Robinhood Q4 2025 Robinhood Markets Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Robinhood Markets Inc Earnings Call
Speaker #1: Thank you to everyone for joining Robinhood's Q4. Full year 2025 earnings call. Whether you're tuning into the livestream or here with us in person.
Speaker #1: With us today are Chairman and CEO Vlad Tenev, CFO Shiv Verma, and VP of Corporate Finance and Investor Relations Chris Cagle. Vlad and Shiv will offer opening remarks and then open the call to Q&A.
Speaker #1: 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 will contain forward-looking shareholders.
Speaker #1: As a reminder, today's call statements: actual results could differ materially from our current expectations. 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.
Speaker #1: 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.
Speaker #1: With that, please welcome Vlad and Shiv.
Speaker #2: Well, hello everyone. It's great to speak with you today. We're back with a live audience, this time from our global headquarters in Menlo Park.
Speaker #2: And for the first time, with Shiv as CFO following in Jason's Big
Speaker #2: Footsteps, welcome Shiv. Thank
Speaker #2: Great to see all the shareholders you. and institutional analysts in the audience. So let's get right into it, shall we? So as a reminder, we're focused on our three-part strategy.
Speaker #2: Number one, in active traders. Number one, in wallet share for the next generation. And our long-term arc, number one, global financial ecosystem. Looking back on 2025, it was an incredible year of incredible product velocity across all three of our arcs.
Speaker #2: First, active traders. We want active traders to feel like they're at a disadvantage trading anywhere but Robinhood. It's a big priority for us, and we're seeing big results.
Speaker #2: In Q4, prediction markets volumes more than doubled yet again, with over $12 billion in contracts traded in 2025, which was the first full year of prediction markets.
Speaker #2: Customers have already traded over $4 billion, so far in 2026. So we're seeing the momentum continue. We also expanded our equities offering with the launch of shorting.
Speaker #2: We love giving our customers more tools to navigate the markets, and we see them responding. Over $11 billion of equity notional volume in the first couple of months since shorting went out.
Speaker #2: Second, wallet share. We continue to make progress building out our financial super app and becoming our customers' primary and secondary financial account. So a lot of attention typically goes to our active trading offerings, and it should, but we've also been making a ton of progress broadening our offering and attracting more long-term investing to the platform.
Speaker #2: Over 40% of our total assets are now across ETFs, advisory, retirement, and cash. So it's great to see customers trusting us with more of their financial lives.
Speaker #2: Robinhood Gold card, up over 5X, 5X in 2025 to $600,000 customers; it's reached over $10 billion in annualized spend. Customers love the product. They love the 3% rewards.
Speaker #2: But also, the intuitive user experience, the metal card, and the solid gold card, and capabilities like virtual and single-use cards, and all the family features.
Speaker #2: As we've been rolling out the card, we built increasing confidence in the economics. So we plan to continue accelerating the rollout. More than doubling the amount of customers with gold cards this year.
Speaker #2: To well over a million by the end of the year. Robinhood Banking. So we began the rollout of Robinhood Banking in the past few months.
Speaker #2: Customers are really excited about this. We're building the kind of banking experience that was once limited to the ultra-wealthy. Strong early results with our initial over $25,000 funded customers, who have brought in over $400 million in balances.
Speaker #2: And perhaps the thing that gets me most excited: over 50% of our funded customers using banking have enrolled in direct deposit. So as we look at this, it makes us more confident that we're achieving product-market fit.
Speaker #2: With this offering. Now, third arc, global financial ecosystem, our long-term arc. We're making good early progress as we expand to different markets across the world.
Speaker #2: Bitstamp continues to scale, with volumes up 2x since we closed in June. The Bitstamp product and engineering teams have been humming, so it's great to see so much progress here.
Speaker #2: We're also making progress expanding internationally. Now with three quarters of a million customers. Outside the US. Just last week, we launched ISAs in the UK, which is the local tax-advantaged count in the UK.
Speaker #2: And this was actually the top request from our UK customers. So really excited to deliver it for them. I'm excited to watch these businesses scale as we launch in more and more new jurisdictions and we round out the product offerings.
Speaker #2: I think in a couple of years, we're going to look back and we'll really have underestimated how big our international business can be. Now, taking all this together, our relentless product velocity has driven another strong year of results.
Speaker #2: Strong double-digit year-over-year market share gains across equities, options, crypto, and margin. Which, by the way, includes positive net transfers, positive inflows from all of our major brokerage competitors.
Speaker #2: For the last eight quarters in a row, which is pretty amazing there. I think we've got a lot of headroom here. Our customers grow faster than the industry.
Speaker #2: We continue to deliver new products and new capabilities, and we're seeing our customers continue to trust us with more and more of their financial lives.
Speaker #2: So total platform assets grew nearly 70% year-over-year to $324 billion. Net deposits are record $68 billion, which is 35% growth rate. Goal subscribers grew nearly 60% year-over-year, 4.2 million.
Speaker #2: So revenues putting it all together, which were less than $3 billion a year ago, grew to $4.5 billion in 2025. So it's great to see that 50 plus percent, 50 plus percent revenue growth for the second straight year.
Speaker #2: So, quite amazing. So before I get into our 2026 roadmap, which will be very fun, I'll turn it over to Shiv to walk through more of—
Speaker #2: the business financial results. All right. Over to you, sir.
Speaker #3: Thank you, Vlad. So, I'm excited to be on your first earnings call. To get started, there are three key takeaways I want to get across. First, 2025 was a record year for Robinhood, with strong growth and profitability.
Speaker #3: We had records across net deposits, gold subscribers, revenue, adjusted EBITDA, and EPS, just to name a few. All of this was driven by incredible product velocity and our relentless focus on efficiency.
Speaker #3: And we also finished the year strong, with a record Q4. Revenues and adjusted EBITDA were both records, and 2026 is off to a good start.
Speaker #3: Now, second, our business continues to diversify. We're now up to $11 revenue. And several more are making great progress, including Robinhood Legend, which is really close, and the Gold Card, which is on track for this year.
Speaker #3: Additionally, Trade PMR, futures, index options, and Robinhood Banking are all scaling really nicely. And third, in 2026, we plan to ramp up our product velocity even faster, while delivering another year of profitable growth.
Speaker #3: There is a massive opportunity in front of us, and we see the path to compound shareholder value for years to come. All right, so let's review 2025 results.
Speaker #3: And this is all compared to last year. First, revenues were a record $4.5 billion, up 52% year-over-year as Vlad said. And up over three times in the past three years.
Speaker #3: Adjusted EBITDA was also a record, up 2.5 billion. And that was up 76%. And adjusted EBITDA margins were also in new high, up 56%.
Speaker #3: We also delivered incremental adjusted EBITDA margins above 70% for the third straight year. And at the same time, we managed our share count closely, leading to record EPS of $2.05.
Speaker #3: And our philosophy is that the denominator matters. And over time, managing the share count closely should deliver value to shareholders. So let's look at Q4.
Speaker #3: And this is all compared to last year as well. First, revenues grew 27% to a record $1.3 billion as our customers remained engaged and continued to trust Robinhood with even more of their assets.
Speaker #3: Net deposits continued to be robust, with $16 billion of net deposits in Q4. That's our eighth straight quarter with over $10 billion of net deposits.
Speaker #3: And trading volumes grew to new highs across equities, options, futures, and event contracts. As we continue to win market share and saw record net buying from our customers.
Speaker #3: Now, interest-earning assets were also up 39%, driven by strong growth in the cash sweep program, margin, and our credit card loan book, as we continue to win larger customers and deepen relationships with existing customers.
Speaker #3: Margin, in particular, has been great. It's up over 100% in the past year. And Robinhood Gold—that also grew 58% to a record 4.2 million subscribers.
Speaker #3: We think gold is the best deal in financial services, and we're going to keep adding to its value prop. And on expenses, Q4 adjusted OPEX plus SBC was $597 million.
Speaker #3: As we manage expenses to approximately $15 million below our latest outlook. All right, so let's move to 2026. As we built our annual plan, there were three areas that we focused on.
Speaker #3: First, we want to continue accelerating our product velocity. Customers are responding incredibly well to our new product initiatives. We're gaining market share, launching innovative products, and entering new markets.
Speaker #3: We believe shipping even more products and value to customers can deliver outsized growth for years to come. Second, we aim to deliver another year of 20%+ net deposit growth.
Speaker #3: This year, we reached nearly a third of $1 trillion in assets across the platform. And we're well on our way to exceeding a trillion of assets in the coming years, with our rapid product velocity and the $100 trillion plus generational wealth transfer already underway.
Speaker #3: And third, we've built our plan to deliver another year of profitable growth. Even as we invest for growth, much like the robust revenue growth we've seen over the past few years, we are staying lean and disciplined in the way we allocate capital and operate as a business.
Speaker #3: So to our expense outlook, for 2026, our outlook for adjusted OPEX and SBC is in a range of $2.6 to $2.725 billion. This translates to an 18% year-over-year expense growth at the midpoint, which is below the 22% growth rate we managed to in 2025 on a comparable basis.
Speaker #3: So just to give you a little bit more color on how we built the plan, the 18% expense growth is in three areas. First, about 5 percentage points of that growth is going into our existing businesses.
Speaker #3: Net of any productivity improvements. These businesses drove the vast majority of our $1.5 billion of revenue growth in 2025. And we want to keep scaling them and gaining market share.
Speaker #3: Second, about 3 percentage points are from the full-year cost effect of our 2025 acquisitions of Bitstamp and Trade PMR. Now, these expenses will also come with the full-year effect on revenue growth.
Speaker #3: And third, about 10 percentage points, or more than half of the 18% growth, is into new and scaling businesses. This is our biggest area of investment as we continue to accelerate product velocity.
Speaker #3: Now, some of these investments include the Robinhood Gold Card, Robinhood Banking, strategies, prediction markets, Cortex, Robinhood Social, Robinhood Ventures, the Robinhood Chain, tokenized real-world assets, and continuing international expansion.
Speaker #3: It's a pretty long list. And as a reminder, we underwrite all investments. Strong ROIs. And we'll stay nimble as we execute against our plan.
Speaker #3: And as I said at the outset, we'll continue to be lean and disciplined in the way we allocate and operate. So, before turning it back to Vlad, I also just want to share a little bit on what we're seeing: strong momentum into 2026.
Speaker #3: As you saw on the release in January, equity trading volumes were up over 50% year-over-year and options volumes were up 20%. We also had all-time highs in net buying, event contracts, futures, and margin.
Speaker #3: And while it's early, so far in February, the average daily trading volumes are up across all categories versus January levels. And Q1 net deposits are also off to a good start, with $7 million plus in the quarter, including over $2 billion last week.
Speaker #3: So it's fantastic to see customers engaged to start the year. Putting it all together, we are incredibly excited about our plan and momentum entering 2026.
Speaker #3: As we work to drive another year of profitable growth, the team continues to ship for customers, and our financial North Star remains the same.
Speaker #3: Maximize earnings per share and free cash flow per share for shareholders over time. Vlad, back to you.
Speaker #2: Thank you, Shiv. You're starting to get a taste of what this killer next to me can do on the CFO position. So very excited.
Speaker #2: Shiv prefers to stand, so we decided we'll compromise—by the way—do half the earnings call seated and half standing. All right. Just over a year ago, we shared with you our 10-year vision for Robinhood at our investor day in New York City.
Speaker #2: We were excited about it back then. Felt it was very ambitious. But I think in hindsight, we realized we underestimated what we could do in one year, not to mention 10 years.
Speaker #2: So today, I'm going to tell you what we have planned for in 2026. And we're by no
Speaker #1: Means complacent . This is going to be an ambitious plan as we continue to execute , Robin Hood will become increasingly execute . Robin hood will become increasingly synonymous with the financial service category as the financial super app .
Speaker #1: So let's get right into it , starting with what we're doing for active traders . Now , I'm not going to go into every little detail of the roadmap .
Speaker #1: I'm prefer to focus on areas that are particularly meaningful and maybe surprising . So prediction markets , fastest growing business in our history , 300 million plus run rate in its first year .
Speaker #1: I think we're just at the beginning of a prediction market super cycle that could drive in annual volume over time . This is going to be year a big .
Speaker #1: Olympics are going on right now . World Cup coming in the summer . Continued growth in the non-sports categories . And of course , our Roth era , which is our JV with Susquehanna coming online .
Speaker #1: Growth of prediction markets , is also led to a greater focus on our app design and personalization . We've been adding so many new products , so many account types , lots more that it's coming increasingly important to personalize and continue to chisel the user interface , make sure we're putting the right things in front of the right customers .
Speaker #1: Now, many of you have already noticed the work that we've put in here in the past few months through changes to the home interface, search and discover, as well as notifications.
Speaker #1: This year you should see this with more accelerate personalization , better cross asset linking between equities , crypto and prediction markets , and us continuing to experiment to ensure that our user experience remains top notch .
Speaker #1: Then two big things Cortex assistant in the main app . And the goal is to become the best AI for all of your financial needs .
Speaker #1: Cortex for Legend—to use an analogy, think of Cortex for Legend being to active traders what Cursor is to software engineers.
Speaker #1: We think it has the potential to completely transform trading , and we're right at the frontier . There . Both are rolling out in the coming weeks and months , and scaling throughout the year .
Speaker #1: Robinhood social . Robinhood social will start rolling out to the first customers very soon . Really excited about how it will drive discovery and engagement .
Speaker #1: We're going through internal testing and we actually support for added markets prediction into Robinhood really and it's looking Social , good as we progress throughout the year .
Speaker #1: I think it'll be increasingly obvious that active traders are at a disadvantage using any other platform . Turning to wallet share now as a reminder , this is about transitioning from serving predominantly traders to serving all of our customers financial needs .
Speaker #1: Two big strategic moves that we're making this year. I'm particularly excited about the first one. We're calling it Family Investing. Robinhood should be better for you when more of your family members are on the platform.
Speaker #1: This year , it'll really become multigenerational platform . Now , this vision really started with credit card , which was our first family product .
Speaker #1: It continued with banking , which is also a first class family experience . And in 2026 , you'll see us bring it to our investing products , our referral program for advisors is also going live this year , which will connect our customers to quality high Rias , which are powered by help them to Tradepmr with their comprehensive financial needs we believe we can be the .
Speaker #1: And major beneficiary of the 100 trillion plus wealth transfer . And we've got some really exciting things to unveil coming on this front at our big event next month in New York City .
Speaker #1: So stay tuned for that . Second big thing , private markets . Now , you may have heard me say opening up private markets .
Speaker #1: Not only can resolve one of the greatest inequities in capital markets , but also can be a huge accelerant to our mission as well as our business .
Speaker #1: This begins with Robinhood Ventures and Robinhood Ventures . For those of you unfamiliar , will invest in private assets that out of are often reach for retail investors , and these will be packaged and registered funds that we can offer to us retail investors .
Speaker #1: I think this will be a transformative offering outside of the US customers, in our Europe. We got a company stock of Taste Private a little last year, tokens with our OpenAI and Space stock token giveaways.
Speaker #1: More to come on that front soon . And now we think private markets could become even bigger than prediction markets . And I'm really excited about what we're building here .
Speaker #1: Finally , building the number one global financial ecosystem . So the big theme here is tokenization . And it's early in the tokenization industry .
Speaker #1: we've built But a leadership position already . We now have 2000 stock tokens available to customers in Europe . Now a big part of 2026 will be seizing the tokenization opportunity , which we think is massive .
Speaker #1: And this means two things very specifically . One is permissionless , 24 sevenths tradable public company stock tokens and two private company stock tokens , making them actually real and useful for customers nicely tokenization work .
Speaker #1: quite dovetails Now our with our work on to continues which DeFi , accelerate over . This year will be launching and scaling Robinhood Chain , which is our layer two , making it the best chain to trade real world assets .
Speaker #1: More on this coming very soon. We'll be continuing to make improvements to Robinhood Wallet, which of course will also provide a first-class experience to Robinhood Chain.
Speaker #1: And we're also going to be bringing our centralized and DeFi products closer together so that we can deliver the best of both worlds to our customers .
Speaker #1: You’ll also see us continue to push into new geographies, with several new international launches later this year. So, before we go to Q&A, I want to share a little more about our progress with AI.
Speaker #1: went So I in earlier about cortex , what we're what we're doing to bring cortex to our customers , both on the mobile app as well as ledger .
Speaker #1: progress also made using AI But we've internally . So began journey a couple years when we ago should double clear to , it us that we became down on two areas that we believe would move the needle most from AI usage , and they are software engineering and customer support .
Speaker #1: AI customer support is really cranking now , over 75% of our cases are solved by by AI , including the complex cases that previously required licensed brokerage professionals .
Speaker #1: And we've built a lot of this tech in-house . software engineering . This is an area where our goal is to be the best in the world .
Speaker #1: We've been focusing on making it as easy as possible for our engineers to get access to new model releases and new capabilities like background agents .
Speaker #1: We're continuing to see nice results this year. We're continuing to automate and optimize the entire engineering pipeline, from writing code down to code review, all the way to deployment and testing.
Speaker #1: And this is turning savings and real, already into efficiency, now estimated at gains figures in 2025 alone. And this is a big reason why we've been able to drive such high product velocity while keeping our costs down. In 2026, it's shaping up to be much bigger.
Speaker #1: So, in addition to CX and engineering, I'm pushing every team at Robinhood to integrate their operations, with the goal of being best in class at AI across every function.
Speaker #1: Now, finally, I think it's worth noting that I started thinking about near-term progress we wanted to make on this vision last summer, and it's meaningfully changed since. The first draft barely had prediction markets.
Speaker #1: Robinhood ventures became a real thing . As you know , Shiv , sometime around the and of course , AI continues to make progress at an accelerating rate with models and agents getting more capable every day .
Speaker #1: And I think this shows you that our really edge staying flexible and nimble . Now , I've been really proud at how fast we move at Looking Robinhood .
Speaker #1: ahead , you can really expect us to keep that startup hustle despite our large size . So roadmap is full . There's so much to do .
Speaker #1: Let's go to some questions. Welcome back up.
Speaker #2: All you Vlad . Thank you right . Thank Shiv for the Q&A session . We're going to start by answering shareholder questions from say technologies .
Speaker #2: After the say questions we'll turn to live questions from our audience . So with our first question from say coming from Matt s .
Speaker #1: All right. Hello, Matt.
Speaker #3: Hey, Vlad. How are you? Nice to meet you.
Speaker #1: Good to see you . How are you doing ?
Speaker #3: Good . Good to see you . So my question is , any additional updates on Robinhood social
Speaker #3: ? Yeah .
Speaker #1: Robinhood social . Very very exciting . As I mentioned , we are testing it internally . We recently added a prediction markets , which I think has made it clear this is not just a tool for ideas , but also discovery of new assets .
Speaker #1: I think one of the reasons why these products have not resonated super well when other companies have tried them is the diversity of content has been relatively low , but now you look at Robinhood , you know , we have so many customers , we have so many assets .
Speaker #1: The diversity of content actually quite high . So I think we're building increased confidence that this is going to be a great tool for discovery .
Speaker #1: And engagement . So marching towards public launch , I think you'll see that in the coming months . But we're pretty close . .
Speaker #2: All right. Thank you, Vlad. The next question I'll read on his behalf from Rohit P., who asks, what could be the reasons for the more than 40% drop in HOOD's share price?
Speaker #2: And how is addressing the leadership downslope ?
Speaker #1: Great, I'll maybe I'll start. We're really focused on the inputs of our business, and we love the inputs that we're seeing.
Speaker #1: You saw you heard from from me and Shiv last quarter . And really last year was a year of continued market share gains across pretty much everything .
Speaker #1: Net deposits of 68 billion through the year , 16 billion in the quarter , which means customers are increasingly trusting us with more and more of their assets .
Speaker #1: And as I look forward to the roadmap of the year , we've got a pipeline of new things that are either in relatively early stages of rollout , such as Robinhood Banking or have yet to roll out like Robinhood Social Cortex assistant .
Speaker #1: We think could be transformative . So inputs are looking good and you know , I've been through this old hat now as a public company founder and CEO for years five plus ?
Speaker #1: And , you know , we've seen a couple of cycles up and down . We think that over the long run , the business performance tends to lead stock price .
Speaker #1: So the focus is just on building for customers , making the product better . Yeah .
Speaker #4: agree more . Couldn't We're focusing on our customers . The one point I'll add is we also have over $1 billion share repurchase program .
Speaker #4: During periods of market volatility, it's a really great time to lean into that program.
Speaker #1: Yeah . All right . Well said .
Speaker #2: Thank you for that . And then the last question from SE is from Luke D who asks what is your guys plan on navigating the rough seas during this crypto downturn and the end of football season ?
Speaker #2: How can he see Robinhood extend its roots to not be so heavily affected by these things?
Speaker #1: Yeah , I mean , I'll start with what we're seeing in the product . So crypto , we're world where actually moving is crypto more than an asset class .
Speaker #1: And it's a foundational technology that underlies the trading of all assets. And you're seeing that with our efforts with tokenization outside the US.
Speaker #1: And of course, the stablecoin partnership with Paxos on USDG. So my belief is that in the future, you'll see crypto and traditional financial services increasingly merge.
Speaker #1: And of course , people will will talk about and trade Bitcoin and other assets . And we continue to be long term bullish on those .
Speaker #1: But yeah, if we play our cards right, crypto will be a tool that is going to be important in giving customers what they need.
Speaker #1: And it'll connect customers to assets that have real fundamental utility . So we're still executing upon that you know , . not getting distracted fluctuations term in what Bitcoin or other assets are doing .
Speaker #1: Markets prediction—I think there were questions industrywide about what would happen as the NFL season comes to a close, but what we're actually seeing is surprising us.
Speaker #1: So in January, for instance, NBA contracts surpassed NFL in trading activity on our platform. And you're also seeing relevant non-sports contracts generating significant volume.
Speaker #1: For example , in the week after the NFL season ended , the government shutdown contract on our prediction markets platform was like driving significant , significant volume .
Speaker #1: So I think over the long run , what you're going to see is even though it's now largely sports prediction markets , is more than sports , as we continue to diversify contracts the offered on and improve the the platform customer experience and it refine more and more , contracts will continue to resonate with our traders .
Speaker #1: That's not to mention this year is going to be a big year for sports as well. We've got the Olympics right now.
Speaker #1: We've got the World Cup later, and that's in addition to March Madness, the NFL season, and so many more things.
Speaker #1: So yeah , I think we're we're just at the beginning with our prediction markets business .
Speaker #4: Yeah . And on the business side , a couple of things I'll add . So as I mentioned before , we now have 11 lines of businesses that are doing over 100 million of IRR .
Speaker #4: So we continue to diversify there . On the crypto front , as Vlad said , we're long term bullish , but it's important to remember what we did .
Speaker #4: Close to $1 billion of crypto revenue last year. It was only 18% of our overall revenue. So we love what we're seeing, but more than 80% still comes from outside of crypto.
Speaker #4: And our prediction markets . As Vlad said , it's growing . We're diversifying across sports and non-sports and different asset classes . And growth rates are great again , relative to our overall business , it's a smaller portion .
Speaker #4: big So picture . We're diversifying . customers , and shipping for We're keep we love both these business lines .
Speaker #2: All right. Thank you. That concludes our shareholder questions from Say Technologies. Thank you again to Matt for joining us now live.
Speaker #2: we'll move to Q&A from our in-person audience . So we ask that each person who's interested in asking a question , raise your hand and limit yourself to one question .
Speaker #2: Alex , would you like to ask a question ?
Speaker #4: Yeah . Thank you . Alex Markgraf from KeyBanc . Vlad , maybe on the prediction markets front with the close of the JV , can you give us a sense as to what the team is working on ?
Speaker #4: And from a product standpoint, outside of a greater list of contracts, what might we expect here?
Speaker #1: Yeah . So thus far , if you've been watching closely , you've really seen us refine the the downfall trading experience , particularly with sports .
Speaker #1: So we've added more tools like combos and player contracts for for traders that want to go deeper . We've also started increasingly leveraging our our our advantages , which are we have lots of assets on the platform .
Speaker #1: We can connect things together to show you related contracts contextually in the places where they matter most . We've also completely revamped search and discovery , as well as as well as home to make them multi-asset and include prediction markets .
Speaker #1: So one thing is , how are we going to show prediction markets contextually where it's relevant to customers across all of our app services ?
Speaker #1: relevant ones in the stock detail pages ? So that , you know , if you're considering investing in an equity , you get the whole picture of , you know , not just the options contracts , but also the prediction markets that are that are connected .
Speaker #1: So I think you'll see more of that . You'll see first time prediction markets , increasing we're seeing customers , which number of people Robinhood coming to not because they want to trade equities or crypto , but because they heard of our prediction markets offering .
Speaker #1: exposure to They want that . So streamlining that . So you're a first time prediction . Markets customer . We not only make it easy for you to get into the product but also make it so that we can easily cross-sell you to things like retirement or other products .
Speaker #1: And I think that's that's an area where we have where we have a unique advantage being a super app . I mentioned Roth era .
Speaker #1: I think Roth IRA is particularly interesting because it gives us vertical control over the entire experience . We have control over what contracts we can list , and also greater control over the pricing and economics and you know , our philosophy really with with all exchange partners is , I think the exchange layer is going to get increasingly over just as commoditized time , you've seen it in kind .
Speaker #1: Other asset classes and what we'd like to do is , is optimize for the outcome . That's best for customers . So we want to make sure customers get the price , the best best economics , the best experience .
Speaker #1: And I think there is a big, critical part of us driving that.
Speaker #2: Great . Thank you Vlad . Other questions from our in-person audience . Okay . All right . Well , now go to our zoom queue .
Speaker #2: So for those on zoom , please raise your hand to enter the queue . And if you'd like to remove yourself from the queue , please lower your hand .
Speaker #2: Our first question comes from Ben Budish , Barclays .
Speaker #5: Hi . Good evening . Can you all hear me ? Okay .
Speaker #1: Oh , yeah , we hear .
Speaker #5: Great . Well , thank you for taking the question . Maybe just following up on that on that last one on prediction markets .
Speaker #5: I'm curious , a two parter . Just curious . Most recently , can you maybe talk about the mix between sports and non-sports ?
Speaker #5: I appreciate you are quite optimistic on the outlook for sports over time , but most of the media would indicate that currently it's mostly sports .
Speaker #5: And along the same lines , just thinking about prediction markets , how are you thinking about incentivizing new users ? It's been successful strategy across the brokerage business .
Speaker #5: The IRA product . You definitely have some new competitors in this space that are advertising quite aggressively . So how are you thinking that about one as a way to attract people to that product ?
Speaker #5: Thank you .
Speaker #1: Yeah , absolutely . I think that recently , certainly our efforts have been on making the sports experience really good . But we've also diversified quite a bit .
Speaker #1: We've diversified into lots of non-sports offerings , and we now have thousands of contracts available . And I think you'll see us continue to make the experience there better in two ways .
Speaker #1: So one is just in the same way that we've done for sports , putting data in custom information and tools around some of these contracts so that customers can understand them .
Speaker #1: The second thing is surfacing them when customers need them and where the where the most relevant . And we saw , you know , particular success with that with the government shutdown and related contracts .
Speaker #1: So I feel really good about this actually progressing towards greater diversification . I think it'll be similar to the news , you know , sports are a big part of the news .
Speaker #1: They bring people together . But there's all sorts of events that are going on on a regular basis that customers care about . And offer active traders trading opportunities .
Speaker #1: So I think I think you'll see it continue to diversify as time goes on . He asked another question , which I think was for you .
Speaker #4: Yeah , it was how are we gaining customers ? And activation ? So a couple of ways there . First are huge advantages .
Speaker #4: As are 27 million we can customers . So when surface things that are relevant to customers , that's a great way to onboard .
Speaker #4: The second is we're looking at new ways to activate customers . So you may have just seen we have referrals , for example , we have learned if the product , you can have a customer , your friend also So the team is continuing to experiment both at the top of funnel and the Mid-funnel to see how customers can onboard .
Speaker #4: But as Vlad mentioned , improved product with the onboarding funnel and what we're seeing thus far is , is really exciting .
Speaker #1: Put on Shiv hat, we're going to continue to be very ROI-driven and focused on the economics with promotions and marketing activities that we continue to do.
Speaker #1: I think when we enter a new assets and new products , it's it's it's less of like just blowing out marketing right away , but making sure we get the product experience right .
Speaker #1: The economics work well . And then , you know , you've seen us get gradually , but steadily more aggressive on front marketing over time .
Speaker #2: All right. Great. Thank you, Ben. The next question is from James Yaro from Goldman Sachs.
Speaker #6: Good afternoon and thanks for taking the question . Can you hear me ?
Speaker #1: see Hear you and you looking good .
Speaker #6: Thank you . So you recently added Indonesia as a new market . I was hoping you might be able to expand a little bit on the on international expansion .
Speaker #6: Where do you see, or what are the best markets in which you're planning to invest? How do you compare and contrast the attractiveness of the opportunity set in those markets?
Speaker #6: And also the go to market strategy ? And perhaps if you could just maybe differentiate between Europe versus Asia ?
Speaker #1: Yeah, I mean, I think this year is going to be a big year for international expansion in markets that we've already been live in, namely the UK and EU.
Speaker #1: You're going to see us continue to round out the product suite and respond to to customer feedback , and also introduce new platform level capabilities that actually are more useful outside the US .
Speaker #1: But can scale to every country. So, multi-currency wallets as an example there, which we recently introduced in the UK. In the UK, we also recently added stocks and shares ISAs, which is the retirement wrapper.
Speaker #1: There . So so in that market you're actually seeing us go deeper and start going into into market specific functionality , leveraging our technology platform in the EU , EU is interesting because it's a different little bit how we're thinking about it .
Speaker #1: The EU is a test case for what look like if it was built entirely on crypto technology . On crypto rails . So we don't have traditional stocks there , but we have stock tokens .
Speaker #1: That's where we are, so, really pushing hard on tokenization. I think you should see that accelerate this year too, because admittedly, the first version of our tokenization offering—significant holding advantages over—didn't have traditional stocks.
Speaker #1: But once unlock we the power of DeFi , then you get 24 over seven trading . You get the ability to self-custody your stock .
Speaker #1: So you’re actually seeing the introduction of advantages that are very difficult to replicate using the traditional rails, and some of the disadvantages—like things that people care about, like protection and things like that.
Speaker #1: We're going to continue to to remove . So I think by the end of this year , you'll get to a point where the tokenized offerings are better than than the traditional offerings , which is going to be really exciting .
Speaker #1: And we're going to continue to close the gap with other offerings in the US as well. And then, turning to Southeast Asia and the rest of the world, you'll see us launching in several new markets. And in each new market, you can expect less new time bringing up core features, because we've spent time working with the regulator and also building these things with international in mind.
Speaker #1: It should be much quicker ramp to up in each market than in the first two . Similar good example . We didn't launch retirement in the US until what was it , 2022 ?
Speaker #1: Well, in the UK, it's much, much sooner to add the local retirement wrapper after launch. So you'll see that continue.
Speaker #1: So, where we are now: three-quarters of a million international customers. Yeah, I think you'll see that getting into the millions relatively quickly.
Speaker #1: And like I mentioned earlier , before too long we'll be looking back and we'll say , wow , this , this scaled much faster than we predicted .
Speaker #1: So we feel good .
Speaker #2: Awesome .
Speaker #7: Thanks a lot .
Speaker #2: All right. Thanks, James. The next question is from Dan Dolloff at Mizuho.
Speaker #8: He she is Congrats .
Speaker #8: He she is Congrats .
Speaker #1: Dan Dolev .
Speaker #8: .
Speaker #8: You , Good to see . man . Thank Thanks for having you . me . Great results as always . You there's been some know news today that have heard some of your competitors impact on the AI and of like scratching my head , I'm thinking , Isn't Robinhood sort of the best AI company out there ?
Speaker #8: Why aren't these things actually huge tailwinds for you?
Speaker #1: Well , I think they are . So if you look at and I think AI is going to completely transform all aspects of financial services on the trading side , we have the bets that we're making with cortex on Legend and also cortex in the app .
Speaker #1: And we also think and by the way , Cortex Assistant , which is the AI assistant that's integrated into Robinhood , is rolling out in the coming weeks .
Speaker #1: So we're we're refining it internally . And that's like going to roll out to customers very soon in terms of AI and advisory .
Speaker #1: Two things there I think you're going to see a lot of a lot of transformation in the industry . One , one side of it going to is be amazing self-serve tools , which which is giving you an advisory like experience , but where the individual user is calling the shots .
Speaker #1: The second is the workflows of an actual human advisor are going to be redefined and streamlined , and they'll be able to service more customers at dramatically lower cost .
Speaker #1: And we've got efforts underway for both . You know , actually , in the first one , cortex providing advice to customers , we've started having conversations with regulators about how to bring that safely to customers .
Speaker #1: And we've got the technology to do it. Cortex has made tremendous progress, so just a matter of making sure that that safely rolls out.
Speaker #1: And , you know , we think it has the potential to to transform the wealth management industry .
Speaker #8: Great stuff. Thank you. Great, great, so much. Results.
Speaker #7: Thanks .
Speaker #2: All right . Thank you Dan . The next question is from Steven Chubak from Wolfe .
Speaker #9: Hi. Good afternoon. Thanks so much for taking my questions. So, you mentioned underwriting just strong ROI when building your expense plan.
Speaker #9: Is there anything we should infer about the level of revenue growth that you're going for when budgeting and building the plan? And just how much flexibility do you have in the model, given your commitment to achieving profitable growth, and also the significant inroads that you've made in embedding AI to drive greater efficiencies over time?
Speaker #4: Yeah , great . Great question . Thank you . Steve . So a couple of things I'll point to . First , our mantra is still profitable growth .
Speaker #4: We are a growth company. We're going to continue to invest for growth. We're seeing great things from our customers, so we're going to keep profitably.
Speaker #4: doing it So I think you can infer that from us . That means very simply , we expect revenue to grow faster than expenses .
Speaker #4: And that's how we build our plan in terms of the ROI . We underwrite each thing to a good ROI on a on a standalone So basis .
Speaker #4: if it's a new product , we look at what is the long term IRR , what can the margins be . And now , more importantly , can it scale ?
Speaker #4: It used to be, hey, a $10 million business moves the needle. Now, can this be a $100 million business in a few years?
Speaker #4: Those are just a couple of things we look at every time we do marketing . We look at both the payback periods , the incrementality , and make sure that those are also good investments .
Speaker #4: To your question on can we stay nimble? Absolutely. We're a technology company at heart; about 85% to 90% of our costs are fixed.
Speaker #4: So this gives us a lot of flexibility. But, big picture, we don't want to oversteer. And so what you're going to see from us is continued investment for growth.
Speaker #4: We love what we're seeing. And if anything changes, we have our hands on the wheel. But otherwise, we feel great about the plan that we built.
Speaker #4: .
Speaker #4: .
Speaker #9: Color. Thanks, that's great for taking my question.
Speaker #2: All right . Thanks , Steven . The next question is from Devin Ryan at Citizens . Okay , maybe we'll go to the next question .
Speaker #1: Almost there .
Speaker #2: Yeah . All right . Patrick Molly , from Piper , you're up .
Speaker #10: Yeah . Can you hear me ?
Speaker #1: We hear you .
Speaker #10: All right. Great. Thanks for the question. I had another one on prediction markets, but I was hoping you could put a little bit more meat on the bones around the Roth era.
Speaker #10: We estimate that you, you know, could see a 45% bump in economics if you utilize contracts that are listed on your own venue.
Speaker #10: So, could you just talk about some of the puts and takes there? You know, why not migrate all of your prediction market volume to this JV over time?
Speaker #10: And what are the benefits that you see in continuing to partner with other prediction market venues ? Thanks .
Speaker #1: Yeah, maybe. I don't know if you have a comment on the economics, but I'll just tell you our primary North Star is how to deliver the best product experience to our customers.
Speaker #1: So we do anticipate that a significant portion of our volume will move over to Rothera . But that's not our North Star , our North Star is giving customers the best pricing , the best experience , and , you know , on the brokerage side , you've seen it with crypto .
Speaker #1: Now that we have Bitstamp, you've seen it with how we route orders on equities, that, you know, we prioritize execution quality and making sure customers get great execution.
Speaker #1: So I don't think that's going to change depending on the asset.
Speaker #4: On the economic side—so the way it works for customers is today, they pay $0.02. $0.01 goes to Robinhood as the FCM, and then $0.01 goes to the exchange.
Speaker #4: When we have Rothera, we then control the full unit economics. I think you're at 45%. That number is referencing that we own 45% of the JV.
Speaker #4: Susquehanna owns 45%, and Miax owns the other 10%. But the nice part is, as Vlad said, we'll control the full product stack, and we'll control the full monetization.
Speaker #4: So there's a lot of leverage you can do with that . You can give more value to You can customers . improve the economics .
Speaker #4: So, we're super excited to get online, both for the product experience but also for the monetization as well.
Speaker #1: And by the way, we're also going to be open to other futures commission merchants and other counterparties connecting, and we'll be competing for that business.
Speaker #1: You know , not not just providing a an additional execution venue for our orders , but , you know , we'd like to build .
Speaker #1: A compelling market for getting other firms access to our marketplace.
Speaker #10: Great. All right. Thanks for that.
Speaker #2: right . All Thank you , Patrick . The question is from Evan , from stock Market News .
Speaker #11: I appreciate you guys for letting me ask the question. Congrats on the quarter, as always. I want to ask you guys a little bit more about Robinhood Social in 2026, and kind of how you guys view targets and stuff there this year.
Speaker #11: And also , if you view that as like an international segment you're really focused on the US first . Thank you .
Speaker #1: Yeah , that's a great question . I think with this product , since it benefits so much from a dense network , and we want to make sure that the product experience works really well and is integrated nicely into the rest of Robinhood .
Speaker #1: You'll likely see us launching and scaling it in the U.S. before international. But, you know, over time I think you'll see it coming.
Speaker #1: as well , International particularly as the translation technologies get better and better you can and have international customers benefiting from , you English content in the US .
Speaker #1: So you'd expect it to to come into international as well . But I'd expect the , the first for the first period of time to be on iterated US in the .
Speaker #2: All right. Thanks for your question, Evan. The next question is from David Smith with Truist.
Speaker #12: Good .
Speaker #1: Hello .
Speaker #12: Institutional volumes on Bitstamp saw a nice pickup in the fourth quarter, even as retail volumes declined from the third quarter, like Robinhood app volumes.
Speaker #12: Could you comment about how you're expecting that institutional retail mix to evolve over time , given your plans for the product offerings ? And any thoughts on pricing across both retail with the app and Bitstamp , as well as institutional pricing ?
Speaker #12: Thank Yeah ,
Speaker #12: you .
Speaker #1: maybe I'll talk about the exchange . You can hit pricing . Shiv . Yeah . We've been we've been really excited about the growth in Bitstamp .
Speaker #1: I think that team has been cranking and you know , as we've integrated , we've actually seen an increase in market share and increase in in revenues and business performance , which which I think is relatively rare for for acquisitions .
Speaker #1: And I think what's going on there is , you know , when we first started talking to our institutional customers , I remember I was at a lunch around the time of our can event to catch a token , and , you know , they had some fairly basic complaints .
Speaker #1: They were like, you're dropping our packets on the exchange side, or our biggest request for an improvement is just making sure that all of our packets are properly processed.
Speaker #1: Things like that . So , you low know , hanging fruit on , just exchange resilience , reliability . How many transactions per second the matching engine can process has , has been , has been huge .
Speaker #1: And of course , you know , we've got plenty more of that coming . And one benefit we have to bear , which is our retail offerings .
Speaker #1: It's very attractive to institutions . And we have a great recipe for bringing in the retail volume , which in turn makes it more attractive for institutions .
Speaker #1: To quote and make markets on exchange . And , you know , this is before all of our efforts to to bring our tokenized offerings , which which of course , Bitstamp will be a big part of .
Speaker #4: Yeah . On the pricing side , a couple of things . I'll point you to . On the retail side , one big change we made last year is we moved to Smart Order Exchange routing , which really means we want to be competitive for all types of customers .
Speaker #4: What we had found out before is, for the most competitive customers, we actually need to lower pricing. And so that's what we did.
Speaker #4: And now we have the volume And tiers . you saw a little bit of this in Q4 where there was less market volatility in the casual trader stepped But we really strong away .
Speaker #4: Engagement from the more active traders. And because of that, they're on the higher tiers. And this pricing comes down a little bit for us.
Speaker #4: We don't goal the teams on pricing. That's an output metric. We call them on market and where we're share, continuing to gain share market there.
Speaker #4: And so what we would expect is, during periods of lower market volatility, you'll probably see more active traders engaged, which will bring down the overall take rate.
Speaker #4: And that's what we saw a little bit in Q4 . And just give you a little bit of color in January to start the year .
Speaker #4: We're about five basis points lower relative to the average rebate rate we saw in Q4. And again, that's just due to more active, engaged traders being relative to the more casual trader.
Speaker #1: Yeah, and another thing that I didn't mention, but which we're very excited about, is the growth and scaling of our perpetual futures offerings outside the US.
Speaker #1: You really know , we've continued making that product better and better , giving active traders access to to better tools and more flexibility on the leverage .
Speaker #1: we I And mean , we're getting really good feedback . So I think you should expect more things in perpetual futures in the department .
Speaker #1: This year .
Speaker #2: All right. Thank you very much, Vlad and Shiv. The next question is from Brian Bedell with Deutsche Bank.
Speaker #13: Great , thanks . Thanks very much . Can you hear me ? Okay .
Speaker #1: Yes .
Speaker #13: Awesome . Great . Maybe just back to prediction markets . Vlad and Shiv . What ? What is your appetite for launching contracts in fundamental equities ?
Speaker #13: So things like on Cpis and other earnings metrics that you could potentially link in with your equities trading business . So like an active trader experience that would also have a layer of fundamental investing as opposed to the , you know , the other other contracts .
Speaker #13: And then just on on timing of rothera , any , any info on more , you know , sort of precise timing on when you might launch that .
Speaker #1: Yeah , sure . We're very interested in the potential list more to prediction markets around company KPIs and fundamentals , because obviously people come to Robinhood and they're one of the big draws is we think we're the best place to invest in stocks .
Speaker #1: So, the more we create an ecosystem of information and products around individual stocks, I think the more useful that'll be with customers.
Speaker #1: And we have some company related prediction markets already . You can see , for example , Tesla deliveries and things of that nature .
Speaker #1: As far as like financial . KPIs , I think that's an area where where we need some regulatory regulatory relief . So or continuing to have conversations about that .
Speaker #1: But yeah , right . Right now like not to get into the the gory details but some of these could fall into securities based be swaps and SEC .
Speaker #1: So there is some relief needed in order for us to list those.
Speaker #4: And then on the other piece, our goal is to get it operational. Actually, we just closed last week, and we're targeting this by the middle of the year.
Speaker #4: So stay tuned .
Speaker #14: Thank you.
Speaker #2: All right. Back for a second shot at this, Devin Ryan from Citizens.
Speaker #1: All right .
Speaker #7: All right. You guys see me now?
Speaker #1: Yes we do .
Speaker #7: Okay . Good . Hey , Vlad . Hey .
Speaker #1: Hey , Devin .
Speaker #7: Another AI question . And the question is really combining tokenization . Kind of instant settlement . 24 over seven with AI . And I'm thinking , like , the future of AI , where it would seemingly allow for kind of exponential scaling of trading volume from here , maybe microlending a lot of other applications .
Speaker #7: So, it'd be great to get thoughts on how you see tokenization and AI coming together. What do you think the timeline for that is?
Speaker #7: happen And that mean for Robinhood ? It seems like you guys are really well positioned , but I like something see it as that could exponentially change activity .
Speaker #7: transaction I'd love to get your thoughts as well .
Speaker #1: Yeah . I mean , what I'll tell you one of the compelling reasons why we're interested in tokenization outside the and US actually unlocking access to DeFi for our stock tokens , is that it makes it easier and more interoperable to write agents and have software that integrates with with these offerings .
Speaker #1: Because there is a robust ecosystem of developers that are integrating with these blockchain protocols and and actually , you know , you could argue the integration on the blockchain side is much easier and more streamlined than the typical API integrations with , with , with brokerages .
Speaker #1: So I think that's going to be exciting to watch. I think it's a little bit early to proclaim that a certain chain, or a certain crypto, will become the way that AI agents communicate and pay each other.
Speaker #1: But I think if if that does happen to be the case with the tokenized stocks , offerings and also as we as we go live with our stablecoin partnership with Paxos , we'll actually be really well positioned to do well and compete for for the agents business in that world .
Speaker #7: Great. Thank you.
Speaker #2: Thanks, Devin. All right. The next question is from Roy with Crossroads.
Speaker #1: Roy .
Speaker #15: Hey guys, good to see you. Thanks for having me. My question was on international expansion, as well as specifically as you're rolling out internationally.
Speaker #15: I'm kind of curious how you prioritize which products to initially launch . potential there a scenario And is or market where we see being predictions , markets the first ?
Speaker #1: I thought you were going to ask me about that deposit 50% direct attach rate on our banking offering. You want to know about international prediction markets?
Speaker #1: Yeah . So right now prediction markets for us are are are us only . And I think , you know , we're in an interesting position because as I mentioned in the EU we have like crypto powered Robinhood on crypto rails .
Speaker #1: And we also have the ability to scale up our traditional brokerage business outside the US . So in addition to like traditional prediction markets , ex-US , there's also the the possibility of rolling out on chain versions .
Speaker #1: So that's something we're looking at. I think you should expect some movement, but we don't have anything concrete to announce. There—
Speaker #1: .
Speaker #14: Thank you . .
Speaker #2: All right. The next question is from Ramsey El-Assal from Cantor.
Speaker #8: Hi , guys .
Speaker #16: Thank you for taking my question this evening. I was wondering if you could comment a little bit further on the push into private markets in terms of the asset types that will be available through your platform, and also any color on sort of timeline and/or regulatory or operational hurdles you need to get through to field those products.
Speaker #16: Thanks .
Speaker #1: Shiv actually has been running this product in addition to being CFO, so I'll let him speak to it.
Speaker #4: Yeah , no thank you . We're super excited about prediction markets . Big picture . We're in the quiet period for our first offering .
Speaker #4: Our end to his publicly on file with the SEC, so we can't say too much more than that. But we're really excited to get this out for customers.
Speaker #4: When you look at the vision, the goal is that any private assets that have not been traditionally offered to retail, you should be able to offer in these 48 writer search funds.
Speaker #4: Chairman Atkins came out recently and said , these are the best retail . vehicles you're going to Access to to offer . And so see us to there .
Speaker #4: our filing , it gives us kind of broad capabilities to do that . But in general , these funds , if you look in the market , hold all types of assets , it can be private equities , it can be real estate , it can be credit .
Speaker #4: And so, as we think about them, we think about what our customers are looking for. What are they most engaged in.
Speaker #4: But over time, you should see us be able to offer all of these asset classes. So stay tuned. And we're super excited.
Speaker #14: Thanks . .
Speaker #2: All right. Thank you. The next question is from Ed Engel from Compass Point.
Speaker #3: Hi, thanks for taking my question. How are you thinking about the opportunity around Trump accounts ahead of their launch this year?
Speaker #3: Have you heard anything about how these could be structured, or whether Robinhood could even play a special role here?
Speaker #1: Unfortunately , I can't share too much of details the of what you know , heard . But , we we've been involved in this effort from the very beginning part of the .
Speaker #1: We were first summit on Trump at the white House accounts . And , you know , I've made it clear to the administration , to the president personally , that I think this is a game changing initiative .
Speaker #1: It's really one of the few initiatives that pretty much everyone agrees on, you know, regardless of where you lie on the political spectrum. And it's very in line with our mission of making sure everyone benefits from our financial markets.
Speaker #1: So , yeah , from the very beginning , we've said , you know , if we're fortunate enough to play a role , we give our best people to make sure that , you know , this , this effort goes as smoothly and it's as high quality as possible because I think it being really high quality and being done with sort of like exceptional engineering is going to be a big part of , of its success .
Speaker #1: And I think the , the administration has done a really , job with the rollout . There really nice just a was a nice account summit , couple of Trump weeks ago .
Speaker #1: and And you can tell with , you know , all of the folks making contributions and , and donating of money large amounts that I think the future of the program is incredibly bright .
Speaker #3: Great .
Speaker #14: Thank
Speaker #2: All
Speaker #2: Right. You. Thanks. And the next question is from Ken Worthington from J.P. Morgan.
Speaker #17: Hi. Good afternoon. Nice seeing you all. Can you talk about your use of promotions and how that's evolving or expected to evolve in 2026?
Speaker #17: Is the size of the promotion budget expected to be bigger or smaller this year than last year? And as we think about 2026, does asset growth remain your focus, or are other
Speaker #17: you really
Speaker #17: Want to go to one, Vlad? Customer.
Speaker #4: Yeah, I think behaviors that first on the promos, as we've said before, we—so we're going to ROI really. One thing we're doing this year, that we love, that we did last year, is we're making them more personalized.
Speaker #4: can start with this
Speaker #4: can start with this
Speaker #4: So
Speaker #4: So
Speaker #4: So the great thing about having phenomenal engineering is using AI and ML models . You can actually make it much more personalized over time , which is great for customers , but it also is a great ROI in terms of the overall relative to last year , it was about 25% .
Speaker #4: Last year , and I would expect it to be roughly in that code for this year . Again , as we continue to make additional investments , our top KPIs remain the same .
Speaker #4: It's market share for active traders, its net deposits, and Gold subscribers for wallet share. And then its NFAs and institutional accounts for our third arc.
Speaker #4: One thing that we've been focusing on a lot internally is, in addition to growing net deposits 20% plus year over year, how do we really accelerate top-of-funnel growth even faster as well?
Speaker #4: And we have a lot of great ideas there. So our focus is going to remain the same. But we're going to keep investing.
Speaker #4: Vlad, anything you want to add?
Speaker #1: The one thing that we didn't mention—or just sort of flew under the radar—growth, is market share. We've had really, really strong results that have exceeded our expectations.
Speaker #1: Those of you who may be looking at the latest 606 reports , probably notice that the 606 reports show that looks like we've become number one in options industry wide , which , you know , business goes on .
Speaker #1: But I thought it was just a good example of how the teams are relentlessly making the experience better.
Speaker #17: Thank you . .
Speaker #2: All right. Thanks, Ken. The next question is from Amit at Is Investing.
Speaker #18: Hey Vlad. And Shiv, can you guys hear me?
Speaker #1: Yes. Hello, sir. How are you doing?
Speaker #18: Okay . Congrats on a great quarter . Thanks for taking my question . My question is on banking . How do you guys see this expanding this year as you begin rolling it out ?
Speaker #18: And I guess where do you think the very place as people giving a takes know you guys are flywheel more bring I on the savings the little bit more of speak APY .
Speaker #18: Business fundamentals and what it can do to further expand and diversify the business as banking rolls out?
Speaker #1: Yeah , absolutely . Yeah . So banking has gone off to a very strong start . You've heard us say , over 400 million in , in in assets on the platform .
Speaker #1: More than half of the people that fund end up funding with their direct deposit, which is pretty amazing. Attach rate so early in the product's life cycle.
Speaker #1: And we recently rolled out an increase to the rate that we offer on deposits. So, 3.5% APY. I think what customers really appreciate about this offering is, for customers that trust us with a significant amount of their assets.
Speaker #1: So if you have $100,000 or more across all Robinhood products, the experience on banking intent is, the goal is for it to be flawless.
Speaker #1: So what people love is , is for those customers . We give you the APY , not just on savings , but also on checking .
Speaker #1: So not having to worry about , you know , moving money around to optimize the yield . And , you know , having enough and checking to pay your bills .
