacturers or mobile carriers, or in their terms of service or policies that degrade the functionality of our app, reduce or eliminate our ability to distribute applications, give preferential treatment to competitive products, limit our ability to target or measure the effectiveness of applications, or impose fees or other charges related to our delivery of our application could adversely affect customer usage of the Robinhood app. For example, from time to time we have experienced delays in our ability to launch products or update features on our platforms as a result of prolonged app store review processes. Further, we are subject to the standard policies and terms of service of these operating systems, as well as policies and terms of service of the various application stores that make our application and experiences available to our developers, creators and customers. These policies and terms of service govern the availability, promotion, distribution, content and operation generally of applications and experiences on such operating systems and stores. Each provider of these operating systems and stores has broad discretion to change and interpret its terms of service and policies with respect to our platforms and those changes might be unfavorable to us and our customers’ use of our platforms. If we were to violate, or an operating system provider or application store believes that we have violated, its terms of service or policies, that operating system provider or application store could limit or discontinue our access to its operating system or store. Any limitation or discontinuation of our access to any third-party platform or application store could adversely affect our business, financial condition or results of operations.

Additionally, in order to deliver a high-quality mobile experience for our customers, it is important that our products and services work well with a range of mobile technologies, products, systems, networks, hardware and standards that we do not control. We need to continuously modify, enhance, and improve our products and services to keep pace with changes in internet-related hardware, mobile operating systems and other software, communication, browser, and database technologies. We might not be successful in developing products that operate effectively with these technologies, products, systems, networks or standards or in bringing them to market quickly or cost-effectively in response to market demands. If our customers choose to not update our app to the latest version, or if it is otherwise difficult for them to access or use our app on their mobile devices, or if they use mobile products that do not offer access to our app, our customer growth and engagement could be adversely affected and our revenues might decline. In addition, if our customers use older versions of our app it may result in customer complaints and regulatory inquiries that could lead to arbitration claims or regulatory sanctions.

We rely on third parties to perform some key functions, and their failure to perform those functions could adversely affect our business, financial condition and results of operations.

We rely on certain third-party computer systems or third-party service providers, including several cloud technology providers such as Amazon Web Services (on which we primarily rely to deliver our services to customers on our platforms), internet service providers, payment services providers, market and third-party data providers, regulatory services providers, clearing systems, market makers, alternative trading systems (such as Blue Oceans ATS, LLC (“BOATS”) with respect to Robinhood 24 Hour Market), exchange systems, (such as ForecastEx, LLC, with respect to presidential election event contracts), banking systems, payment gateways that link us to the payment card and bank clearing networks to process transactions, co-location facilities, communications facilities, and other third-party facilities to run our platforms, facilitate trades by our customers, provide the technology we use to manage some of our cryptocurrency custody, transfer, and settlement operations, and support or carry out some regulatory obligations. In addition, external content providers provide us with financial information, market news,
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charts, option and stock quotes, cryptocurrency quotes, research reports, and other fundamental data that we provide to our customers. These providers are susceptible to processing, operational, technological and security vulnerabilities, including security breaches, which might impact our business, and our ability to monitor our third-party service providers’ data security is limited. In addition, these third-party service providers might rely on subcontractors to provide services to us that face similar risks.

We face a risk that our third-party service providers might be unable or unwilling to continue to provide these services to meet our current needs in an efficient, cost-effective manner or to expand their services to meet our needs in the future. Any failures by our third-party service providers that result in an interruption in service, unauthorized access, misuse, loss or destruction of data or other similar occurrences could interrupt our business, cause us to incur losses, result in decreased customer satisfaction and increase customer attrition, subject us to customer complaints, significant fines, litigation, disputes, claims, regulatory investigations or other inquiries and harm our reputation. Regulators might also hold us responsible for the failures of our providers. For example, after BOATS, the trading venue that primarily supports overnight trading on Robinhood 24 Hour Market (8:00 pm - 4:00 am ET), experienced disruptions during the overnight trading session on August 4- 5, 2024, we received requests for information from certain regulators.

We are incorporating AI technologies into some of our products and processes. These technologies may present business, compliance, and reputational risks.

We currently use machine learning and AI to improve our products and processes in certain circumstances, such as to increase the efficiency of our in-app chat support, fraud detection systems, and software coding optimization, as well as via our acquisition of Pluto Capital, an AI powered investment research platform, and have plans to continue to expand our use of AI in the future. Our research and development of such technology also remains ongoing. As with many new and emerging technologies, AI presents numerous risks and challenges that could adversely affect our business. If we fail to keep pace with rapidly evolving AI technological developments, especially in the financial technology sector, our competitive position and business results may suffer. At the same time, use of AI has recently become the source of significant media attention and political debate. The introduction and use of AI technologies, particularly generative AI, into new or existing offerings may result in new or expanded risks and liabilities, including due to enhanced governmental or regulatory scrutiny, litigation, compliance issues, ethical concerns, confidentiality or security risks, as well as other factors that could adversely affect our business, reputation, and financial results. For example, AI technologies can lead to unintended consequences, including generating content that appears correct but is factually inaccurate, misleading or otherwise flawed, or that results in unintended biases and discriminatory outcomes, which could negatively impact our customers, harm our reputation and business, and expose us to liability. Laws, regulations or industry standards that develop in response to the use of AI may be burdensome or may restrict our ability to use, develop, or deploy AI, particularly generative AI technologies, in our products or processes, or our efforts to expand our business. For example, EU’s AI Act, which became effective on August 1, 2024, governs the development, marketing and use of AI in the EU and could impose significant additional costs on us to comply or significant fines for failing to comply.
We also use AI technologies from third parties, which may include open source software. If we are unable to maintain rights to use these AI technologies on commercially reasonable terms, we may be forced to acquire or develop alternate AI technologies, which may limit or delay our ability to provide competitive offerings and may increase our costs. These AI technologies also may incorporate data from third-party sources, which may expose us to risks associated with data rights and protection. The legal and regulatory landscape surrounding AI technologies is rapidly evolving and uncertain, including with respect to intellectual property ownership and license rights, cybersecurity, and data protection laws, among others, and has not been yet fully addressed by courts or regulators. The use, development, or adoption of AI technologies into our products may result in exposure to claims by third parties of copyright infringement or other intellectual property misappropriation, which may require us to pay compensation or license fees to third parties. The evolving legal, regulatory and compliance framework for AI technologies may also impact our ability to protect our own data and intellectual property against infringing use.
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Risks Related to Cybersecurity and Data Privacy

Our business could be materially and adversely affected by a cybersecurity breach or other attack involving our computer systems or data or those of our customers or third-party or fourth-party service providers.

Our systems and those of our customers and third-party service providers have been and might in the future be vulnerable to cybersecurity issues. We, like other financial technology organizations, routinely are subject to cybersecurity threats and our technologies, systems, and networks have been and might in the future be subject to attempted cybersecurity attacks. Such issues are increasing in frequency and evolving in nature, including employee and contractor theft or misuse, denial-of-service attacks, and sophisticated nation-state and nation-state-supported actors engaging in attacks. The operation of our platforms involves the use, collection, storage, sharing, disclosure, transfer, and other processing of customer information, including personal data. Security breaches and other security incidents could expose us to a risk of loss or exposure of this information, which could result in potential liability, investigations, regulatory fines, penalties for violation of applicable laws or regulations, litigation, and remediation costs, as well as reputational harm. As the breadth and complexity of the technologies we use and the software and platforms we develop continue to grow, the potential risk of security breaches and cybersecurity attacks increases.

Cybersecurity attacks and other malicious internet-based activity continue to increase and financial technology platform providers have been and expect to continue to be targeted. In light of media attention, we might be a particularly attractive target of attacks seeking to access customer data or assets. For example, from January 1, 2020 to October 16, 2020, approximately 2,000 Robinhood customer accounts were allegedly accessed by unauthorized users. We believe these incidents resulted from compromised passwords off of our platforms, rather than any failure of our security or systems. Nonetheless, we experienced negative publicity in connection with these events and might in the future experience similar adverse effects relating to real or perceived security incidents, whether or not related to the security of our platforms or systems. We have also received customer complaints and been subject to litigation and regulatory inquiries, examinations, enforcement actions, and investigations by various state and federal regulatory bodies, including the SEC, FINRA, and certain state regulators, including the NYDFS and the New York Attorney General, related to these events. The increasing sophistication and resources of cyber criminals and other non-state threat actors and increased actions by nation-state actors make it difficult to keep up with new threats and could result in a breach of security. Additionally, there is an increased risk that we might experience cybersecurity-related incidents as a result of any of our employees, service providers, or other third-parties working remotely on less secure systems and environments. While we take significant efforts to protect our systems and data, including establishing internal processes and implementing technological measures designed to provide multiple layers of security, our safety and security measures might be insufficient to prevent damage to, or interruption or breach of, our information systems, data (including personal data), and operations. For example, we experienced the November 2021 Data Security Incident. Based on our investigation and that of a third-party security firm, we believe that the unauthorized party obtained names or email addresses for millions of people, phone numbers for several thousand people, additional personal information for a few hundred people, and extensive account details for about ten people, though we believe no Social Security numbers, bank account numbers, or credit or debit card numbers were exposed and that there has been no financial loss to any customers as a result of the incident.

Furthermore, to the extent the operation of our systems relies on our third-party service providers, through either a connection to, or an integration with, third parties’ systems, the risk of cybersecurity attacks and loss, corruption, or unauthorized access to or publication of our information or the confidential information and personal data of customers and employees might increase. Third-party risks might include insufficient security measures, data location uncertainty, and the possibility of data storage in inappropriate jurisdictions where laws or security measures might be inadequate. Our ability to monitor, and our resources to optimize integration with, third-party service providers’ data security practices are also limited. These third-party risks might be exacerbated as our resources are spread across multiple public cloud service providers. Although we generally have agreements relating to cybersecurity and data privacy in place with our third-party service providers, such agreements might not prevent the accidental
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or unauthorized access to or disclosure, loss, destruction, disablement or encryption of, use or misuse of, or modification of data (including personal data) and/or might not enable us to obtain adequate (or any) reimbursement from our third-party service providers in the event we should suffer any such incidents. For example, the massive, nearly two-year long, cybersecurity attack against SolarWinds Corp., known as the SUNBURST attack, highlights the growing risk from cybersecurity threats against trusted third-party software which can lead to thousands of customers’ data being compromised. Due to applicable laws and regulations or contractual obligations, we could be held responsible for any information security failure or cybersecurity attack attributed to our vendors as they relate to the information we share with them. A vulnerability in a third-party service provider’s software or systems, a failure of our third-party service providers’ safeguards, policies or procedures, or a breach of a third-party service provider’s software or systems could result in the compromise of the confidentiality, integrity, or availability of our systems or the data housed in our third-party solutions. Additionally, we could also be exposed to information security vulnerabilities or failures at third parties’ common suppliers or vendors (known as “fourth parties”) that could also impact the security of our data, and we may not be able to effectively directly monitor or mitigate such fourth-party risks, in particular as such risks relate to the use of common suppliers or vendors by the third parties that perform functions and services for us and our limited ability to assess the fourth party’s operational controls.

For example, in January 2023, unauthorized posts were made on our social media accounts, which were all removed within minutes. Based on a preliminary investigation, we believe the source of the incident was a compromise at a third-party vendor. In addition, in March 2022 a security breach occurred at Okta, an identity authentication provider that we utilize across our employee base. In general, an attacker with forged or compromised Okta service provider credentials could potentially have accessed several of our sensitive internal systems. Okta reports it has now corrected the issue and working with Okta, we have confirmed that such third-party vulnerability was not exploited to gain access to our systems.

A core aspect of our business is the reliability and security of our platforms. Any unauthorized access to or disclosure, loss, destruction, disablement or encryption of, use or misuse of or modification of data, including personal data, cybersecurity breach or other security incident that we, our customers or our third-party or fourth-party service providers experience or the perception that one has occurred or might occur, could harm our reputation, reduce the demand for our products and services and disrupt normal business operations. In addition, it might require us to expend significant financial and operational resources in response to a security breach, including repairing system damage, increasing security protection costs by deploying additional personnel and modifying or enhancing our protection technologies, investigating, remediating, or correcting the breach and any security vulnerabilities, defending against and resolving legal and regulatory claims, and preventing future security breaches and incidents, all of which could expose us to uninsured liability, increase our risk of regulatory scrutiny, expose us to legal liabilities, including litigation, regulatory enforcement, indemnity obligations, or damages for contract breach, divert resources and the attention of our management and key personnel away from our business operations, and cause us to incur significant costs, any of which could materially adversely affect our business, financial condition, and results of operations. Moreover, our efforts to improve security and protect data from compromise might identify previously undiscovered security breaches. There could be public announcements regarding any security incidents and any steps we take to respond to or remediate such incidents, and if securities analysts or investors perceive these announcements to be negative, it could have an adverse effect on the trading price of our Class A common stock.

We are subject to stringent laws, rules, regulations, policies, industry standards and contractual obligations regarding data privacy and security and might become subject to additional related laws and regulations in jurisdictions into which we expand. Many of these laws and regulations are subject to change and reinterpretation and could result in claims, changes to our business practices, monetary penalties, increased cost of operations, or other harm to our business.

We are subject to a variety of federal, state, local, and non-U.S. laws, directives, rules, policies, industry standards and regulations, as well as contractual obligations, relating to privacy and the
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collection, protection, use, retention, security, disclosure, transfer and other processing of personal data and other data, including the Gramm-Leach-Bliley Act of 1999, Section 5(c) of the Federal Trade Commission Act and state laws such as the California Consumer Privacy Act, which provides consumers with the right to know what personal data is being collected, know whether their personal data is sold or disclosed and to whom and opt out of the sale of their personal data, among other rights. We also face particular privacy, data security and data protection risks in connection with our expansion into the U.K. and the EU and other jurisdictions in connection with the General Data Protection Regulation, the ePrivacy Directive (including its national implementations), and other data protection regulations. The regulatory framework for data privacy and security worldwide is continuously evolving and developing and, as a result, interpretation and implementation standards and enforcement practices are likely to remain uncertain for the foreseeable future. New laws, amendments to or reinterpretations of existing laws, regulations, standards and other obligations might require us to incur additional costs and restrict our business operations, and might require us to change how we use, collect, store, transfer or otherwise process certain types of personal data, to implement new processes to comply with those laws and our customers’ exercise of their rights thereunder, and could greatly increase the cost of providing our offerings, require significant changes to our operations, or even prevent us from providing some offerings in jurisdictions in which we currently operate and in which we might operate in the future or incur potential liability in an effort to comply with certain legislation. There is a risk of enforcement actions in response to rules and regulations promulgated under the authority of federal agencies and state attorneys general and legislatures and consumer protection agencies. For instance, we have in the past (as discussed in Note 14 - Commitments & Contingencies, to our unaudited condensed consolidated financial statements in this Quarterly Report) and may in the future be subject to investigations and examinations by the NYDFS regarding, among other things, our cybersecurity practices. In addition, if we fail to follow these security standards, even if no customer information is compromised, we might incur significant fines or experience a significant increase in costs. Following the November 2021 Data Security Incident, we have received requests for information from FINRA examination staff, the SEC Division of Enforcement, and other regulatory authorities regarding, among other things, the adequacy of our information security measures.

Any failure or perceived failure by us or our third-party service providers to comply with our posted privacy policies or with any applicable federal, state or similar foreign laws, rules, regulations, industry standards, policies, certifications or orders relating to data privacy and security, or any compromise of security that results in the theft, unauthorized access, acquisition, use, disclosure, or misappropriation of personal data or other customer data, could result in significant awards, fines, civil and/or criminal penalties or judgments, proceedings or litigation by governmental agencies or customers, including class action privacy litigation in certain jurisdictions and negative publicity and reputational harm, one or all of which could have an adverse effect on our reputation, business, financial condition and results of operations.

Risks Related to Our Brokerage Products and Services

If we do not maintain the net capital levels required by regulators, our broker-dealer business may be restricted and we may be fined or subject to other disciplinary or corrective actions.

The SEC, FINRA, and various state regulators have stringent rules or proposed rules with respect to the maintenance of specific levels of net capital by securities broker-dealers. For example, our broker-dealer subsidiaries are each subject to the SEC Uniform Net Capital Rule, which specifies minimum capital requirements intended to ensure the general financial soundness and liquidity of broker-dealers, and our clearing and carrying broker-dealer subsidiary is subject to Rule 15c3-3 under the Exchange Act, which requires broker-dealers to maintain liquidity reserves. Our failure to maintain the required net capital levels could result in immediate suspension of securities activities, suspension or expulsion by the SEC or FINRA, restrictions on our ability to expand our existing business or to commence new businesses, and could ultimately lead to the liquidation of our broker-dealer entities and winding down of our broker-dealer business. If such net capital rules are changed or expanded (for instance, the SEC has
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proposed amendments to Rule 15c3-3 as discussed above), if there is an unusually large charge against net capital, or if we make changes in our business operations that increase our capital requirements, operations that require an intensive use of capital could be limited. A large operating loss or charge against net capital could have adverse effects on our ability to maintain or expand our business.

Our compliance and risk management policies and procedures as a regulated financial services company might not be fully effective in identifying or mitigating compliance and risk exposure in all market environments or against all types of risk.

As a financial services company, our business exposes us to a number of heightened risks. We have devoted significant resources to develop our compliance and risk management policies and procedures and will continue to do so, but our efforts might be insufficient. Our limited operating experience at our current scale, evolving business, and unpredictable periods of rapid growth make it difficult to predict all of the risks and challenges we might encounter and therefore increase the risk that our policies and procedures for identifying, monitoring, and managing compliance risks might not be fully effective in mitigating our exposure in all market environments or against all types of risk. Further, some controls are manual and are subject to inherent limitations and errors in oversight, which could cause our compliance and other risk management strategies to be ineffective. Other compliance and risk management methods depend upon the evaluation of information regarding markets, customers, catastrophe occurrences, or other matters that are publicly available or otherwise accessible to us, which might not always be accurate, complete, up-to-date, or properly evaluated. Insurance and other traditional risk-shifting tools might be held by or available to us in order to manage some exposures, but they are subject to terms such as deductibles, coinsurance, limits, and policy exclusions, as well as risk of counterparty denial of coverage, default, or insolvency. Any failure to maintain effective compliance and other risk management strategies could have an adverse effect on our business, financial condition, and results of operations.

We are also exposed to heightened regulatory risk because our business is subject to extensive regulation and oversight in a variety of areas and geographies, and such regulations are subject to revision, supplementation, or evolving interpretations and application, and it can be difficult to predict how they might be applied to our business, particularly as we introduce new products and services and expand into new jurisdictions. For example, in December 2022, RHF and RHS received investigative requests from the SEC Division of Enforcement regarding their record keeping and preservation practices, including use of personal devices for brokerage communications.

We are subject to potential losses as a result of our clearing and execution activities.

We provide clearing and execution services for our securities brokerage business. Clearing and execution services include the confirmation, receipt, settlement and delivery functions involved in securities transactions. Clearing brokers also assume direct responsibility for the possession or control of customer securities and other assets, the clearing of customer securities transactions and lending money to customers on margin. Self-clearing securities firms are subject to substantially more regulatory control and examination than introducing brokers that rely on others to perform clearing functions. Errors in performing clearing functions, including clerical and other errors related to the handling of funds and securities on behalf of customers, could lead to (i) civil penalties, as well as losses and liability as a result of related lawsuits brought by customers and others and any out-of-pocket costs associated with remediating customers for losses, and (ii) the risk of fines or other actions by regulators. For example, the Q4 2022 Processing Error resulted in a $57 million loss and we have received requests for information from FINRA staff related to this matter.

All customers can place limit orders to buy whole shares of the most traded exchange-traded funds (“ETFs”) and individual stocks – 24 hours a day, five days a week, through Robinhood 24 Hour Market. Offering U.S. stock trading overnight has heightened risks related to our clearing and execution activities as we do not have previous experience operating or staffing our systems for around-the-clock coverage and may not be able to accurately anticipate the volume of trading activity that will occur outside of regular market hours. Overnight trading on Robinhood 24 Hour Market is primarily supported by BOATS,
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a trading venue that replicates the role that stock exchanges play during regular market hours. If BOATS becomes unwilling or unable to do business with us or one of our market makers in the future, we may be unable to find another trading platform to support Robinhood 24 Hour Market, which could negatively impact our transaction-based revenue and generate negative publicity. Additionally, any disruptions in the services provided by BOATS, whether due to technical malfunctions, operational mishaps, or external factors such as regulatory changes or market volatility, have in the past, and may in the future impair our ability to execute our client's orders. Should BOATS experience downtime or diminished performance (as it has in the past and could again in the future), particularly during overnight trading hours, our ability to execute customer orders through Robinhood 24 Hour Market could be compromised and could have an adverse impact on our business, financial condition, results of operations, and/or brand and reputation. For example, on August 5, 2024, BOATS did not open for overnight trading and as a result, Robinhood customers were unable to execute any trades during that overnight session.

Additionally, the SEC finalized rules in February 2023 to shorten the standard settlement cycle for most broker-dealer transactions in securities from two business days after the trade (T+2) to one (T+1), which became effective on May 28, 2024. The shortening of the settlement cycle has led to a reduction in the length of exposure to trading counterparties and lower margin requirements for our clearing operations, but it has also required technological, operational, and compliance adjustments across the industry that have been and are likely to continue to be time consuming and costly for all market participants and which has increased and could continue to increase the risk of operational errors, any of which could be material in light of the magnitude and volume of our settlement-related activities and obligations.

Our clearing operations also require a commitment of our capital and, despite safeguards implemented through both manual and automated controls, involve risks of losses due to the potential failure of our customers or counterparties to perform their obligations under these transactions and margin loans. If our customers default on their obligations, including failing to pay for securities purchased, deliver securities sold, or meet margin calls, we remain financially liable for such obligations, and although these obligations are collateralized, we are subject to market risk in the liquidation of customer collateral to satisfy those obligations. While we have established systems and processes designed to manage risks related to our clearing and execution services, we face a risk that such systems and processes might be inadequate. Any liability arising from clearing and margin operations could have an adverse effect on our business, financial condition and results of operations.

In addition, as a clearing member firm of securities and derivatives clearinghouses in the United States, we are also exposed to clearing member credit risk. Securities and derivatives clearinghouses require member firms to deposit cash, stock and/or government securities for margin requirements and for clearing funds. If a clearing member defaults in its obligations to the clearinghouse in an amount larger than its own margin and clearing fund deposits, the shortfall is absorbed pro rata from the deposits of the other clearing members. Many clearinghouses of which we are members also have the authority to assess their members for additional funds if the clearing fund is depleted. A large clearing member default could result in a substantial cost to us if we are required to pay such assessments. Furthermore, in the event that a significant amount of our customers’ open trades fail to settle, we might be exposed to potential loss of the capital we committed to meet our deposit requirements.

Our exposure to credit risk with customers, market makers, and other counterparties could result in losses.

We extend margin credit and leverage to customers, which are collateralized by customer securities. By permitting customers to purchase securities on margin, we are subject to risks inherent in extending credit, especially during periods of rapidly declining markets (including rapid declines in the trading price of individual securities) in which the value of the collateral held by us could fall below the amount of a customer’s indebtedness. We also lend and borrow securities in connection with our broker-dealer business. In accordance with regulatory guidelines, we hold cash as collateral when we lend securities, and likewise, we collateralize our borrowings of securities by depositing cash with lenders. Sharp changes
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in market values of substantial amounts of securities in a short period of time and the failure by parties to the lending or borrowing transactions to honor their commitments could result in substantial losses. Such changes could also adversely impact our capital because our clearing operations require a commitment of our capital and, despite safeguards implemented by our software, involve risks of losses due to the potential failure of our customers to perform their obligations under these transactions and margin loans.

We are also exposed to credit risk in our dealings with the market makers to which we route cryptocurrency orders. Unlike equities and option trades, cryptocurrency trades do not settle through any central clearinghouses but rather are conducted under bilateral agreements between us and each crypto market maker. (The risk of the market maker's default therefore falls upon us rather than being distributed among a clearinghouse's members.) The terms of these bilateral agreements vary but spot transactions are generally aggregated and settled on a net basis once per business day (with the crypto deliveries occurring first and the net cash moving within 24 hours thereafter) and payment obligations are generally unsecured during the interval between delivery and payment. It is not uncommon for us to have an intra-day outstanding net receivable of $100 million that we are owed by any one cryptocurrency market maker. Similarly, we routinely have unsecured PFOF receivables from equities and options market makers. Any payment default by a market maker could have adverse effects on our financial condition and results of operations.

We have policies and procedures designed to manage credit risk, but we face a risk that such policies and procedures might not be fully effective.

Providing investment recommendations could subject us to investigations, penalties, and liability for customer losses if we fail to comply with applicable regulatory standards, and providing investment education tools could subject us to additional risks if such tools are construed to be investment advice or recommendations.

Risks associated with providing investment recommendations include those arising from how we disclose and address possible conflicts of interest, inadequate due diligence, inadequate disclosure, and human error. Regulations, such as the SEC’s Regulation Best Interest and certain state broker-dealer regulations, impose heightened conduct standards and requirements on recommendations to retail investors. For example, in September 2023, the North American Securities Association (“NASAA”) (an association of state securities administrators) proposed revisions to the NASAA model rule regarding Dishonest or Unethical Business Practices of Broker-Dealers and Agents, which are intended to address Regulation Best Interest and other developments in the securities industry. In addition, various states are considering potential regulations or have already adopted certain regulations that could impose additional standards of conduct or other obligations on us to the extent we provide investment advice or recommendations to our customers. The SEC’s July 2023 Rule Proposals, if adopted as originally proposed, would impose new requirements with respect to our use of a wide range of covered technologies when we are engaging or communicating with existing and prospective customers. If adopted as originally proposed, the proposals may require us to modify, limit or discontinue our use of certain technologies and product features—and would introduce new regulatory considerations or requirements that would apply to our communications and interactions with existing and prospective customers, including to the extent we provide investment advice or recommendations to them.

We also provide customers with a variety of educational materials, investment tools, and financial news and information, such as our “Snacks” newsletter (which is offered by Sherwood Media), the suite of other editorial offerings that Sherwood Media has launched and will continue to launch, and the Robinhood Investment Index. Additionally, Robinhood Gold members have access to stock research reports prepared by our third-party collaborator, Morningstar, Inc. and Level II market data from Nasdaq. Based on current law and regulations, we believe these services do not constitute investment advice or investment recommendations. If the law were to change or if a court or regulator were to interpret current law and regulations in a novel manner, we face a risk that these services could come to be considered as investment advice.

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If services that we do not consider to be recommendations (such as educational materials, and our editorial offerings, including Snacks) are construed as constituting investment advice or recommendations, we have been and could be in the future subject to investigations by regulatory agencies. For example, in December 2020, the Enforcement Section of MSD filed a complaint against us alleging that a fiduciary conduct standard applies to us under Massachusetts securities law by claiming that certain of our product features and marketing strategies amount to investment recommendations. See Note 14 - Commitments & Contingencies, to our unaudited condensed consolidated financial statements in this Quarterly Report for more information. Changes in law or changes in interpretations of existing law might also require us to modify the nature of these services or discontinue them altogether, one or more of which could have an adverse effect on our ability to attract and retain customers.

To the extent our investment education tools, news and information, or digital engagement practices are determined to constitute investment advice or recommendations and to the extent those recommendations fail to satisfy regulatory requirements, or we fail to know our customers, or improperly advise our customers, or if risks associated with advisory services otherwise materialize, we could be found liable for losses suffered by such customers, or could be subject to regulatory fines, penalties, and other actions such as business limitations, any of which could harm our reputation and business.

Risks Related to Cryptocurrency Products and Services

The loss, destruction or unauthorized use or access of a private key required to access any of the cryptocurrencies we hold on behalf of customers could result in irreversible loss of such cryptocurrencies. If we are unable to access the private keys or if we experience a hack or other data loss relating to the cryptocurrencies we hold on behalf of customers, our customers might be unable to trade their cryptocurrency, our reputation and business could be harmed, and we might be liable for losses in excess of our ability to pay.

As we expand our cryptocurrency product and service offerings, the risks associated with failing to safeguard and manage cryptocurrencies we hold on behalf of our customers increase. Our success and the success of our offerings requires significant public confidence in our ability to properly manage customers’ balances and handle large transaction volumes and amounts of customer funds. Any failure by us to maintain the necessary controls or to manage the cryptocurrencies we hold on behalf of our customers and funds appropriately and in compliance with applicable regulatory requirements could result in reputational harm, significant financial losses, lead customers to discontinue or reduce their use of our services, and result in significant penalties and fines and additional restrictions.

We hold all settled cryptocurrencies in custody on behalf of customers in two types of wallets: (i) hot wallets, which are managed online, and (ii) cold wallets, which are managed entirely offline and require physical access controls. We do not utilize third-party custodians for settled cryptocurrencies, but we do utilize technology from a third-party provider to manage some of our cryptocurrency, custody, transfer, and settlement operations. In general, the overwhelming majority of cryptocurrency coins on our platforms are held in cold storage, though some coins are held in hot wallets to support day-to-day operations. As a public company, we are required to comply with the Sarbanes–Oxley Act of 2002. As part of this, we are required to establish and maintain adequate internal control over financial reporting and evaluate the effectiveness of our internal control over financial reporting. This includes the user cryptocurrencies safeguarding obligation and the asset related to user cryptocurrencies safeguarding obligation on our consolidated balance sheets in our audited financial statements which represents our obligation to safeguard crypto-assets held in our custody on behalf of our users. The effectiveness of our internal control over financial reporting and our financial statements and related notes are audited by Ernst & Young LLP, our independent registered public accounting firm. Under blockchain protocol, in order to access or transfer cryptocurrency stored in a wallet, we need to use a private key. We maintain backup copies of our private keys in multiple separate locations and we have several layers of cybersecurity defense in place to protect our omnibus wallets. However, to the extent any private keys are lost, destroyed, unable to be accessed by us, or otherwise compromised and all of their backups are lost, we will be unable to access the assets held in the related hot or cold wallet. Further, we cannot provide
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assurance that any or all of our wallets will not be hacked or compromised such that cryptocurrencies are sent to one or more private addresses that we do not control, which could result in the loss of some or all of the cryptocurrencies that we hold in custody on behalf of customers. Any such losses could be significant, and we may not be able to obtain insurance coverage for some or all of those losses. Cryptocurrencies and blockchain technologies have been, and might in the future be, subject to security breaches, hacking, or other malicious activities. For example, in August 2021, hackers were able to momentarily take over the Bitcoin SV (“BSV”) network, allowing them to spend coins they did not have and prevent transactions from completing. Any loss of private keys relating to, or hack or other compromise of, the hot wallets or cold wallets we use to store our customers’ cryptocurrencies could result in total loss of customers’ cryptocurrencies (because customers’ cryptocurrency balances and cryptocurrency investments are not protected by the Securities Investor Protection Corporation (the “SIPC”)) or adversely affect our customers’ ability to sell their assets, and could result in our being required to reimburse customers for some or all of their losses, subjecting us to significant financial losses. Because many insurance carriers do not provide insurance coverage for crypto-related risks, comprehensive coverage for such events is not readily available on commercially reasonable terms. Our current coverage is limited and may not cover the extent of loss, nor the nature of such loss, in which case we may be liable for the full amount of losses suffered, which could be greater than all of our remaining assets. The total value of cryptocurrencies under our control on behalf of customers is significantly greater than the current total value of insurance coverage that would compensate us in the event of theft or other loss of such assets. Furthermore, the term of our current insurance policy expires in the third quarter of 2024, with our option to renew annually or for the carrier to terminate coverage with advance written notice. Any loss of our insurance coverage would impede our ability to mitigate any losses our customers might suffer if we are unable to access private keys. Additionally, any such security compromises or any business continuity issues affecting our cryptocurrency market makers might affect the ability or willingness of our customers to trade or hold cryptocurrencies on our platforms, might result in litigation and regulatory enforcement actions, and could harm customer trust in us and our products generally.

The prices of most cryptocurrencies are extremely volatile. Fluctuations in the price of various cryptocurrencies might cause uncertainty in the market and could negatively impact trading volumes of cryptocurrencies, and we may not effectively identify, prevent or mitigate cryptocurrency market risks, any of which would adversely affect the success of our business, financial condition and results of operations.

The prices of most cryptocurrencies are based in part on market adoption and future expectations, which might or might not be realized. As a result, the prices of cryptocurrencies are highly speculative. The prices of cryptocurrencies have been subject to dramatic fluctuations (including as a result of the 2022 Bear Markets), which have impacted, and will continue to impact, our trading volumes and operating results and might adversely impact our growth strategy and business. Several factors could affect a cryptocurrency’s price, including, but not limited to:

•Global cryptocurrency supply, including various alternative currencies which exist, and global cryptocurrency demand, which can be influenced by the growth or decline of retail merchants’ and commercial businesses’ acceptance of cryptocurrencies as payment for goods and services, the security of online cryptocurrency exchanges and digital wallets that hold cryptocurrencies, the perception that the use and holding of digital currencies is safe and secure, and regulatory restrictions on their use.
•Changes in the software, software requirements or hardware requirements underlying a blockchain network, such as a fork. Forks have occurred and are likely to occur again in the future and could result in a sustained decline in the market price of cryptocurrencies.
•Changes in the rights, obligations, incentives, or rewards for the various participants in a blockchain network.
•The maintenance and development of the software protocol of cryptocurrencies.
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•Cryptocurrency exchanges’ deposit and withdrawal policies and practices, liquidity on such exchanges and interruptions in service from or failures of such exchanges. For example, in connection with the 2022 Crypto Bankruptcies, the prices of coins such as Bitcoin, Ethereum, and Solana significantly decreased.
•Regulatory measures, if any, that affect the use and value of cryptocurrencies or regulatory or judicial assertions or determinations that certain cryptocurrencies are securities.
•Competition for and among various cryptocurrencies that exist and market preferences and expectations with respect to adoption of individual currencies.
•Actual or perceived manipulation of the markets for cryptocurrencies.
•Actual or perceived connections between cryptocurrencies (and related activities such as mining) and adverse environmental effects or illegal activities.
•Social media posts and other public communications by high-profile individuals relating to specific cryptocurrencies, or listing or other business decisions by cryptocurrency companies relating to specific cryptocurrencies.
•Expectations with respect to the rate of inflation in the economy, monetary policies of governments, trade restrictions, and currency devaluations and revaluations.
While we have observed a positive trend in the total market capitalization of cryptocurrency assets over the long term, driven by increased adoption of cryptocurrency trading by both retail and institutional investors as well as continued growth of various non-investing use cases, historical trends are not indicative of future adoption, and it is possible that the rate of adoption of cryptocurrencies might slow or decline, which would negatively impact our business, financial condition, and results of operations.

While we currently support several cryptocurrencies for trading, market interest in particular cryptocurrencies can also be volatile and there are many cryptocurrencies in the market that we do not support. For example we support trading in Dogecoin and we benefited from a surge in interest for Dogecoin during the second quarter of 2021. For the first, second, and third quarters of 2021, transaction-based revenue attributable to transactions in Dogecoin generated approximately 7%, 32%, and 8% of our total net revenues, respectively. Our business could be adversely affected, and growth in our net revenue earned from cryptocurrency transactions could slow or decline, if the markets for the cryptocurrencies we support deteriorate or if demand moves to other cryptocurrencies not supported by our platforms. The listing committees of RHC and RHEC conduct regular reviews of the cryptocurrencies available on our platforms to ensure that they continue to meet our requirements under our internal policies and procedures (collectively, the “Crypto Listing Frameworks”) for continued support on our platforms and possess the authority to delist and cease support for any asset based on various factors. Ceasing support for a cryptocurrency with substantial market interest (or if our consideration to cease supporting such a cryptocurrency becomes known) has in the past exposed, and may continue to expose us to negative attention, adversely impacting our business, including revenue loss from no longer supporting a cryptocurrency or customer reaction to such a decision. For instance, in the past we have encountered an influx of customer complaints related to our decisions to cease support for certain cryptocurrencies.

Volatility in the values of cryptocurrencies caused by the factors described above or other factors might impact our regulatory net worth requirements as well as the demand for our services and therefore have an adverse effect on our business, financial condition and results of operations.

Although the 2022 Crypto Bankruptcies did not have any material impact on our business—and neither our board of directors nor management have to date identified any material gaps or weaknesses with respect to our existing risk management processes and policies in light of recent cryptocurrency market conditions—we remain subject to cryptocurrency market risks. If we are unable to effectively identify, prevent or mitigate such risks, the success of our business, our financial condition and results of
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our operations may be adversely affected. As part of our overall risk management processes, our management Enterprise Risk Committee, which comprises senior leaders of the Company, including the CEO, CFO, Chief Legal, Compliance and Corporate Affairs Officer Chief Security Officer, Vice President of Risk and Audit, and Chief Brokerage Officer and General Manager of Brokerage, among others, reviews on at least a quarterly basis risks that are escalated by the Company’s Enterprise Risk Management (“ERM”) function. ERM maintains a risk taxonomy and a scoring methodology design to ensure risks are evaluated in a clear and transparent manner, and further escalates top risks to the Safety, Risk and Regulatory Committee of the board of directors (the “Safety Committee”), along with planned mitigants and monitoring procedures. The Safety Committee reviews management’s procedures to identify, assess, manage, monitor and mitigate material risks not allocated to the board of directors or another committee. In addition to RHM-level processes, entity-level risk teams affiliated with our operating subsidiaries, including one at RHC, perform ongoing risk operations, including risk and control self-assessments and maintaining risk and control registers. As management identifies operational risks, the entity-level risk team tracks the risk drivers and planned mitigating measures and escalates such risks, as needed, to ERM.

In light of events in 2022, including the 2022 Crypto Bankruptcies, cryptocurrency market risks were identified as a top risk to the Company and management has accordingly implemented certain measures, including enhanced monitoring for cryptocurrency markets (such as reducing net open position limits with liquidity partners through more frequent settlement; adding additional banking and liquidity partners; monitoring on-platform trading activity, coin deposits and withdrawals; and ongoing diligence for listings and banking relationships). ERM has also provided quarterly updates to the Safety Committee with respect to such risks and responses. In addition, RHC and RHEC maintain listing committees as described above.

In the United States, any particular cryptocurrency’s status as a “security” is subject to a high degree of uncertainty and if we have not properly characterized one or more cryptocurrencies, we might be subject to regulatory scrutiny, investigations, fines, and other penalties.

We currently facilitate customer trades for certain cryptocurrencies that we have analyzed under applicable internal policies and procedures and, for cryptocurrencies supported on our the RHC platform, that we believe are not securities under U.S. federal and state securities laws. Determining whether any given cryptocurrency is a security is a highly complex, fact-driven analysis, the outcome of which is difficult to predict and may evolve over time based on changes in the cryptocurrency and its related ecosystem. Different parties may reach different conclusions about the outcome of this analysis based on the same facts. The analysis may become clearer depending on the outcome in certain cases currently pending in varying stages of litigation. The SEC Staff has indicated that the determination of whether or not a cryptocurrency is a security depends on the characteristics and use of that particular asset. The SEC and the SEC Staff have taken positions that certain cryptocurrencies are “securities” in the context of settled or litigated enforcement actions – and we do not currently support any cryptocurrencies in the U.S. for which the SEC or the SEC Staff has taken such a position. Otherwise, the SEC has not historically provided advance confirmation on the status of any particular cryptocurrency as a security. While prior public statements by senior officials at the SEC indicated that the SEC does not intend to take the position that Bitcoin or Ethereum are securities (in their current forms), Bitcoin and Ethereum were the only specific cryptocurrencies as to which senior officials at the SEC had publicly expressed such a view. Moreover, such statements are not official policy statements by the SEC and reflect only the speakers’ views, which are not binding on the SEC or any other agency or court, cannot be generalized to any other cryptocurrency, and might evolve. For example, Chair Gensler was quoted in a February 2023 interview as saying “[e]verything other than Bitcoin” when discussing the SEC’s purview with respect to cryptocurrency and in April 2023 declined to provide his view when asked if he considered Ethereum to be a security during his testimony to the U.S. House of Representatives Financial Services Committee. In May 2024, however, the SEC approved the listing and trading of ETFs whose assets include Ethereum on SEC-regulated exchanges; some view this approval as an implicit acknowledgement by the SEC that Ethereum is not necessarily a security. Similarly, although the SEC’s Strategic Hub for Innovation and Financial Technology published a framework for analyzing whether any given cryptocurrency is a security in April 2019, this framework is also not a rule, regulation, or statement of the SEC and is not binding on
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the SEC. With respect to all other cryptocurrencies, there is currently no certainty under the applicable legal test that such assets are not securities, and U.S. regulators have expressed concerns about cryptocurrency platforms adding multiple new coins, some of which the regulators question might be unregistered securities. Chair Gensler has made numerous statements (including in testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs and the U.S. House of Representatives Committee on Financial Services) indicating that he believes most tokens in the crypto market are securities. Although our policies and procedures are intended to enable us to make risk-based assessments regarding the likelihood that a particular cryptocurrency could be deemed a security under applicable laws, including federal securities laws, our assessments are not definitive legal determinations as to whether a particular digital asset is a security under such laws. Accordingly, regardless of our conclusions, we could be subject to legal or regulatory action in the event the SEC or a court were to assert or determine that a cryptocurrency supported by our RHC platform is a “security” under U.S. law. In July 2022, the SEC filed an insider trading case against, among others, an employee of one of our competitors in which the complaint alleged that certain cryptocurrencies (none of which we currently support) were securities under the Securities Act and the Exchange Act. Additionally, in June 2023, the SEC charged Binance Holdings Ltd., and its affiliated U.S. entity, among others (collectively, “Binance”) and, separately, Coinbase Global, Inc., and Coinbase, Inc. (collectively, “Coinbase”) with operating their respective cryptocurrency trading platforms as unregistered national securities exchanges, brokers, and clearing agencies, also alleging that certain cryptocurrencies supported on their respective platforms are securities, including Cardano, Polygon, and Solana, which were supported on our RHC platform. The charges also implicated Coinbase’s staking-as-a-service program and its non-custodial wallet. Although we have since ceased support for Cardano, Polygon, and Solana, we do offer the Robinhood Wallet, which is a self-custodial crypto wallet. While the SEC’s September 2024 memorandum of law in support of motion for leave to amend the complaint against Binance states that the SEC’s prior use of “crypto asset securities” when referring to cryptocurrency assets did not mean that the SEC was referring to the “crypto asset itself as the security” but that the cryptocurrencies at issue were offered and sold as investment contracts (and therefore are securities), the SEC’s approach going forward remains unclear in light of this memorandum of law in support of motion for leave to amend the complaint as well as the August 2024 decision in the SEC’s case against Payward, Inc. and Payward Ventures, Inc. that the cryptocurrencies at issue were not themselves securities but were offered as, or sold as, investment contracts (and therefore were securities). The outcome of these matters and decisions by regulators not to bring enforcement actions provides, and any other action, settlement, or related investigation by regulators, might provide, additional guidance on the legal status of cryptocurrencies as securities more generally, which has affected and might significantly affect the actual or perceived regulatory status and value of cryptocurrencies we currently support or might support in the future. From time to time, we also have received, and might in the future receive SEC inquiries regarding specific cryptocurrencies supported on our RHC platform and added features and since December 2022, following the 2022 Crypto Bankruptcies, we have received investigative subpoenas from the SEC regarding, among other topics, RHC’s supported cryptocurrencies, custody of cryptocurrencies, and platform operations. During our discussions with the SEC Staff in the fourth quarter of 2023, the Staff asserted that they are considering whether, and may recommend that the SEC find that, certain cryptocurrencies supported by our RHC platform are securities, and in the second quarter of 2024, we received the May 2024 Wells Notice. The potential action related to the May 2024 Wells Notice may involve a civil injunctive action, public administrative proceeding, and/or a cease-and-desist proceeding and may seek remedies that include an injunction, a cease-and-desist order, disgorgement, pre-judgment interest, civil money penalties, and censure, revocation, and limitations on activities.

To the extent that the SEC or a court asserts or determines that any cryptocurrencies supported by our RHC platform are securities, that assertion or determination could prevent us from continuing to facilitate trading of those cryptocurrencies (including ceasing support for such cryptocurrencies on our RHC platform). It could also result in regulatory enforcement penalties and financial losses in the event that we have liability to our customers and need to compensate them for any losses or damages. We could be subject to judicial or administrative sanctions, including disgorgement or penalties which could be material, for failing to offer or sell the cryptocurrency in compliance with securities registration requirements, or for acting as a securities broker or dealer, national securities exchange, clearing agency, or other regulated entity without appropriate registration. Such an action could result in injunctions and cease and desist orders, as well as civil monetary penalties, fines, and disgorgement, criminal liability,
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and reputational harm. Customers that traded such supported cryptocurrency through our RHC platform and suffered trading losses might also seek to rescind transactions that we facilitated on the basis that they were conducted in violation of applicable law, which could subject us to significant liability and losses. We might also be required to cease facilitating transactions in the supported cryptocurrency, which could negatively impact our business, operating results, and financial condition. Further, if Bitcoin, Ethereum, or any other supported cryptocurrency is deemed to be a security, it might have adverse consequences for such supported cryptocurrency. For instance, all transactions in such supported cryptocurrency would have to be registered with the SEC or other foreign authority, or conducted in accordance with an exemption from registration, which could severely limit its liquidity, usability, and transactability. Moreover, the networks on which such supported cryptocurrencies are used might be required to be regulated as securities intermediaries, and subject to applicable rules, which could effectively render the network impracticable for its existing purposes. In particular, Chair Gensler noted in his April 2023 testimony that “Given that most crypto tokens are securities, it follows that many crypto intermediaries are transacting in securities and have to register with the SEC” and that crypto investors should benefit from compliance with the securities laws. In April 2023, the SEC also reopened the comment period and provided supplemental information on proposed amendments to the definition of “exchange” under Exchange Act Rule 3b-16, including reiterating the applicability of existing rules to platforms that trade crypto asset securities. Additionally, any determination that Bitcoin or Ethereum is a security could draw negative publicity and cause a decline in the general acceptance of cryptocurrencies. Also, it would make it more difficult for Bitcoin or Ethereum, as applicable, to be traded, cleared, and custodied as compared to other cryptocurrencies that are not considered to be securities. In addition, our growth might be adversely affected if we are not able to expand our RHC platform to include additional cryptocurrencies that the SEC has determined to be securities or that we believe are likely to be determined to be securities.

We continue to analyze the cryptocurrencies supported on the RHC platform under our internal policies and procedures (collectively, our “RHC Crypto Listing Framework”) on a periodic basis to ensure that they continue to meet our requirements for continued support on the RHC platform which include, among other factors, that we continue to believe they are not securities under U.S. federal and state securities laws. We may make the determination to cease support for a cryptocurrency for any one or a variety of factors based on a totality of the circumstances under our RHC Crypto Listing Framework. However, an assertion or determination by the SEC or a court that a cryptocurrency supported by our RHC platform constitutes a security could also result in our determination that it is advisable to remove that and other cryptocurrencies from our RHC platform that have similar characteristics to the cryptocurrency that was asserted or determined to be a security. If we proactively remove certain cryptocurrencies from our RHC platform because the SEC or a court has asserted or determined they constitute securities or because they share similarities with such cryptocurrencies or otherwise do not meet our RHC Crypto Listing Framework, it has (for instance, with respect to Cardano, Polygon, and Solana) and could in the future negatively impact customer sentiment and our business, operating results, and financial condition, especially to the extent that our competitors continue to support such cryptocurrency on their platforms.

Cryptocurrency laws, regulations, and accounting standards are often difficult to interpret and are rapidly evolving in ways that are difficult to predict. Changes in these laws and regulations, or our failure to comply with them, could negatively impact cryptocurrency trading on our platforms.

Domestic and foreign regulators and governments are increasingly focused on the regulation of cryptocurrencies. In the United States, cryptocurrencies are regulated by both federal and state authorities, depending on the context of their usage. Cryptocurrency market disruptions and resulting governmental interventions are unpredictable, and might make cryptocurrencies, or certain cryptocurrency business activities, illegal altogether. As regulation of cryptocurrencies continues to evolve, there is a substantial risk of inconsistent regulatory guidance among federal and state agencies and among state governments which, along with potential accounting and tax issues or other requirements relating to cryptocurrencies, could impede the growth of our cryptocurrency operations. The outcome of the upcoming presidential and Congressional elections in the U.S. also presents considerable
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uncertainty as to future cryptocurrency regulations. Additionally, regulation in response to the climate impact of cryptocurrency mining could negatively impact cryptocurrency trading on our platforms.

The cryptocurrency accounting rules and regulations that we must comply with are complex and subject to interpretation by the FASB, the SEC, and various bodies formed to promulgate and interpret accounting principles. A change in these rules and regulations or interpretations could have a significant effect on our reported financial results and financial position, and could even affect the reporting of transactions completed before the announcement or effectiveness of a change. Further, there are a limited number of precedents for the financial accounting treatment of cryptocurrency assets (including related issues of valuation and revenue recognition), and no official guidance has been provided by the FASB or the SEC. Accordingly, there remains significant uncertainty as to the appropriate accounting for cryptocurrency asset transactions, cryptocurrency assets, and related revenues. Uncertainties in or changes in regulatory or financial accounting standards could result in the need to change our accounting methods and/or restate our financial statements, and could impair our ability to provide timely and accurate financial information, which could adversely affect our financial statements, and result in a loss of investor confidence.

In addition, future regulatory actions or policies, including, for instance, the assertion of jurisdiction by domestic and foreign regulators and governments over cryptocurrency and cryptocurrency markets could limit or restrict cryptocurrency usage, custody, or trading, or the ability to convert cryptocurrencies to fiat currencies. For example, Chair Gensler remarked several times in 2021 and 2022 on the need for further regulatory oversight of crypto trading and crypto lending platforms. Additionally in February 2023, the SEC issued a new rule proposal (the “February 2023 Custody Rule Proposal”) related to the custody of client assets by registered investment advisers, which, if adopted as proposed, would expand the existing custody rules to apply to a broad range of assets, including cryptocurrencies, and would require that any client assets be maintained by a qualified custodian. In connection with the announcement of the February 2023 Custody Rule Proposal, Chair Gensler noted that “Based upon how crypto platforms generally operate, investment advisers cannot rely on them as qualified custodians.” If the February 2023 Custody Rule Proposal is adopted as proposed, and we are not deemed to be a “qualified custodian,” depending on how such proposal is applied, we may be required to cease our custodial crypto offerings under certain circumstances, which could have a material adverse impact on our business. Some lawmakers and regulators have also raised questions about Transaction Rebates from cryptocurrency trading. Transaction Rebates from cryptocurrency trading have historically, and might continue, to comprise a significant percentage of our total net revenues. Any future regulatory actions or policies could reduce the demand for cryptocurrency trading and might materially decrease our revenue derived from Transaction Rebates in absolute terms and as a proportion of our total revenues.

In March 2022, the SEC Staff issued SAB 121 requiring crypto platforms to recognize a liability and a corresponding asset equal to the fair value of the cryptocurrencies the entity safeguards on behalf of users. Such accounting treatment enhances the information received by investors regarding potential liabilities upon theft or loss of cryptocurrencies. But such treatment has also caused some users to question how safeguarded cryptocurrencies would be treated in a bankruptcy. We implemented SAB 121 for the quarter ended June 30, 2022, with retrospective application to the beginning of 2022. As a result of (and solely by virtue of) our implementation of SAB 121, the cryptocurrency we custody for users now appears on our balance sheets as an asset. In January 2023, the Bankruptcy Court for the Southern District of New York issued a ruling in In re Celsius Network LLC, that certain crypto assets held by Celsius customer accounts were the property of Celsius’s estate and that the holders of such accounts are unsecured creditors. However, unlike the terms of our user agreement, the terms of Celsius’s user agreement unambiguously provided that the rights to cryptocurrency held, including ownership rights, belonged to Celsius. Based on the terms of our user agreement, the structure of our crypto offerings, and applicable law, after consultation with internal and external legal counsel, we believe that the cryptocurrency we hold in custody for users of our platforms should be respected as users’ property (and should not be available to satisfy the claims of our general creditors) in the event we were to enter bankruptcy. Although we are well-capitalized, to the extent users are concerned that cryptocurrencies might not be secure in a bankruptcy generally, their willingness to hold crypto in custodial accounts and their general interest in trading cryptocurrencies might decline. There is also no definitive guidance on
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whether or how SAB 121 applies to broker-dealer entities in a corporate organizational structure where another, separate entity in that structure safeguards cryptocurrencies on behalf of users.

Furthermore, the Infrastructure Investment and Jobs Act significantly changes the tax reporting requirements applicable to brokers and holders of cryptocurrency and digital assets. On August 25, 2023, the Treasury Department and Internal Revenue Service released proposed regulations on the sale and exchange of digital assets by brokers. On June 28, 2024, final regulations were released that require information reporting by digital asset brokers on certain digital asset sales or exchanges that occur on or after January 1, 2025, and basis tracking for digital assets that are treated as “covered securities” if acquired on or after January 1, 2026. The implementation of these requirements, and any further legislative changes or related guidance from the Internal Revenue Service, might significantly impact our tax reporting and withholding processes and result in increased compliance costs. Failure to comply with these new information reporting and withholding requirements might subject us to significant tax liabilities and penalties. Similarly, the Organization for Economic Cooperation and Development has published final guidance on a new “crypto-asset reporting framework” and amendments to the existing rules for reporting crypto assets under the global “common reporting standard” that might apply to our international operations. These new rules might give rise to potential liabilities or disclosure requirements, and implementation of these requirements might significantly impact our operations and result in increased costs.

Our international expansion also subjects us to additional laws, regulations, or other government or regulatory scrutiny as discussed in “—Risks Related to Our Business—We recently started operating in certain international markets and plan to further expand our international operations, which exposes us to significant new risks, and our international expansion efforts might not succeed.” For example, when the provisions of Markets in the Crypto Asset Regulation (“MiCA”) take effect on December 30, 2024, we will be subject to the authorization, compliance, and disclosure regime of MiCA for crypto asset service providers (“CASP”) and issuers of certain crypto assets. We will need to obtain a MiCA compliant CASP license in our home member state and compliance with such regulation will require the implementation of new systems and processes, and updates to our policies. While MiCA provides member states with the option of implementing a transitional period from December 30, 2024 to July 1, 2026, at this time, Lithuania’s Ministry of Finance and the Bank of Lithuania have proposed a MiCA transitional period for registrants in Lithuania to June 1, 2025. The relevant Lithuanian authorities are actively preparing for MiCA regulation, but the application process in Lithuania has not yet been finalized. Notwithstanding the transitional period, however, if we are unable to obtain a MiCA compliant CASP license by the end of the year, we may need to cease operations in several member states in the EU. Obtaining a MiCA compliant CASP license in our home EU member state could take longer than we expect and would adversely affect our international operations.

Our Crypto Transfers, Robinhood Wallet, and Robinhood Connect features could result in loss of customer assets, customer disputes, and other liabilities, which could harm our reputation and adversely impact trading volumes and transaction-based revenues.

In the United States, we allow customers to deposit and withdraw cryptocurrencies to and from our RHC platform through our Crypto Transfers feature in the states in which RHC operates (other than New York, where our regulatory application is still pending). Since July 2024, we also allow customers in select jurisdictions in Europe to deposit crypto onto our RHEC platform, and since August 2024, we have allowed customers to withdraw crypto from our RHEC platform. Crypto Transfers are processed using Robinhood’s general custodial infrastructure in which we hold some cryptocurrencies on behalf of customers; when transactions are completed, coins are allocated to and from individuals’ accounts in our customer records. Additionally, U.S. customers have access to a fiat-to-crypto on-ramp tool that developers can embed directly into their decentralized applications (“Robinhood Connect”), allowing their customers to use their RHC accounts to buy and transfer crypto, and fund their self-custody wallets.

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Crypto Transfers initiated by users are subject to a heightened risk of user error. Under blockchain protocol, recording a transfer of cryptocurrency on the blockchain involves both the private key of the sending wallet and the unique public key of the receiving wallet. Such keys are strings of alphanumeric characters. In order for a customer to receive cryptocurrency on our platforms, the customer will need to arrange for the owner of an external source wallet to “sign” a transaction with the private key of that external wallet, directing a transfer of the cryptocurrency to our receiving custodial wallet by inputting the public key (which we will provide to the customer) of our custodial wallet. Similarly, in order to withdraw cryptocurrency from our platforms, the customer will need to provide us with the public key of the external wallet to which the cryptocurrency is to be transferred, and we will “sign” the transaction using the private key of our wallet. Some crypto networks might require additional information to be provided in connection with any transfer of cryptocurrency to or from our platforms. A number of errors could occur in the process of depositing or withdrawing cryptocurrencies to or from our platforms, such as typos, mistakes, or the failure to include information required by the blockchain network. For instance, a user might include typos when entering our custodial wallet’s public key or the desired recipient’s public key when depositing to and withdrawing from our platforms, respectively. Alternatively, a user could mistakenly transfer cryptocurrencies to a wallet address that he or she does not own or control, or for which the user has lost the private key. In addition, each wallet address is compatible only with the underlying blockchain network on which it is created. For instance, a Bitcoin wallet address can be used to send and receive Bitcoin only. If any Ethereum, Dogecoin, or other cryptocurrency is sent to a Bitcoin wallet address, for example, or if any of the other foregoing errors occur, such cryptocurrencies could be permanently and irretrievably lost with no means of recovery.

With Robinhood Wallet, our self-custody, web3 wallet, users have sole access and control over their cryptocurrencies on certain networks and personally hold and maintain their private keys. Although we do not custody cryptocurrencies held in a user’s Robinhood Wallet and do not have access to users’ private keys, users who lose their private keys, and thus access to their Robinhood Wallet balances, may react negatively. Although our account agreements for Crypto Transfers and licensing agreements for Robinhood Wallet disclaim responsibility for losses caused by user errors, such incidents could result in user disputes, damage to our brand and reputation, legal claims against us, and financial liabilities.

Additionally, allowing customers to deposit and withdraw cryptocurrencies to and from our platforms increases the risk that our platforms might be exploited to facilitate illegal activity such as fraud, gambling, money laundering, tax evasion, and scams. Crypto Transfers, Robinhood Wallet, and Robinhood Connect also expose us to heightened risks related to potential violations of trade sanctions, including OFAC regulations, and anti-money laundering and counter-terrorist financing laws, which among other things impose strict liability for transacting with prohibited persons. We engage blockchain analytics vendors to help determine whether the external wallets involved in Crypto Transfers are controlled by persons on prohibited lists or involved in fraudulent or illegal activity. However, fraudulent and illegal transactions and prohibited status could be difficult or impossible for us and our vendors to detect in some circumstances. The use of our platforms for illegal or improper purposes could subject us to claims, individual and class action lawsuits, and government and regulatory investigations, prosecutions, enforcement actions, inquiries, or requests that could result in significant liabilities and reputational harm for us and could cause cryptocurrency trading volumes and transaction-based revenues to decline.

A temporary or permanent blockchain “fork” could adversely affect our business.

Most blockchain protocols, including Bitcoin and Ethereum, are open source. Any user can download the software, modify it and then propose that users and miners of Bitcoin, Ethereum or other blockchain protocols adopt the modification. When a modification is introduced and a substantial majority of miners consent to the modification, the change is implemented and the Bitcoin, Ethereum or other blockchain protocol networks, as applicable, remain uninterrupted, although such modifications might cause certain cryptocurrencies to fail our Crypto Listing Frameworks. However, if less than a substantial majority of users and miners consent to the proposed modification, and the modification is not compatible with the
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software prior to its modification, the consequence would be what is known as a “fork” (i.e., “split”) of impacted blockchain protocol network and respective blockchain with one prong running the pre-modified software and the other running the modified software. The effect of such a fork would be the existence of two versions of the Bitcoin, Ethereum or other blockchain protocol network, as applicable, running simultaneously, but with each split network’s cryptocurrency lacking interchangeability.

Both Bitcoin and Ethereum protocols have been subject to “forks” that resulted in the creation of new networks, including, among others, Bitcoin Cash, BSV, Bitcoin Diamond, Bitcoin Gold, Ethereum Classic, and Ethereum Proof-of-Work. Some of these forks have caused fragmentation among platforms as to the correct naming convention for forked cryptocurrencies. Due to the lack of a central registry or rulemaking body in the cryptocurrency market, no single entity has the ability to dictate the nomenclature of forked cryptocurrencies, causing disagreements and a lack of uniformity among platforms on the nomenclature of forked cryptocurrencies, and which results in further confusion to customers as to the nature of cryptocurrencies they hold on platforms. In addition, several of these forks were contentious and as a result, participants in certain communities might harbor ill will towards other communities. As a result, certain community members might take actions that adversely impact the use, adoption and price of Bitcoin, Ethereum or any of their forked alternatives.

Furthermore, forks can lead to disruptions of networks and our information technology systems, cybersecurity attacks, replay attacks, or security weaknesses, any of which can further lead to temporary or even permanent loss of customer cryptocurrencies. For instance, when the Ethereum and Ethereum Classic networks split in July 2016, replay attacks, in which transactions from one network were rebroadcast on the other network to achieve “double-spending,” plagued platforms that traded Ethereum through at least October 2016, resulting in significant losses to some cryptocurrency platforms. Another possible result of a fork is an inherent decrease in the level of security due to the splitting of some mining power across networks, making it easier for a malicious actor to exceed 50% of the mining power of that network. Such disruption and loss could cause our company to be exposed to liability, even in circumstances where we have no intention of supporting a cryptocurrency compromised by a fork.

Moreover, we might decide not to or not be able to support a cryptocurrency resulting from the fork of a network which might cause our customers to lose confidence in us or reduce their engagement on our platforms. In assessing whether we will support a cryptocurrency resulting from the fork of a network, among our top priorities is to safeguard our customer’s assets, and we spend extensive time designing, building, testing, reviewing and auditing our systems to check whether the cryptocurrencies we support remain safe and secure. There are several considerations that we consider as part of our Crypto Listing Frameworks (including security or infrastructure concerns that might arise with the integration of any new cryptocurrency into the technical infrastructure that allows us to secure customer cryptocurrencies and to transact securely in corresponding blockchains), which might operate to limit our ability to support forks. Further, we generally do not support a forked cryptocurrency that does not have support from a majority of the affiliated third-party miner and developer community. To the extent that we decide not to support, or to cease support of, certain forked cryptocurrencies, it could negatively impact customer sentiment and our business, operating results, and financial condition, especially to the extent that our competitors continue to support such forked cryptocurrencies on their platforms.

Whether we are obligated to provide services for a new and previously unsupported cryptocurrency is a question of contract, as recognized in recent published rulings of the California appellate courts and federal district courts. The user agreement each customer enters into in order to trade cryptocurrencies on our platforms clearly indicates that we have the sole discretion to determine whether we will support a forked network and the approach to such forked cryptocurrencies and that we may temporarily suspend trading for a cryptocurrency whose network is undergoing a fork without advanced notice to the customer. Regardless of the foregoing, we might in the future be subject to claims by customers arguing that they are entitled to receive certain forked cryptocurrencies by virtue of cryptocurrencies that they hold with us. If any customers succeed on a claim that they are entitled to receive the benefits of a forked cryptocurrency that we do not or are unable to support, we might be required to pay significant damages, fines or other fees to compensate customers for their losses.

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Any inability to maintain adequate relationships with third-party banks, market makers, and liquidity providers with respect to, and any inability to settle customer trades related to, our cryptocurrency offerings would disrupt our ability to offer cryptocurrency trading to customers.

We rely on third-party banks, market makers, and liquidity providers to provide cryptocurrency products and services to our customers. The cryptocurrency market operates 24 hours a day, seven days a week. The cryptocurrency market does not have a centralized clearinghouse, and the transactions in cryptocurrencies on our platforms rely on direct settlements between us and our customers and direct settlements between us and our market makers or liquidity providers after customer trades are executed. Accordingly, we rely on third-party banks to facilitate cash settlements with customers’ brokerage accounts and we rely on the ability of market makers and liquidity providers to complete cryptocurrency settlements with us to obtain cryptocurrency for customer accounts. In addition, we must maintain cash assets in our bank accounts sufficient to meet the working capital needs of our business, which includes deploying available working capital to facilitate cash settlements with our customers, market makers, and liquidity providers (as well as maintaining the minimum capital required by regulators). If we, third-party banks, market makers, or liquidity providers have operational failures and cannot perform and facilitate our routine cash and cryptocurrency settlement transactions, we will be unable to support normal trading operations on our cryptocurrency trading platforms and these disruptions could have an adverse impact on our business, financial condition and results of operations. Similarly, if we fail to maintain cash assets in our bank accounts sufficient to meet the working capital needs of our business and necessary to complete routine cash settlements related to customer trading activity, such failure could impair our ability to support normal trading operations on our cryptocurrency platforms, which could cause cryptocurrency trading volumes and transaction-based revenues to decline significantly.

We might also be harmed by the loss of any of our banking partners and market makers. As a result of the many regulations applicable to cryptocurrencies or the risks of cryptocurrencies generally, many financial institutions have decided, and other financial institutions might in the future decide, not to provide bank accounts (or access to bank accounts), payments services, or other financial services to companies providing cryptocurrency products, including us. For instance, in May 2023, two prominent market makers announced their respective decisions to limit their offerings in cryptocurrency trading within the United States. If we or our market makers cannot maintain sufficient relationships with the banks that provide these services, if banking regulators restrict or prohibit banking of cryptocurrency businesses, if these banks impose significant operational restrictions, or if these banks were to fail or be taken over by the FDIC, such as occurred in the 2023 Banking Events, it could be difficult for us to find alternative business partners for our cryptocurrency offerings, which would disrupt our business and could cause cryptocurrency trading volumes and transaction-based revenues to decline significantly.

We might also be harmed by the loss of any of our liquidity partners. Unlike our customers’ orders for other cryptocurrencies, which are currently fulfilled by market makers, our RHC customers’ orders for USD coin (“USDC”), a stablecoin backed by dollar denominated assets held by the issuer in segregated accounts with U.S. regulated financial institutions, are fulfilled directly from Circle Internet Financial, LLC (“Circle”), the original issuer and main liquidity provider of USDC. If in the future we decide to offer other stablecoins, which are cryptocurrencies designed to minimize price volatility, we may also work directly with other liquidity partners to fulfill those orders. If we cannot maintain sufficient relationships with Circle or any other liquidity providers, it could be difficult for us to find alternative liquidity partners for our stablecoin offerings, which would disrupt our business and could cause cryptocurrency trading volumes and transaction-based revenues to decline significantly.

From time to time, we might encounter technical issues in connection with changes and upgrades to the underlying networks of supported cryptocurrencies, which could cause revenues to decline and expose us to potential liability for customer losses.

Any number of technical changes, software upgrades, soft or hard forks, cybersecurity incidents or other changes to the underlying blockchain networks might occur from time to time, causing incompatibility, technical issues, disruptions or security weaknesses to our platforms. If we are unable to
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identify, troubleshoot and resolve any such issues successfully, we might no longer be able to support such cryptocurrency, our customers’ assets might be frozen or lost, the security of our hot or cold wallets might be compromised and our platforms and technical infrastructure might be affected, all of which could cause trading volumes and transaction-based revenue to decline and expose us to potential liability for customer losses.

Risks Related to Our Spending and Payments Products and Services

Our spending and payments products and services subject us to risks related to bank partnerships, FDIC pass-through insurance and other regulatory obligations.

We offer a Spending Account (in connection with a partnership with J.P. Morgan Chase Bank, N.A.), and we have also partnered, on a non-exclusive basis, with Sutton Bank (“Sutton”), an Ohio-chartered bank, pursuant to a license from Mastercard International Incorporated, to offer the Robinhood Cash Card. Under the terms of our program agreement with Sutton, Robinhood Cash Card accounts for our users are opened and maintained by Sutton. We act as the service provider to, among other things, facilitate communication between our users and Sutton for which we receive compensation from Sutton. Additionally, Robinhood branded credit cards are issued by Coastal Bank, a Washington-chartered bank, pursuant to a partnership with Visa U.S.A. Inc. Our partner banks are members of the FDIC.
We believe our record keeping for our users’ funds held in Robinhood Cash Card accounts at Sutton and held in a Spending Account at our other partner bank complies with all applicable requirements for each participating user’s deposits to be eligible for FDIC pass-through insurance coverage, up to the applicable maximum deposit insurance amount. However, if the FDIC were to disagree, the FDIC might not recognize users’ claims as covered by deposit insurance in the event of bank failure and bank receivership proceedings under the Federal Deposit Insurance Act. If the FDIC were to determine that our users’ funds held at our partner banks are not covered by deposit insurance, participating users might decide to withdraw their funds, which could adversely affect our brand and our business. Due to the fact that we are deemed a service-provider to our partner banks, we are subject to audit standards for third-party vendors in accordance with bank regulatory guidance and examinations by federal bank regulatory authorities and the CFPB.
As a result of the stored value Spending Account program and the Robinhood Cash Card, we are subject to federal and state consumer protection laws and regulations, including the Electronic Fund Transfer Act and Regulation E as implemented by the CFPB. As a result of Robinhood Credit, we are also subject to a number of state licensing and other regulatory requirements and to payment card association operating rules, including data security rules and certification requirements, which could change or be reinterpreted to make it difficult or impossible for us to comply. Robinhood Credit is in the process of acquiring licenses in all states where required to do so and is discussing with regulators, such as the Nebraska Department of Banking and Finance and Massachusetts Division of Banks, certain prior related activity. Failure to obtain or maintain these licenses, failure to comply with these rules or requirements, or conducting such activity without a license, as well as any breach, compromise, or failure to otherwise detect or prevent fraudulent activity involving our data security systems, could result in our being liable for card issuing banks’ costs, and subject to regulatory fines, penalties, or criminal charges. Violations of any of these requirements could result in the assessment of significant actual damages or statutory damages or penalties (including treble damages in some instances) and plaintiffs’ attorneys’ fees.
Offering Robinhood Credit increases our exposure to customer defaults and credit risk and could result in losses.
We market consumer credit cards, such as the Robinhood Gold Card, originated by our partner bank, Coastal Bank, pursuant to the Program Agreement, and indemnify Coastal Bank for certain losses under the Program Agreement. We partner with Coastal Bank to develop proprietary scoring models and other analytical techniques that are designed to set terms and credit limits to appropriately compensate for
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credit risk in connection with selecting customers, managing accounts and establishing terms and credit limits. The revenue generated from the Program Agreement and the extent of credit losses incurred, as well as our ability to offer competitive features such as the Robinhood Gold Card Rewards Program, depends in part on managing credit risk while attracting new customers with profitable usage patterns. The models and approaches used to manage credit risk may not accurately predict future charge-offs and our ability to avoid high charge-off rates also may be adversely affected by general economic conditions including unemployment, the availability of consumer credit and the competitive environment, as well as events that may be difficult to predict, such as a general downturn in economic conditions (like the one that occurred in 2022) or public health threats (like the COVID-19 pandemic). Additionally, if any of these factors make it economically unfeasible for us to continue to offer the Robinhood Gold Card Rewards Program and we cease to offer such rewards, it might make Robinhood Credit products less desirable to customers. Any material increase in credit losses and defaults or inability to retain existing or attract new Robinhood Credit customers could have adverse effects on our financial condition and results of operations.
Use of our spending and payments services for illegal activities or improper purposes could harm our business.
The highly automated nature of, and liquidity offered by, our spending and payments services to move money make us and our customers a target for illegal or improper uses, including scams and fraud directed at our stored value Spending Account, Robinhood Cash Card, and Robinhood Credit customers, money laundering, terrorist financing, sanctions evasion, illegal online gambling, fraudulent sales of goods or services, illegal telemarketing activities, illegal sales of prescription medications or controlled substances, piracy of software, movies, music, and other copyrighted or trademarked goods (in particular, digital goods), bank fraud, child pornography, human trafficking, prohibited sales of alcoholic beverages or tobacco products, securities fraud, pyramid or ponzi schemes, or the facilitation of other illegal or improper activity. Moreover, certain activity that is legal in one jurisdiction might be illegal in another jurisdiction, and a customer might be found responsible for intentionally or inadvertently importing or exporting illegal goods, resulting in liability for us. Owners of intellectual property rights or government authorities might seek to bring legal action against providers of payments solutions, including Robinhood, that are peripherally involved in the sale of infringing or allegedly infringing items. While we invest in measures intended to prevent and detect illegal activities with respect to our spending and payments services, these measures require continuous improvement and might not be effective in detecting and preventing illegal activity or improper uses.
Any illegal or improper uses of our spending and payments services by our users might subject us to claims, individual and class action lawsuits, and government and regulatory requests, inquiries, or investigations that could result in liability, restrict our operations, require us to change our business practices, harm our reputation, increase our costs, and negatively impact our business. For example, government enforcement or regulatory authorities could seek to impose additional restrictions or liability on us arising from the use of our spending and payments services for illegal or improper activity, and our failure to detect or prevent such use. Illegitimate transactions can also prevent us from satisfying our contractual obligations to our third-party partners, which might cause us to be in breach of our obligations.
Risks Related to Our Intellectual Property

Any failure to obtain, maintain, protect, defend or enforce our intellectual property rights could adversely affect our business.

Our success and ability to compete depend in part upon our ability to obtain, maintain, protect, defend and enforce our intellectual property rights and technology. The steps we take to protect our intellectual property rights might not be sufficient to effectively prevent third parties from infringing, misappropriating, diluting, or otherwise violating our intellectual property rights or to prevent unauthorized disclosure or unauthorized use of our trade secrets or other confidential information. We make business decisions
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about when to seek patent protection for a particular technology, obtain trademark or copyright protection and when to rely upon trade secret protection, and the approach we select might ultimately prove to be inadequate. We will not be able to protect our intellectual property rights, however, if we do not detect unauthorized use of our intellectual property rights. We also might fail to maintain or be unable to obtain adequate protections for some of our intellectual property rights in the United States and some non-U.S. countries, and our intellectual property rights might not receive the same degree of protection in non-U.S. countries as they would in the United States because of the differences in non-U.S. patent, trademark, copyright, and other laws concerning intellectual property and proprietary rights. In addition, if we do not adequately protect our rights in our trademarks from infringement and unauthorized use, any goodwill that we have developed in those trademarks could be lost or impaired, which could harm our brand and our business. Our trademarks might also be opposed, contested, circumvented or found to be unenforceable, weak or invalid, and we might not be able to prevent third parties from infringing or otherwise violating them or using similar marks in a manner that causes confusion or dilutes the value or strength of our brand.
In addition to registered intellectual property rights, we rely on non-registered proprietary information and technology, such as trade secrets, confidential information and know-how. We attempt to protect our intellectual property, technology, and confidential information by requiring our employees, contractors, consultants, corporate collaborators, advisors and other third parties who develop intellectual property on our behalf to enter into agreements relating to confidentiality and invention assignments, and third parties we share information with to enter into nondisclosure and confidentiality agreements. However, we might not have any such agreements in place with some of the parties who have developed intellectual property on our behalf and/or with some of the parties that have or might have had access to our confidential information, know-how, and trade secrets. Even where these agreements are in place, they might be insufficient or breached, or might not effectively prevent unauthorized access to or unauthorized use, disclosure, misappropriation, or reverse engineering of our confidential information, intellectual property, or technology. Moreover, these agreements might not provide an adequate remedy for breaches or in the event of unauthorized use or disclosure of our confidential information or technology, or infringement of our intellectual property. If any of our trade secrets were to be lawfully obtained or independently developed by a competitor or other third party, we would have no right to prevent them from using that technology or information to compete with us, and our competitive position could be materially and adversely harmed.
The loss of trade secret protection could make it easier for third parties to compete with our products and services by copying functionality. Additionally, individuals not subject to invention assignment agreements might make adverse ownership claims to our current and future intellectual property, and, to the extent that our employees, independent contractors, or other third parties with whom we do business use intellectual property owned by others in their work for us, disputes might arise as to the rights in related or resulting know-how and inventions.

In addition, we might need to expend significant resources to apply for, maintain, enforce and monitor our intellectual property rights and such efforts might be ineffective and could result in substantial costs and diversion of resources. An adverse outcome in any such litigation or proceedings might expose us to a loss of our competitive position, significant liabilities, and damage to our brand, or require us to seek licenses that might not be available on commercially acceptable terms, if at all.

We have been, and might in the future be, subject to claims that we violated third-party intellectual property rights, which, even where meritless, can be costly to defend and could materially adversely affect our business, results of operations, and financial condition.

Our success depends, in part, on our ability to develop and commercialize our products and services without infringing, misappropriating or otherwise violating the intellectual property rights of third parties. However, we might not be aware that our products, services, or marketing materials are infringing, misappropriating or otherwise violating third-party intellectual property rights and such third parties might
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bring claims alleging such infringement, misappropriation or violation. As we face increasing competition and become increasingly high profile, the possibility of receiving a larger number of intellectual property claims against us grows. In addition, various “non-practicing entities,” and other intellectual property rights holders have in the past and might in the future attempt to assert intellectual property claims against us or seek to monetize the intellectual property rights they own to extract value through licensing or other settlements.

Our use of third-party software and other intellectual property rights might be subject to claims of infringement or misappropriation. The vendors who provide us with technology that we incorporate in our product offerings also could become subject to various infringement claims.

From time to time, our competitors or other third parties might claim, and have in the past claimed, that we are infringing upon, misappropriating or otherwise violating their intellectual property rights. We cannot predict the outcome of lawsuits and cannot ensure that the results of any such actions will not have an adverse effect on our business, financial condition, results of operations, cash flows or prospects. Any claims or litigation, even those without merit and regardless of the outcome, could cause us to incur significant expenses and, if successfully asserted against us, could require that we pay substantial costs or damages, obtain a license, which might not be available on commercially reasonable terms or at all, pay significant ongoing royalty payments, settlements or licensing fees, satisfy indemnification obligations, prevent us from offering our products or services or using certain technologies, force us to implement expensive and time-consuming work-arounds or re-designs, distract management from our business or impose other unfavorable terms.

We expect that the occurrence of infringement claims is likely to grow as the market for financial services grows and as we introduce new and updated products and services, and the outcome of any allegation is often uncertain. Accordingly, our exposure to damages resulting from infringement claims could increase and this could further exhaust our financial and management resources. Even if intellectual property claims do not result in litigation or are resolved in our favor, these claims, and the time and resources necessary to resolve them, could divert the resources of our management and require significant expenditures.

Some of our products and services contain open source software, which could pose particular risks to our proprietary software, products, and services in a manner that could harm our business.

We use open source software in our products and services (as well as in some of our internally developed systems) and we anticipate using open source software in the future. Some open source software licenses require those who distribute open source software as part of their own software product to publicly disclose all or part of the source code to such software product or to make available any derivative works of the open source code on unfavorable terms or at no cost, and we might be subject to such terms. The terms of many open source licenses to which we are subject have not been interpreted by U.S. or foreign courts, and there is a risk that open source software licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to provide or distribute our products or services. We could face claims from third parties claiming ownership of, or demanding release of, the open source software or derivative works that we developed using such software, which could include our proprietary source code, or otherwise seeking to enforce the terms of the applicable open source license. These claims could result in litigation and could require us to make our proprietary software source code freely available, purchase a costly license, or cease offering the implicated products or services unless and until we can offer a different solution, which might be a costly and time-consuming process. While we monitor our use of open source software and try to ensure that none is used in a manner that would require us to disclose our proprietary source code or that would otherwise breach the terms of an open source agreement, such use could inadvertently occur, or could be claimed to have occurred, in part because open source license terms can be ambiguous, vague, or subject to various interpretations, especially given the absence of controlling case law in the U.S. or other courts. Additionally, we may open source some of our own proprietary source code and/or may make contributions to open source software. There is a risk that our proprietary software or contributions may
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be used in such a manner that we may need to enforce our rights to ownership of such open source software, including seeking proper usage, compliance with our license terms, or through litigation. Any actual or claimed requirement to disclose our proprietary source code or pay damages for breach of license terms, or failure to enforce our ownership rights over the use of our proprietary source code could harm our business and could help third parties, including our competitors, develop products and services that are similar to or better than ours.

Risks Related to Finance, Accounting and Tax Matters

Covenants in our credit agreements could restrict our operations and if we do not effectively manage our business to comply with these covenants, our financial condition could be adversely impacted.

We have entered into certain credit agreements and might enter into additional agreements for other borrowing in the future. These agreements contain various restrictive covenants, including, among other things, minimum liquidity and tangible net worth requirements, restrictions on our ability to dispose of assets, make acquisitions or investments, incur debt or liens, make distributions to our stockholders, or enter into certain types of related person transactions. These agreements also contain financial covenants, including obligations to maintain certain capitalization amounts and other financial ratios. These restrictions might restrict our current and future operations, including our ability to incur debt to increase our liquidity position.

Our ability to meet these restrictive covenants can be impacted by events beyond our control that could cause us to be unable to comply. The credit agreements provide that our breach or failure to satisfy some of these covenants constitutes an event of default. Upon the occurrence of an event of default, our lenders could elect to declare all amounts outstanding under our debt agreements to be immediately due and payable. In addition, our lenders might have the right to proceed against the assets we provided as collateral pursuant to the agreements. If the debt under the credit agreements were to be accelerated, and if we did not have sufficient cash on hand or be able to sell sufficient collateral to repay it, it would have an immediate adverse effect on our business, financial condition and results of operations.

Our insurance coverage might be inadequate or expensive.

We use a combination of third-party insurance and self-insurance mechanisms, including a wholly owned captive insurance subsidiary. We are subject to claims in the ordinary course of business. These claims can involve substantial amounts of money and involve significant defense costs. It is not possible to prevent or detect all activities giving rise to claims and the precautions we take might not be effective in all cases. We maintain voluntary and required insurance coverage, including, among others, general liability, property, director and officer, excess-SIPC, cyber and data breach, crime, and fidelity bond insurance. Our insurance coverage is expensive and maintaining or expanding our insurance coverage might have an adverse effect on our results of operations and financial condition.

Our insurance coverage is subject to terms such as deductibles, coinsurance, limits and policy exclusions, as well as risk of counterparty denial of coverage, default or insolvency, and might be insufficient to protect us against all losses and costs stemming from processing, operational, and technological failures. Furthermore, for certain lines of coverage, continued insurance coverage might not be available to us in the future on economically reasonable terms, or at all. The successful assertion of one or more large claims against us that exceed available insurance coverage, or the occurrence of material changes in our insurance policies, including premium increases or the imposition of large deductible or co-insurance requirements, could have an adverse effect on our business, financial condition, and results of operations.

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Changes in U.S. and foreign tax laws and policies could adversely impact our tax liabilities.

We are, and may in the future become, subject to complex and evolving U.S. and foreign tax laws and regulations, which might in the future make changes to corporate income tax rates, the treatment of foreign earnings, or other income tax laws that could have an adverse impact on our business, result of operations, financial condition and cash flows.

Our determination of our tax liability is subject to review by applicable tax authorities. The determination of our tax liabilities requires significant judgment and, in the ordinary course of business, there are transactions and calculations where the ultimate tax determination is complex and uncertain. Although we believe our determinations are reasonable, the ultimate amount of our tax obligations owed might differ from the amounts recorded in our financial statements in the event of a review by applicable tax authorities and any such difference could have an adverse effect on our results of operations. Tax authorities might also disagree with certain positions we have taken or might take in the future, which could subject us to additional tax liabilities.

Our corporate structure and associated transfer pricing policies also contemplate future growth in international markets, and consider the functions, risks, and assets of various entities involved in intercompany transactions. The taxing authorities of the jurisdictions in which we operate may challenge our methodologies for valuing intercompany transactions pursuant to our intercompany arrangements or disagree with our determinations as to the income and expenses attributable to specific jurisdictions.

In addition, from time to time, proposals are introduced in the U.S. Congress and state legislatures, as well as by foreign governments, to impose new taxes on a broad range of financial transactions, including transactions that occur on our platforms, such as the buying and selling of stocks, derivative transactions, and cryptocurrencies. If enacted, such financial transaction taxes could increase the cost to customers of investing or trading on our platforms and reduce or adversely affect U.S. market conditions and liquidity, general levels of interest in investing, and the volume of trades and other transactions from which we derive transaction-based revenues. Any financial transaction tax implemented in any jurisdiction in which we operate could materially and adversely affect our business, financial condition, or results of operations, and as a retail brokerage we could be impacted to a greater degree than other market participants.

We also are subject to non-income taxes, such as payroll, sales, use, value-added, net worth, excise, goods and services, and property taxes in the United States and various foreign jurisdictions. Specifically, we might be subject to ''digital service taxes'' or new allocations of tax as a result of increasing efforts by certain jurisdictions to tax cross border activities that might not have been subject to tax under existing international tax principles. Companies such as ours could be adversely impacted by such taxes.

Our ability to use our net operating losses to offset future taxable income could be subject to certain limitations.

As of December 31, 2023, we have net operating loss carryforwards (“NOLs”) available to reduce future taxable income. However, under Sections 382 and 383 of the Code, a corporation that undergoes an “ownership change” (as defined by the Code) may be subject to limitations on its ability to utilize its pre-change NOLs and other tax attributes such as research tax credits to offset future taxable income. If it is determined that we have in the past experienced an ownership change, or if we undergo one or more ownership changes as a result of future transactions in our stock, then our ability to utilize NOLs and other pre-change tax attributes could be limited by Sections 382 and 383 of the Code, and similar state provisions. Future changes in our stock ownership, many of which are outside of our control, could result in an ownership change under Section 382 or 383 of the Code. Furthermore, our ability to utilize NOLs of any companies that we acquire in the future may be subject to limitations. For these reasons, we might not be able to utilize our NOLs, even if we maintain profitability.

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Our tax information reporting obligations are subject to change.

Although we believe we are compliant with the tax reporting and withholding requirements with respect to our customers’ transactions in the jurisdictions in which we operate, various U.S., state or foreign tax authorities might significantly change applicable tax reporting requirements or disagree with the exact application of new or existing requirements. If the taxing authorities determine that we are not in compliance with our tax reporting or withholding requirements with respect to customer asset transactions, we may be exposed to additional withholding obligations, which could increase our compliance costs and result in penalties.
We track certain operational metrics, which are subject to inherent challenges in measurement, and real or perceived inaccuracies in such metrics could harm our reputation, adversely affect our stock price, and result in litigation.
We track certain operational metrics using internal company data gathered on an analytics platform that we developed and operate, including metrics such as Funded Customers, AUC, and Gold Subscribers, as well as cohorts of our customers, which have not been validated by any independent third party and which might differ from estimates or similar metrics published by other parties due to differences in sources, methodologies, or the assumptions on which we rely. Our internal systems and tools are subject to a number of limitations and our methodologies for tracking these metrics have changed in the past and might change further over time, which could result in unexpected changes to our metrics or otherwise cause the comparability of such metrics from period to period to suffer, including the metrics we publicly disclose. For example, prior to our becoming self-clearing in November 2018, we relied on a third-party provider for our clearing operations, and used data collected by that third party to compute certain metrics, such as Funded Customers, that, since November 2018, we have calculated based on data sourced and processed internally. In addition, if the internal systems and tools we use to track these metrics undercount or overcount performance or contain algorithmic or other technical errors, the data we report might not be accurate. While these numbers are based on what we believe to be reasonable estimates of our metrics for the applicable period of measurement, there are inherent challenges in measuring how our platforms are used across large populations globally. You should not place undue reliance on such operational metrics when evaluating an investment in our Class A common stock. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Performance Metrics” for definitions of our key operational metrics.
If our operational metrics are not accurate representations of our business, or if investors do not perceive these metrics to be accurate, or if we discover material inaccuracies with respect to these figures, our reputation could be significantly harmed, the trading price of our Class A common stock could decline and we might be subject to stockholder litigation, which could be costly.

If we fail to maintain effective internal control over financial reporting, as well as required disclosure controls and procedures, our ability to produce timely and accurate consolidated financial statements or comply with applicable regulations could be impaired.

The Sarbanes-Oxley Act of 2002 and related rules of the SEC require, among other things, that we maintain effective disclosure controls and procedures and internal control over financial reporting. In order to maintain and improve the effectiveness of our disclosure controls and procedures and internal control over financial reporting, we have expended, and anticipate that we will continue to expend, significant resources, including accounting-related costs and significant management oversight.

Our current controls and any new controls that we develop could become inadequate because of changes in conditions in our business. In addition, changes in accounting principles or interpretations could also challenge our internal controls and require that we establish new business processes, systems and controls to accommodate such changes. We have limited experience with implementing the systems and controls that are necessary to operate as a public company, as well as adopting changes in accounting principles or interpretations mandated by the relevant regulatory bodies. Additionally, if these
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new systems, controls or standards and the associated process changes do not give rise to the benefits that we expect or do not operate as intended, it could adversely affect our financial reporting systems and processes, our ability to produce timely and accurate financial reports or the effectiveness of our internal control over financial reporting. Moreover, our business might be harmed if we experience problems with any new systems and controls that result in delays in their implementation or increased costs to correct any post-implementation issues that might arise. Further, weaknesses in our disclosure controls and internal control over financial reporting could be discovered in the future. Any failure to develop or maintain effective controls or any difficulties encountered in their implementation or improvement could harm our business or cause us to fail to meet our reporting obligations and could result in a restatement of our consolidated financial statements for prior periods.

Any failure to implement and maintain effective internal control over financial reporting could also adversely affect the results of periodic management evaluations and annual independent registered public accounting firm attestation reports regarding the effectiveness of our internal control over financial reporting that are required in our periodic reports filed with the SEC. Ineffective disclosure controls and procedures or internal control over financial reporting could harm our business, cause investors to lose confidence in the accuracy and completeness of our reported financial and other information, and result in us becoming subject to investigations by the stock exchange on which our securities are listed, the SEC or other regulatory authorities, any of which would likely have a negative effect on the trading price of our Class A common stock and have a material and adverse effect on our business, results of operations, financial condition and prospects. In addition, if we are unable to continue to meet these requirements, we might not be able to remain listed on the Nasdaq.

Risks Related to Our Class A Common Stock

The trading price for our Class A common stock has been and might continue to be volatile and you could lose all or part of your investment.

The trading price of our Class A common stock has been and might continue to be highly volatile and could continue to be subject to fluctuations in response to one or more of the risk factors described in this report, many of which are beyond our control. For example, on November 8, 2022 (the day that FTX halted all non-fiat customer withdrawals from its platform) the intra-day trading price of our Class A common stock fell as much as 18%, and on December 14, 2022 (the day the December 2022 Rule Proposals were announced), the intra-day trading prices of our Class A common stock fell as much as 5.3%. These fluctuations could cause you to lose all or part of your investment in our Class A common stock since you might be unable to sell your shares at or above the price you paid. Additional factors that could have a significant effect on the trading price of our Class A common stock include:

•publication of research reports about us, our competitors, or our industry, or changes in, or failure to meet, estimates made by securities analysts or ratings agencies of our financial and operating performance, or lack of research reports by industry analysts or ceasing of analyst coverage;
•announcements by us or our competitors of new offerings or platform features;
•the public’s perception of the quality and accuracy of our key metrics on our customer base and engagement;
•the public’s reaction to our media statements, other public announcements and filings with the SEC;
•rumors and market speculation involving us or other companies in our industry;
•the extent to which retail and other individual investors (as distinguished from institutional investors), including our customers, invest in our Class A common stock, which might result in increased volatility; and
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•media coverage related to certain individuals and entities identified as having owned our stock, and any speculation related to plans to dispose of their holdings.
In addition, in the past, following periods of volatility in the overall market and the trading price of a particular company’s securities, securities class action litigation has often been instituted against these companies. This litigation, if instituted against us, could result in substantial costs and a diversion of our management’s attention and resources.

Further, if the market price of our Class A common stock is above the level that investors determine is reasonable for our Class A common stock, some investors might attempt to short our Class A common stock, which would create additional downward pressure on the trading price of our Class A common stock.

Substantial future issuances or sales of shares of our Class A common stock in the public market could result in significant dilution to our stockholders and such issuances or sales, or the perception that they may occur, could cause the trading price of our Class A common stock to fall.

As of September 30, 2024, our founders and their related entities hold approximately 14% of our outstanding common stock (and, as described in the following risk factor, over 50% of the voting power of our outstanding capital stock). If our founders or other significant stockholders sell, or indicate an intent to sell, large amounts of stock in the public market, or the perception that these sales might occur, could cause the trading price of our Class A common stock to decline substantially.

Similarly, significant numbers of shares are subject to future issuance including under outstanding warrants held by pre-IPO investors, and under outstanding stock options and RSUs held by employees and other service providers, and significant numbers of additional shares are available for award grant purposes under our 2021 Plan and for issuance under our ESPP. All of these shares will become eligible for sale in the public market upon exercise, vesting, or settlement, as applicable (and to the extent granted in the discretion of our board of directors, in the case of shares available for grant). These and any future issuances of shares of our capital stock, or of securities convertible into or exercisable for our capital stock could depress the market price of our Class A common stock and result in a significant dilution for stockholders.

We have authorized more capital stock in recent years to provide additional stock options and RSUs to our employees and to permit for the consummation of equity and equity-linked financings and might continue to do so in the future. Our employee headcount has increased significantly in the past few years, so the amount of dilution due to awards of equity-based compensation to our employees could be substantial. Further, any sales of our Class A common stock (including shares of Class A common stock issuable upon conversion of our Class B common stock, as stock options are exercised, or as RSUs are settled) might make it more difficult for us to sell equity securities in the future at a time and at a price that we deem appropriate. These sales could also cause the trading price of our Class A common stock to fall and make it more difficult for you to sell shares of our Class A common stock.

There are no guarantees that we will repurchase shares under the Repurchase Program or that the Repurchase Program will result in increased shareholder value.

On May 28, 2024, Robinhood announced that its board of directors approved the Repurchase Program authorizing the Company to repurchase up to $1 billion of its outstanding Class A common stock to return value to shareholders. In July 2024, Robinhood began to execute on the Repurchase Program. While the Repurchase Program does not have an expiration date, the Company’s management currently expects to conduct the Repurchase Program over a period of two to three years, beginning in the third quarter of 2024. The timing and amount of repurchase transactions will be determined by the Company from time to time at its discretion based on its evaluation of market conditions, share price, and other factors, and repurchase transactions may be made using a variety of methods, such as open market share repurchases, including the use of trading plans intended to qualify under Rule 10b5-1 under the
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Exchange Act, or other financial arrangements or transactions. The Repurchase Program does not obligate the Company to acquire any particular amount of Class A common stock, and the Repurchase Program may be suspended or discontinued at any time at the Company’s discretion. As a result, there is no guarantee with respect to the timing or amount of any future share repurchases, or that we will repurchase the full amount authorized under the Repurchase Program. Other factors, including changes in tax or securities laws, such as the U.S. Inflation Reduction Act of 2022 which imposes a corporate excise tax of 1% on net stock repurchases, could also impact our stock repurchases.
There are a number of ways in which the Repurchase Program could fail to result in enhanced shareholder value. For example, any failure to repurchase stock after we have announced our intention to do so may negatively impact the trading price of our Class A common stock. The existence of the Repurchase Program could also cause our stock price to trade higher than it otherwise would and could potentially reduce the market liquidity for our stock. The trading price of our Class A common stock could decline below the levels at which we repurchased shares and short-term stock price fluctuations could reduce the effectiveness of the Repurchase Program. Any announcement of a pause in, or termination of, the Repurchase Program may also result in a decrease in the trading price of our Class A common stock. Furthermore, there is no guarantee that our stock repurchases will be able to successfully mitigate the dilutive effect of the equity awards we grant to our employees.
Additionally, repurchasing our Class A common stock will reduce the amount of cash, cash equivalents and marketable securities we have available to fund working capital, capital expenditures, capital preserving investments, strategic acquisitions or business opportunities, and other general corporate purposes, and there are no guarantees that the Repurchase Program will result in increased shareholder value. Furthermore, the timing and amount of any repurchases, if any, will be subject to liquidity, market and economic conditions, compliance with applicable legal requirements and other relevant factors. If we are unable to, or choose not to, repurchase shares under the Repurchase Program, this may have a negative impact on the perception of the Company as an investment opportunity by shareholders or investment analysts, which may in turn negatively impact the trading price of our Class A common stock.
The multi-class structure of our common stock has the effect of concentrating voting power with our founders, which limits your ability to influence the outcome of matters submitted to our stockholders for approval. In addition, the Founders’ Voting Agreement and any future issuances of our Class C common stock could prolong the duration of our founders’ voting control.
Our Class A common stock has one vote per share, our Class B common stock has 10 votes per share and our Class C common stock has no voting rights, except as otherwise required by law. Our founders and certain of their related entities (“Founder Affiliates”) together hold all of the issued and outstanding shares of our Class B common stock. Accordingly, Mr. Tenev, who is also our CEO, President and Chair of our board of directors, and Mr. Bhatt, who is a director, collectively with their related entities hold over 50% of the voting power of our outstanding capital stock. As a result, our founders have the ability to determine or significantly influence any action requiring the approval of our stockholders, including the election of our board of directors, the adoption of amendments to our Charter and our Amended and Restated Bylaws (our “Bylaws”) and the approval of any merger, consolidation, sale of all or substantially all of our assets or other major corporate transaction.

In addition, our founders and Founder Affiliates have entered into a voting agreement (the “Founders’ Voting Agreement”) in which they have agreed, among other things, (i) to vote all of the shares of our common stock held by such founder or Founder Affiliate for the election of each founder to, and against the removal of each founder from, our board of directors, (ii) to vote together in the election of other directors generally, subject to deferring to the decision of the nominating and corporate governance committee in the event of any disagreement between the founders, (iii) effective upon a founder’s death or disability, to grant a voting proxy to the other founder with respect to shares of our common stock held by the deceased or disabled founder or over which he was entitled to vote (or direct the voting) immediately prior to his death or disability, and (iv) to grant each other rights of first offer in the event of
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proposed transfers that would otherwise cause Class B shares to convert into Class A shares under our Charter. The Founders’ Voting Agreement has the effect of concentrating voting power in our founders (or either one of them).

Further pursuant to the equity exchange right agreements entered into between us and each of our founders in connection with our IPO, each of our founders has a right (but not an obligation) to require us to exchange, for shares of Class B common stock, any shares of Class A common stock received by them upon the vesting and settlement of pre-IPO RSUs (the “Equity Exchange Rights”). Any exercise by our founders of these Equity Exchange Rights will dilute the voting power of holders of our Class A common stock.

Our founders might have interests that differ from yours and might vote in a way with which you disagree and which may be adverse to your interests. Therefore, the founders’ concentrated voting control might have the effect of delaying, preventing or deterring a change in control of our Company, could deprive our stockholders of an opportunity to receive a premium for their capital stock as part of a sale of our Company, and might ultimately affect the market price of our Class A common stock. Further, the separation between voting power and economic interests could cause conflicts of interest between our founders and our other stockholders, which might result in our founders undertaking, or causing us to undertake, actions that would be desirable for our founders but would not be desirable for our other stockholders.

We have no current plans to issue shares of our Class C common stock. Because the shares of our Class C common stock have no voting rights, except as required by law, if we issue Class C common stock in the future, the voting control of our founders could be maintained for a longer period of time than would be the case if we issued Class A common stock rather than Class C common stock.

Certain provisions in our Charter and our Bylaws and of Delaware law as well as certain FINRA rules might prevent or delay an acquisition of Robinhood, which could decrease the trading price of our Class A common stock.

Our Charter and our Bylaws contain, and Delaware law contains, provisions that might have the effect of deterring takeovers by making such takeovers more expensive to the bidder and by encouraging prospective acquirers to negotiate with our board of directors rather than to attempt a hostile takeover, such as a classified board, limitations on the ability of stockholders to take action by written consent, and the ability of our board of directors to designate the terms of preferred stock and authorize its issuance without stockholder approval. We believe these provisions will protect our stockholders from coercive or otherwise unfair takeover tactics by requiring potential acquirers to negotiate with our board of directors and by providing our board of directors with more time to assess any acquisition proposal. These provisions are not intended to make Robinhood immune from takeovers. However, these provisions will apply even if the offer might be considered beneficial by some stockholders and could delay or prevent an acquisition that our board of directors determines is not in the best interests of Robinhood and our stockholders. Accordingly, if our board of directors determines that a potential acquisition is not in the best interests of Robinhood and our stockholders, but certain stockholders believe that such a transaction would be beneficial to Robinhood and our stockholders, such stockholders might elect to sell their shares in Robinhood and the trading price of our Class A common stock could decrease. These and other provisions of our Charter, our Bylaws and the Delaware General Corporation Law could have the effect of delaying or deterring a change in control, which might limit the opportunity for our stockholders to receive a premium for their shares of our Class A common stock and might also affect the price that some investors are willing to pay for our Class A common stock.

In addition, a third party attempting to acquire us or a substantial position in our Class A common stock might be delayed or ultimately prevented from doing so by change in ownership or control regulations to which certain of our regulated subsidiaries are subject. For example, FINRA Rule 1017 generally provides that FINRA approval must be obtained in connection with any transaction resulting in a single person or entity owning, directly or indirectly, 25% or more of a FINRA member firm’s equity and would include a change in control of a parent company and similar approval from the Financial Conduct
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Authority, which regulates our U.K. authorized broker-dealer subsidiary, must be obtained in connection with any transaction resulting in a person or entity holding, directly or indirectly, 10% or more of the equity or voting power of a U.K. authorized person or the parent of a U.K. authorized person. These and any other applicable regulations relating to changes in control of us or our regulated subsidiaries could further have the effect of delaying or deterring a change in control of us.

The exclusive forum provisions of our Charter could limit our stockholders’ ability to choose the judicial forum for some types of lawsuits against us or our directors, officers, or employees.

Our Charter provides that, unless we consent in writing to the selection of an alternative forum, to the fullest extent permitted by law, the sole and exclusive forum for a number of types of actions or proceedings shall be the Court of Chancery of the State of Delaware (or, if the Court of Chancery does not have subject matter jurisdiction, another state court sitting in the State of Delaware) (or, if no state court located within the State of Delaware has jurisdiction, the federal district court for the District of Delaware), in all cases subject to the court having jurisdiction over indispensable parties named as defendants. Our Charter also provides that the federal district courts of the United States will be the exclusive forum for resolving any complaint asserting a cause of action under the Securities Act. Nothing in our Charter precludes stockholders that assert claims under the Exchange Act from bringing such claims in any court, subject to applicable law.

Any person or entity purchasing or otherwise acquiring or holding any interest in any of our securities shall be deemed to have notice of and consented to these provisions. These exclusive forum provisions might limit a stockholder’s ability to bring a claim in a judicial forum of its choosing for disputes with us or our directors, officers, or other employees, which might discourage lawsuits against us and our directors, officers, and other employees. The enforceability of similar choice of forum provisions in other companies’ charter documents has been challenged in legal proceedings, and it is possible that a court could find these types of provisions to be inapplicable or unenforceable. If a court were to find the exclusive forum provisions in our Charter to be inapplicable or unenforceable in an action, we might incur additional costs associated with resolving the dispute in other jurisdictions, which could adversely affect our results of operations.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Sales of Unregistered Securities
From January 1, 2024 through September 30, 2024 we did not sell any shares of Class A common stock (or other equity securities of Robinhood Markets, Inc.) that were not registered under the Securities Act.

Issuer Purchases of Equity Securities
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The following table presents repurchases of shares of our Class A common stock during the three months ended September 30, 2024:
Period
Total Number of Shares Purchased
Average Price Paid per Share (1)
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
(in millions)
July 1, 2024 - July 31, 2024
386,603 $22.58 386,603 $991 
August 1, 2024 - August 31, 2024
2,823,247 $18.86 2,823,247 938 
September 1, 2024- September 30, 2024
1,802,345 $19.62 1,802,345 903 
Total
5,012,195 $19.42 5,012,195 $903 

(1) The average cost per share excludes the 1% excise tax on net share repurchase and commissions.
(2) On May 28, 2024, we announced that the Board of Directors approved the Repurchase Program authorizing the Company to repurchase up to $1 billion of its outstanding Class A common stock. Repurchase transactions may be made using a variety of methods, such as open market share repurchases, including the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, or other financial arrangements or transactions. The Repurchase Program does not obligate us to acquire any particular amount of Class A common stock and the Repurchase Program may be suspended or discontinued at any time at our discretion. Refer to Note 11 - Common Stock and Stockholders' Equity to our unaudited condensed consolidated financial statements in this Quarterly Report for more information about the Repurchase Program.
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ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
(c) On August 9, 2024, Daniel Gallagher, our Chief Legal Officer, adopted a “Rule 10b5-1 trading arrangement” (as defined in Item 408(a) of Regulation S-K) intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act pursuant to which he may sell up to 650,000 shares of our Class A common stock on or prior to November 21, 2025.
In addition, certain of our officers may, from time to time, make elections to participate in our ESPP and to have shares withheld to cover withholding taxes or pay the exercise price of options, which may be designed to satisfy the affirmative defense conditions of Rule 10b5-1 under the Exchange Act or may constitute “non-Rule 10b5-1 trading arrangements” (as defined in Item 408(c) of Regulation S-K).

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ITEM 6. EXHIBIT INDEX
The documents listed below are filed (or furnished, as noted) as exhibits to this Quarterly Report on Form 10-Q:
  Incorporated by Reference
Exhibit NumberDescriptionForm*Filing DateExhibitFiled Herewith
3.18-K2021-08-023.1
3.2
8-K
2022-12-16
3.1
4.1S-1/A2021-07-194.1
4.2S-12021-07-014.2
31.1X
31.2X
32.1‡X
32.2‡X
101.INSiXBRL (Inline eXtensible Business Reporting Language) Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL documentX
101.SCHiXBRL Taxonomy Extension Schema DocumentX
101.CALiXBRL Taxonomy Extension Calculation Linkbase DocumentX
101.DEFiXBRL Taxonomy Extension Definition Linkbase DocumentX
101.LABiXBRL Taxonomy Extension Label Linkbase Document.X
101.PREiXBRL Taxonomy Extension Presentation Linkbase Document.X
104Cover Page Interactive Data File (contained in Exhibit 101)X
__________________
*    File number is 001-40691 except that the S-1 (and S-1/A) file number is 333-257602.
‡    The certifications attached as Exhibits 32.1 and 32.2 that accompany this Quarterly Report on Form 10-Q are deemed furnished and not filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of Robinhood Markets, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing.
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Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly signed this report to be signed on its behalf by the undersigned, thereunto duly authorized, in Menlo Park, California, on October 30, 2024.
Robinhood Markets, Inc.
By:/s/ Vladimir Tenev
Name:Vladimir Tenev
Title:Co-Founder, Chief Executive Officer and President
By:/s/ Jason Warnick
Name:Jason Warnick
Title:
Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)


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