Track market-moving stories before they get noisy

Retail brokerage stocks are rallying midday Wednesday as Bitcoin (CRYPTO:BTC) surges and two separate company stories converge on the same crypto catalyst. Webull (NASDAQ:BULL | BULL Price Prediction) shares are up 7% to $8.49 ahead of the company’s Q2 2026 earnings report after the close, while Robinhood Markets (NASDAQ:HOOD) shares are climbing 7% to $98.45 as CEO Vlad Tenev pushes U.S. regulators to approve tokenized stocks.

Coinbase (NASDAQ:COIN) shares are up 11% to $163.32, extending a sharp bounce for the largest U.S. crypto exchange. Bitcoin is trading around $68,500, up 6% over the past 24 hours.

The action reads as a bounce inside a down year rather than a trend change. Robinhood Markets stock was down 19% year to date (YTD) through Tuesday’s close, and Coinbase stock is down 35% YTD.

Webull Heads Into Q2 Earnings After the Close Webull will report Q2 2026 results on August 19 after the close. Three analysts project average revenue of $182.83 million for the quarter, up from $156.94 million a year earlier. The consensus EPS estimate sits at $0.03, below the $0.06 Webull posted a year earlier.

The setup follows a strong Q1 2026 print. Webull reported Q1 revenue of $159.9 million, up 36% year over year (YoY), with customer assets of $24 billion (up 90%) and equity notional volume of $261 billion. Elimination of the Pattern Day Trader rule took effect June 4, and Webull’s average account size sits just below $5,000, so a large share of its customers were directly affected by the old rule.

U.S. CEO Anthony Denier told analysts in May he expected the change to lift transaction activity by at least 20% over time, saying, “This is not going to happen on day one on June 4, but I believe this will happen over time.” Of the four analysts covering Webull, three rate the stock Strong Buy and one rates it Hold, with an average price target of $12.33.

Robinhood Markets Pushes for Tokenized Stocks Robinhood Markets CEO Vlad Tenev argued in a post on X that the United States risks ceding next-generation financial market infrastructure to overseas competitors. Tenev called tokenization “the best path to modernizing the American financial system and expanding the dream of ownership to all.” He added, “It would be a strange outcome if the rest of the world could build the future of ownership around American assets while Americans themselves were left behind.”

Robinhood Markets has made tokenized U.S. stocks available in more than 120 countries and has tokenized more than 190 U.S. stocks, backed 1:1 by underlying shares. Holders do not directly own those underlying shares, a distinction that has given U.S. regulators pause. Robinhood Chain, the permissionless Ethereum-compatible Layer 2 launched in July, became the fastest Ethereum Virtual Machine chain to reach 100 million transactions.

The Kobeissi Letter said total trading volume in on-chain tokenized equities reached $9 billion in 2026, a record representing growth of more than 207% quarter over quarter and more than 800% YTD.

Coinbase Rides the Crypto Bounce Coinbase shares are up 11% to $163.32 as Bitcoin rallies, with no company-specific catalyst identified today beyond the broader crypto rally and a friendlier regulatory backdrop. Per Investor’s Business Daily, the Senate has set a date for a vote on the CLARITY Act, the SEC has proposed new rules for crypto offerings, and the White House is preparing to host a crypto summit.

Even with today’s rip, Coinbase stock remains one of the weaker fintech names in 2026, reflecting soft spot volumes and a Q2 miss earlier this summer. The bounce narrative depends on Bitcoin holding its gains.

ARK Fintech Innovation ETF Tracks the Group The ARK Fintech Innovation ETF (NYSEARCA:ARKF) is up 4% to $44.2, tracking the fintech and crypto-linked names inside the portfolio. ARKF is an actively managed thematic fund with meaningful exposure to crypto and blockchain issuers alongside Robinhood Markets and Coinbase, which sit at 4.5% and 5.8% of net assets, respectively.

ARKF shares were down 11% YTD through Tuesday’s close. Actively managed thematic funds carry single-manager risk and holdings-concentration risk, so position sizing matters when the group swings hard in either direction.

What to Watch The Webull earnings report after the close is the next real data point, with the conference call likely to focus on PDT-driven volume, AI product traction, and international expansion. Investors can stay tuned for management’s read on July and August activity, since Webull now publishes monthly operating metrics.

The tokenization push from Robinhood Markets sets up the next regulatory beat, with the CLARITY Act vote as the near-term marker. Traders may want to keep an eye on whether Coinbase and Bitcoin hold their gains into Thursday, because a fade in crypto prices would pull the fintech complex back down quickly.

Contact [email protected] for any questions or corrections.

Robinhood Markets Inc (NASDAQ:HOOD) has raised $225.5 million for a new publicly traded fund that gives everyday investors exposure to private startups.

The trading and investment company priced the initial public offering of Robinhood Ventures Fund II at $25 per share on the New York Stock Exchange.

Unlike Robinhood's first venture fund, which targeted later-stage private companies, the new fund will focus on early and growth-stage startups, with particular emphasis on companies linked to Y Combinator, the Silicon Valley startup accelerator.

Y Combinator has backed more than 5,000 startups since 2005, with alumni including Coinbase, Airbnb, Stripe and OpenAI.

Rather than betting on a single winner, the fund plans to build a diversified portfolio across multiple industries.

The launch reflects a broader shift as companies stay private for longer, delaying the point at which retail investors can buy in.

Sarah Pinto, head of Robinhood Ventures, said the company is already developing additional venture funds as part of a longer-term push into private markets.

The expansion sits alongside Robinhood's wider move beyond stock trading into wealth management, retirement accounts and tokenised assets.

Robinhood Markets (HOOD +1.32%) stock has fallen about 12% over the past year, even as the company continues to grow revenue and earnings at high rates.

The second-quarter earnings results revealed one important signal for investors: Robinhood is moving away from its dependency on crypto-based trading toward a more diversified financial services platform. The implications could be significant for patient shareholders.

Image source: The Motley Fool.

Robinhood is not dependent on crypto trading Revenue grew 32% year over year in the quarter, reaching a record $1.3 billion. It also posted a 48% year-over-year increase in earnings, with a healthy adjusted operating profit margin of 57%. Management is investing efficiently in new products, as evidenced by robust earnings growth despite a 33% year-over-year increase in operating expenses.

Robinhood has long been seen as a trading app, and volatility in financial markets can negatively impact transaction-based revenue. Crypto trading volume fell 38% year over year to $100 million in the quarter, reflecting the recent decline in top cryptocurrencies.

Despite lower crypto volume, Robinhood's transaction-based revenue still rose 44%, driven by increases in equities, options, and event contracts. Notably, other revenues grew 54% year over year to $143 million, driven by Trump Account service revenue and a 17% increase in Robinhood Gold subscribers, which hit a record 4.84 million.

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What does diversifying revenue mean for the stock? Management disclosed there are now 13 separate business lines generating at least $100 million in annualized revenue. This is up from 11 in the fourth quarter of 2025, with recent additions including the Robinhood Legend trading application and the credit card business.

Expanding beyond trading products has been Robinhood's goal all along. Roughly $84 trillion in wealth is expected to be transferred to heirs over the next 20 years, according to Cerruli Associates. Robinhood is expanding to new products to become a full-service money management business to capture its share of that opportunity. The business rationale is simple: The more assets on the platform, the more revenue it can earn over the long term.

Net deposits grew 28% year over year to $22 billion, with total platform assets reaching $369 billion. Banking deposits have already exceeded $3 billion since the service's initial rollout in the second half of 2025. Retirement assets also grew 82% year over year to over $34 billion in the quarter. These are customers who are clearly not just interested in trading crypto but in making Robinhood the permanent base for their savings.

Robinhood has been labeled a high-growth trading platform, and the success of its new event contracts business fuels that narrative. But the steady growth in deposits, banking, and retirement assets shows Robinhood is more than just a trading app.

Much of the company's recent expansion is reflected in the stock price, which trades at an expensive 38 times forward earnings estimates, indicating high growth expectations. But the momentum it is seeing as it expands its revenue streams seems to at least justify that premium valuation.

By PYMNTS  |  August 3, 2026

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Robinhood received regulatory permission to begin offering cryptocurrency services in the United Kingdom.

The traditional platform has been part of the Financial Conduct Authority’s list of registered cryptoasset companies since July 31.

The company’s inclusion by the FCA was flagged in a Monday (Aug. 3) CoinDesk report, which said Robinhood’s new permission has special significance ahead of the adoption of a more comprehensive framework for digital asset regulation in the U.K.

Legislation earlier this year placed crypto under the FCA’s regulatory umbrella. New rules that go into effect in October 2027 will keep the authority’s oversight of crypto limited to financial promotions and anti-money laundering controls.

“This is a significant moment for crypto regulation in the U.K.,” David Geale, the FCA’s executive director of payments and digital finance, said earlier this year. “We’ve created a framework that doesn’t force firms to choose between regulatory certainty and room to innovate. This regime means they can have both in a stable, competitive home to build and grow. For consumers, it means firms will be held to similar standards to other financial providers, though we can’t regulate away risk.”

The relatively short window for businesses to register and win full regulatory approval means those companies already registered under the FCA’s regime might have done a substantial amount of advanced work, the CoinDesk report said.

Robinhood last week reported earnings showing record quarterly revenue of $1.3 billion, a 32% increase from a year earlier, along with new highs in the company’s equities, options and prediction market business.

However, management said Robinhood’s next phase is not mainly about processing more trades.

“Across prediction markets, tokenized assets, banking and credit cards, the financial platform is attempting to control more of the customer relationship and more of the transaction stack beneath it,” PYMNTS reported Wednesday (July 29).

The company is also preparing for the day when financial activity is initiated by software agents, not by customers navigating applications on their own.

Robinhood’s first agentic trading product still has some bugs, but its long-term implication is greater than user experience.

“The next stage will not be decided by whether Robinhood can launch another popular feature,” the PYMNTS report said. “It will be decided by whether it can make a complex portfolio of products behave like one financial system.”

MENLO PARK, Calif., Aug. 03, 2026 (GLOBE NEWSWIRE) -- Historically, retail investors have been locked out of private companies in their earliest stages, which can be among the biggest wealth creation opportunities available. Today, Robinhood sets out to change that.

Robinhood Ventures Fund II (RVII), the second fund from Robinhood Ventures, is expected to IPO on August 13 on the New York Stock Exchange (NYSE) under the symbol RVII at an expected price of $25 per share. Robinhood Financial customers can request IPO shares of RVII through Robinhood, and investment advisers on the TradePMR Fusion platform may also seek an allocation for their clients. The window to request IPO shares is expected to close on August 12.

Introducing RVII
RVII is a business development company (“BDC”), a type of closed-end fund, that provides retail investors exposure to a diversified portfolio of private companies in their earliest stages. A closed-end fund is a professionally managed pool of assets—in this case, investments in private companies—that issues a fixed number of shares and trades on an exchange like a stock.

Today, RVII includes 80 private companies, with others expected to be added over time. RVII’s goal is to make seed investments in promising companies across sectors that demonstrate significant growth potential, with a focus on companies that are current or previous participants in the Y Combinator startup accelerator program or companies with a founder or co-founder that has participated in the Y Combinator startup accelerator program. Since 2005, Y Combinator has funded over 5,000 companies with a combined value of over $1.3 trillion, including 100 "unicorns" with valuations over $1 billion.*

"The next generation of promising startups is being built today," said Sarah Pinto, Head of Robinhood Ventures. "With Robinhood Ventures Fund II, retail investors no longer have to wait until a company's IPO to be part of an early growth journey."

“Y Combinator has one of the strongest track records in venture, and having participated in the program myself as both a founder and a visiting partner, I firmly believe its level of access to promising startups is extraordinary," said Rich Aberman, Robinhood Ventures Fund II Portfolio Manager. "As Robinhood Ventures scales, our mission is for it to become the norm that retail is represented in your seed or Series A cap table. This is a great first step in making that dream a reality."

RVII is meant to be accessible to all investors, with no accreditation requirements, no investment minimums, a competitive management fee, and daily liquidity as a publicly traded fund on the NYSE.

RVII pays Robinhood Ventures, the investment adviser, a management fee consisting of two components. A base management fee that is calculated and payable quarterly at an annual rate of 2.00% of net assets, as well as an incentive fee that is determined and payable annually, and is equal to 20% of the realized capital gains from inception through the end of the fiscal year, less realized capital losses, unrealized capital depreciation, and the aggregate amount of any previously paid incentive fees paid for prior periods.

Why Now?
The U.S. venture capital market has become a massive and fast-growing asset class, with $320 billion deployed in 2025 and $1.38 trillion in total assets under management.** However, companies are staying private much longer than they used to, with the median time to IPO growing from 5 years in 1999 to 14 years in 2024,*** meaning much of the foundational growth is happening out of reach of the investing public. At the end of 2025, there were approximately 859 VC-backed private companies valued at $1 billion or more, representing approximately $4.34 trillion in value. Whether that value is realized through acquisitions, public offerings, or secondary transactions, most of the returns will flow to those who were able to invest early, when the companies were private.****

Many startups don’t make it, but the ones that do can change the world. The risks may be higher, but so are the potential rewards, and RVII aims to expand access to this crucial and often closed-off part of the market.

That same mission now extends to the Robinhood team. With the recent launch of the Robinhood Employee Fund, eligible employees can now invest their own money into a fund providing exposure to Robinhood Ventures funds, including RVII.

How to Participate
Starting today, self-directed retail investors can learn more about RVII and request IPO shares directly through Robinhood. Following the launch of Advisor IPO Access, eligible RIAs on TradePMR can submit an Indication of Interest (IOI) and request shares on behalf of clients and then confirm client interest during the Conditional Offer to Buy (COB) window ahead of the final pricing and allocation.

Following the IPO, everyone will be able to see fund performance metrics, charts, and updates, including the new companies joining the fund each quarter. Every quarter, RVII expects to meet with dozens of new companies from the Y Combinator program and beyond, picking the most promising ones to invest in.

Interested investors can review the preliminary prospectus or learn more at https://robinhood.com/us/en/ventures/rvii. Companies interested in joining RVII or learning more about Robinhood Ventures can contact [email protected].

Disclosures:

*Source: Y Combinator; data as of July 2026.

**Source: NVCA 2026 Yearbook (National Venture Capital Association / PitchBook Data, Inc., 2026); data as of December 31, 2025. Y Combinator statistics are for past performance and are not indicative or predictive of future returns, including for RVII.

***Source: Jay R. Ritter, “Initial Public Offerings: Median Age of IPOs Through 2025,” University of Florida IPO Initiative, updated December 31, 2025. Based on 9,343 IPOs from 1980–2025.

****Source: NVCA 2026 Yearbook (National Venture Capital Association / PitchBook Data, Inc., 2026); data as of December 31, 2025.

This communication has been made available to you with the consent of Robinhood Ventures Fund II (“RVII” or the “Fund” ). RVII has filed a registration statement (including a preliminary prospectus) on Form N-2 (File No. 333-297168) with the Securities and Exchange Commission (the “SEC”) for the offering to which this free writing prospectus relates. The registration statement has not yet become effective. Before you invest, you should read the preliminary prospectus in that registration statement and other documents RVII has filed with the SEC for more complete information about RVII and this offering. You may get these documents for free by visiting the SEC website at www.sec.gov. Alternatively, copies of the prospectus may be obtained by contacting Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by emailing [email protected]; J.P. Morgan Securities LLC, Attention: c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or email: [email protected] and [email protected]; Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (Tel: 800-831-9146); Wells Fargo Securities LLC, 608 2nd Avenue South, Minneapolis, MN 55402, at 800-645-3751 (option #5) or email a request to [email protected]; or UBS Securities LLC, Attention: Equity Syndicate, 11 Madison Avenue, New York, NY 10010, by telephone at (888) 827-7275, or by email at [email protected]. Investors are advised to carefully consider the investment objectives, risks and charges and expenses of RVII before investing. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

An investment in the Fund is speculative and involves a high degree of risk with substantial risk of loss.

RVII is a newly organized, closed‑end, diversified management fund that has elected to be regulated as a business development company, investing in a concentrated portfolio of private “Promising Companies.” This investment strategy entails limited information, illiquidity, valuation uncertainty, and risk of loss; shares and the value of RVII’s Net Assets may be volatile and the shares may trade at a discount or premium, and exposures may be via illiquid private vehicles with capital calls and extra fees. An active, liquid and orderly market for the shares may not develop or be sustained. Investors may be unable to sell their shares at or above the price initially paid for those shares. RVII may use leverage, has limited operating history, and does not anticipate that it will pay dividends on a quarterly basis or become a predictable distributor of dividends, all of which can reduce or delay returns.

A “Promising Company” means early-stage and growth-stage private companies that, in the view of Robinhood Ventures, demonstrate significant growth potential.

Closed-end funds differ from open-end funds in that closed-end funds do not redeem their shares at the request of an investor. No shareholder has the right to require the Fund to redeem his, her or its shares. While RVII’s shares are expected to be listed on an exchange, an active public market for the shares may not develop. As a result, shareholders may not be able to liquidate their investment. Accordingly, shareholders should consider that they may not have access to the funds they invest in RVII for an indefinite period of time. There is no assurance that the private companies in which RVII invests will ever have a liquidity event.

“Y Combinator” is a registered trademark of Y Combinator Management, LLC or its affiliates and is used by the Fund with permission. Y Combinator does not sponsor, endorse, or promote the Fund and has no responsibility for the management or performance of the Fund.

Robinhood Ventures (RHV) is the investment adviser for RVII. Robinhood Ventures is the dba name for Robinhood Ventures DE, LLC. Robinhood Ventures is an SEC-registered investment adviser and a wholly owned subsidiary of Robinhood Markets, Inc.

RVII plans to conduct an initial public offering that will not be limited to accredited investors, and following its IPO will be a publicly traded fund. A trading market may not develop. While the Fund’s shares are expected to be listed on an exchange, an active public market for the shares may not develop. As a result, shareholders may not be able to liquidate their investment. Accordingly, Shareholders should consider that they may not have access to the funds they invest in the Fund for an indefinite period of time.

Brokerage services offered through Robinhood Financial LLC (RHF), member FINRA/SIPC, or TradePMR Inc., member FINRA/SIPC.

RHV, RHF and TradePMR are separate but affiliated companies and wholly-owned subsidiaries of Robinhood Markets, Inc (“Robinhood”).

Robinhood and its affiliates generally earn more money from affiliated funds than from unaffiliated funds. In addition, Robinhood holds interests in funds managed by RHV and therefore has exposure to their market prices.

Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood Financial are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement. All investments involve risks.

References to the Robinhood Employee Fund are for informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, interests in the Robinhood Employee Fund. Any such offer or solicitation will be made only pursuant to definitive offering documents (including a private placement memorandum and subscription agreement), which will contain important information about the investment objectives, risks, fees, and expenses of the Robinhood Employee Fund and should be read carefully in their entirety before making any investment decisions. As described in more detail in the private placement memorandum, an investment in the Robinhood Employee Fund involves significant risk, including the loss of the entire investment.

Cautionary Note Regarding Forward-Looking Statements

This communication includes "forward looking statements," including with respect to RVII's proposed initial public offering (the "IPO") of common shares of beneficial interest, the filing and effectiveness of the registration statement on Form N-2, the expected timing of the IPO, the anticipated public offering price of $25 per share, the expected closing of the window to request IPO shares on August 12, 2026, the ability of customers to request and trade shares following the IPO through Robinhood or through a Registered Investment Advisor on TradePMR, the expected listing of RVII's shares on the New York Stock Exchange under the symbol "RVII," the potential addition of portfolio companies to RVII over time, RVII’s goal to make seed investments in promising companies across sectors that demonstrate significant growth potential, the belief that Y Combinator’s level of access to promising startups is extraordinary, Robinhood Ventures’ mission for retail to have a seat at the table in Series A financings as Robinhood Ventures scales, RVII’s aim to expand access to a crucial and often closed-off part of the market, RVII's expectation to meet with dozens of new companies each quarter, and the availability of fund performance metrics and portfolio updates following the IPO. These statements also include statements regarding RVII's objectives to expand access to private markets and other statements that are not historical facts. You can sometimes identify forward-looking statements through the use of words or phrases such as "will," "expects," "expected," "anticipates," "anticipated," "aims," "goal," "mission," "intends," "intended," "believes," "plans," "estimates," "potential," "future," "may," "could," or "should," the negative of these terms, or similar words and expressions of the future. Forward-looking statements involve known and unknown risks, uncertainties and assumptions, including the risks outlined under "Risks" in the preliminary prospectus and elsewhere in RVII's filings with the SEC, which may cause actual results to differ materially from any results expressed or implied by any forward-looking statement. RVII and Robinhood have no obligation, and do not undertake any obligation, to update or revise any forward-looking statement made in this communication to reflect changes since the date of this communication, except as required by law.

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Contacts
Investor Relations: [email protected]
Press: [email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3996552d-6798-448d-8a01-f28794b80be2

Having pioneered commission-free trading, Robinhood (HOOD -3.61%) is viewed as one of the most innovative online brokerages available for retail investors.

The company proved this yet again in the second quarter, showing just how much its early foray into the prediction markets is paying off.

Robinhood saw its transaction revenue from event-based contracts soar to $156 million in the second quarter, up over $50 million from the prior quarter and from practically nothing just one year ago.

This is also the first quarter in which event-based contracts revenue exceeded crypto transaction revenue, which came in at $100 million in the second quarter, down $60 million from one year ago.

Here’s what this means for crypto investors.

Image source: Getty Images.

The crypto bear marketThe weak quarter in crypto for Robinhood should come as no surprise, given the ongoing crypto winter. The price of Bitcoin is down nearly 26% this year.

The less interest there is in crypto, the fewer trades will be made, which hits every crypto platform. Robinhood’s $100 million of crypto-related transaction revenue is the weakest crypto quarter the company has seen in the past seven quarters. The number also missed Wall Street consensus estimates by $25 million.

When asked during a CNBC interview about concerns in the crypto business, Robinhood CEO Vlad Tenev said, “Long term, I think crypto is in a growth cycle.”

The company has been launching more products centered around digital assets.

Robinhood recently launched a layer-2 solution on Ethereum called Robinhood Chain that allows its tens of millions of users to trade tokenized U.S. stocks 24/7 in over 120 countries.

Tenev said the chain is the fastest ever to reach 100 million in transactions.

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Robinhood Earn, the company’s stablecoin, has also seen $200 million in customer deposit inflows, which can earn a massive 7% annual percentage yield.

This shows that while crypto values may not be faring well, the underlying blockchain technology remains quite useful.

An uncertain futureIf you are a crypto investor, these developments at Robinhood indicate strong demand for blockchain-based solutions.

Now, this crypto winter certainly feels different from past ones because it seems, to a certain extent, that investors have lost interest in crypto assets.

However, history is on the bulls’ side: cryptocurrencies have made remarkable recoveries after severe drawdowns, so investors can never count the sector out.

The passage of the Clarity Act, which is currently pending in the U.S. Senate, could serve as a catalyst.

Tenev also said he’s paying close attention to what happens with the U.S. Strategic Bitcoin Reserve, which President Donald Trump created via executive order last year but has not yet been officially launched.

It’s possible that crypto investors simply got ahead of themselves last year when Trump came in with a pro-crypto agenda, the first President to really embrace crypto.

It’s also possible that exuberance over artificial intelligence and quantum technology has overshadowed crypto. What happens next is anyone’s guess, as crypto movements are extraordinarily difficult to predict.

My advice for crypto bulls is to stick with mainstream tokens like Bitcoin and Ethereum, which could certainly still have promise. Bitcoin may yet serve as a key store of value, while Ethereum’s blockchain network remains compelling. I would ignore most other cryptocurrencies right now.

Robinhood is moving beyond its original role as a retail broker. And that’s despite the fact that the second-quarter 2026 results shared company’s Wednesday (July 29) earnings call looked like a victory for its trading business.

“The business is firing on all cylinders,” said Shiv Verma, chief financial officer of Robinhood. “We delivered record revenues and drove new highs across equity, option, and event contract volumes, as we continue to win market share. Our product velocity continues to deliver new products for customers and drive a more diversified business, with Robinhood Legend and the Credit Card business joining our growing roster of now 13 different business lines that have reached $100 million-plus in annualized revenues.”

Robinhood reported record quarterly revenue of $1.3 billion, up 32% from a year earlier, alongside $22 billion in net deposits and a 57% adjusted EBITDA margin. Activity reached new highs across equities, options and prediction markets, while the company added its strongest quarterly funded customer gain in almost five years to brush up against the 1 million number.

But executives stressed that Robinhood’s next phase is not primarily about processing more trades. Across prediction markets, tokenized assets, banking and credit cards, the financial platform is attempting to control more of the customer relationship and more of the transaction stack beneath it.

See more: How Uncertainty Became the Engagement Engine of the Digital Economy

Robinhood Sees Its Brokerage as an Acquisition Engine Rather than connecting customers to products, exchanges and market makers operated by others, Robinhood executives shared their goal of becoming the system through which customers receive income, spend money, build savings, invest, access credit and eventually delegate financial decisions to artificial intelligence.

A customer might arrive for stocks, options, crypto, retirement accounts, prediction markets, banking or a credit card. Robinhood’s goal is then to convert that customer into a Gold subscriber and introduce additional services.

Management said roughly 40% to 50% of new customers subscribe to Gold, regardless of which product initially brought them to the platform. Customers who use prediction markets, for example, are also more likely to hold Robinhood retirement accounts. The number of customers who have traded prediction-market contracts has grown from about 1.5 million to nearly 2 million.

Robinhood’s credit card has surpassed 1 million cardholders and is generating more than $17 billion in annualized purchase volume. Its banking offering has attracted more than $3 billion in deposits since beginning its rollout in November. Gold membership reached a record 4.8 million subscribers, equal to 17% of funded accounts.

See also: Prediction Markets Turn Uncertainty Into a Business Model

The platform’s prediction-market joint venture, Rothera, became a top-three U.S. designated contract market shortly after launching. The executives on the call said they expect more Robinhood event-contract volume to migrate to the venue as its capacity grows, and suggested that Rothera could eventually support other futures commission merchants, turning prediction markets from a retail feature into a potential infrastructure business.

Robinhood Chain reflects the same ambition in digital assets. Built around tokenized real-world assets, the blockchain generated more than $12 billion in decentralized-exchange volume shortly after launch and became one of the fastest networks to surpass 100 million transactions.

The emerging strategy is straightforward: acquire customers through a growing range of products, move more of their financial lives onto the platform and increasingly own the rails that process their activity.

But adding products is easier than making them feel like one financial experience.

Banking Is Becoming Robinhood’s Funding Layer, but Orchestration Remains Paramount As Robinhood expands, it must decide which services to present to each customer, when to introduce them and how to prevent a growing collection of accounts and applications from becoming confusing.

CEO Vlad Tenev acknowledged that challenge during the earnings call.

“The orchestration of all of these things into one story, into one financial tool, is becoming an increasing source of focus,” he said.

Robinhood’s expansion into banking may prove more important than any individual trading product because it changes how money enters the ecosystem. Robinhood Banking has attracted more than $3 billion in deposits since its rollout began last November. Roughly 40% of banking customers have enrolled in direct deposit.

Robinhood is also preparing for a future in which financial activity is initiated by software agents rather than by customers navigating applications themselves.

Its first agentic trading product lets users connect external AI tools to separate Robinhood accounts and develop strategies involving equities and options, with crypto support planned. More than 100,000 users have opened or integrated agentic accounts, according to management.

The product remains technically demanding. Customers must connect coding-oriented AI systems, and general-purpose models are not always designed to execute trades reliably. But the long-term implication is larger than the current user experience.

The next stage will not be decided by whether Robinhood can launch another popular feature. It will be decided by whether it can make a complex portfolio of products behave like one financial system.

Robinhood Markets, Inc. (HOOD - Free Report) came out with quarterly earnings of $0.62 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +40.91%. A quarter ago, it was expected that this company would post earnings of $0.4 per share when it actually produced earnings of $0.38, delivering a surprise of -5%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Robinhood Markets, which belongs to the Zacks Financial - Investment Bank industry, posted revenues of $1.31 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.49%. This compares to year-ago revenues of $989 million. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Robinhood Markets shares have lost about 18% since the beginning of the year versus the S&P 500's gain of 8.5%.

What's Next for Robinhood Markets?While Robinhood Markets has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Robinhood Markets was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.49 on $1.3 billion in revenues for the coming quarter and $1.95 on $5.07 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Bank is currently in the top 9% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, BGC Group (BGC - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on July 30.

This brokerage company is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of +9.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

BGC Group's revenues are expected to be $814.9 million, up 3.9% from the year-ago quarter.

Robinhood Markets (NASDAQ:HOOD) could credit new products for strong second-quarter results when the company reports earnings Wednesday after market close.

Here are the key earnings estimates, analyst expectations and items to watch.

Robinhood Q2 Earnings EstimatesAnalysts expect Robinhood to report second-quarter revenue of $1.21 billion, up from $989 million in the year-ago quarter, according to Benzinga Pro data.

The company has missed revenue estimates in two consecutive quarters but has exceeded expectations in seven of the past 10 quarters.

Analysts expect second-quarter earnings per share of 41 cents, compared with 42 cents per share in the same period last year.

Robinhood has beaten EPS estimates in eight of the past 10 quarters but missed expectations in the first quarter.

Robinhood Analyst Ratings and Price TargetsHere are some of the latest analyst ratings on Robinhood stock and their price targets:

KeyBanc: Maintained Overweight rating, raised price target from $100 to $125 Needham: Maintained Buy rating, raised price target from $97 to $123 Bernstein: Maintained Outperform rating, raised price target from $130 to $160 Goldman Sachs: Maintained Buy rating, raised price target from $121 to $137 Key Items to WatchAfter missing first-quarter estimates for both revenue and earnings per share, Robinhood will look to rebound by highlighting new products and growth initiatives when it reports results.

The company recently launched Robinhood Chain, a Layer 2 blockchain designed to expand its cryptocurrency ecosystem, while meme coin activity has gained traction among crypto traders.

Robinhood has also become a key partner in Trump Accounts, a White House-backed child investment account initiative, though the impact on revenue may come later as adoption ramps.

Prediction markets remain another growth area for the company. With major sporting events, including the World Cup, boosting interest in event contracts, investors will be watching for continued momentum in this segment.

Transaction-based revenue rose 7% year-over-year in the first quarter, though cryptocurrency revenue declined. Investors will be looking for stronger growth in overall transaction revenue and signs of a crypto rebound.

Management previously said April was on track to become the company’s strongest month of the year for equity and options trading.

The key question is how much of the growth from Trump Accounts and Robinhood Chain will be reflected in second-quarter results versus future quarters. With that in mind, management’s outlook and guidance could prove just as important as the earnings report itself.

Price ActionRobinhood stock is down 3.7% to $92.07 on Tuesday versus a 52-week trading range of $63.52 to $153.86. Robinhood shares are down 20.1% year-to-date in 2026.

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Hot stock Robinhood Markets (HOOD +2.79%) hasn't been so hot for most of 2026. It's starting to recover, though, and it's roughly flat year to date.

The trading platform reports second-quarter earnings on July 29. Is now the time to buy?

What to expect in the second-quarter report Management doesn't provide a full quarterly outlook, but it does provide guidance around operating expenses, and it has planned expenses to "accelerate product velocity, drive net deposit growth, and grow revenues."

Robinhood has expanded into being much more than a stock trading platform. It also offers cryptocurrency and options trading, as well as several traditional banking products, such as a credit card. It also offers a premium membership program called Robinhood Gold, and it recently launched the prediction markets segment and the Robinhood Social social media app.

Image source: Getty Images.

It generates higher revenue when users trade on their accounts, and launching new products as well as attracting higher deposits should lead to increased revenue. What's been happening is that cryptocurrency, and specifically Bitcoin, is falling, and lower trading is negatively affecting Robinhood's growth.

Last year, cryptocurrency trading revenue increased 98% year over year in the second quarter, implying that this year, there will be either a major slowdown or a decline. In the 2026 first quarter, it declined 47%, which doesn't bode well for the second quarter. This might have already been factored into the stock, but now that the stock has recovered, it could drop again on bad news.

On the positive side, it has been setting up a new product to benefit from Trump accounts, which should be a positive impact on the business, and it was one of the platforms chosen for the Space Exploration Technologies (SpaceX) initial public offering, which could also add more revenue.

How will Robinhood stock react? Robinhood may have a long growth runway as it disrupts traditional finance, but its growth minus cryptocurrency is somewhat underwhelming. Revenue increased 15% year over year in the first quarter. It added 1.7 million funded customers in the first quarter, a 6% year-over-year increase, for a total of 27.4 million. Robinhood Gold members increased by 1.2 million, or a 36% increase, to 4.3 million.

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Since the stock is heading back up, it's becoming more expensive again. It trades at 37 times forward one-year earnings, which is rich, especially as revenue growth slows down.

Since there are reasons to suspect the pressure related to cryptocurrency has yet to abate, I wouldn't buy Robinhood stock before the report with the expectation that it will jump. I would only recommend buying it if you see the long-term vision and can hold through volatility.

Shares of Robinhood Markets (HOOD 3.96%) were down by more than 40% year to date at one point but have rapidly closed the gap. The stock has surged by more than 80% from its 52-week low, and it's certainly no fluke. Fundamentals continue to improve, and a major headwind that has plagued Robinhood this year will have a limited impact in future years.

Image source: Getty Images.

Understanding crypto's role in Robinhood's earnings Robinhood's 15% year-over-year revenue growth in the first quarter was disappointing for investors who have come to know the fintech company. The same business grew by 50% year over year in the 2025 first quarter and was up by another 40% a year earlier.

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Those growth rates all boil down to crypto transaction revenue. This part of the business more than tripled in 2024 and doubled in 2025, when comparing the respective first quarters of those years. In the first quarter of this year, that same part of the business was down by 47% year over year.

That backdrop makes the 15% growth rate look more impressive since Robinhood is gradually becoming less reliant on crypto. Fellow fintech Coinbase Global is practically an all-in crypto play, and that has resulted in sizable year-over-year revenue drops in recent quarters. Coinbase saw its overall revenue tumble by more than 30% year over year in the first quarter.

Robinhood was prepared for the crypto crash Coinbase has been scrambling to diversify beyond crypto. It offered stock trading at the end of 2025 and opened up prediction markets on its platform earlier this year. Robinhood was well ahead of the curve on this.

Robinhood became famous due to its zero-commission stock trading that revolutionized the entire brokerage industry. This backstory cemented it as a company that isn't just into crypto, while it will be harder for Coinbase to break out of that mold.

Prediction markets are still an area of strength for Robinhood. That part of the business was the key contributor to "other transaction revenue," which more than quadrupled year over year. It now makes up more than 10% of total sales. Options revenue inched up by 8% year over year and made up more than one-quarter of total sales. Robinhood also generates more than one-third of its revenue from margin interest, and that part of the business grew by 24% year over year.

The fintech has several high-growth products that minimize the impact of fewer crypto trades. A crypto bull market will send Robinhood higher, but it's not necessary. Crypto barely made up 10% of the company's total revenue, and the remaining parts of the business are growing.

Crypto's reduced impact on Robinhood's financials, plus the company's success in multiple verticals, will result in easy year-over-year comparables in 2027. While Robinhood reported 15% year-over-year revenue growth in the recent first quarter, it's likely to deliver a much higher rate in the same period in 2027. That's part of the reason investors are loading up on the stock and betting on a comeback.

Shares of Robinhood Markets (HOOD +3.75%) climbed 14% this past week after the financial services company unveiled an array of new product innovations.

Image source: The Motley Fool.

Going global With roughly 28 million customers in 38 countries, Robinhood's financial platform already possesses impressive scale and reach. Yet it continues to expand into new markets.

Robinhood's acquisition of digital asset services provider WonderFi in June gave it a beachhead in Canada. The fintech platform also plans to launch crypto trading and brokerage services in the U.K. and Singapore.

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In addition to entering new international markets, Robinhood launched its new stock tokens in over 120 countries. The tokenized debt securities are designed to offer economic exposure to popular stocks and ETFs. They're tradable 24 hours a day, 7 days a week.

Robinhood also expanded its popular perpetual futures offering in European markets to include commodities, ETFs, and foreign currencies.

Agentic trading Investors were perhaps most intrigued by Robinhood's plans to integrate more artificial intelligence (AI)-powered features into its platform. Robinhood wants to become a hub for agentic AI trading by enabling its customers to use AI agents to buy and sell stocks, options, and cryptocurrencies on their behalf.

Many of these products and services will be enabled by the fintech's new blockchain platform, Robinhood Chain. The Layer 2 blockchain is built on the Arbitrum Platform and integrates with leading decentralized finance networks like Chainlink and Uniswap.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chainlink and Uniswap Protocol Token. The Motley Fool has a disclosure policy.

Shares of Robinhood Markets (HOOD) closed the holiday-shortened week in strong fashion, surging after the financial technology (fintech) company introduced Robinhood Chain — an internally developed Ethereum-based layer 2 blockchain that will serve as a foundation for the company’s burgeoning presence in the world of tokenized assets.

The news sent the Direxion Daily HOOD Bull 2X ETF (HODU) — designed to deliver 200% of the daily returns of the stock — soaring, confirming the ETF lived up to its billing as a fine one-day instrument. That doesn’t mean tactical traders should ignore the geared Robinhood ETF going forward. As Robinhood Chain evolves, it could be a headline-generator and catalyst for short-term usage of HODU.

“Without institutional-grade oracle infrastructure, tokenized assets cannot scale or maintain the security required by regulated market participants,” according to the company. “Operating as an Ethereum layer-2 network built on Arbitrum’s Orbit technology, Robinhood Chain addresses these inefficiencies with Chainlink by establishing an environment built specifically to unlock advanced onchain finance use cases for everyday Robinhood users.”

Tailwinds Abound for HOOD, HODU Wall Street is taking note of Robinhood’s broadening product base — one that could bring opportunity for traders to embrace the leveraged HODU. On Thursday, Mizuho named the financial services stock one of its top picks for the month of July. Analyst Dan Dolev rates the stock “outperform” with a $115 price target.

“Investors have been concerned historically with HOOD’s user graduation risk (i.e. leaving HOOD for a financial advisor),” Dolev wrote in a report to clients. “We believe that the company has done an impressive job mitigating these factors through the acquisition of TradePMR (financial advisor marketplace) as well as its continued strong execution on its product roadmap of comprehensive financial services.”

Another well-documented catalyst for Robinhood and HODU is the company’s emerging prediction market footprint. A recent report by Artemis suggests that as of June 25, 12.3 billion event contracts changed hands via Robinhood, potentially (not confirmed) stoking revenue of $123 million. If that proves to be the quarterly number, it’d put the company within striking distance of its previously stated goal of a $500 million annual run rate in event contracts.

Robinhood’s event contract growth is important for another reason that’s relevant to traders considering HODU. That business could soon surpass cryptocurrency in terms of revenue contributions. Crypto is arguably the more volatile of those two endeavors. Said another way, Robinhood’s digital currency transaction revenue can and does languish during crypto bear markets.

For more news, information, and strategy, visit the Leveraged & Inverse Content Hub.

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Robinhood’s CEO says the U.K. should look to the U.S. to increase retail stock ownership.

“Think of it as similar to where the US was 30 to 40 years ago,” Vlad Tenev said in a Bloomberg Television interview in London published Thursday (July 2).

He cited things like employer-sponsored 401(k) pensions and the White House initiatives to give newborns equity ownership.

“There is no reason why the same things would not also work here,” Tenev said.

As Bloomberg notes, Robinhood arrived in England two years ago with the goal of increasing retail ownership of equities, which are low in the U.K. compared to the U.S. Now, the British government is trying to boost interest in domestic stocks, with measures like easier initial public offerings (IPOs) and tax breaks on trading in new listings.

Asked by Bloomberg about the role of regulators, Tenev said the U.K.’s Financial Conduct Authority (FCA) showed “a great deal of openness to innovation” in his talks with the regulator. The authority recently said it would simplify requirements in its crypto regime coming next year.

Tenev, who is also Robinhood’s founder, added European regulators were ahead with the Markets in Crypto Assets regulation, which was followed by the Genius Act in the U.S.

The report also touched on concerns about an AI bubble, which Tenev dismissed, saying that “companies are generating significant revenue” that demonstrates there is substance behind the businesses, and adding that ownership “is a multidecade game.”

The interview came one day after Robinhood debuted the public mainnet of Robinhood Chain, a Layer 2 blockchain.

“AI-native and purpose-built for real-world assets, Robinhood Chain creates a permissionless environment for builders to innovate seamlessly,” Robinhood said in a news release.

The blockchain is one of several new decentralized finance and agentic products the company announced during its event, “Robinhood Presents: The World is Flat.”

These include new Stock Tokens available on the Robinhood Wallet in 120 countries; the rollout of Robinhood Earn to eligible U.S. users, letting them lend USDG; and an integration that allows users to access perpetual futures on decentralized exchange Lighter within Robinhood Wallet.

Meanwhile, Tenev announced last month that Robinhood securities business can now serve as an underwriter for IPOs. He said becoming an underwriter, and not simply a selling group member, is a natural progression in better serving customers and issuers.

The logo for Robinhood Markets, Inc., is displayed on a screen during the company’s IPO at the Nasdaq Market site in Times Square in New York City, U.S., July 29, 2021. REUTERS/Brendan... Purchase Licensing Rights, opens new tab Read more

CompaniesJuly 1 (Reuters) - Robinhood (HOOD.O), opens new tab said on Wednesday it plans to launch crypto trading in the UK and broadened its perpetual futures ​offering in Europe beyond cryptocurrencies.

Here are some details:

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Eligible ‌European investors will now be able to trade perpetual futures tied to commodities, ETFs and foreign exchange markets, including gold, silver, crude oil ​and the euro-dollar pair, with leverage of up ​to 10 times and round-the-clock trading, the company said.

Perpetual ⁠futures, commonly known as "perps," are futures contracts with no ​expiration date and have drawn significant attention in the U.S. ​after the CFTC in May permitted their trading on domestic exchanges.

Separately, Robinhood said it plans to roll out crypto trading for the UK as ​it seeks to build an all-in-one investing platform for the ​region.

The company also launched Robinhood Earn, a lending product that allows eligible U.S. ‌users ⁠to lend their dollar-backed stablecoin, USDG, through a self-custody wallet at an estimated 7% annualized return.

Robinhood Earn includes insurance for certain losses stemming from cyberattacks or smart-contract exploits, with ​the coverage arranged ​through Lloyd's ⁠of London and RELM.

The company also announced its entry into Canada following its acquisition of WonderFi ​and said it had received a capital markets ​services ⁠licence in Singapore.

The trading platform, which serves more than 28 million customers across 38 countries, has expanded into more financial services ⁠in ​recent years to reduce its reliance ​on trading activity.

The company posted weaker-than-expected transaction revenue for the first quarter amid crypto-driven ​volatility.

Reporting by Pragyan Kalita in Bengaluru; Editing by Leroy Leo

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Robinhood HOOD shares surged 8% on Wednesday after the online brokerage unveiled a series of new products and international expansion initiatives aimed at broadening its presence in cryptocurrency trading and global financial services.

The announcements, made during a live event in London, included new AI-powered cryptocurrency trading capabilities for US customers, expanded perpetual futures trading in Europe, and progress toward entering new markets including Canada, Singapore, and the United Kingdom.

Johann Kerbrat, general manager of crypto and international at Robinhood, said the initiatives are designed to bring more investment products to customers outside the United States.

"We want to extend this vision to the rest of the world," Kerbrat tells Barron's.

In the United States, Robinhood introduced agentic cryptocurrency trading at no additional cost.

The new feature allows customers to connect their own AI agents to Robinhood so those agents can execute cryptocurrency trades on their behalf.

The launch builds on the company's rollout of agentic trading for stocks and options introduced last month.

Robinhood also announced Robinhood Earn for eligible US customers, a lending service that enables users to lend the US dollar-pegged stablecoin USDG through a self-custody wallet.

The company said the lending infrastructure is powered by the decentralized lending network Morpho.

The brokerage also expanded its blockchain strategy by launching the main network for Robinhood Chain, which is designed to support real-world assets.

Additionally, Robinhood introduced tokenized stocks that eligible customers can trade around the clock on Robinhood Chain.

The company noted that stock tokens are not available in the United States or to US customers.

Robinhood continued its international expansion with several announcements focused on Europe and Asia.

In the European Union, the company expanded its range of perpetual futures contracts, allowing eligible customers to trade contracts linked to commodities, selected currencies, and exchange-traded funds, including gold, silver, and Invesco's Nasdaq-100 tracking QQQ ETF.

Unlike traditional futures contracts, perpetual futures do not expire, allowing investors to maintain positions for longer periods.

Robinhood also announced that it had received a capital markets services licence in Singapore, bringing it closer to launching brokerage services in the country.

In Canada, the company is expanding its cryptocurrency offering following its acquisition of digital asset platform WonderFi. Robinhood said Canadian customers will receive zero crypto trading fees through Sept. 30.

The company also revealed plans to launch cryptocurrency services in the United Kingdom.

"We're very excited about that because only brokerage products have been available up until today," Kerbrat said.

Analysts remain optimistic on growthRobinhood's latest product launches add to a broader strategy of expanding beyond its traditional brokerage business.

According to a Zacks report, the company was the top-performing finance stock during the second quarter of 2026, supported by stronger retail trading activity and continued growth across equities, options, cryptocurrencies, and prediction markets.

The report also highlighted Robinhood's efforts to diversify its business through AI-powered trading, wealth management, prediction markets, and payment products, creating additional opportunities for revenue growth.

Analyst sentiment remains positive.

According to Zacks, consensus earnings estimates for 2026 and 2027 have increased to $1.81 and $2.45 per share, respectively.

While earnings are expected to decline 11.7% this year, forecasts call for growth of 35.2% in 2027.

TipRanks data also reflects a favorable outlook, with 16 of 19 analysts rating Robinhood shares a Buy, while the remaining three recommend Hold, underscoring continued confidence in the company's long-term expansion strategy.

Key Takeaways HOOD is expanding from trading into a broader financial ecosystem to deepen customer relationships.Global moves include Europe tokenized stocks, Singapore approval and impending Indonesia acquisitions.HOOD's premium valuation, volatile revenues and regulatory risks make fresh buying less compelling. Robinhood Markets’ (HOOD - Free Report) growth story is increasingly shifting from a single-product trading app to a broader financial ecosystem. The company is expanding across brokerage, crypto, subscriptions, retirement, advisory, credit cards, private markets and prediction markets, aiming to become a more central platform in customers’ financial lives.

A key part of this strategy is customer deepening. At the end of May 2026, Robinhood had 27.7 million funded customers and $377 billion in total platform assets, reflecting continued asset consolidation on the platform. The company is moving into more recurring and relationship-driven products. The company also introduced trust and custodial accounts, supporting a family-investing experience. These initiatives suggest the company is trying to capture more wallet share across saving, investing and spending.

Another growth lever is product expansion for active traders. Robinhood has been building capabilities in futures, index options, crypto, private markets and prediction markets. Further, the company has entered into the capital markets business, with the approval to underwrite IPOs.

Likewise, HOOD’s peers, Charles Schwab (SCHW - Free Report) and Interactive Brokers Group (IBKR - Free Report) , are expanding their product suites aggressively. Interactive Brokers is diversifying through global market access, high-yield cash balances, securities lending, institutional services and advisor solutions, while Schwab is broadening its reach across wealth management, banking, lending, retirement and asset management. These efforts reduce commission dependence, support steadier revenues and deepen client relationships.

Robinhood’s broader ecosystem will likely make revenues more diversified and customers more loyal. Subscriptions, advisory assets, cash balances, credit cards and retirement accounts are expected to help reduce dependence on volatile trading volumes. At the same time, active trading, crypto and prediction markets can still provide upside during periods of stronger retail engagement.

Sales Estimates
 

Image Source: Zacks Investment Research

The key question for investors is whether Robinhood’s “financial super app” vision justifies buying HOOD stock for long-term upside, or whether it is better to wait for more evidence of traction across its newer products. Answering that requires a closer look at the company’s fundamentals, execution strategy and market-related catalysts that could influence its growth trajectory.

Robinhood: Other Factors to ConsiderGlobal Expansion: Robinhood is expanding globally by combining traditional finance with digital assets, positioning itself as a next-generation fintech ecosystem. Its initiatives include tokenized U.S. stocks and ETFs in Europe, broader crypto services, a proprietary blockchain, future banking products and expansion into Canada and Asia-Pacific through new offices and planned acquisitions.

Robinhood has received in-principle approval to set up the brokerage business in Singapore, bringing it closer to entering one of Asia’s key financial hubs. Pending acquisitions (PT Buana Capital Sekuritas and PT Pedagang Aset Kripto) in Indonesia are expected to close soon.

Additionally, Robinhood’s acquisition of WonderFi Technologies provides a new growth lever as crypto momentum moderates. The deal expands Robinhood into Canada’s crypto market through Bitbuy and Coinsquare, adding about 300,000 funded customers and more than C$2 billion in assets under custody. WonderFi’s regulated presence also strengthens Robinhood’s foothold in a market where trust and compliance are critical.

Strong Balance Sheet: Robinhood is on solid ground, with significant cash reserves. As of March 31, 2026, it reported cash and cash equivalents of $5 billion.

Further, last week, the company raised $2.2 billion through 0.00% convertible senior notes due 2029. The proceeds give Robinhood added financial flexibility. About $290 million will go toward share repurchases to offset dilution, while $112 million will fund capped call transactions to limit potential dilution if the notes convert. The remaining proceeds can support organic investments, acquisitions and capital expenditures.

In March, HOOD announced a new $1.5 billion share repurchase authorization (to be completed over the next three years). The company initially launched a $1 billion share repurchase program in May 2024, which was later expanded by another $500 million in April 2025. The new buyback program underscores management’s confidence in the company’s financial position and long-term growth prospects.

Litigation & Probes: Robinhood operates in a heavily regulated market and continues to expand into products that can draw scrutiny. In December 2025, Connecticut’s Department of Consumer Protection Gaming Division issued a cease-and-desist order to Robinhood Derivatives and other operators over sports event contracts it characterized as unlicensed online gambling, highlighting the risk of state-level regulatory challenges. Adverse outcomes in regulatory actions or changes in law could prevent it from offering, or continuing to offer, event contracts.

The company has also faced investigations and reviews tied to crypto promotions and tokenized equity products, and it paid more than $80 million in fines from 2023 to 2025 for a range of compliance issues. As prediction markets and related derivatives scale, regulatory limits could cap product rollout and add expense volatility.

Reliance on Volatile Revenue Streams: A large portion of HOOD’s business is tied to transaction-driven activity, including options trading, equities turnover and crypto trading. These categories are highly sensitive to market cycles, investor sentiment and shifts in risk appetite. During periods of volatility or bullish momentum, revenues can surge, but they can fall just as quickly when markets cool, trading volumes fall or retail engagement declines (as occurred in the first quarter of 2026).

This creates an inherently uneven earnings profile, making Robinhood’s results less predictable and more exposed to macro- and sentiment-driven swings than traditional, fee-based financial firms.

HOOD’s Price Performance, Earnings Prospects & ValuationAfter a sharp pullback in early 2026, HOOD shares have regained some momentum and are now down only 10% year to date. Although concerns over elevated valuation and softer crypto-related activity weighed on investor sentiment, the stock’s recent recovery appears to reflect growing optimism around Robinhood’s new product launches and broader platform expansion.

In comparison, shares of Schwab and Interactive Brokers have fared better. Even the industry to which the stock belongs has rallied 5.5% so far this year.

YTD Price Performance
 

Image Source: Zacks Investment Research

Over the past 30 days, the Zacks Consensus Estimate for 2026 has remained unchanged at $1.81, while for 2027, estimates have been revised upward to $2.45. The Zacks Consensus Estimate for HOOD’s 2026 earnings implies an 11.7% year-over-year decline. The trend will likely reverse next year, with earnings numbers suggesting a 35.2% jump. 

Earnings Estimates
 

Image Source: Zacks Investment Research

Despite the weakness in share price, Robinhood is trading at a premium to the industry. At present, the company has a price/tangible book (P/TB) of 10.26X for the trailing 12 months compared with the industry average of 3.25X.

Robinhood’s P/TB TTM
 

Image Source: Zacks Investment Research

HOOD stock is expensive compared with Schwab and Interactive Brokers. Schwab and Interactive Brokers have a trailing 12-month P/TB of 6.97X and 1.86X, respectively.

How to Approach HOOD as it Builds a Financial Super App?Robinhood’s long-term platform strategy remains promising, supported by customer growth, product expansion, global initiatives and a strong balance sheet. However, the near-term investment case is less compelling. The stock still depends heavily on volatile transaction-driven revenues, including options, equities and crypto trading, while newer products such as prediction markets, tokenized assets and global expansion remain subject to execution and regulatory risks.

Further, HOOD’s premium valuation leaves limited room for disappointment. Hence, investors should avoid initiating new positions at current levels. Those already holding HOOD may retain the stock, but fresh buying looks better deferred until valuation becomes more reasonable and product traction improves.

At present, HOOD carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

For years, retail margin accounts with less than $25,000 in equity were limited to fewer than four day trades within any rolling five-business-day window. When customers exceeded this threshold, they were subject to a 90-day account freeze. Now, 25 years later, regulators have scrapped the pattern day trading rule.

Robinhood Markets' (HOOD 3.92%) trading platform has historically served users with significantly fewer assets than those of traditional brokers. Without these users hamstrung by old pattern-day-trading rules, is Robinhood stock a buy?

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How Robinhood stands to benefit from the removal of the pattern day trade rule The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) overhauled Rule 4210, abolishing the pattern day trader (PDT) rule. Regulators eliminated the $25,000 equity and trade-counting requirements and replaced them with a $2,000 standard Regulation T minimum and risk-based intraday margin system. As a result, millions of smaller retail traders can day trade without restriction.

Robinhood's trading platform caters heavily to millennial and Gen Z investors, and these accounts tend to have lower average balances than traditional brokerages, along with higher trading activity. As of 2024, the average Robinhood account balance was around $4,000, and roughly one-quarter of accounts had a balance below the $25,000 threshold.

Image source: Getty Images.

Because this rule has constrained a large portion of Robinhood's active user base, its removal would unlock more trading opportunities, potentially boosting the company's transaction-based revenues through payment for order flow (PFOF) and exchange rebates. It also incentivizes cash account holders to upgrade to margin accounts to avoid settlement delays, potentially boosting margin interest revenue and Robinhood Gold subscriptions.

Robinhood CEO Vlad Tenev noted that "Robinhood worked alongside regulators and industry partners to make this happen," and that "this is exactly what we built Robinhood for." The change, which went into effect on June 4, comes on the heels of Robinhood already seeing stellar growth in trading volume, with average daily equities trading volume jumping 84% year over year in May.

Robinhood has done a good job of growing its business through new offerings over the past several years, including futures and index options, prediction markets, stock tokens, and agentic trading. The company's customer and asset bases continue to grow, and the removal of the PDT rule could further boost its volumes.

If Robinhood gets a bigger-than-expected boost from increased trading volume, the stock could surge. That said, investors are already paying up for strong growth ahead, with Robinhood stock priced right around 46 times forward earnings.

Robinhood Markets (HOOD 3.90%) operates a popular investing platform where its clients buy and sell stocks, futures, options, cryptocurrency, and even contracts in the prediction markets. Its stock hit a 52-week low of $63 in March, capping off a brutal 57% decline from last year's record high of $154.

The sell-off was sparked by weakness in Robinhood's options and crypto trading businesses, which account for most of its transaction-based revenue. But the company's monthly brokerage metrics showed a recovery in those areas in May, so its stock has surged by around 65% from its March low.

While that sounds encouraging, I don't think the recovery will last. In fact, here's why I'm predicting another sharp move lower for the stock.

Image source: The Motley Fool.

Robinhood's transaction-based revenue is on shaky foundations The majority of Robinhood's revenue comes from the transaction fees it earns whenever a client buys or sells stocks, options, or cryptocurrencies. It generated $623 million in total transaction-based revenue during the first quarter of 2026 (ended March 31), which was a 20% decline from the fourth quarter of 2025 -- just three months earlier.

Options transaction revenue was the largest of four components, and it shrank by 17% to $260 million. Options contracts are financial derivatives that many of Robinhood's clients use to make risky directional bets on stocks, exchange-traded funds (ETFs), and other assets. The stock market was very unpredictable during the first quarter because of the conflict between the U.S. and Iran, which likely spooked many options traders.

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Crypto transaction revenue experienced an even sharper sequential decline of 39% during the quarter, and came in at $134 million, the lowest level since 2024. The crypto market is in the throes of a brutal sell-off right now, and while highly speculative tokens like Dogecoin have declined the most, even Bitcoin is down 50% from its all-time high. This is likely keeping many investors sidelined.

Image source: Robinhood Markets.

Robinhood reports quarterly results like every other publicly listed American company, but it also reports monthly brokerage metrics to give shareholders a more frequent update on its clients' trading activity. During May, daily active trading volume in the options segment increased for the second straight month and hit the highest level of 2026 so far. This is a sign that the company's financial results for the second quarter (ending June 30) could bring an upside surprise.

However, history suggests it probably won't be sustainable. Spikes in trading volume in speculative segments like options and crypto tend to be very short-lived, because they are not markets where clients consistently make money. Earlier this year wasn't the first time Robinhood suffered a sharp drop in transaction revenue in the options and crypto segments -- it experienced even steeper declines after the stock market and crypto bull markets of 2021 came to an end.

Robinhood's valuation leaves little room for further upside When the stock set its all-time high last October, its price-to-sales ratio (P/S) was more than 30, which was almost triple its long-term average of 11.8. That valuation simply wasn't sustainable. But even though the stock is well off its highs, its P/S is still at an elevated level of 20.8.

HOOD PS Ratio data by YCharts.

That suggests Robinhood stock would have to decline by 43% just to trade in line with its long-term average P/S of 11.8. But that isn't the worst part: Hypothetically, if the company's overall revenue shrinks during the next few quarters like it did in the first quarter, then its forward P/S might actually be higher than its current ratio, meaning the stock is actually more expensive today than it appears at face value.

Although the company had a record 27.4 million clients at the end of the first quarter, just 13.5 million were actively engaging with the platform each month, which is still 36% below its peak of 21.3 million from the second quarter of 2021. Because many of its clients engage in risky options and crypto trading -- where it's very difficult to generate consistent profits -- some will inevitably drop off over time.

As a result, I think Robinhood's revenue will continue to be incredibly lumpy and unpredictable, as it has been since the company went public in 2021. That isn't a recipe for sustained upside in its stock, especially from its current valuation.

June 22, 2026 07:00 ET  | Source: Robinhood Markets, Inc.

Opportunistic capital raise with proceeds used to enhance strategic flexibility to invest for future growth     

Approximately $300 million of the proceeds to be used to repurchase shares, although the amount of Class A common stock that Robinhood actually repurchases may be more or less than $300 million

Additionally, a portion of the proceeds to be used to purchase capped calls intended to offset any share dilution until at least a targeted 125% premium to the last reported sale price of Robinhood’s Class A common stock on the date of pricing

MENLO PARK, Calif., June 22, 2026 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced that, subject to market conditions, it intends to offer $2.0 billion in aggregate principal amount of convertible senior notes due 2029 (the “Notes”) in a private placement (the “Offering”) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”). Robinhood also intends to grant the initial purchasers of the Notes an option to purchase, for settlement within a 13-day period from, and including the date on which the Notes are first issued, up to an additional $200 million aggregate principal amount of Notes.

The Notes will be senior, unsecured obligations of Robinhood. Robinhood will settle conversions by paying cash up to the aggregate principal amount of the Notes to be converted and paying or delivering, as the case may be, cash, shares of Robinhood’s Class A common stock or a combination of cash and shares of Robinhood’s Class A common stock, at Robinhood’s election, in respect of the remainder, if any, of Robinhood’s conversion obligation in excess of the aggregate principal amount of the Notes being converted, based on the then applicable conversion rate. The Notes will mature on October 1, 2029, unless earlier converted, redeemed or repurchased.

Robinhood may not redeem the Notes prior to July 1, 2028, except in the event of a cleanup redemption (as defined below). Robinhood may redeem for cash all or any portion of the Notes (subject to certain limitations), at its option, on or after July 1, 2028 and prior to the 21st scheduled trading day immediately preceding October 1, 2029, if the last reported sale price of Robinhood’s Class A common stock has been at least 120% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which Robinhood provides notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. In addition, the Notes will be redeemable at any time if the aggregate principal amount of the Notes that remains outstanding is less than $100 million and certain other conditions are satisfied (a “cleanup redemption”).

The interest rate, the initial conversion rate and certain other terms of the Notes will be determined at the time of pricing of the Offering.

Robinhood intends to use (i) approximately $300 million of the net proceeds from the Offering to repurchase its Class A common stock, although the amount of its Class A common stock that Robinhood actually repurchases may be more or less than $300 million, (ii) a portion of the net proceeds from the Offering to fund the costs of the capped call transactions described below and (iii) the remainder of the net proceeds from the Offering, if any, for general corporate purposes, which may include organic growth investments, potential acquisitions and/or capital expenditures. If the initial purchasers exercise their option to purchase additional Notes, Robinhood expects to use a portion of the net proceeds from the sale of the additional Notes to enter into additional capped call transactions. In addition, following the Offering, Robinhood plans to continue to repurchase additional shares of its Class A common stock pursuant to Robinhood’s stock repurchase program. The repurchases of Robinhood’s Class A common stock described above could increase (or reduce the size of any decrease in) the market price of Robinhood’s Class A common stock or the Notes. In the case of repurchases effected concurrently with the Offering, this activity could affect the market price of Robinhood’s Class A common stock prior to, concurrently with or shortly after the pricing of the Notes, and could result in a higher effective conversion price for the Notes.

In connection with the pricing of the Notes, Robinhood expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers of the Notes or their respective affiliates and/or other financial institutions (the “option counterparties”). The capped call transactions will cover, subject to anti-dilution adjustments, the number of shares of Robinhood’s Class A common stock initially underlying the Notes sold in the Offering. The capped call transactions are expected generally to reduce potential dilution to Robinhood’s Class A common stock upon conversion of any Notes and/or offset any cash payments Robinhood is required to make in excess of the principal amount of converted Notes, as the case may be, with such reduction and/or offset subject to a cap.

Robinhood has been advised that, as is customary for convertible note offerings that include capped call transactions, in connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates expect to purchase shares of Robinhood’s Class A common stock and/or enter into various derivative transactions with respect to Robinhood’s Class A common stock concurrently with or shortly after the pricing of the Notes. This activity could increase (or reduce the size of any decrease in) the market price of Robinhood’s Class A common stock or the Notes at that time. In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to Robinhood’s Class A common stock and/or purchasing or selling Robinhood’s Class A common stock or other securities of Robinhood in secondary market transactions following the pricing of the Notes and prior to the maturity of the Notes (and are likely to do so (x) during any observation period related to a conversion of Notes or following any repurchase of Notes in connection with any “fundamental change” (as defined in the indenture for the Notes) and (y) following any other repurchase of Notes if Robinhood elects to unwind a portion of the capped call transactions in connection with such repurchase). This activity could also cause or avoid an increase or decrease in the market price of Robinhood’s Class A common stock or the Notes, which could affect the ability of noteholders to convert the Notes and, to the extent the activity occurs during any observation period related to a conversion of Notes, it could affect the amount and value of the consideration that noteholders will receive upon conversion of the Notes.

Neither the Notes nor the shares of Robinhood’s Class A common stock potentially issuable upon conversion of the Notes, if any, have been, or will be, registered under the Securities Act, the securities laws of any other jurisdiction or any state securities laws and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. The Notes will be offered and sold only to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act. This news release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, the Notes, nor shall there be any sale of the Notes in any state or jurisdiction in which such offer, solicitation or sale is unlawful. No assurance can be made that the Offering will be consummated on its proposed terms or at all.

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Forward-Looking Statements

This press release contains forward-looking statements regarding Robinhood and its consolidated subsidiaries (“we,” “Robinhood,” or the “Company”), including, but not limited to, statements regarding the anticipated terms of the Notes, the completion, timing and size of the Offering and capped call transactions, the anticipated effects of entering into the capped call transactions, and the intended use of the net proceeds from the Offering and the anticipated effects thereof. In some cases, you can identify forward-looking statements because they contain words such as “believe,” “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Our forward-looking statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause our actual future results, performance, or achievements to differ materially from any future results expressed or implied in this press release. Factors that contribute to the uncertain nature of our forward-looking statements include, among others, risks and uncertainties associated with market conditions, including market interest rates, the trading price and volatility of Robinhood's Class A common stock and risks related to this Offering, and Robinhood’s business and operations and results of operations. Because some of these risks and uncertainties cannot be predicted or quantified and some are beyond our control, you should not rely on our forward-looking statements as predictions of future events. More information about potential risks and uncertainties that could affect our business and financial results can be found in Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, as well as in our other filings with the SEC, all of which are available on the SEC’s web site at www.sec.gov. Moreover, we operate in a very competitive and rapidly changing environment; new risks and uncertainties may emerge from time to time, and it is not possible for us to predict all risks nor identify all uncertainties. The events and circumstances reflected in our forward-looking statements might not be achieved and actual results could differ materially from those projected in the forward-looking statements. Except as otherwise noted, all forward-looking statements in this press release are made as of the date of this press release, June 22, 2026, and are based on information and estimates available to us at this time. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. Except as required by law, Robinhood assumes no obligation to update any of the statements in this press release whether as a result of any new information, future events, changed circumstances, or otherwise. You should read this press release with the understanding that our actual future results, performance, events, and circumstances might be materially different from what we expect.