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Partnership Leverages OG.com's CFTC-regulated Platform Following $5 Billion Spin-off from Crypto.com

, /PRNewswire/ -- Robinhood Markets, Inc. (NASDAQ: HOOD) and prediction market platform OG.com today announced a landmark multi-year partnership designating OG.com as an infrastructure and clearing provider for Robinhood's Prediction Markets offering.

OG.com x Robinhood x Crypto.com Under the agreement, Robinhood will route retail event contract volume through OG.com's underlying Commodity Futures Trading Commission (CFTC) regulated derivatives exchange and clearinghouse architecture. Prediction Markets on Robinhood are offered by Robinhood Derivatives, LLC, a registered futures commission merchant with the CFTC and Member of National Futures Association (NFA). This agreement will represent OG.com's largest B2B prediction markets partnership in terms of transaction volumes.

The partnership follows Citadel Securities investment into Crypto.com at a $20 billion valuation, which includes a standalone $5 billion valuation of OG.com through its strategic spin-off from Crypto.com. By separating from the core digital asset exchange infrastructure, OG.com operates as an independent company with dedicated capital allocation focused exclusively on scaling its direct consumer experience and deepening its institutional-grade, CFTC-regulated framework across sports, financials, and economic contract markets and margined derivatives.

As part of the deal, Robinhood will hold initial equity stakes in Crypto.com and OG.com following the latter's spin-off as an independent trading platform and the equity will be priced in line with the recent investment of Citadel Securities into the Crypto.com Group at a $20 billion valuation.

By routing contracts to OG.com Robinhood is expanding its existing prediction markets offering, making it an even higher-capacity engine capable of handling institutional-grade liquidity, instant clearing, and a more dynamic event catalog expansion across macroeconomic indicators, global sports, elections, and cultural milestones. The rollout of OG.com-backed event contracts on the Robinhood app will begin in phases to eligible U.S. customers starting on September 8, 2026.

"This is the beginning of a strategic partnership between both companies," said Kris Marszalek, Founder and CEO of Crypto.com and OG.com. "We're looking forward to making OG.com the most liquid venue globally for innovative derivative instruments, starting with prediction markets and quickly expanding into futures and perpetuals."

"Teaming up with Crypto.com and OG.com strengthens our position as a leader in the prediction markets space and gives us even more skin in the game," said JB Mackenzie, VP and GM of Futures and Prediction Markets at Robinhood. "Prediction markets are becoming an increasingly meaningful way for investors to engage with the events they care about, and this deal helps us meet our growing customer demand."

This multi-year partnership accelerates the evolution of modern market infrastructure by directly aligning retail accessibility with institutional-grade derivatives execution. OG.com's operational separation into a standalone entity creates the dedicated agility, specialized capital allocation, and regulatory clarity required to power high-frequency prediction markets. Simultaneously, Robinhood's integration and direct equity stake position both companies to capture the surging global demand for CFTC-regulated event contract trading and other innovative products.

By partnering with OG.com, Robinhood is further improving its execution layer with an established exchange infrastructure offering deep liquidity, ensuring strict federal compliance under CFTC oversight while supporting Crypto.com and OG.com's broader vision to establish two category-defining financial powerhouses in digital assets and regulated derivatives.

About Crypto.com
Founded in 2016, Crypto.com is trusted by millions of users worldwide and is the industry leader in regulatory compliance, security and privacy. Our vision is simple: Cryptocurrency in Every Wallet™. Crypto.com is committed to accelerating the adoption of cryptocurrency through innovation and development of new use cases including prediction markets and tokenized RWAs.

Learn more at https://crypto.com.

About OG.com
OG.com is an independent trading platform that operates multiple business lines servicing customers globally. Conducting business through registered entities, including the OG of event markets North American Derivatives Exchange, Inc., a designated contract market and derivatives clearing organization registered with the Commodity Futures Trading Commission (CFTC), and the OG Broker, a CFTC-registered Futures Commission Merchant (FCM), OG.com offers an up-to-date trading ecosystem for prediction market contracts across various categories, including sports, financials, economics, culture, and much more.

Built around a comprehensive suite of event contracts, OG.com allows all OGs to be original, whether a customer is a sports fan, an influencer, an oracle of culture, or part of the global community - all OGs can act on uncertainty, trade predictions, engage with a vibrant community, and climb the leaderboard. Available through direct access as well as intermediaries like FCMs and Introducing Brokers, OG.com is where it pays to be right.

Find your edge today at https://OG.com.

OG.com is available in approved jurisdictions. Trading is subject to risk and may not be appropriate for all.

About Robinhood
Robinhood Markets, Inc. (NASDAQ: HOOD) is a global leader in financial services offering retail brokerage, crypto, advisory, digital banking services, and private markets access to a new generation of investors. Additional information about Robinhood can be found at www.robinhood.com.

Futures, options on futures and cleared swaps trading is offered by Robinhood Derivatives, LLC ("Robinhood Derivatives"), a registered futures commission merchant with the Commodity Futures Trading Commission (CFTC) and Member of National Futures Association (NFA). Robinhood Derivatives is a wholly-owned subsidiary of Robinhood Markets, Inc. ("Robinhood Markets"-- when including its consolidated subsidiaries, "we," "our" or "Robinhood").

SOURCE Crypto.com

Robinhood Markets stock NASDAQ:HOOD ended Friday at $122.11, capping a volatile week in which Wall Street became markedly more bullish on the brokerage just as its valuation became harder to ignore.

Morgan Stanley upgraded Robinhood to Overweight from Equal Weight and raised its price target to $150 from $124.

Piper Sandler lifted its target to $145, while Scotiabank began coverage with an Outperform rating and $136 target.

The enthusiasm helped drive a 16.6% Thursday surge to $124.72 before the stock slipped 2.1% on Friday. After that rally, Robinhood was already trading around the prevailing analyst consensus target.

Morgan Stanley analyst Michael Cyprys argues Robinhood is becoming less dependent on speculative trading cycles.

Cyprys said there is “increasing evidence” that Robinhood’s expanding product set is improving the economics of its existing customer base.

The company now has 13 businesses generating more than $100 million in annualised revenue.

Morgan Stanley expects revenue to compound at roughly 23% through 2028 to $8 billion and raised its 2026 to 2028 earnings estimates by 12% to 15%.

Scotiabank’s Lance Jessurun made a related argument.

TipRanks reported that he believes investors still value Robinhood too much like a cyclical retail broker, overlooking revenue from subscriptions, interest income, clearing economics and international crypto infrastructure.

That is the bullish case, as Robinhood can grow by monetising the customers it already has rather than waiting for another trading frenzy.

The valuation problem is that investors are increasingly paying for that transformation before it is fully proven.

Prediction markets are the clearest example of both the upside and the uncertainty.

Robinhood generated $156 million of event-contract revenue in the second quarter as total quarterly revenue rose 32% to a record $1.31 billion.

Piper Sandler analyst Patrick Moley expects prediction-market revenue to reach roughly $320 million across the third and fourth quarters, helped by NFL and college football activity.

That growth is helping justify higher price targets, but regulation remains unsettled.

On August 28, the Ninth Circuit affirmed a ruling denying Robinhood preliminary relief against Nevada regulators and rejected arguments that sports-event contracts were beyond state gaming oversight.

The decision also addressed related cases involving Kalshi and Crypto.com.

That does not invalidate Robinhood’s prediction-market business, but it shows that one of the company’s fastest-growing revenue lines can still generate legal and regulatory volatility.

Robinhood’s latest operating data also give investors reasons to stay selective.

Funded customers reached 28.5 million in July, but total platform assets fell 4% from June. Equity trading volume declined 15% month over month, crypto volume dropped 33% and event-contract volume slipped 5%, although event activity remained about 20 times higher than a year earlier.

Wall Street is also far from unanimous.

Rothschild and Co Redburn kept a Sell rating in August and raised its target only slightly to $80, leaving a striking gap with Morgan Stanley’s $150 forecast.

That divergence captures the debate surrounding Robinhood after its latest rally.

Morgan Stanley may be identifying a company that has successfully evolved from a trading app into a diversified financial platform.

But the stock’s move above roughly $122 means investors are increasingly being asked to pay today for growth that still needs to arrive.

A synthetic stock market has pushed AMC toward legal action Summary

AMC CEO Adam Aron threatened legal action, arguing Robinhood’s AMC-linked tokens could undermine shareholder rights and AMC’s fundraising ability

AMC Entertainment AMC CEO Adam Aron escalated his fight with Robinhood Markets HOOD, threatening legal action over tokens linked to AMC stock that he says threaten investor rights and the company's ability to raise capital.

Aron said AMC has no relationship with Robinhood's token program and does not approve it. He demanded that Robinhood voluntarily “cease and desist” trading AMC-linked tokens, adding that securities counsel will examine whether AMC can force the platform to stop.

The dispute centers on tokenized real-world assets issued by Robinhood Assets (Jersey) Limited. Aron argues the products are unregistered securities that cannot be sold in the United States and face restrictions in Canada, Britain and Switzerland.

His concern is structural. Tokens can track AMC's share price without representing ownership in AMC itself. Holders may lack voting rights and protections attached to common stock, while trading activity occurs outside the market through which AMC issues equity.

That distinction matters for a heavily indebted company that has repeatedly sold shares to strengthen its balance sheet. Aron described those offerings as “vital.” If synthetic tokens attract capital that might otherwise flow into AMC shares, he fears they could weaken price discovery, confuse investors and complicate future fundraising.

Robinhood CEO Vlad Tenev asked Aron to explain his objections. Aron replied that the list was “almost existential,” turning a product dispute into a public challenge between two executives with large retail-investor followings.

AMC shares rose roughly 5% in premarket trading after the comments. The gain suggests investors welcomed Aron's defense of shareholder rights, although it does not establish that legal action would succeed.

For AMC investors, the next catalyst is whether the company's lawyers formally challenge Robinhood or regulators weigh in. Until then, the fight raises a bigger question: when a token mirrors a stock, who protects the company and its shareholders?

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Robinhood (HOOD +16.57%) shares were up about 15% as of this writing Thursday, at about $123.

The jump followed a wave of analyst notes and a record day on its own new blockchain network. Morgan Stanley upgraded the stock Tuesday to overweight from equal weight and lifted its price target to $150 from $124, and more bullish notes followed this week.

Morgan Stanley analyst Michael Cyprys argued that Robinhood's expanding product lineup is producing more activity and more revenue per customer. In plain terms, they're arguing Robinhood is no longer just a trading app.

And Robinhood itself put a number on that idea in late July: 13 business lines that have each reached $100 million or more in annualized revenue.

Since then, network data suggests a 14th has joined the list, and it didn't exist three months ago.

Image source: Getty Images.

The count holds upRobinhood's second-quarter report, released in late July, showed record revenue of $1.31 billion, up 32% year over year, and net income up 48% (helped by one-time investment gains). Chief financial officer Shiv Verma said the results reflected the company's product pace, with "Robinhood Legend and the Credit Card business joining our growing roster of now thirteen different business lines that have reached $100 million-plus in annualized revenues."

I count 13 lines in the 10-Q's revenue table that annualize above $100 million (anything above $25 million in the quarter). They span options, event contracts, cryptocurrencies, and equities, five interest-based lines led by margin lending, Gold subscriptions, proxy services, and two catch-all "other" buckets. The company's list is built on products rather than filing line items (Robinhood Legend doesn't get its own row), but both counts land at 13.

Lines can fall off the list, too. Securities lending was above the bar a year ago, at $54 million in the quarter, and produced just $10 million in this one.

How big is the newest line?The 14th didn't appear in any of those documents. It barely existed when they were filed.

Robinhood Chain, the company's own blockchain network built for real-world assets such as tokenized stocks, went live on July 1 -- one day after the second quarter ended.

Not only did the network set a fee record of about $3.8 million on Tuesday, but it also collected more than the Ethereum and Base networks that day. It broke that record Wednesday at about $4.5 million, according to DefiLlama data. Its average daily fee pace over the past 30 days now annualizes to about $179 million.

That $179 million needs two adjustments. Robinhood sends about 10% of the network's revenue after costs back to the Arbitrum ecosystem, whose technology the chain runs on. And annualizing the hottest stretch of a two-month-old network is generous math -- the chain's lifetime revenue through the start of this week was only about $10 million, and daily fees that spike may fade just as quickly.

Even with those adjustments, the pace arguably clears $100 million. Zoom out, though, and it amounts to about 2% of Robinhood's revenue pace of roughly $5.2 billion. Big enough to make the list, and far too small to carry the company.

Order flow still supplies a third of revenueHow much of the company still runs on its best-known business, routing customers' stock and options trades to market makers?

In the second quarter, equities produced $129 million of transaction revenue and options $342 million. Together, the two lines produced about 36% of total revenue.

But that share isn't shrinking. A year earlier, the two supplied about a third of revenue as well, and both are still growing. Equities transaction revenue nearly doubled year over year, while options revenue rose 29%.

The diversification is happening elsewhere. Cryptocurrency trading revenue was $160 million a year ago, $134 million in the first quarter, and $100 million in the second -- a steady step down. Meanwhile, event contracts (Robinhood's prediction-markets business) went from $10 million a year ago to $104 million in the first quarter and then $156 million in the latest one, and margin interest nearly doubled to $215 million.

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Ultimately, the case under this week's upgrades mostly checks out against Robinhood's own disclosures. The valuation is where I hesitate.

After Thursday's jump, shares cost about 43 times the earnings analysts expect the company to generate next year, while brokerage peer Charles Schwab costs about 14 times its own next-year forecast. Of course, some premium is deserved. After all, Schwab isn't growing revenue 32% or adding two new $100 million lines in a single quarter.

However, higher price targets aren't a reason to buy a stock, and neither is a 15% pop. I wouldn't sell a business that keeps adding $100 million lines. But I wouldn't chase the growth stock here, either. I view it as a hold for now.

Key Takeaways Robinhood Chain topped $12 billion in DEX volume and 150 million transactions shortly after launch.Stock Tokens give eligible users in more than 120 countries round-the-clock exposure to tokenized assets.Robinhood Earn drew over $200 million in deposits as the company expands beyond traditional trading. Robinhood Markets’ (HOOD - Free Report) accelerating push into tokenization could emerge as an important long-term growth catalyst as the company expands beyond its traditional brokerage and crypto-trading businesses. The recent launch of the Robinhood Chain public mainnet marks a significant step toward building a blockchain-based financial ecosystem around tokenized real-world assets.

Built as an Ethereum Layer 2 network using Arbitrum technology, Robinhood Chain is designed to support faster and lower-cost transactions. The company has also expanded Stock Tokens through Robinhood Wallet to eligible users across more than 120 countries, enabling round-the-clock exposure to tokenized assets. These tokens may eventually be used across decentralized-finance applications, including lending and collateral-based services.

Robinhood is also broadening its digital-asset offerings through Robinhood Earn, its decentralized lending product and an expanded suite of perpetual futures in Europe covering crypto, commodities, ETFs and foreign exchange. Early adoption has been encouraging, with Robinhood Chain exceeding $12 billion in decentralized-exchange volume and 150 million transactions shortly after launch. Meanwhile, customers deposited more than $200 million into Robinhood Earn, while international funded customers topped 1 million in the second quarter of 2026.

These initiatives could strengthen customer engagement, expand Robinhood’s addressable market and diversify revenues at a time when crypto transaction revenues have been declining. However, regulatory uncertainty, cybersecurity risks, smart-contract vulnerabilities and uncertain adoption pose key concerns. Successful scaling of Robinhood Chain and Stock Tokens could reduce HOOD’s reliance on traditional trading revenues and support a more diversified long-term growth trajectory.

How are Robinhood’s Peers Diversifying Beyond Trading?Two close peers of HOOD are Charles Schwab (SCHW - Free Report) and Interactive Brokers Group (IBKR - Free Report) .

Schwab has been diversifying beyond trading by expanding into wealth management, banking, lending and advisory services, while enhancing offerings for ultra-high-net-worth and RIA clients. Schwab is also investing in AI-enabled advice and digital banking to deepen client relationships and generate more recurring, less transaction-dependent revenues.

Interactive Brokers is diversifying beyond traditional trading by expanding crypto and stablecoin services, prediction markets, global market access and AI-powered investing tools. Interactive Brokers’ strategy centers on a unified multi-asset platform that deepens client engagement and broadens revenue opportunities across emerging financial products and technologies.

HOOD’s Price Performance, Valuation & Estimate AnalysisOver the past six months, Robinhood shares have jumped 33% compared with the industry’s growth of 19.4%.

Image Source: Zacks Investment Research

HOOD shares are currently trading at a premium to the industry. The company has a 12-month trailing price-to-tangible book (P/TB) of 10.89X compared with the industry average of 3.34X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Robinhood’s 2026 earnings suggests a year-over-year decline of 0.5%. The trend is likely to reverse next year, with earnings expected to jump 31.9%. In the past month, earnings estimates for 2026 and 2027 have been revised higher to $2.04 and $2.69 per share, respectively.

Image Source: Zacks Investment Research

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

Key Takeaways Robinhood posted record H1 revenues of $2.38B, up 24%, as EPS climbed nearly 27% to $1.00.HOOD's prediction-market revenues surged to $260M, while crypto revenues fell 43% to $234M.Robinhood trades at 11.4X tangible book, well above the 3.33X industry average, raising valuation risk. Robinhood Markets (HOOD - Free Report) has evolved well beyond its roots as a commission-free stock-trading app. Strong customer engagement, record asset inflows, growing transaction volumes and rapid expansion across prediction markets, credit cards, banking, retirement and wealth management have created multiple growth avenues. This momentum was evident in the first half of 2026, when Robinhood posted record revenues and robust earnings growth.

Much of this optimism is reflected in the stock’s valuation. At $109.76 as of Aug. 27, Robinhood trades at 11.4X trailing 12-month tangible book, well above the industry average of 3.33X.

Robinhood’s P/TB TTM
 

Image Source: Zacks Investment Research

Also, HOOD stock is expensive compared with its peers – Charles Schwab (SCHW - Free Report) and Interactive Brokers (IBKR - Free Report) . Schwab and Interactive Brokers have a trailing 12-month P/TB of 7.71X and 1.95X, respectively.

Robinhood’s faster growth, younger customer base, digital-first platform and exposure to emerging businesses warrant some premium. Nevertheless, the gap leaves little room for disappointing execution. Investors considering the stock must therefore determine whether the company’s rapidly expanding financial ecosystem can generate enough sustained earnings growth to justify such a steep price.

Strong H1 Results Underpin HOOD’s Growth StoryRobinhood entered the second half of 2026 with substantial momentum. For the first six months of 2026, net revenues increased 24% year over year to a record $2.38 billion. Earnings per share rose nearly 27% to $1.00, while adjusted EBITDA grew 25% to $1.28 billion.

Quarterly Revenue Trend
 

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Trading remained a major growth engine. Transaction-based revenues rose 25% to $1.4 billion. Options revenues increased 19% year over year to $602 million, while equities revenues jumped 73% to $211 million. Prediction-market event contracts emerged as a key growth driver, generating $260 million in revenues compared with just $13 million in the prior-year period. The weak spot was cryptocurrencies, where revenues declined 43% to $234 million.

Importantly, Robinhood's expansion is no longer solely a trading-volume story. As of June 30, 2026, funded customers increased 7% year over year to 28.4 million, Gold subscribers surged 39% to a record 4.8 million and average revenue per user climbed 24% to $187. Total Platform Assets advanced 32% to $369 billion, while Robinhood recorded net deposits of approximately $39.7 billion in the first six months of 2026, including $21.7 billion in the second quarter alone, highlighting sustained customer asset inflows.

Momentum continued into July. Funded customers edged up to 28.5 million, while trailing-12-month net deposits reached $74.9 billion, representing 25% growth rate relative to July 2025 Platform Assets. Such consistent organic inflows indicate that Robinhood is capturing a larger share of customers’ investable assets.

New Businesses Broaden Robinhood’s Growth RunwayAnother reason investors have assigned HOOD a premium valuation is its expanding product ecosystem.

The company now says 13 business lines have reached at least $100 million in annualized revenues. Its Gold Card has crossed 1 million customers, Robinhood Banking held more than $3 billion in deposits at the end of the quarter and Robinhood Strategies had attracted more than 300,000 funded customers and nearly $2 billion in assets. TradePMR's platform had reached $50 billion in assets under management.

Internationally, Robinhood surpassed 1 million funded customers outside the United States and completed its WonderFi acquisition in Canada during the second quarter. Robinhood Singapore received a capital markets services license on July 1, while Robinhood U.K. entered the FCA cryptoasset register on July 31 and launched crypto trading earlier this month. Robinhood Chain also moved to a public mainnet in July, and by Aug. 10, 2026, it had generated more than $18 billion in decentralized-exchange volume and exceeded $840 million in total value locked.

Stock Tokens are available to eligible users in more than 120 countries, while Robinhood Earn had attracted more than $200 million in deposits by July-end. These initiatives broaden Robinhood's geographic reach and crypto use cases. If Robinhood can successfully cross-sell these services, higher customer lifetime values and more recurring revenues could support long-term margin expansion.

Likewise, Interactive Brokers and Schwab have been expanding their product suites aggressively. Interactive Brokers is broadening its product ecosystem beyond traditional stocks and options by expanding into crypto and crypto futures, prediction markets, AI-enabled trading tools and new international markets. This diversification strengthens client engagement while positioning IBKR as a multi-asset, global trading platform.

Meanwhile, Schwab is diversifying beyond brokerage into wealth management, advisory, banking, lending, retirement and asset management. SCHW’s fee-based assets, net interest income and broader financial services reduce commission dependence, support steadier revenues and deepen client relationships.

Robinhood’s Growth Prospects Remain FavorableRobinhood’s long-term earnings picture remains compelling, although near-term growth is expected to moderate after substantial gains in recent years.

The Zacks Consensus Estimate for 2026 revenues is $5.08 billion, implying 13.7% year-over-year growth. On the other hand, earnings are projected to decline 0.5% to $2.04. However, growth is expected to accelerate next year, with revenues likely to jump 25.5% to $6.38 billion and earnings are projected to surge 31.2% to $2.69.

Earnings Estimates
 

Image Source: Zacks Investment Research

Asset growth, margin lending, prediction markets, Gold adoption, retirement assets, advisory services and international expansion offer meaningful upside to these estimates. Robinhood’s increasing scale could also generate operating leverage if revenues continue expanding faster than expenses.

Robinhood's liquidity position supports reinvestment, acquisitions and shareholder returns while management continues to manage share count. As of June 30, 2026, cash and cash equivalents were $5.4 billion, and corporate cash, investments and stablecoin totaled $5.6 billion. The company also had $4.9 billion of available lines of credit. In June, Robinhood raised $2.2 billion through 0% convertible senior notes due in October 2029. Thus, a solid liquidity position supports its capital distributions.

Though the company doesn’t pay dividends, it has been actively engaged in share repurchases. In March, the board refreshed the share buyback authorization to $1.5 billion, which management expects to complete over roughly the next three years. As of June 30, 2026, roughly $1.37 billion worth of shares remained available for buyback. Given decent liquidity and balance sheet position, the company’s share repurchases will likely be sustainable.

Robinhood: Risks That Should Not Be IgnoredRobinhood remains exposed to trading volumes, cryptocurrency prices and broader investor sentiment. Crypto transaction revenues have been declining for the last few quarters, demonstrating the volatility inherent in this business.

Costs also warrant attention. Operating expenses increased to $1.39 billion in the first half from $1.11 billion. First-half provisions for credit losses climbed to $92 million from $52 million as Robinhood expanded its credit-card operations.

Further, rapid expansion into prediction markets, cryptocurrencies, lending and international markets increases regulatory and execution risks. A slowdown in retail trading activity, weaker market conditions or regulatory restrictions on high-growth businesses could pressure revenues while simultaneously compressing Robinhood’s premium valuation.

Is Robinhood Stock Worth Betting on?Following a solid performance in 2025, Robinhood shares have struggled this year and are down 3% amid the crypto-market downturn against the industry’s growth of 10.7%. Although robust equities, options and prediction market activities have partly cushioned the impact, crypto weakness continues to weigh on investor sentiment.

Also, Robinhood shares have underperformed Schwab and Interactive Brokers over the same time frame.

YTD Price Performance
 

Image Source: Zacks Investment Research

Robinhood’s underlying growth story remains compelling. Record revenues, robust net deposits, expanding customer assets and a rapidly diversifying product suite suggest that the company has considerable room to grow. New businesses such as prediction markets, Gold, banking, credit cards and advisory services could make revenues more diversified and strengthen customer retention.

However, the stock price already reflects substantial expectations. With HOOD trading at a premium, investors are paying today for considerable future growth. The company must therefore continue delivering strong asset inflows, successful product adoption and above-average earnings expansion to justify its premium.

For growth-oriented investors willing to tolerate considerable volatility, Robinhood remains an intriguing long-term story. However, given its elevated valuation and exposure to market, regulatory and execution risks, investors may find the risk-reward equation more compelling following a meaningful pullback rather than chasing the stock at current premium levels.

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.

Key Takeaways Robinhood shares rallied 13.2% last week, sharply outperforming the industry's 2.3% decline.HOOD gained as optimism over the Clarity Act and a Bitcoin rally lifted sentiment toward crypto stocks.HOOD's funded customers rose 7% to 28.4 million at Q2-end, while Platform Assets climbed 32% to $369 billion. Shares of Robinhood Markets (HOOD - Free Report) , a leading fintech brokerage firm, rallied 13.2% last week, sharply outperforming the industry, which declined 2.3% over the same period.

One-Week Price Performance
 

Image Source: Zacks Investment Research

If you observe the price chart, you will see that Robinhood shares took off on Friday, Aug. 21, following a volatile performance over the previous four trading sessions.

What Triggered the Rally in HOOD Stock?The sharp rally in Robinhood shares on Friday was largely driven by renewed optimism surrounding the U.S. cryptocurrency regulatory landscape. President Donald Trump urged Congress to advance the Clarity Act, which seeks to establish clearer rules for digital assets and define oversight responsibilities between the SEC and CFTC. Investors viewed the push as a potential step toward a more accommodating regulatory environment, benefiting crypto-focused platforms such as Robinhood, Coinbase Global (COIN - Free Report) and Circle Internet Group (CRCL - Free Report) .

On Friday, Coinbase Global and Circle Internet gained 8.2% and 5.2%, respectively. Growing optimism over U.S. crypto regulation, particularly the Clarity Act, coupled with a Bitcoin rally, boosted investor sentiment toward COIN and CRCL shares.

The development is particularly significant for Robinhood as the company continues to broaden its presence in digital assets and blockchain-based products. CEO Vlad Tenev has been advocating for tokenized stock trading in the United States, arguing that blockchain-based equities could offer benefits such as round-the-clock trading, real-time settlement and greater asset portability. Robinhood already offers stock-token trading in more than 120 countries, although the service is currently unavailable in the United States.

Investor sentiment was further supported by expectations that the SEC is going to introduce an “innovation exemption” allowing approved platforms to offer tokenized equities domestically. Combined with Robinhood’s expanding crypto ecosystem, including Bitstamp, WonderFi and other blockchain initiatives (Robinhood Chain), greater regulatory clarity will likely unlock additional growth opportunities and strengthen its competitive position in digital finance.

What Next for Robinhood?Though Robinhood stock jumped last week, it is still trading at a loss in the year-to-date time frame. On the other hand, the industry jumped 10.4%. Coinbase Global has lost 17.5%, while Circle Internet shares have gained 10.9% over the same time frame.

YTD Price Performance
 

Image Source: Zacks Investment Research

Though trading remains a major growth engine, Robinhood’s expansion is no longer solely a trading-volume story. As of June 30, 2026, funded customers increased 7% year over year to 28.4 million, Gold subscribers surged 39% to a record 4.8 million, and average revenue per user climbed 24% to $187. Total Platform Assets advanced 32% to $369 billion, while Robinhood recorded net deposits of approximately $39.7 billion in the first six months of 2026, including $21.7 billion in the second quarter alone, highlighting sustained customer asset inflows.

This combination of customer growth, asset gathering and increased monetization suggests Robinhood is succeeding in capturing a larger share of its customers' financial lives. The company now says 13 business lines have reached at least $100 million in annualized revenues.

As these tools increase engagement while maintaining user trust, HOOD is expected to build recurring use cases around investing, lending, automation and payments rather than relying only on trading activity.  These efforts are expected to drive top-line growth. The Zacks Consensus Estimate for HOOD’s 2026 sales indicates a rise of 13.3% on a year-over-year basis, while the estimate for 2027 suggests 25.3% growth.

Sales Estimates
 

Image Source: Zacks Investment Research

Likewise, analysts are turning bullish on HOOD’s prospects. Though the Zacks Consensus Estimate for HOOD’s 2026 earnings indicates a fall of almost 1% on a year-over-year basis, the estimate for 2027 suggests 30.4% growth. Earnings estimates for both years have been revised higher over the past seven days.

Earnings Estimates
 

Image Source: Zacks Investment Research

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

Robinhood shares surged 11% on Friday as a sharp rally in Bitcoin lifted crypto-related stocks across the market.

Bitcoin was trading near $77,000, up substantially from around $62,800 at the beginning of the week, as investors poured into digital assets following a combination of macroeconomic and policy catalysts.

The move has provided a fresh boost to Robinhood HOOD, whose trading platform allows customers to buy and sell cryptocurrencies alongside stocks and other assets.

Other crypto-linked stocks also advanced sharply. Strategy rose more than 6%, while Coinbase gained about 9% and Circle Internet Group climbed roughly 9%.

The rally follows a turbulent period for risk assets, with markets initially responding positively to a retreat in Treasury yields before a powerful short squeeze accelerated the move in cryptocurrencies.

According to CoinGlass, roughly $2.7 billion in crypto short positions were liquidated, forcing traders who had bet against digital assets to close their positions and adding further buying pressure.

The initial catalyst came from the bond market.

Treasury yields fell sharply on Wednesday after the US Treasury announced plans to double the size of its planned buybacks of longer-dated government debt.

The intervention temporarily eased pressure on risk assets, including cryptocurrencies, which tend to be sensitive to changes in liquidity and borrowing costs.

Max Stuedlein, head of Partnerships at Sygnum APAC, said Bitcoin's rally reflects an alignment of macroeconomic and policy catalysts.

“The Treasury’s decision to double its buybacks of long-dated government debt is aimed at addressing long-term yield concerns, where borrowing costs have been rising on concerns over US debt levels and partial crowding out by debt issuances of hyperscalers,” he said.

The effect has since broadened beyond Bitcoin as investors have moved into crypto-related equities.

The Bitcoin rally is also being supported by renewed demand from US investors.

Spot Bitcoin ETFs attracted $606 million in inflows on Thursday, up from $517 million a day earlier.

Total inflows this week have exceeded $1.6 billion, marking the strongest weekly performance since October last year.

That institutional demand provides a stronger foundation for the rally than short covering alone, although it remains unclear how long the pace of inflows can continue.

For Robinhood, stronger crypto activity can translate into higher transaction revenue.

But the company has increasingly sought to demonstrate that its business is becoming less dependent on cryptocurrency trading.

Crypto accounted for just 12.88% of Robinhood's transaction revenue in the second quarter, down sharply from a peak of 53% in the fourth quarter of 2024.

Layered onto the broader policy catalyst is Robinhood’s push into tokenized equities.

CEO Vlad Tenev published a widely circulated piece on August 18 urging US policymakers to modernize securities laws to allow blockchain-based versions of stocks to trade domestically.

He warned that the US risks falling behind overseas markets, where tokenized equity trading has reached $9 billion in volume in 2026, an increase of more than 800% year to date.

The SEC is also reportedly working on an “innovation exemption” that could allow approved platforms to offer 24/7 trading in tokenized stocks.

Such a framework could give Robinhood a significant regulatory runway for expanding its existing tokenization products.

Analysts remain divided on RobinhoodDespite Friday's jump, Robinhood shares remain down about 8% this year, highlighting the uncertainty surrounding the stock.

Fundstrat Global Advisors co-founder and head of research Tom Lee has reportedly included HOOD among the stocks he expects investors to avoid in 2026.

His cautious stance is notable because Lee has generally been viewed as a strong supporter of the cryptocurrency market.

Other investors disagree.

Kevin Simpson, founder and CIO of Capital Wealth Planning, said he does not share Lee's bearish view.

Robinhood's second-quarter revenue increased 32% year over year to a record $1.3 billion, while earnings per share rose 48% and net deposits reached a record $22 billion.

Simpson acknowledged that the valuation is high but said he remains confident in CEO Vlad Tenev and Robinhood's ability to attract younger investors.

Joseph Terranova of Virtus Investment Partners described Lee's position on Robinhood as "counterintuitive."

Bryn Talkington, managing partner at Requisite Capital Management, also disagrees with Lee, arguing that Robinhood remains closely tied to cryptocurrency and could benefit significantly if the crypto market continues to recover.

Goldman Sachs recently added to the bullish outlook, raising its price target for Robinhood to $123 while maintaining a Buy rating.

The broader analyst consensus remains positive, with an average price target of around $124.73 and an Overweight rating.

Valuation remains the biggest concernThe strongest argument against chasing Robinhood after Friday's rally is its valuation.

The stock trades at a forward non-GAAP price-to-earnings ratio of about 38.3, compared with a sector median of 11.34.

Its trailing non-GAAP P/E is around 38.5, while the GAAP P/E stands at roughly 46.2.

That means investors are already paying a substantial premium for future growth.

Bulls argue that the premium is justified because Robinhood is expanding beyond crypto and building a broader financial platform.

The declining contribution of cryptocurrency to transaction revenue supports that argument.

But a high valuation also leaves the stock vulnerable if growth slows or investor appetite for risk assets weakens.

There are also warning signs within the cryptocurrency market itself.

According to Crispus Nyaga, market analyst at Invezz, Bitcoin's Relative Strength Index has climbed to about 85, its highest level since November 2024.

An RSI above 70 is generally considered overbought, suggesting that the recent rally may have moved too quickly.

That does not necessarily mean Bitcoin must fall immediately, but it increases the risk of profit-taking after such a sharp move.

The bond market presents another potential threat.

US long-term Treasury yields have resumed their climb after the initial impact of the Treasury's buyback announcement faded.

The 30-year yield rose to about 5.246% on Friday, approaching its year-to-date high.

Higher yields can put pressure on speculative assets by making relatively safer fixed-income investments more attractive and tightening financial conditions.

Friday's surge shows how quickly Robinhood can benefit when Bitcoin and broader risk appetite turn higher.

The company's strong operating growth and declining reliance on crypto also give investors a reason to view it as more than a pure cryptocurrency proxy.

But the stock's elevated valuation means expectations are already high.

For now, Bitcoin's momentum, strong ETF inflows and renewed appetite for crypto-related equities are working in Robinhood's favor.

The question is whether those factors can overcome an increasingly overbought cryptocurrency market and renewed pressure from Treasury yields.

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.