Robinhood Markets, Inc.

Thank you to everyone for joining Robinhood's Q4 and full year 2025 earnings call, whether you're tuning into the live stream or here with us in person. With us today are Chairman and CEO Vlad Tenev, CFO Shiv Verma, and VP of Corporate Finance and Investor Relations, Chris Cagle. Vlad and Shiv will offer opening remarks and then open the call to Q&A. During the Q&A portion of the call, we will answer questions from the audience, which includes institutional research analysts, finance content creators who may hold an ownership position in Robinhood, and both institutional and retail shareholders. As a reminder, today's call will contain forward-looking statements. Actual results could differ materially from our current expectations, and we may not provide updates unless legally required. Potential risk factors that could cause differences, including regulatory developments that we continue to monitor, are described in the press release we issued today, the earnings presentation, and our SEC filings, all of which can be found at investors.robinhood.com. Today's discussion will also include non-GAAP financial measures. Reconciliations to the GAAP measures we consider most directly comparable can be found in the earnings presentation. With that, please welcome Vladan Shiv.

Well, hello, everyone. It's great to speak with you today. We're back with a live audience, this time from our global headquarters in Menlo Park. And for the first time with Shiv as CFO, following in Jason's big footsteps. Welcome, Shiv. Thank you. Great to see all the shareholders and institutional analysts in the audience. So let's get right into it, shall we? So as a reminder, we're focused on our three-part strategy. Number one in active traders, number one in wallet share for the next generation, and our long-term mark, number one global financial ecosystem. Looking back on 2025, it was an incredible year of incredible product velocity across all three of our arcs. First, active traders. We want active traders to feel like they're at a disadvantage trading anywhere but Robinhood. It's a big priority for us, and we're seeing big results. In Q4, prediction markets volumes doubled, more than doubled, yet again, with over 12 billion contracts traded in 2025, which is the first full year of prediction markets. Customers have already traded over 4 billion so far in 2026, so we're seeing the momentum continue. We also expanded our equities offering with the launch of shorting. We love giving our customers more tools to navigate the markets, and we see them responding. over 11 billion of equity notional volume in the first couple of months since shorting went out. Second, wallet share. We continue to make progress building out our financial super app and becoming our customer's primary and secondary financial account. So a lot of attention typically goes to our active trading offerings, and it should, but we've also been making a ton of progress broadening our offering and attracting more long-term investing to the platform. Over 40% of our total assets are now across ETFs, advisory, retirement, and cash. So it's great to see customers trusting us with more of their financial lives. Robinhood Gold Card, up over 5X in 2025 to 600,000 customers. It's reached over $10 billion in annualized spend. Customers love the product, they love the 3% rewards, but also the intuitive user experience, the metal card and the solid gold card, and capabilities like virtual and single-use cards and all the family features. As we've been rolling out the card, we built increasing confidence in the economics. So we plan to continue accelerating the rollout, more than doubling the amount of customers with gold cards this year to well over a million by the end of the year. Robinhood Banking. So we began the rollout of Robinhood Banking in the past few months. Customers are really excited about this. We're building the kind of banking experience that was once limited to the ultra wealthy. Strong early results with our initial over 25,000 funded customers who have brought in over 400 million in balances. And perhaps the thing that gets me most excited, over 50% of our funded customers using banking have enrolled in direct deposit. So as we look at this, it makes us more confident that we're achieving product market fit with this offering. Now, third arc, global financial ecosystem, our long-term arc. We're making good early progress as we expand to different markets across the world. Bitstamp, continuing to scale, volumes up 2x since we closed in June. Bitstamp product and engineering teams have been humming, so it's great to see so much progress here. We're also making progress expanding internationally, now with three-quarters of a million customers outside the U.S. Just last week, we launched ISAs in the U.K., which is the local tax advantage count in the U.K., And this was actually the top request from our UK customers, so really excited to deliver it for them. I'm excited to watch these businesses scale as we launch in more and more new jurisdictions and we round out the product offerings. I think in a couple of years, we're going to look back and we'll really have underestimated how big our international business can be. Now, taking all of this together, our relentless product velocity has driven another strong year of results. Strong double-digit year-over-year market share gains across equities, options, crypto, and margin, which, by the way, includes positive net transfers, positive inflows from all of our major brokerage competitors for the last eight quarters in a row, which is pretty amazing there. I think we've got a lot of headroom here. Our customers grow faster than the industry. We continue to deliver new products, new capabilities, and we're seeing our customers continuing to trust us with more and more of their financial lives. So total platform assets grew nearly 70% year over year to $324 billion. Net deposits, a record $68 billion, which is a 35% growth rate. Gold subscribers grew nearly 60% year-over-year, Shiv, 4.2 million. So revenues, putting it all together, which were less than $3 billion a year ago, grew to $4.5 billion in 2025. So it's great to see that 50-plus percent revenue growth for the second straight year. So quite amazing. So, before I get into our 2026 roadmap, which should be very fun, I'll turn it over to Shiv to walk through more of the business and financial results. All right.

Over to you, sir. Thank you, Vlad. So, I'm excited to be here for my first earnings calls. To get started, there's three key takeaways I want to get across. First, 2025 was a record year for Robinhood with strong growth and profitability. We had records across net deposits, gold subscribers, revenue, adjusted EBITDA, and EPS, just to name a few. All of this was driven by incredible product velocity and a relentless focus on efficiency. And we also finished the year strong with a record Q4. Revenues and adjusted EBITDA were both records, and 2026 is off to a good start. Now, second, our business continues to diversify. We're now up to 11 businesses with over $100 million in annualized revenue, and several more are making great progress, including Robinhood Legend, which is really close, and the Gold Card, which is on track for this year. Additionally, Trade PMR, Futures, Index Options, and Robinhood Banking are all scaling really nicely. And third, in 2026, we plan to ramp up our product velocity even faster while delivering another year of profitable growth. There is a massive opportunity in front of us, and we see the path to compound shareholder value for years to come. All right, so let's review 2025 results, and this is all compared to last year. First, revenues were a record $4.5 billion, up 52% year-over-year, as Vlad said, and up over three times in the past three years. Adjusted EBITDA was also a record of $2.5 billion, and that was up 76%. And adjusted EBITDA margins were also a new high of 56%. We also delivered incremental adjusted EBITDA margins above 70% for the third straight year. And at the same time, we managed our share count closely, leading to record EPS of $2.05. And our philosophy is that the denominator matters, and over time, managing the share count closely should deliver value to shareholders. So let's look at Q4, and this is all compared to last year as well. First, revenues grew 27% to a record $1.3 billion as their customers remained engaged and continued to trust Robinhood with even more of their assets. Net deposits continued to be robust with $16 billion of net deposits in Q4, That's our eighth straight quarter with over $10 billion of net deposits. And trading volumes grew to new highs across equities, options, futures, and event contracts as we continue to win market share and saw record net buying from our customers. Now, interest-earning assets were also up 39%, driven by strong growth in the cash suite program, margin, and our credit card loan book as we continue to win larger customers and deepen relationships with existing customers. Margin in particular has been great. It's up over 100% in the past year. And Robinhood Gold, that also grew 58% to a record 4.2 million subscribers. We think gold is the best deal in financial services, and we're going to keep adding to its value prop. And on expenses, Q4 adjusted off X plus SBC was $597 million, as we manage expenses to approximately $15 million below our latest outlook. All right, so let's move to 2026. As we built our annual plan, there were three areas that we focused on. First, we want to continue accelerating our product velocity. Customers are responding incredibly well to our new product initiatives. We're gaining market share, launching innovative products, and entering new markets. We believe shipping even more products and value to customers can deliver outsized growth for years to come. Second, we aim to deliver another year of 20% plus net deposit growth. This year, we reached nearly a third of $1 trillion in assets across the platform, and we're well on our way to exceeding a trillion of assets in the coming years, with our rapid product velocity and the $100 trillion plus generational wealth transfer already underway. And third, we've built our plan to deliver another year of profitable growth, Even as we invest for growth, much like the robust revenue growth we've seen over the past few years, we are staying lean and disciplined in the way we allocate capital and operate as a business. So to our expense outlook, for 2026, our outlook for adjusted OPEX and SBC is in a range of $2.6 to $2.725 billion. This translates to an 18% year-over-year expense growth at the midpoint, which is below the 22% growth rate we managed to in 2025 on a comparable basis. So just to give you a little bit more color on how we built the plan, the 18% expense growth is in three areas. First, about five percentage points of that growth is going into our existing businesses, net of any productivity improvements. These businesses drove the vast majority of our $1.5 billion of revenue growth in 2025, and we want to keep scaling them and gaining market share. Second, about three percentage points are from the full-year cost effect of our 2025 acquisitions of Bitstamp and Trade PMR. Now, these expenses will also come with a full-year effect on revenue growth as well. And third, about 10 percentage points or more than half of the 18% growth is into new and scaling businesses. This is our biggest area of investment as we continue to accelerate product velocity. Now, some of these investments include the Robinhood Gold Card, Robinhood Banking, Strategies, Prediction Markets, Cortex, Robinhood Social, Robinhood Ventures, the Robinhood chain, tokenized real world assets, and continuing international expansion. It's a pretty long list. And as a reminder, we underwrite all investments to strong ROIs, and we'll stay nimble as we execute against our plan. And as I said at the outset, we'll continue to be lean and disciplined in the way we allocate and operate. So before turning it back to Vlad, I also just want to share a little bit of what we're seeing in the strong momentum into 2026. As you saw in the release in January, equity trading volumes were up over 50% year-over-year, and options volumes were up 20%. We also had all-time highs in net buying, event contracts, futures, and margin. And while it's early, so far in February, the average daily trading volumes are up across all categories versus January levels. And Q1 net deposits are also off to a good start, with $7 billion plus so far in the quarter, including over $2 billion last week. So it's fantastic to see customers engaged to start the year. Putting it all together, we are incredibly excited about our plan and momentum entering 2026, as we work to drive another year of profitable growth. The team continues to ship for customers, and our financial North Star remains the same. maximize earnings per share, and free cash flow per share for shareholders over time.