Robinhood Markets, Inc.

Thank you to everyone for joining Robinhood's Q2 2026 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 Koegel. 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 Vlad and Shiv.

Wow, thank you guys for joining. Thanks for the warm welcome, and it's awesome to see a packed house in here. We're back again at NASDAQ in New York City, taking a big bite out of the Big Apple with Shiv here and Chris. Largest audience yet for an earnings event. I remember, Shiv, last year it was when we did the first event with Analysts in person, and we were worried, would anyone come? And not too many people did, but the people that did had a lot of fun, and now I'm glad to see the word has spread. So it's really great to see shareholders, analysts, buy side and sell side, content creators in the audience here. It's been about five years, actually I think exactly five years, since we rang the bell at the NASDAQ. and in that time, we've really accomplished significant growth and we've delivered for our customers in that time period since IPO, total platform assets have quadrupled and adjusted EBITDA has more than 8x. But one thing hasn't changed, why we exist. Robinhood exists to make everyone an owner. And I think that's a unique vision. I don't think a lot of companies are going after us. It's a powerful vision, not just for each individual customer, but I think also for society at large. I think that a society without ownership broadly distributed is very fragile. And we think broad ownership is essential to a free, stable, and prosperous society. Because when more people have stake in the outcome, more skin in the game, They're literally invested in the outcome, and we want more people to be invested in the companies of our great country. And I think we've just scratched the surface for what we can do there. To achieve our aspirations of making everyone an owner, we're focused on three things. Number one, being number one in active traders, which will allow customers to own any tradable asset. Number two is being the leader in wallet share for the next generation, bringing ownership to the entire family, so the whole family and really lifelong ownership. And then number three, building the leading global financial ecosystem, which is really about expanding The ownership that we've been able to contribute to in the U.S. worldwide, billions of people around the world could benefit. So in Q2, our continued product velocity across these three arcs led to a bunch of records. On the active trader front, core business is humming. which drove market share gains and record volumes across not just equities but also options and prediction markets in the quarter. Also, have to highlight, Rothera started supporting Robinhood prediction markets and has rapidly become a top three DCM, so top three designated contract market in the US. We also launched the first version of agentic trading, which allows customers to build AI agents to trade equities options in crypto and to have access to Robinhood tools and features. We're very excited about that. So looking at WalletShare, Trump accounts have officially launched, which is a historic step towards enabling broad financial ownership from birth. We're honored to serve as broker and sole initial trustee, helping millions of American children become owners of our great economy from day one. We also crossed an exciting milestone for the Robinhood Gold Card, one million cardholders. Yeah, that's a... Number we're very excited about. And actually the gold card is now driving over $17 billion in annualized purchase volume. So it's being heavily used. I think a lot of people in this room maybe have them. Plus $3 billion. We broke $3 billion in banking deposits since we began rolling out just last November. and all of this put together contributed to record net deposits. Customers are continuing to trust us with more and more of their assets, which in turn helped drive total platform assets to record levels in quarter as well. Finally, global financial ecosystem, we closed our acquisition of WonderFi in Canada. We received our capital market services license in Singapore, and at our crypto and international event, The world is flat. We introduced a suite of products, including Robinhood Chain, which is the first chain purpose built for real world assets. And we've been seeing a lot of great initial traction on All these products, but in particular the chain. So we saw over 12 billion in DEX volume. So that's over 12 billion in trading volume on decentralized exchanges after launch, which made it one of the largest chains by transaction volume over the past week. It was also the fastest chain to get to 100 million transactions. I think we're well north of 150 million transactions at this point. which is very, very cool. Also, customers have deposited over $200 million into Robinhood Earn. So remember, Robinhood Earn is our stablecoin lending product that's powered by Robinhood Chain and our stablecoin USDG. So now it allows customers to earn 7% APY, which is a competitive rate. So $200 million so far, and it's just been a few weeks. Stock tokens, which I'm perhaps the most excited about. We're very excited about bringing ownership of real world assets to everyone in the world. Stock tokens are available in more than 120 countries, which allow and many people around the globe to experience the idea of ownership. Tokenization makes it possible to expand exposure to high quality assets like US stocks to every single person with an internet connection. So if you have a smartphone, you have an internet connection, you can connect to our blockchain, you can get exposure to US stocks and that's very exciting. Overall, we're now serving over 1 million accounts outside the US and very much at the beginning there. So, continued product velocity across these three arcs led to record results in Q2, record revenues of 1.3 billion, That's up 32% from last year. Record net deposits of $22 billion, which is a 28% annualized growth rate. And record gold subscribers of $4.8 million, which is now 17% attach rate relative to our net funded accounts. Now I'll hand it over to Shiv to discuss our results in more detail. Shiv?

All right. Well, thanks, Vlad. Before getting the results, I wanted to share three big takeaways from the quarter. To start, the core business is going strong. So net deposits were a record $22 billion, a 28% growth rate, and we drove new records across equities, options, prediction markets, and margin. It's also great to see top of funnel growth picked up as we added nearly 1 million funded customers in the quarter. Second, this led to both record revenues of 32% year over year, but also another quarter of strong profitability with 57% adjusted EBITDA margins. So we're continuing to drive strong top line growth and profitability at scale. And lastly, we're dialed in on expenses. So we're lowering and tightening our outlook, even as our core businesses grew to new highs and we layered on new products. So let's review our Q2 results compared to a year ago. As we said before, revenues grew 32% to a record $1.3 billion, and this was driven by strong growth across the business. So transaction volumes increased to record levels across the majority of our asset classes, and we drove market share to new highs. Interest-earning assets also grew, and we had records across margin, our credit card book, and also Robinhood Banking. And finally, other revenues were up as gold subscribers reached an all-time high of 4.8 million, and we started germinating revenues for our work on the Trump accounts. And while product velocity continues to increase and revenues continue to grow to new highs, we also stayed disciplined on costs. So adjusted OpEx and SBC was $641 million as we managed expenses well below our prior outlook range, all while including costs related to two new businesses, Rethera and WonderFi, that were not included in our prior outlook. As we look to the rest of the year, while we're adding costs related to Rethera and WonderFi, we also continue to get even more efficient in how we operate. And this is allowing us to both self-fund Rethera and WonderFi costs, but also remove additional costs from the system. So we're lowering and tightening our 2026 outlook for adjusted OpEx and SBC to a range of $2.675 to $2.775 billion. We believe it is a competitive advantage to not only be a growth company that can invest for the long term, but also leverage our lean and disciplined operating model to self-fund a meaningful amount of these new investments. So you take it all together, the strong top line growth and expense discipline we drove in Q2, it flowed to the bottom line. So adjusted EBITDA was $741 million, up 35% year over year, and a 57% margin. And earnings per share was $0.62, up 48% year over year. So if we turn to capital allocation, there's a few top of minds. In June, we opportunistically raised $2.2 billion of capital to give us even more flexibility to invest for future growth. We believe we have a massive opportunity ahead of us, and the capital gives us even more capacity to go after it. And we raised this capital to attractive terms for shareholders, with both a 0% coupon and no net dilution until our share price exceeds $300. And even while raising capital, we are prudently managing our share count. Year to date, we've repurchased 7.5 million shares for $664 million. And as we said before, the denominator matters. So overall, we're really proud of the results we drove in Q2, and Q3 is also off to a good start. July average daily volumes compared to a record Q2 are in a similar area for equities, options, and event contracts. And July net deposits are tracking towards the $4 billion area, and this does not yet include deposits into the Trump accounts. So stepping back, we feel great about all the products we're shipping and the growth that we're driving. But we've also heard from some investors that it can be difficult to know which growth areas to focus on. So I wanted to share three areas that we think are important for measuring progress and success on our long-term vision. First, net deposits. Customers continue to trust us with their hard-earned deposits at over 20% growth rates. As we drive strong net deposit growth, assets compound, and this leads to strong business growth. Second, rule of 40. We're driving double-digit revenue growth with strong adjusted EBITDA margins, a combination that has made us more than a rule of 80 company for the past few years. We think it's important to be both a growth company and a company that operates with strong margins, and all of this at our scale of over $5 billion of annual revenue, which is quite rare. and third, $100 million ARR businesses. We're excited to share we're now up to 13 businesses that have reached this level as we rapidly ship for customers, including two new more that we added just this quarter, Robinhood Legend and the Credit Card. As we build out a family of financial apps, we plan to add even more 100 million ARR businesses in the year to come. So if we keep making progress on these areas quarter after quarter, year after year, the financial results should follow and take care of themselves. And as we've shared before, our financial North Star remains the same. Maximize earnings per share and free cash flow per share for shareholders over time. So before we move to Q&A, I'm actually going to turn it back over to Vlad to show us a few of these great products that we've recently built.