Company profile
SEC EDGAR ↗- Industry
- Security Brokers, Dealers & Flotation Companies
- Listed
- Nasdaq: HOOD
- Incorporated
- DE
- Headquarters
- Menlo Park, CA
- Fiscal year end
- Dec 31
Financials
FY2025- Revenue
- $4.47B
- Net income
- $1.88B
- Total assets
- $38.1B
Latest full fiscal year from SEC filings (10-K/A) — SEC EDGAR ↗. Stratrix is a strategy publication, not a real-time financial data service.
The analyses
The Loss Leader · Business Model
Robinhood's 5:11 A.M. Collateral Call Showed Whose Side Free Trading Was On
On January 28, 2021, Robinhood got a $3 billion collateral demand at 5:11 a.m. and stopped its customers from buying GameStop hours later. It looked like a hedge-fund conspiracy. It was something more revealing: the loss-leader model finally showing whose side it was on.
8 min
The Loss Leader · Business Model
Robinhood's Free Trades Pay Twice: Order Flow, Plus $1.1 Billion in Interest on Parked Cash
Everyone thinks Robinhood gives away trades and makes it back on payment for order flow. Half right. PFOF monetizes your orders; net interest income — $1.1 billion in 2024 — monetizes the cash and stock those free trades park on its books.
8 min
The Crisis Response · Crisis & Reinvention
Robinhood's GameStop Crisis Was Real. The Cover Story Is What Broke It.
On January 28, 2021, Robinhood's clearinghouse demanded its collateral jump from $124 million to $3.7 billion overnight. The liquidity crisis was real. But the company let the conspiracy fill the silence, and the wound never closed.
8 min
The Money Machine · Business Model
Regulators Came for the Confetti. The Real Target Was the Money Machine Underneath.
Robinhood got famous for confetti on the screen and infamous for the fines that followed. But no regulator ever fined it for confetti. The real problem was a business that made ~81% of its revenue in early 2021 from selling your trades to someone else.
8 min
The Money Machine · Business Model
Robinhood's $1.11B in Interest Income Makes Falling Rates Its Biggest Risk
The story is that Robinhood lives on payment for order flow. By 2024 it didn't: transaction fees were $1.65B and net interest income $1.11B of $2.95B total. Its biggest risk now isn't a PFOF ban — it's rates falling.
8 min