$HOOD · Benzinga · 2026-10-28

Thank you to everyone for joining Robin Hood's Q3 2026 earnings call.

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.

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.

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 claude 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.

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.

We announced 247 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.

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.

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.

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 four 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.

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 100 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 two 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.

as Vlad said, the core business is firing on all cylinders. This led to our highest quarter ever for both revenue and adjusted EBITDA. 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.

our product is driving a more diversified business. We're now up to 14 cylinders that have reached a 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.

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.

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. 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 continuing 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.

adjusted opex at 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 in 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 Ebida 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 nonoperating 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.

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? Okay, good. You'll know. Uh I like you a moderate amount. Um

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,

Yeah. I mean, uh, legacy technology. I think we can do better if we build everything in an integrated fashion. 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 a 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.

Are there any new major product plans for 2027 that could increase Robin Hood's uh revenue? No easy questions, Bubba. You know, you're 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 aic trading uh earlier. I think aentic 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 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.

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 sa 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.

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.

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 it 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 you can you break down give me like the top three ways to capitalize on that.

So I I think there's strong potential and 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 third-party userenerated 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.

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.

And 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.

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

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 venue. 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.

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 happy to start on on this. 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've 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

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.

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 continue 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.

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.

Um, on MAUs, the honest answer is we don't go gold 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.

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.

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.

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.

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.

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 poo 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.

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 in 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.

ARPO 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.