Robinhood Markets (HOOD) Q3 2026 Earnings Call: Q&A Summary

Q: How is the banking expansion progressing and when will a Zelle replacement arrive?

A: Vlad Tenev demonstrated a new peer-to-peer payment feature that allows users to send money via text without requiring the recipient to have a Robinhood account. The feature is currently in limited release with a broader rollout expected in the coming weeks.

Q: What is the status of global expansion and which countries are next?

A: Tenev stated that the company is expanding into the MENA region with a Dubai license and into Southeast Asia via Singapore following MAS approval. He noted that the company is also deepening its presence in the U.K. and Canada.

Q: Are there new major product plans for 2027 that could increase revenue?

A: Tenev highlighted agentic trading, prediction markets, perpetual futures, and private market democratization via Robinhood Ventures as key growth areas. He emphasized that the core brokerage business continues to act as a financial compounder.

Q: What is the strategy for middle-ground customers who prefer passive investing?

A: Tenev pointed to Robinhood Strategies, a digital advice product with over $2 billion in assets, as a passive, set-it-and-forget-it tool that is currently a dark horse in their product suite.

Q: How many products do power users engage with versus average users, and what is the impact of converting more users to power users?

A: Tenev noted that engagement and revenue per user increase significantly when customers adopt three or four products. Shiv Verma added that Robinhood Gold serves as a loyalty product that encourages users to adopt more services and increase deposits.

Q: What is the strategy for educating customers about active trading products like perpetual futures and agentic trading?

A: Tenev explained that they use AI agents to explain complex strategies to customers. He added that they also leverage learning modules and community-driven content on Robinhood Social to facilitate education.

Q: Does Robinhood plan to offer exchange funds to help customers diversify concentrated positions without selling?

A: Tenev acknowledged the opportunity to help customers diversify concentrated positions tax-efficiently, noting that they are exploring ways to disrupt incumbent offerings that often have high minimum requirements.

Q: How should we think about the financial opportunity of Robinhood Chain over time?

A: Tenev emphasized that developer activity and real-world assets are the primary drivers for the chain. Verma noted that the chain generated $50 million in gross revenue in the quarter and that they monetize at a rate of a couple of basis points on notional value.

Q: How much of the 20% net deposit growth target comes from new account growth versus same-store growth?

A: Verma stated that the company has already surpassed its 20% annual growth target. He explained that growth is driven by both new and existing customers, with existing users increasingly using the platform for more of their financial needs.

Q: What is the vision for the new peer-to-peer payment offering and how will it contribute to client acquisition and revenue?

A: Tenev explained that the goal is to solve user friction and create a viral product that encourages non-users to enter the Robinhood ecosystem.

Q: What are the moving parts for expenses and how should we think about the run rate into 2027?

A: Verma noted that Q4 expenses include investments in Trump Accounts and credit cards. He stated that the company remains disciplined and will share 2027 plans in early next year.

Q: What is the strategic logic of holding stakes in competitors to Rothera?

A: Tenev stated that they want to provide the best prediction market experience by offering choices, with Rothera as the primary exchange and Crypto.com/og.com as the second. Verma added that they are now equity owners in these venues, creating financial upside without conflicts.

Q: What is the strategy for Rothera and how do you plan to add other FCMs to the platform?

A: Tenev described Rothera as a neutral gateway for FCMs, avoiding the conflicts of interest present in other venues. Verma noted that 30% of Rothera's volume in the quarter was non-sports, up from 15% previously.

Q: Can you provide color on October volumes and take rates across asset classes?

A: Verma stated that October volumes for equities, options, and crypto are within 5% of Q3 levels, while event contracts are up 7x year-over-year. He noted that crypto take rates were impacted by the stablecoin product, which is monetized at a lower rate.

Q: What is the vision for Robinhood Social and how does it drive revenue?

A: Tenev expressed optimism about the platform's ability to surface user-generated content and facilitate learning. He noted that creator monetization is a potential future business line.

Q: How big is the opportunity for perpetual futures?

A: Tenev compared the potential scale of their perpetual futures offering to global leaders in the space, noting that Robinhood Chain already saw over $1 billion in daily notional volume for on-chain perps.

Q: What are the drivers of take rates as Q3 came in lighter than expected?

A: Verma explained that take rates in equities and options depend on mix shifts and spreads. For crypto, the stablecoin product was the primary driver of lower take rates.

Q: How will rate cuts impact the ecosystem compared to rate hikes?

A: Verma stated that for every 25 basis point change, there is a 1.5% impact on revenue. He emphasized that the business is diversified and performs well in both high and low-rate environments.

Q: What drove the weakness in net deposit growth and monthly actives this quarter?

A: Verma dismissed the quarterly fluctuation, pointing to October's record $13 billion in net deposits as evidence of continued health.

Q: What is the rationale for the Ripple partnership?

A: Tenev stated the partnership aims to integrate complementary institutional and retail capabilities, making the Robinhood ecosystem more robust.

Q: How are you thinking about bringing stock tokens onshore and is there regulatory movement on private stock tokens?

A: Tenev confirmed they intend to launch stock tokens overseas. For U.S. private stocks, they are working within accreditation constraints and hope for further regulatory clarity.

Q: What is the health of retail trade in equities, particularly regarding AI stocks?

A: Verma noted that engagement remains strong, with customers using sell-offs in AI and tech stocks as buying opportunities.

Q: What is the strategy for top of funnel growth and increasing MAUs?

A: Verma stated they are focusing on product-led growth rather than heavy marketing. Tenev added that Trump Accounts and other initiatives are expected to drive top-of-funnel growth.

Q: When will you begin intentional marketing for banking products?

A: Tenev explained that intentional marketing will begin once independent onboarding is available, moving beyond the current requirement to be a brokerage customer.

Q: How do you see ARPU evolving and is a figure like 300 feasible?

A: Tenev noted that ARPU is a complex metric because growth in younger, international customers might offset increases in existing user value. Verma added that they manage for market share and ROI rather than ARPU targets.