one for joining Robin Hood’s Q3 2026 earnings call. Whether you’re tuning into the live stream or here with us in Menllo Park, with us today are chairman and CEO Vlad Tennvive, CFO Shiv Verma, and VP of corporate finance and investor relations Chris Kaggel. Vlad and Shiv will offer opening remarks and then open the call to Q&A. During the Q&A portion of the call, we’ll answer questions from the audience, which includes institutional research analysts, finance content creators who may hold an ownership position in Robin Hood, 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.roinhood.com. Today’s discussion will also include non-GAAP financial measures. Reconciliations to the GAP measures we consider most directly comparable can be found in the earnings presentation. With that, please welcome Vlad.
All right, thank you guys for coming. This is awesome and it’s great to see so many people in person. Uh we’re back at our headquarters in sunny Menllo Park. So, thank you again for being on this journey with us and and uh showing up in person and to everyone watching remotely. So uh as you probably know at Robin Hood we have a singular goal. We believe in ownership. We want to make everyone an owner and we think that broad ownership is actually essential to a free, stable and prosperous society. So in order to execute on this vision, we have our three-part strategy. So to recap that uh the first part we want to build the number one active trader platform. So we want to allow customers to own any tradable asset. Uh and really an active trader should feel like they’re at a disadvantage trading elsewhere. So we’ll have more about that later. Second, strategic arc number one in wallet share for the next generation. So we want to build our customers financial home and not just for them but for their families as well. Then the third number one global financial ecosystem. So take the ownership that we’ve been able to deliver and grow in the US and expand it everywhere around the world. Q3 we made a lot of progress. So our our product velocity continued across each of these three arcs and we saw strong business and financial results. So for for active traders again the idea is if you’re an active trader you’re at a disadvantage trading elsewhere. So uh what have we done for active traders? Last month we held our third annual Hood Summit event in Houston, Texas and we launched not one not two but 17 new products and new services to our customers. So I’ll hit a couple of highlights. uh Agentic trading which is near and dear to my heart literally I’m wearing the vest right now. So uh our Agentic offerings have really increased in scope uh over the the course of the year. If you remember we started with our MCP um which has grown quite well and now we’ve got aic trading directly in the app. So you no longer need to use your external tool like your cloud code or codeex. Um you can do it within the app. And we’ve also allowed customers to uh extend their MCP connectivity to Robin Hood Legend. So Robin Hood Legend is now in scope for our MCP connectors as well. So, we’re just continuing to make it easier for anyone to trade on our platform, whether it’s you directly or your agent. And while we’re still very early in the inapp capabilities and the harness tooling, we’ve been seeing really strong early adoption across the entire suite of Agentic products. So, customers have over 250 million in Agentic accounts. Remember, this is the accounts start at zero. So you have to make a choice to move money into them. And we look at the adoption curves both across usage and trading. And they’re sort of uh following an an accelerating curve which um gets us very excited about the future of these products. And as we continue to add more asset classes, more features, those curves appear to be steepening. Next, perpetual futures. So we became the first US broker to offer what we call true perpetual futures. So these are perpetuals powered by our global derivatives exchange Bitstamp and uh they settle continuously around the day. So 15minute settlement. Um we’re also working on adding earnings contracts to our prediction markets hub. I think this this will be particularly relevant for this audience because they’ll allow you to trade EPS and revenue on individual companies as well as you know KPIs that are company specific. And of course uh something I’ve been very excited about for quite some time. We announced 24/7 equity trading that’ll be coming to Robin Hood uh later this year. And again, this is something I I think we’ll be the first to offer this as well. And these are just a few of the many items we’ve shipped. So, um, there’s there’s a lot more and I encourage you all to check out the full keynote on YouTube or X if you haven’t already. So, let’s let’s move to wallet share. Uh, a couple of things that I’d like to highlight here. Trump accounts achieved a really important milestone in Q3 autoenrollment. So, um, as we’ve said before, we’ve got nearly 70 million children in the US under the age of 18 that are eligible for the Trump account. And now the US Treasury has opened accounts for all of them, for all these children. And because of the generous gift from uh Michael and Susan Dell through their foundation, 25 million of those children already had $250 invested for them uh by by the Dell Foundation. So we’re excited about this initiative. Um it’s one of those things where, you know, it’s it’s just been snowballing and we’re we’re doing more. So there’s just uh a ton of roadmap ahead. One of the things I’m particularly excited about is um I think it can become the default vehicle for philanthropic giving in this country, right? And and we’re already seeing the beginnings of that with with uh with the Dells, but also the other donors and uh we don’t really have a great default option. I think Trump accounts can become that. So, we’re going to be doing more there in partnership with BNY and uh and the US government. We’re also continuing to make progress with Robin Hood Gold, which today is one of the largest paid membership programs in uh consumer finance in the US. So, a couple of years ago, we set out to actually completely revamp our gold product. And what we wanted to do is put something in gold for our mass market customer. So, so that you didn’t have to be an active trader to benefit from gold. And I think we’ve we’ve been able to achieve that. Um, so in this quarter, uh, Robin Hood Gold reached 5 million subscribers. Okay, we see it really paying off. We see it paying off. We’ve got 5 million gold subscribers, and that’s up over 30% year-over-year. And it’s a 4x increase from when we began the journey to revamp the gold program uh just about 4 years ago. So that gets us to uh about an 18% overall gold adoption rate when you look at our customer base. uh but 40% if you look at in quarter so of the customers that joined Robin Hood in quarter uh much higher adoption and and that’s really great to see because then we see a path as we continue to grow gold will just uh continue to increase and I think there’s actually much more room to grow. our big bets for for growing the gold value proposition are banking and credit. Um and and those are still despite getting to large scale not generally available yet. So there’s still limited release. Um and and we’ve been really investing in more integration points. So things like easy sign up for banking and gold card if you’re signing up for Robin Hood. um contextual upsells so that we, you know, detect when banking and credit is going to be appropriate for you uh when you’re using the Robin Hood app and kind of putting it there. Um so we we think we’ve got plenty of room to run. These can become even more meaningful drivers of of higher gold adoption. Finally, let me get to global financial ecosystem. So uh on July 1st, just a few months ago, we launched the Robin Hood chain mainet. And in its first quarter, it’s already a top five chain by volume and revenue. So far, we’ve seen over a 100red billion in DEX volume. So it’s 100 billion in decentralized exchange trading volume and over 50 million in chain fees. Defi perpetuals, it’s a interesting innovative product have seen uh solid growth on the chain as well. So in recent weeks we’ve been seeing DeFi perpetuals volume of over a billion dollars per day uh on the chain. So it’s clear customers have demand for these tokenized assets on chain and you know we we think we not only believe we we’re building Robin Hood chain to be the best place to own and trade uh all of these tokenized assets of course starting with uh stock tokens and and perpetuals but expanding much much broader from that. We’re also expanding our brokerage infrastructure globally and we’re excited with that to announce that we received authorization from the Dubai Financial Services Authority to launch Robin Hood in the region. This will broaden our international footprint even further. The product velocity that you’ve been seeing uh and the focus on the customer experience have led to really strong business results. Market share continues to grow up double digits year-over-year for each of the main assets, equities, options, crypto, and margin as well. Revenues grew 12% year-over-year to a record 1.4 billion. Adjusted Ebida, that’s up 9% record of over 800 million. And then net deposits 16 billion in quarter and uh with a strong start to Q4 which sh will talk more about we have already exceeded our annual goal of 20% net deposit growth and that’s with 2 months left to go. So we’re pleased with the strong results for our customers and for our business. We’re pushing hard to make Robin Hood your financial super app. So with that I’ll ask Shiv to come up. How are you doing sir? doing all right. All right.
So, thank you Vlad. Uh before we get into the results, I just wanted to share three big takeaways from Q3. Uh first, as Vlad said, the core business is firing on all cylinders. This led to our highest quarter ever for both revenue and adjusted IBIDA. And really great to see platform assets were nearly 400 billion. And on top of that, we set new records for equities, options, event contracts, and margin. So going well all around. Uh second, our product is driving a more diversified business. We’re now up to 14 cylinders that have reached 100 million or more of annualized revenue as Rthera, our prediction markets exchange, hit this number in just its full four full first full quarter of operations. So really nice to see Rthera scaring well. And then finally uh we drove another quarter of strong growth, profitability and scale. So we’re a rule of 80 company but at our scale of over five and a half billion of annualized revenue. So we remain disciplined on expenses even while investing for growth which is which is fantastic to see. So let’s get to our Q3 results and uh all of these will be compared to a year ago. So revenues were up 12% to a record 1.4 billion and this was driven by strong growth in both new products and existing products as well. uh transaction revenues were a record as trading volumes were new highs across equities, options, and margin. Each of these was up around 50% year-over-year, and this was on market share gains. And the event contracts continued to scale really nicely. This was up 7x year-over-year. Additionally, the Robin Hood chain in its first quarter of adoption saw really strong uh usage as Vlad mentioned before. So that was another driver of transaction revenue in the quarter. And then on NIM or net interest revenues, really strong growth in margin, credit card book and Robin Hood banking and these grew to new record balances and our total interest earning assets on the platform also hit new highs. So really nice to see both transaction revenue and the interest earning assets do well. And then finally in other revenues as Vlad shared before, gold subscribers reached a new all-time high of over 4 million subs, which is which is great to see. And then additionally as we continue to build and expand the Trump accounts uh for customers uh that generated some additional revenue as well. And so while revenues grew to a quarterly record uh we also see discipline on cost. And so adjusted OPEX and SBC was managed to 664 million. Uh this was managed within our our prior outlook range. And again, as we’re investing for growth, we’re still being being really really disciplined on our uh on our expenses and our productivity also continues to do really well. So in this quarter, we hit revenue per employee of nearly 2 million, which would be a new record. So we’re shipping for customers, but we’re also doing it in our lean and discipline way. And then finally, as we look ahead to Q4, while we plan to continue making growth investments, in particular on the Trump accounts, we’re also controlling our expenses and have driven more efficiencies across our business. So, as we do that, uh, we’re going to lower the top end of our prior outlook range by 25 million. And we now expect fullear adjusted OPEX and SPC to be between 2.675 and 2.75 billion. And this is 13 million lower at the midpoint versus our prior outlook. So you put them together, really strong topline growth, expense discipline, and this led to a strong quarter of of profitability. So adjusted Ebida up a was a record 88 million. This is up 9% year-over-year, and adjusted EBA margin continues to be strong uh at 57% in Q3. EPS for the quarter was 51 cents. Now, this includes a minus 7 cents of marktomarket impact on investments that we hold. And so as we talk about EPS, we’re continuing to expand our business into investments. One of them is is such as Robin Hood Ventures. And as we launch more and more of these products, we’re now seeing some non-operating movements on on these investments. So we’re introducing adjusted EPS. And this is to just better reflect our core operating profitability before any gains or losses on investments or some of these other nonoperating items. But at the same time, we’re going to remain accountable for all of our regular ongoing costs. So, we’re still including normal course SPC uh in our adjusted EPS. As I’ve said before many times, uh share count and the denominator matters. And so, you put it all together in Q3 adjusted EPS was 60 cents. And so, moving forward, we hope that investors find this a useful measure of our core profitability in the business. Another area I wanted to touch upon is prediction markets. Uh we believe it’s really early innings for the asset class and we’re investing to be a leader in the space. We’re constantly improving the inapp experience. We now have a vertically integrated exchange or thera and as I mentioned before it’s off to a great start. Additionally, we also announced a recent partnership with Crypto.com and OG.com. Now, this is really exciting for both our customers, but also for our business and shareholders. It’s really important for us that customers have a best-in-class selection with consistent pricing across exchanges and with these partnerships that announce allows us to do that. But additionally, with no cash outlay, we received an initial 1% equity ownership stake in Crypto.com and OG.com. And we have the ability to earn up to 10% ownership depending on how much we partner together in the years to come. So before we move to Q&A, I just wanted to give a little bit about how Q4 looks to start following a record Q3. October net deposits are over 13 billion the month. Great to see. And that includes six billion of the Dell family gift to Trump accounts as Vlad mentioned earlier. And this brings our total year-to- date net deposits to over 68 billion. This is already a new annual record and north of our 20% growth target with just a few months with still a few months to go left in the year. And then compared to Q3, average daily volumes for equities, options, and cryptos are off to a good start and are about 5% lighter relative to the really strong Q3. And then event contract ADVs are already up about 10% to start the quarter. So stepping back, it was great to see another strong quarter in Q3 and we’re really excited about a momentum entry in Q4. And as we’ve shared before, our financial northstar remains the same. Maximize earnings per share and free cash flow per share for shareholders over time. All right, Chris Vlad, should we take some questions? All right, thank you, Chef. Let’s do it. For the Q&A session, we’ll start by answering shareholder questions from SE technologies and after the say questions, we’ll turn to live questions from our audience and then go to the uh dial in Q. So, I’ll kick it off with our first question from from say which comes from Bo Shen.
Bo Shen, how you doing?
Okay, I think we’ve lost Bo. Um, so, uh, Bo asked, “How is the expansion into banking going and when will features such as the zel replacement arrive?” It’s a great question. So, I thought, uh, rather than talking about it, I’ll actually just show you. Um, I try not to launch new products during earnings, but I thought since we have a crowd here, I might as well give you give you a little bit more. Um, by the way, before I get into it, uh, I do want to say one thing about banking as it pertains to our super app vision. So, one of the things we’ve been tracking for a really long time is what the top bank withdrawal destinations for our brokerage business have been. So, this is, you know, the top institutions that people actually move money from brokerage into banking. And uh for the longest time it’s been kind of the expected big banks. Not not a huge surprise there. But as we’ve started to roll out Robin Hood banking, we’ve actually seen Robin Hood banking uh climbing up the list. And this quarter for the first time uh uh Robin Hood banking became the number one withdrawal destination for Robin Hood brokerage customers. This is actually even before it’s generally available. So it is the number one bank that uh that customers withdraw money to by dollars. Um which I think is quite amazing and obviously uh we love this because that money is not leaving the Robin Hood ecosystem. It just stays stays uh in people’s accounts. And I think it’s it’s one major proof point that customers are choosing Robin Hood for their totality of their financial needs. They’re coming in, they’re direct depositing, their paycheck. Um, you know, they they have their checking and savings account. Of course, they move money to invest and trade. They do their spending with gold and and now platinum. So, in increasingly, you don’t really have to leave Robin Hood because we offer best-in-class services kind of across the board. Now, one thing that people have been asking about is peer-to-peer payments. Um, and of course, we we didn’t want to just uh do like a regular add-on bolt-on peer-to-peer payments feature. We wanted to make it really really nice. So, if if you guys are ready, I can share my screen. Um, so this is Robin Hood Banking. So, I’ve blurted out my my balances. Um, this is the new design, by the way. We’ve we’ve updated it to have the liquid glass UI. So, there’s this button on the bottom right, which is kind of your overall transaction action button. And if you if you open that, you see there’s this new uh send money feature. So, uh Matt, can I send you would you accept a few dollars from me? Sure. Yeah. And I’ll know how much you uh you like me based on how much you send. Okay, good. You’ll know. Uh I like you a moderate amount. Um awesome. So, it’s it’s just as simple as that. I’ll send Matt uh who’s been doing a great job from our investor relations team, $5 from my joint checking account. Okay? And you can put a little message here. Of course, this is my favorite one. And um so, check this out. So, I’m going to send it via text. One of the really annoying things about peer-to-peer payments, I don’t know if you guys have experienced this, but you know, you want to use an app and the person you send money to doesn’t have it, which creates this like moment of friction. I don’t want them to have to install anything. Um, and uh, you know, then they’ll ask you, can you send it this way? Can you do it with with one of one of the competitors? And then you have to install it. Anyway, we’ve gotten rid of all of that. Matt, if you uh did you get it? I got the text. Okay, if you want to show. Um, so there it is. He just taps on it and you can accept money with Apple Pay or Google Pay without even having a Robin Hood banking account, which is pretty awesome if you think about it. Of course, it gives us an opportunity to upsell Robin Hood banking, which is just a really clean experience for those of you that have tried it. But you don’t have to have it. You can just get it right into your Apple Pay. So you don’t have to worry about that friction of the recipient of the funds. Um so right now still in limited release, you know, if if Matt sends money to someone, they’ll get it. But um yeah, you should you should expect to see us rolling this out much more broadly in the coming weeks. And just another reason why, you know, everything we think can be better uh on Robin Hood if you do more and more of your if you run more of your financial life through us. Who needs cell, right? Yeah. I mean, uh, legacy technology. I think we can do better if we build everything in an integrated fashion. All right. Great demo. Um, all right. So, the next question is from Mark and Marcus M, who asks, “How is global expansion going and what countries are next?” Yeah. So, I’ll I’ll uh field that one. So um you know when when Shib and I were kind of coming up with uh our plan and and we thought what can Robin Hood be uh in 10 years um we we called our third arc global financial ecosystem and you know we our vision and I think this is backed up by how big these markets are and also sort of like wealth accumulation people outside the US keep getting wealthier. Our vision is that you know over the long run more than half of our business should be outside the US and cut another way more than half um should be institutional and um what we didn’t anticipate is products like Robin Hood chain right and we we said Robin Hood chain already in quarter got out of the gate really quick with 100 billion in DEX volume and 50 million u of chain fees right and you you you think about how much and and we’re we’re actually continuing to invest. Frankly, the the growth of of the chain and associated ecosystem and the wallet surprised uh and and sort of like uh uh was higher than our expectations. And so now we’re spending a lot of time, you know, investing in how to make that even bigger, how to support the community. We know we’ve been hearing from a lot of builders that, you know, we could be doing more to support the community. And I think you should expect to see us really ramp that up because you know we want to make it the best developer ecosystem as well as the best sort of global uh onchain community. So um yeah, you should expect to see us ramping the investment because you just don’t see growth of a new ecosystem like this. It’s it’s an uncommon thing. I mean a lot of chains have launched uh over the past few months that have just had not nearly like a incomparably small uh level of traction compared to this. So, so we’re doubling down on that. And of course, as I mentioned earlier, uh we’re expanding into uh uh into MENA with uh our Dubai license. And we did get in principal approval from MAS to expand into Singapore. And that’ll be our um our our Southeast Asia um APAC hub, which which we’re very excited about. And and by the way, we’re we’re continuing to get deeper in our more established markets of EU and UK. UK now has um uh crypto and brokerage in the same offering. So, it’s getting to to parody and you’ve seen us actually increasing our download share and and getting more traction there. So, so it’s um I would say shiv, I don’t know if you would disagree. Um, I think like for a while our international business was sort of like a future uh ve very like far off into the future when we expected to see meaningful contributions, but we’re starting to see that accelerate and you know, I’m seeing uh the most traction I have. So, I feel probably the best that I’ve ever felt and we’re kind of accelerating so much in in momentum there. No, I agree. We built a 10-year plan. It’s nice to see the seeds coming. Um, and also Canada. You forgot to mention that as well. We’re now we’re now Canada crypto business through the Wonderfy acquisition there for sure. So, pretty soon we’ll have Robin Hood all over the world. All right. Um, our next question comes from a special guest. You may have seen him driving the Robin Hood neon car during the last two NASCAR semeies
race winner and driver of the number 23 Toyota for 2311 racing. Bubba Wallace. Are there any new major product plans for 2027 that could increase Robin Hood’s uh revenue? No easy questions. Bubba, you know, he’s just getting right into it. Um yeah, and by the way, it was fun uh fun watching Bubba compete at the Las Vegas Motor Speedway a couple weeks ago. Um hot, but I don’t know how he does that for so long. Um so I I would say one of the things that I think people find uh attractive about Robin Hood as a business is that it’s a financial compounder right even if you look at the core business of equities options crypto uh margin you know we’re continuing to to gain in market share uh we get more customers those customers get wealthier as they get older the market appreciation adds to that so you know all of this is leading to total platform assets this quarter of about 400 billion and I I don’t think it’ll be long before we’re talking you know over half a trillion and and you know knock on wood into the trillions right um so that just the core brokerage business and the crypto business has been remarkably strong um but we’re not just uh we’re not just like being complacent and seeing we have a a strong core business um we’re moving at incredible pace, not just adding all the products and features that our competitors have, but also um I think just leading the industry across a couple of major domains. You know, uh I mentioned agentic trading uh earlier. I think agentic trading um I don’t think there’s really another game in town in terms of financial companies that are really investing in in Agentic Trading and making that a first class experience. So I think uh we’re at the very beginning there and we’re just continuing to invest in in making the product experience really really good. We’ve talked a lot about prediction markets. I’ll also throw in perpetual futures. I mean we’re super early to that, right? A lot of a lot of a lot of companies announce plans to offer these new assets, but we we announce and then we ship and we roll out. We’re seeing we’re seeing strong traction. That’s another asset class where we expect to to be to be the leader and gain market share. Um on the wallet share front, you’ve heard me talk about Trump accounts. Uh Robin Hood Ventures is is another one where it’s just um other companies aren’t really doing doing this where they’re trying to uh we’re going they’re going after the vision of democratizing private markets for for retail investors. So we have RVI uh RV2 shipped and you should expect uh e even more. I mean we are just uh we’re really investing because we think it’s important and it’s a a big business opportunity a new category that that I think we can own and then of course uh long-term in in the global financial ecosystem tokenization and Robin Hood chain and Robin Hood wallet or unique products where it just really feels like we’ve got the tiger by the tail. So those are kind of several areas, not just one, where um we think we can surprise to the to the upside with uh with the product bets that we’re making. All right. Thank you, Vlad. That concludes our say technology questions. Now I’d like to go to questions from our live audience. So if you’d like to ask a question, please raise your hand to later stages of the pipeline and then answer reflected the mic over to Hayden. looks like um over here. Uh hi. Hey there. Um I know you’ve got active trading and you’ve got the strategy side of things. What are you doing to focus on the middle ground of customers who just kind of want to deposit and forget about it? Yeah, that’s a great question. Actually, that’s one thing I forgot to mention. Um I think Robin Hood uh strategies which is our uh passive digital advice product. Um so over two billion in assets it it’s been growing really quickly year-over-year. I think it’s a bit of a dark horse um just because you know we launch so many things and I think the uh active trading products tend to get a lot more attention and mind share but we have all these amazing passive products you know uh strategies being one of them that provides a best-in-class experience. So we we’ve been continuing to uh add things to the product suite. We have a uh we have this this tool smart income which is part of Robin Hood strategies where you basically just like can just really easily with a slider just slide your your time horizon and risk tolerance and it’ll tell you what uh what the sort of like uh expected return for for your for your investments would be. And then the idea is you just put money into there. You drop money into that account and it’s a complete set it and forget it product. Um, and then I I think we’ve got some things like like that team has ambitious plans. Uh, there’s a bunch of things that we’re working on to make that even better. So, uh, suffice it to say, strategies isn’t staying still. I think that’s it’s it’s a darkhorse product. I think it’s one that could surprise people in the coming year. All right. Thank you, Vlad. Uh, next I think Hayden, did you have your hand up? Yeah. Can we get a mic to Hayden? Great.
Hey guys, thanks for doing this. We’ve been really impressed by the product velocity and traction at Robin Hood, the 14 cylinders over 100 million. Can you speak to how many products your power users engage with versus your average user? and what would it mean for your business if you were able to convert the majority of your customers into power users? Yeah, I mean that’s that’s a great question. We look at this internally um quite a bit and uh we sort of see that basically the more products that someone uses and once you get up to three or four products in the Robin Hood ecosystem, the uh the average revenue per user and the engagement uh just continues to increase with three or four products being really kind of the sweet spot. It also we can cut it by asset classes. You know, a lot of people come to us to trade equities or crypto first. But then if you look at the customers that trade equities, crypto, options, futures, and prediction markets, uh the the revenue and the engagement with the platform really increases. Um and uh we’ve been making a lot of investments. Maybe those of you that use Robin Hood have been seeing our our work there and just making the app more coherent and more discoverable. This was something I mentioned in the last earnings call. You know, we we have more work to do because, you know, we have all these products. How can we make sure that the app is coherent and that you kind of understand what we’re about? Well, I I think you’re starting to see some of that progress because our shared surfaces, including social, search, home. Um, I think we’re doing a a much better job in kind of surfacing relevant content uh to you. I think the focus has been on making sure prediction markets works really well because we’re kind of doing a unique thing like combining this new uh asset class with you know other tools that are that are sort of like personal finance centered. Um, but I think you’ll see us continue to invest in in personalization, in making it easy to discover things, in, you know, subject to, um, all the rules and regulations, being able to surface relevant content to to customers. And I think that’s another area where, you know, we’re we’re bestin-class and continuing to get better. If if you want to look in terms of how big it could be, I think gold is the best way to see it. So gold, we don’t view it as a subscription product. We view it as a loyalty product. And what you see is a customer comes for something. It doesn’t matter whether it’s an equity, an option, a crypto, an event contract. They discover gold. They then use more products. They then deposit more. They engage more. They trade more. And so for how big it could be, we’re it’s great. We have 5 million customers. It’s only an 18% attach rate. And you know about 40% plus adopt it when they first come in, but there’s still a large runway ahead of that.
All right. Thank you. Next question. What is what is Robin Hood’s strategy for educating customers about active active trading products like perpetual futures or agendic trading? Yeah, I think that um uh what we really try to do is make the products themselves understandable and clear um within the app. you know the and I think you know with with our various learning modules and tools we’ve done a really good job at taking advantage of the limited real estate uh of the app and giving people the information they need at the time that they onboard without just like the too much of the fluff and filler. Now, as we expand into the Agentic products and actually one of the one of the reasons I’m excited about Agentic Trading and and our investments there is that um a lot of our customers are using that as uh an education tool because these AI agents are really good. If you just ask them, hey, explain this to me. You know, what is a wheel strategy? What is a you know, uh what is an options? Like what are the typical options trades? you can say, “Hey, I have this like plan, this point of view. Can you break down, give me like the top three ways to capitalize on that?” So, I I think there’s strong potential. We’re actually seeing a lot of customers doing this of just explaining things and not even just placing the trade uh fully trading autonomously, although we’re we’re pushing ahead in that direction, too, but just taking some of this complexity and kind of breaking it down for the customer. So yeah, the the plan is is really each interface has somewhat different affordances. On mobile, it’s really about how do you like clearly articulate um what what the what the functionality is, what it’s for. How do you make it so that you know with as few taps as possible, you can actually do what you want to do as a customer. Web, I think you have a little bit more of like real estate to to browse. And I think a Gentic, you know, lends itself to like a back and forth um which is difficult with with all of the interfaces. But yeah, I mean we’re we’re making a ton of progress on on all of these simultaneously. And I think the other thing we recognize is um we do uh I mean we do produce some firstparty educational content, video and so forth, but um we also want to make it easier, you know, for you to discover all the great content that’s out there. So I mean there’s just so many uh content creators and influencers that are making YouTube videos and they’re they’re quite entertaining. So one one of the things we’ve been trying to do is can we make it easier for you to get some of those things you know in the right way through the experience too. You also have Robin Hood social as well where you can learn from the community each other. So just another surface for uh for customers to talk to each other. Yeah and that’s that’s a great point. I think I’m much more bullish on our ability to surface thirdparty user generated content to you because we just have many more passionate people that can make it. Um, so some of the content on Robin Hood social that we’re seeing is actually like, you know, very deep investment analysis and we’ve been working hard giving people more tools to like share charts, share, you know, different uh different data sources and uh and and yeah, I think we like what we’re seeing there. So, we’re going to we’re going to do even more. All right. Any other questions from the audience? Sure. Right. Uh does Robin plan to get into like exchange funds like cash and Titan? There’s a lot of money that’s locked in into other brokerages which you don’t want to sell. So having the ability to trade without selling can be a very big upside for Robin Hood. Yeah. And you know, I I talked a little bit about um uh Robin Hood strategies and I I think certainly um helping customers with concentrated positions to diversify and you know, handle that in a taxefficient way is something that we’ve been we’ve been looking very carefully into. You know the other thing is a lot of these products that are offered by the incumbents have um really high minimum requirements. So um of course whenever we see that we we ask ourselves is there an opportunity to create a really really nice product and uh make it available to lots of people.
All right. Any other questions from the audience? Okay. Uh with that, let’s let’s move to the uh the Zoom Q&A. Um so I think the first question we have today is from Devin Ryan from Citizens.
Hey Vlad. Hey Shiff. How are you? Good to see you guys. Doing well. Good to see you Devin. Um question on Robin Hood chain. Obviously great to see uh early traction there. uh also appreciate uh it benefited um from some congestion uh in late August and September which helped uh gas fees. So so maybe seeing some normalization in fees there but volumes have been still pretty resilient. So my question is really just how should we be thinking about the financial opportunity over time and really you know what we should be looking for to drive maybe that next real inflection in activity. I know uh you mentioned perpetuals gaining traction so maybe that’s one example but um you know is it just more products being developed you mentioned Robin Hood can do things to support the chain so love to hear about that and then just bigger picture too can monetization um improve um over time without making the chain less competitive thanks yeah I mean I’ll I’ll start maybe maybe you can hit uh your thoughts on monetization so uh another thing we look at for the chain that gets us so excited is um developer activity. So uh I think last time I checked we were number one in onchain developer activity. Um and so developers are actually coming to Robin Hood chain because they see the traction that we’ve had and they’re making a bet that this is kind of the the ecosystem that they want to invest in for for their activities. Um and and I think at the end of the day uh the ecosystem is actually going to be driven by the developer activity. people haven’t had very much time to build sophisticated you know onchain applications yet. So that’s why I think in the first instance the applications that you’ve seen are you know relatively simple you know launchpads and um you know linked pools and things of that nature and you know people are working on um really interesting things now that are more complex that connect stock tokens with with crypto assets and and technology. And just sort of imagine, you know, if you take a stock token and make it fully programmable just like software, um what can you do? Uh I mean, can you have tokenized options contracts for example? Can you have you know um uh products that we haven’t seen before? So that’s why we want to invest in the developer ecosystem. Um when you know uh I think it’s interesting the whole fees and and congestion and revenue um when when Johan who’s our crypto GM and I talk about this um basically we we both agree that the most important thing to prioritize is uh a great experience for our users. So so I don’t really want to be in the business of like uh charging high fees for onchain usage. What I’d rather do is um gain the market share, make the developers choose us as the best chain, uh give them more products, and I think we have a pretty clear roadmap for what first party products we need. Um yeah, the the idea is anything that you can trade on Robin Hood in the US uh wherever possible should be made available in onchain versions for our international customers. So it’s more stock tokens but then expanding to other asset classes and and making sure that um you know these things become like Lego building blocks that developers can incorporate into their onchain applications and since we offer the primitives uh you know one of the reasons stock tokens have been have been so successful is people know that you know Robin Hood stands behind them and that you know makes it much more likely that they trust them in their applications than uh just some some third party. So, we’re going to we’re going to continue to uh execute on that. And I think the the way we’re tracking long-term sustainability is we obviously like to see DeFi TVL go up, but we’re specifically looking at um we’re we’re specifically looking at stock token TVL, making sure that’s on a healthy trajectory and we have a path there because I think our differentiator with with the chain and what’s been working well for us is real world assets. So we should expect to see real world assets adoption just continue to increase. Yeah. On on monetization only piece I’ll add is it was about 50 million gross revenue the quarter. You know we shared the schedule before we share some with arbitrum was about 50%. So even on a net basis about 25 million or 100 million annualized. We didn’t call it a cylinder just yet. We want to give it more time to bake. Um you should expect in a normalized environment it’s probably a couple basis points on notional value is what we monetize. But as Vlad said the team is not gold on revenue at this point. It’s growing TVL, making developers happy, growing stock tokens. If we do that, a couple basis points can add up to a really large number over time. Yeah. And I know for the developers out there, they they uh we have a lot of passionate Robin Hood chain developers that are working on projects. Just uh be confident that, you know, we’re talking about what we can do for the community. And uh I think I think you’ll see since it caught us by surprise, we’ve had to like staff up a team here. Um, I think you’ll see a lot more uh for us supporting builders in the in the near future. Great. Thank you, Vlad and Shiv. Um, our next question is from Steven Chewacc at Wolf and Le. Hi, good afternoon. Thanks for taking my question. Once again, Stephen, so wanted to just ask on the um the net deposit growth, which I know seasonally 3Q tends to be a touch lighter. Now I’m really evaluating this KPI on a core basis. Um but as the denominator has grown larger um you’ve been getting running a little bit below that 20% target and just wanted to get a better sense as to as we unpack some of the building blocks. How much of that 20% um is expected to come from you know new account growth um or new store growth versus same store growth? and specifically wanted to get a better sense as you continue to expand internationally how those efforts could potentially help close the gap. Yeah, I’m I’m happy to start on on this. Yeah. Yeah, go for it. Um, so as we said before, we target 20% annualized and I we gave some October color on the call. We have already surpassed that. So we’re just through October. We’ve already done over the 68 billion last year and uh and surpassed our our growth target. Now uh as you mentioned, it will not be linear. There was some higher growth in Q2 and then it came down a little bit in Q3. But we’ve said over and over again um I don’t overindex in any one month, any one week, any one quarter, but on an annualized basis, we are still seeing the business compound. The best driver of net deposits is just new products. And so as we keep shipping new product velocity, customers come, they adopt us more and they uh they continue to deposit more. Uh in terms of new store sales versus existing customers, uh it is both. Uh more recently it’s been a little bit more of the existing customers. We got a lot of customers very very fast in the prior years and now as we ship new products we’re gaining sheriff of wallet and they’re starting to trust us more. As we’ve said before though we are starting to to turn the dial to try to accelerate net funded accounts again. Um and so Q3 was similar to Q1. Uh Q2 we saw a nice bump up because of some market backdrop and there was a couple IPOs in there as well. Uh but big picture, our existing customers are still using us for more and we think we have some great products next year that should also drive the top of funnel. Yeah, and I I’d also add to that, you know, we’ve been pushing pretty hard on Trump accounts, making that a great product. You know, you’ll see this this isn’t just an app. You know, it’s uh it’s going to be increasingly an ecosystem. So, we’re plugging in employers. And now, you know, employers will be able to fund Trump accounts uh on behalf of their employees. And then we’re going to be plugging in donors. You know, donors are kind of done on a one-off basis now, but you can imagine, you know, if you’re a corporate donor or a wealthy philanthropic individual will make it really easy and delightful to go into the Trump accounts. Um, we’re already seeing seeing meaningful uh net deposit impact on that. And, you know, I think that it can be much much bigger. everyone. A lot of people are aligned in in uh having that be uh a bigger number. And you know, we think that we have an opportunity of course if we continue to serve these customers very well as we expect to for those to be compounding assets. Uh uh what was the number? SE 70 million 25 million funded uh by by uh Michael and Susan Dell uh alone. I mean if we serve these customers well over time I think uh you know a large portion should be Robin Hood customers. All right thank you for the for that uh Vlad and Shiv. Um so the next question is from Michael Cypress at Morgan Stanley. Great. Thanks for taking the question. I I just wanted to ask about peer-to-peer payments um that you just um just launched here um on the call here. I was hoping you could expand on your vision for this new offering. how you see this contributing in the coming years including uh perhaps a funnel for new client acquisition maybe even revenue monetization. So if you could talk about your expectations there and how you see this ramping. Thank you. Yeah, I mean where um where we started was really just um you know we had a lot of customers saying that they want to send money to their friends uh via you know the question asker asked about zel but zel or or other things. Can we make that a little bit easier? And then we thought, well, um, what’s the most simple, seamless thing we could do where you don’t even have to enter anything? You could just send money via via text. I think, um, and and I think we’ve delivered that experience. It’s just if you want to just tech, literally sending money from Robin Hood is as easy as texting someone. So, the first thing we’re looking for as we roll this out is are our existing customers using it? Is it solving their problem? And uh I think I think once we’ve got that by its very nature um the product should be viral right as they continue to send money to their friends if they use it then you know we have to make a compelling case for that recipient if they don’t already have Robin Hood to to enter that ecosystem. But that gives us another opportunity another potential touch point to to get them as customers. All right, thank you Vlad. Uh, the next question is from Alex Margraph at Keybank.
No, Alex. All right, we may have lost Alex.
Uh the next question is from Ben Buddhes at Barclays.
Hey uh good evening and uh thank you for taking my question. Um hey Ben one for Hey, um one for Shiv on on the expenses. So the number for the quarter came in I think a bit lower than a lot were expecting. Your fullear guide was lower just a little bit. Curious if you could talk about the moving parts. I know there’s some timing of Trump expenses that are expected to come in in the back half. Um and and curious what you can share on the run rate into 27. Um I know you’re not giving guidance there yet. Obviously the Trump expenses may be non-recurring. Um and you’ve kind of talked before about sort of like a lower singledigit growth rate for existing businesses, but on top of that there are new initiatives. So uh curious if you could talk a bit about the near-term moving pieces and how we should think about the run rate uh going into next year. Thank you. Yeah, great question. So uh what I’m really excited about is even with all the new products we’re shipping, we’re still staying lean and disciplined. As you mentioned, we lowered our outlook by by 25 million at the top end. Um, in Q4 specifically, uh, there’s a couple things that we’re rolling out that uh, we’re investing in. Uh, first, we’re doing even more for the Trump account, so you should expect some some more expenses there. Uh, second is the credit card. We’re continuing to scale the credit card, both gold and platinum, so there’ll be some uh, investments there. And then lastly, we’re in the middle of annual planning right now, but there’s a couple items we got really excited for, and so we pulled those four and we started to make a couple investments there. uh for Trump account specifically that you asked about uh for the full year. I shared earlier that we expect it to be about a $und00 million investment. It’s still roughly going to be in that range for the full year. And so there was some timing things throughout the quarter, but but that’s what I would expect. Uh for next year, it is early and we’re going to finish our planning process and we’ll come back in January and February and share the full plan. Um so nothing to share on that yet, but as Vlad said, um it is going really well. They’re asking us to do more and so I would expect that we’ll be continuing to invest there. And then in terms of our overall philosophy, very similar to prior years. Uh as we go through planning, we’re asking each of the teams to be more efficient in those core business. We take those efficiencies and then we reinvest it. Uh we have so much more to do as you’ve seen and so it’ll be very very similar to uh to prior years. All right. Thank you, Shiv. Uh the next question is from Patrick Moly at Piper Sandler. Yeah, thanks guys. Thanks for taking the question. I have one on crypto.com and og.com. You now own equity in two uh prediction market venues while running your own exchange with Suscoana. How do you reconcile the routing decisions between the different venues and what is the strategic logic of holding stakes and competitors to Rothera? Thanks. Yeah, maybe maybe I can uh um start. Um we want to give our customers the best uh prediction markets experience and um we want we want them to have choices too. I don’t think we can send all of our flow to one venue. Uh so we think that you know the combination of Rothera and uh Crypto.com is just uh positions us well to actually serve our customers well, have great execution quality and have um broad coverage of all of the assets that our customers want to trade. Um uh maybe you can take the financials. Yeah. Um you know on as Vlad mentioned it is good to have a resilient and a second exchange. What you should expect is um rather will be our primary exchange and crypto.com/ogg.com will now be our main second exchange and we’ll be getting off most of our competitors. Uh by the end of the year into early next year, you should expect the vast majority of our flow goes through both of those. Uh from the financial standpoint, what we’re doing now is in addition to sending them flow, we’re also becoming owners. And so before we were sending our flow to other exchanges and we weren’t getting any financial incentives because of that. Uh there is no conflicts to be clear. A product is listed on a particular exchange. It’s depending on where you can get a product experience. So there’s no routing like equities or options. They’re not interloable. You have to list it on either or either crypto.com. But now in addition to getting a great customer experience, we can also provide a little bit monetization for shareholders. So that’s why we’re super excited to both build and get a great product experience for customers but now also having some financial upside for shareholders as well. All right, thank you. Uh the next question is from Brian Bedell at Deutsch Bank.
Good to see me. Hey guys, hope hope is well. Thanks for taking the question. Um if I can ask a two-parter um one just the timing of company KPIs um for launching those now that uh SIBO has uh final approval for that. Uh and then secondly, uh Shiv, if you could just talk about a little bit more color or give more a little bit more color on the October volumes to date. Um if you said down 5% on equities options in crypto, if you could just sort of maybe bifurcate between those um those areas and any comments on take rate in in uh crypto, I know that tends to move around a lot. You want to do the KPIs and I’ll do the Let me take them all. This is Sure. Uh so so on the KPIs, we were actually just talking with uh with the GMs this morning, uh Steve Quirk and and Johan. Um they’re both coming very soon and so the teams are hard at work on them. We’re getting the final approvals. We announced them at HoodSummit. So you should expect them in the near term. We’re just waiting for kind of all the uh the approvals to come through, but we’re uh we’re ready to go and excited for customers. Um in terms of the October color, uh and so as a reminder, Q3 was a record quarter. So everything was our highest quarter ever for equities, options, and margin. And so great to see in October for equities and options and crypto, they’re within plus or minus 5%. And so I kind of group them all together, but they’re all trending to similar levels. And early in the quarter, call it, you know, within within 5% of the uh the high water mark in Q3. And then I called out event contract specifically because that was a little bit different and up about seven times year-over-year. And so starting to see some some more increase there. uh on take rate. What we’re seeing to start the quarter um is that spreads are a little bit tighter and so we’ll see where the full quarter shakes out, but but early indications are spreads are a little bit tighter and we’ll see how it plays out for the uh the next two months.
Great. All right, the next uh the next question is from Gav Blasburg from Wolf Financial. Gav, hey, how’s it going Vlad and Shv? Great to see you guys. I’m going to go into a uh area that I don’t think has been discussed too much yet and that is Robin Hood social. Um talked with you about this Vlad. I’ve been power using the platform. Love it. Spending probably an hour plus a day on there and I’m talking to more and more people and people are like well what are the plans for this? What’s the goals? How does this create revenue? How does this drive things for the platform and create shareholder value? And I would just love to hear also how it’s being prioritized and balanced with so many other things going on. Building out a social media is no small undertaking. And so I wanted to hear some of the vision for this and how this is ultimately going to lead to revenue generation and increasing shareholder value. How have you been liking it? Have you uh any any any critical feedback? Anything we could be doing better? Oh, I’ve been uh I’ve been chatting with Anna uh Torque and some others on the team and and given a ton of pieces of feedback and also trying to talk to the other Power users um and connect with them and get pieces of feedback. I think it’s you know continuing to progress really nicely. There’s certainly listen, if you want a feedback session at some point, I’ll give it to you, but I don’t know if that’s the best use of your time right now. Yeah, that’s good. Yeah, you don’t want to do that too much at earnings. Um, no, he’s a he’s a tough customer. Um yeah, look, I think that the reason we get excited about Robin Hood social is because um yeah, I mean, frankly, I believe that it’s the best way to learn, you know, rather than uh which which way am I most bullish on Robin Hood producing all the content that, you know, uh teaches people how to invest and and and gives them all the tools. um or am I uh more bullish on you know 28 million customers and you know those customers uh using our product and you know bringing the best ideas that they find from um everywhere in the world to us. So, uh, definitely the latter and yeah, I I think if done well, we can just surface really good content for for our customers that they can use to learn new things. And um, we’re already seeing kind of a community form around this. So, um I mean we we’ve got a lot to do just uh we’ve made it so that you know people can share things outside of the platform and um we’ve continued to also increase the type of content that you can share on social you know it started out with uh just trades but now you can trade now you can share P&L you can share charts um you can do your portfolio we have the creator offering uh also creators a lot have been asking about creator monetization. So, um that’s something we we’ll obviously want to look into and I think at that point um yeah, it becomes, you know, a business line for us. But as of now, I think we’re we’re thinking about it in the context of the broad Robin Hood experience. And we we think that if we do a really really good job, it just gives people one more reason to not just do the execution of the trade on Robin Hood, but just stay in Robin Hood for for getting the idea uh and and the context behind the trade. All right, thank you Vlad. Uh the next question is from James Yaro at Goldman Sachs. Thanks for taking the question. Um, I was hoping you might be able to just update us on your Robin Hooded strategy, your rough era strategy at this point. Um, how do you plan to to generate market share gains? Um, and uh, maybe you could speak to the pricing strategy at this point and then maybe finally uh, maybe just an update on how you’re thinking about adding other FCMs to the platform beyond just the Hood brokerage. Yeah. Uh that’s a great question and again um we don’t uh we’re we’re a significant equity holder in Rother, you know, uh us in SIG, but uh we don’t actually we’re not actually operating uh Rthera uh ourselves. I mean, of course, um hopefully they like to uh hope Tom and team uh do listen to us occasionally on retail, but it’s like a independent uh independent business. Um yeah and so I don’t want to speak too much about their strategy for getting FCMs though I know they’re they’re highly motivated and um you know I think Rother could become the default uh neutral gateway for uh FCMs because a lot of the other prediction markets venues um they have their first party offerings where they are uh trying to acquire customers while they’re offering a a service to others and I think when we talk to uh a lot of other FCMs they don’t like the idea and the potential conflict of uh of of their provider also operating a first party business. So I think the great thing about rather for any FCMs that want to connect to it is that um it’s purely uh it’s it’s purely working with FCMS. So you don’t have to worry about your provider also competing with you in the marketplace. Um, and at least from our standpoint, we have been investing a lot in the non-sports contracts. You saw us announce, you know, KPI prediction markets. We’ve been seeing a lot of growth in the crypto contracts and commodities. And I think that over time we see an opportunity in integrating these financial I think I think we can own the financial category um because that’s like a unique advantage we have and Rother can support just uh more sophisticated financial contracts and and be a leader there because I I think we’re less excited about doing what everyone else is doing which is just all sports all the time because I I think that’s rapidly going to get commoditized um and is just frankly a little bit less uh differentiated from my standpoint. Yeah. And the two things I’ll add there. Um on the non-sports side, if you look in the quarter, it was actually about 30% was non-sports and that was up from 15% the quarter before. So, as Vlad said, we’re starting to see adoption across some of these other asset classes, which was uh which was great to see. On the pricing side, um we’re really excited that our pricing is now is now official, but we lowered pricing for customers when we bought Rthera. And what we did is we made a dynamic pricing model. And so what we heard from customers was if you were trading something in the wing relative to the center, you actually paid a higher take rate. And so uh instead of just increasing monetization, what we decided to do is redo the pricing model. We made it dynamic. We listened to customers, but we didn’t impact our take rate because we were able to share some with them and take some of that back. And then on top of that, we made it even better with gold. We talked a lot about gold, but now if you’re a Robin Hood customer and you’re and you’re a gold member, you also get even better pricing as well. So, a couple different things all going on there at the same time. Yeah. And if you look at the experience, those of you that trade prediction markets on Robin, you can see we’ve really done a nice job just refining the experience, having like specific modules for different types of prediction markets. The midterms hub in particular, I think just looks amazing. So, it’s it’s not just, you know, if you want to trade them, but just as a way to explore and find what’s likely to happen through the midterms. I I think we’ve done a a really really nice job and the 15-minute up and down markets um on crypto have been looking good. So, yeah, I think you you can see um you know, the chiseling that’s happening on the product to make it even more usable. All right, thank you. Uh the next question comes from somebody right off a plane. Uh, Dan Dolv from Missouo. Dan Dov. Hey, Vlad. Hey, ship. How are you? Are you in the airport? I’m in Munich. Oh, nice. I just just got back from uh Israel on route to New York. Um, vote for today. Um, great results as always. You know, we’ve done some work. I’m very interested in uh perpetual futures. Um, sounds like you guys are headed to something really big there. And I think we, you know, we’re get we’re getting a lot of questions on it. I just want to know like how big do you think this one could be cuz it sounds like it’s a huge opportunity here. So we’d love to get some more color on that. Thank you. Yeah, I mean I think that if you if you look at the um sort of like leaders in perpetual futures, the perpetual futures is a huge market by volume with daily volumes in the billions. In fact, some of some of the some of the platforms, you know, globally have tens of billions in in daily pers volume. Um, and then we saw even on Robin Hood chain, which again is just a couple months old, we’re seeing over a billion in uh US dollar notional in onchain per. So, I I see no reason why uh our offering can’t get to uh a similar if not greater scale than the DeFi offering as as time goes on.
All right. Uh, the next question is from David Smith at Truist. Hey, good afternoon. Hello. Hey, David. Uh, could you flesh out a little bit more about what you’re seeing in terms of the drivers on on take rates as 3Q came in lighter than a what a lot of us were expecting and it sounded like that declines continued to start the fourth quarter. Sure, it differs across asset class, but is this a mixed issue on the user front or on the subasset class uh front, trade sizes, volumes, other dynamics? Um, what would you point to there? Yeah, I’m I’m happy to take this one. Um, so on on equities, it’s usually a mix shift between single names and ETFs and it also depends on what the spreads are. Um, options is also similar. It depends on on what the VA is and also the spreads. And then is it are they trading more index options? Are they trading more single names? uh is it more indices? Uh that tends to be a bigger driver there. Uh on crypto, the main driver was our Robin Hood earn our stable coin product. So that product is doing great. It now has over 500 million of of assets there, but because it’s stable coin, we monetize it uh less than the the normal platform. And so that’s what drove it down. If you take out the stable coin, it was basically similar to the quarter before in the same zip code. So that was the main driver there. And then ECS, as I mentioned, we updated our pricing. And so it’ll depend on what the customer is trading. are they trading the money line? Are they trading at the wings? Are they using Robin Hood gold? And so that’s why we saw it moving a little bit. So I would say each of them is a little bit different. Um and that what we’re seeing in October is, you know, as the start they’re they’re similar to what we saw and maybe a touch lighter spreads are a little bit tighter, but again it’s about 3 weeks into the quarter and so we’ll see what the full quarter shakes out. Great. Uh thank you. Uh the next question is from uh Dr. Crossroads.
Hey guys, thanks for taking my call. Uh just uh wanted to ask uh given that you’ve given us uh last year some information regarding the impact of rate hikes and we’re in a very different or rate cuts and we’re in a very different situation with rate hikes. I’m wondering if it’s going to be a similar impact on the ecosystem. I believe you guided for a negative 50 million impact for each rate cut on net interest income. Uh especially now that banking is a part of your ecosystem and also credit cards are a meaningful part as well. You remember uh by the way a couple was it like a year ago everyone was like what what’s your business going to do? You’ve done so well in a high rate environment with all this interest income. How will you survive in a low rate environment? And now it’s funny every couple years it’s like the question reverses. Oh, you’ve been doing so well with these, you know, declining rates. How are you now rates are going to go up again? But uh I’m happy to take it. It is great. I mean first good to see you by the way. Hope you’re doing well. Uh the the first thing we like as Vlad said is uh the business is diversified. So some products do well in a low rate environment such as the the trading products and others do better in a in a high interest rate environment such as the NIM products. Um the actual math is uh for every 25 basis point uh hike or decline it’s about a 1 and a.5% change to uh to revenue. So all else being equal, if uh if the Fed hikes another 25 basis points, that should be a lift. The really simple math is we have about 80 billion of interest earning assets. about half of that 40 billion is interestsensitive assets because the sweep program and a few other things aren’t insensitive. So uh the DV1 25 million 25 basis points and 40 billion is about 100 million of of uh a change and then 100 million on about a 5.5 to6 billion run rate gets you to about that one and a half percent. So big picture though we like being diversified and uh and a rate hike is a tailwind. Um but regardless if the of the rate environment we’ve got we’ve bought a business that does well in both of them. Thank you Chev. Uh the next question is from Adam Fresh from Evercore. Hey guys, good afternoon and thanks for taking my uh my question. I wanted to follow up a little bit on net deposit growth and and actually monthly activives as a percentage of fully funded. Both were a little weaker this quarter. So would appreciate some color on what drove that in the quarter if we should be aware of any new or incremental initiatives you’re thinking about or acting already to reverse that or if it’s just a 90-day period that isn’t necessarily indicative of the overall trends and what you’re seeing so far in 4Q. Thank you. Uh yeah, I would say it’s more the latter. U we don’t overindex on any one month or quarter and and the best way to see it is October. As we mentioned, October was was already a record of over 13 billion of net deposits. And uh in ADVs, we’re very similar or just a touch lighter than what we saw in a record Q3. And so, uh things are going to move around. There’s timing of when we launch new products. Uh there’s timing of when promos happen. There is some seasonality. There’s macro events. There’s the IPO market. So, all of those come together. But if you look at it on an annualized basis or if you just look at October alone, uh already seeing really healthy engagement across trading at net deposits. All right. Thank you, Shiv. Uh, the next question is from Ramsey LSL at Caner. Hi, thanks so much for taking my question tonight. I wanted to ask if you could elaborate a little bit, Vlad, on on the rationale for the Ripple partnership. How’s that going to benefit you guys? I know there’s a few different dimensions there, internal treasury operations, also external facing benefits for Bitstamp, etc. Where do you see the nearest term opportunity, the greatest near-term opportunity, and just sort of if you could expound a little bit on the on the overall strategic rationale? next. Yeah, I mean, um, yeah, I think, uh, I I like Brad and the team at Ripple and, um, I think that we were excited to to to do more business together. Um I think that there’s uh yeah a lot of ways in which we offer complimentary things and you know we’re never we’re never afraid to get you know more integration into uh I think I think more integration more um uh products more selection for uh the Robin Hood ecosystem both in the app and in chain is just uh strictly better and I I think um we kind of bring complimentary three things uh to the table, you know, with with their uh institutional business and our more retailoriented business. Um and in fact, you know, uh today’s another example of this uh Ono integrating into uh Robin Hood chain. Now, Ono also has uh tokenized products, but our thought is well, you know, and we want our chain to be the best home of tokenized products. They don’t need to be our own. And and in fact, you know, it it’s uh it’s it’s important for us to just make sure everyone has an equal opportunity to list uh on on our chain and on our properties for for our customers because that just leads to to the best product. So, of course, if we we we would like our own firstparty products to always be used, but uh if if uh they also have to be better than uh than the competition.
All right, thank you Vlad. Uh the next question is from Ed Angle at Compass Point. Um hey, thanks for taking my question. I guess how are you thinking about bringing stock tokens on short the US after the SEC’s innovation exemption? And then is there anything regulatory wise on your radar that might unlock private stock tokens that you announced last year? Yeah, that’s a great question. Something we’ve been very passionate about. You know, for for private companies, we basically have two bets. one being Robin Hood Ventures which is um in the form of fund products in the US and then stock tokens um over overseas where you know we we have the ability to tokenize individual companies and in in a sense through our um uh well we benefit from you know the these two things help each other because you know with Robin Hood Ventures we have relationships with with companies we’ve been investing in a lot of companies, we have like an active pipeline. Um, and you know, a lot of those companies actually inquire about what tokenization is and and you know, can they can they join and you know, we we’ve been we have the relationships and we’ve we’ve been uh a leader in this space. So, I would say uh we have a path to doing it overseas. We know how to do it. We’ve demonstrated the technology and the capability. So it’s just a question of getting all the regulatory stuff in place. But uh we we do intend to launch uh uh these products overseas. Uh now when it comes to in the US for private stocks um specifically there’s uh another layer to it which is the accreditation requirements. Um and so we we are we are working hard to find a path that satisfies the current accreditation requirements and also leads to uh a great customer experience. I think I think Robin Hood Ventures is uh uh you know an example of this in the construct of funds but of course a lot of customers want exposure to individual names as well and so we’re working hard to to do that within the constraints. Um as far as the innovation exemption goes you know I I think it’s a really positive step. Um we’re supportive of it. uh we think that obviously the US uh needs to be a leader in this new technology. I I do think more needs to be done um to give people a little bit of of certainty uh because if as we talk to customers I think um you know the the uncertainty of what happens in 5 years um is is likely to be an impediment to like putting serious assets uh on onto this technology. So I still think some uh rulemaking or legislation uh is going to be is going to be necessary even though of course it’s a it’s a positive step and you know uh we we’ll hope to have more to share on our own US tokenization plans in the near future. All right, thank you Vlad. Uh the next question is from John Tadaro at Needm. Hey guys, good to see you and thanks for taking my question. Um I I was hoping we could just get some commentary on maybe the health of the the retail trader within equities. Uh in particular, AI stocks have come down quite a bit in the last several weeks and many of those were were trafficked in quite a bit by retail. So just wondering if we can get any commentary there uh on engagement post the selloff. Yeah, I’m happy to take this one. Um engagement continues to be really strong. I mean the best way to see that is through the ADVs and through net deposits and both of those were incredibly strong in the start of October. And so, as we said before, our customers, they tend to be younger. They tend to be techno optimists. They tend to be technology forward. They use sell-offs as a buying opportunity. And so, when you saw a sell-off, you know, in AI stocks or in chip makers or in semis, uh, our customers leaned in and continued to buy more. On down days, we tend to see some of our strongest net buying. And so, uh, but the best metrics I would look at are just net deposits and ADVs. And both of those were really strong to start October.
All right. Thank you, Shiv. Uh the next question is from Andrew Hardy from BTIG. Hey, thanks for taking my question. Uh SH, you talked about turning up the dial a bit on top of funnel. Just wondering if you can uh share some details on the strategy there and any traction you’ve seen. And then a bit of a followup on the MAU question. Uh you know, I realize it’s kind of just one period, but in the past year, we’ve been in that 13 to 14 million or 13 to 14 million user range on MAUs. Just curious anything you can do there to try to drive that number higher as well. Thanks. Yeah. Um could you repeat what was the first part of the question? Apologies. Before the miu anything on top of funnel that you’re doing and then similar question but how to increase the MAU number as well. Yeah. Um on the uh on the top of funnel there’s there’s two things. First is product and the second is uh marketing. What we’ve been focusing on this year is primarily product. We’ve been testing a tiny bit on marketing but we haven’t we haven’t done it yet. Um, but if you look at a lot of the things that that Vlad shared, whether it was it was P2P or banking or other products, um, we think those can be pretty meaningful drivers. So, we’re making some investments and we pulled some of that forward to to make them and develop them this year and you’ll see them launch in 2027. But the big drivers are generally just products and a little bit of marketing. Um, on MAUs, the honest answers, we don’t go on it. The teams are gold on our customers are engaged. Are they using the platform? Are they trusting us? Are they depositing? All of those are incredibly healthy. mouse is an output metric. It’s going to move around a little bit with the market. As I mentioned before, it could be seasonal. It could be the macro. It’s what they’re doing. Everything we’re seeing as customers are incredibly healthy. And if they’re depositing more and they’re engaging more, they’re using more of our products, we call that a win. And then MS are just going to move around. Yeah. And I I think, you know, uh longer term, we have some bets that we’re working on. I think um obviously you know having the opportunity to uh to to serve you know upwards of 70 million children with the the Trump accounts and serving as uh uh the broker and and trust the initial trustee of the program with with BNY. Um I think it’s a big opportunity for us to just be in front of the next generation there. Um we’ve also been uh thinking about how to invest. I mean, we have custodial accounts, um, which which have been a nice, uh, addition to the platform, but how can we actually invest in getting customers as they’re even younger and build an an even better experience because we’re starting to to see some smoke there. Um, so yeah, I I think that, you know, in in the next year, we’re going to be making several bets that uh yeah, I believe we’ll just not just increase um uh top offunnel net funded account growth um but also MAU growth. I mean, the the two are sort of like uh high level interconnected. So, so you should see those move and that’s uh outside of outside of marketing and outside of I think the long-term opportunity of serving as the trustee of the Trump accounts initiative. Oh, you’re muted. Oh, can you hear me now? You’re back. Yeah. I told you last quarter my son was about to be born and I signed him up and I can confirm it was a very easy uh onboarding process for his Trump account. So, well done there. Oh, thank you. That’s uh that that warms my heart. Uh hopefully you’ll have many more. Also, you can see if your employer will match you now and get a little bit more for your uh for your son in there as well. Yeah, good good call. All right. Uh the next question is from Alex Markcraft at Key Bank.
Hey guys. Um thanks for taking my question. Um sounds like things are going quite well in banking. I certainly appreciate the withdrawal destination data point that you shared. What should we be looking for to determine when the products in a state that warrants more sort of intentional marketing efforts or you know when you’re ready to to pour fuel on the fire so to say? Thanks. Yeah, that’s that’s a good question. Uh that’s going to be tied uh with the general availability of the product. So, so right now you kind of have to be a Robin Hood brokerage customer to be eligible for banking. Um, which essentially means there’s no like independent onboarding. Sorry, my hair makes these tough. Uh, no independent onboarding yet in the in the banking app. Um, of course, we do intend to to roll that out. And um if once we have independent onboarding then that unlocks the possibility of performance marketing which will be a new capability of ours because now we’re marketing multiple things. So, we’re we’re still early, but um I think we’re we’ve got a great team uh on the marketing side and and we’re going to be investing more in the capability, but we do believe that um banking will actually give growth to brokerage and not just the the other way around. So, this is just uh uh yeah, just a green field opportunity for us which will also impact uh net funded account growth and and MAUs. Yeah. and and banking is a little different than the credit card. So credit card, we’re rolling out more delivery because you have to get the unit economics right. You have to get the credit risk right. Banking is just like any of the other products that we launch. You make sure that customers like it, you fix their pain points once you find product market fit. So it’ll be much more akin to a regular software product relative to the credit card which took a little bit longer to roll out. Yeah. And and I’d also add that, you know, it’s it’s a little bit more of a predictable compounder, you know, because the the trading products, you know, it’s uh there is a dependence on the market and seasonality, but banking, people just receive their paychecks, they spend, you know, they’re in the ecosystem uh week in week out. It’s uh which which, you know, counterbalances the the trading business quite nicely. All right. Uh, and finishing strong here, our next question is from Ken Worthington at JP Morgan. All right. Hi. Uh, good afternoon. Thanks for the last licks here. Um, keeping it sort of high picture, Arpoo doubled over the last two years to about million dollar road map of new products and new cross-selling. How do you see RPO evolving from here? And if I pick an RPU RPO figure like $300, $300, do you see this as feasible? And given all that you’ve got going on, what does Robin Hood need to get right to get to a figure like that? Yeah, I think that’s an interesting question. I mean, um, the reason I’m reluctant to just give you our our arpoo goal is I think we also, uh, think there’s a lot of opportunity to grow customers and grow down market. I mean, if we get more younger customers, um, you could see for for example, you know, our food decreasing, but the total size of the customer base increasing dramatically. I mean, particularly depending on how you count Robin Hood chain users and international customers as we continue to to to put our foot on the gas of the international expansion, which I think we’re still, you know, the relative early days. I mean, we crossed a million international customers, but you know, not hard to imagine that itself growing exponentially on the way to, you know, the majority of our of our customers being international over the long run. So it’s a it’s a complicated optimization of you know our existing customers continuing to get val more valuable get wealthier and their ARPO should be continuing to increase but there’s going to be you know a counterbalancing effect of us just getting uh plenty of more customers from international markets and who are who are younger. Yeah couple things I’ll add there. Um ARPO is an output metric so we actually don’t go the teams on that. We grow them on market share and then ROI. And what we’ve said before is we believe Robin Hood can 10x from here. And so you can take any metric you want, whether that’s revenue, net deposits, etc. Um the highest predictor and correlation to revenue is just net deposits. So if we keep gaining net deposits, if customers keep trusting us, whether that’s new funded customers, whether that’s an existing customer trusting us with more, that’s how you grow the business and that’s how you grow revenue. Arpoo is going to grow wherever it’s going to go. But again, that’s not what we go on. we just grow on market share and and giving a great customer experience. All right. Well, that concludes the Q&A portion of the call. Vlad, would you like to make any closing comments? Yeah, I just wanted to tell you guys again, thank you for being uh here for those of you in person and and also those of you watching remotely. Um we’re uh building a community here not just of customers but also uh shareholders uh investors retail and institutional had some content creators on the call and you should know that we are uh we are far from done and we are not complacent and the road map just continues to be incredibly full. So, uh, rolling out all the things from HoodSummit and a bunch of other things in the hopper, um, to make this your financial super app and to deliver the power of ownership to people worldwide. So, thank you for being with us on the journey and, uh, thank you for listening, bearing the heat. Jeez,
and thank you, Sh.