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Finance · Profile from Finance Research Companion

Robinhood Markets, Inc.

The Menlo Park brokerage app, founded in 2013 by Stanford roommates Vlad Tenev and Baiju Bhatt, that launched commission-free stock trading on phones in 2015, paid for it by selling customer orders to wholesale market makers such as Citadel Securities (payment for order flow, or PFOF), and so forced the whole US brokerage industry to cut commissions to zero in October 2019. It then became the symbol of the 2020–21 retail-trading mania: record fines for outages and misleading customers, the death of a 20-year-old customer in June 2020 that drew national attention to its options business, the January 2021 GameStop buying restrictions forced by a ~$3bn clearing-house deposit call, a congressional hearing, and a July 2021 IPO at $38 that collapsed to under $7 within a year. It came back as a profitable, diversified platform: subscriptions, retirement accounts, crypto (including the Bitstamp exchange), banking and the largest retail prediction-market business in the US. It joined the S&P 500 on 22 September 2025, earned ~$1.9bn on ~$4.5bn of revenue in 2025, and had 28.7m funded customers and ~$396bn of platform assets in September 2026.

At a glance

Founded
2013, Palo Alto, California, by Vlad Tenev and Baiju Bhatt; app launched March 2015
Headquarters
Menlo Park, California
Ownership / structure
Listed on Nasdaq (HOOD) since 29 July 2021; dual-class shares give the founders voting control (Class B, 10 votes per share); broker-dealers Robinhood Financial LLC (introducing) and Robinhood Securities LLC (self-clearing since 2018); Robinhood Crypto LLC; Bitstamp (since June 2025); Robinhood Derivatives (futures commission merchant); stake in the Rothera prediction-market exchange joint venture with Susquehanna
Leadership
Vlad Tenev, co-founder, CEO and chairman; Baiju Bhatt, co-founder (co-CEO until November 2020, then chief creative officer)
Segment
Fintech / retail brokerage: equities, options, crypto, futures, event contracts, retirement accounts, subscriptions, credit card and banking
Scale
28.7m funded customers, 30.4m investment accounts, ~$396bn total platform assets, 5.2m Gold subscribers, $22.1bn margin book (Q3 2026, company)
Profit
2025: revenue ~$4.5bn (+52%), net income ~$1.9bn (+33%), net deposits ~$68.1bn. Q3 2026: revenue $1.42bn (+12%), net income $476m (−14%) (company)
Signature moves (incl. failures)
Zero-commission app launch (2015); the PFOF model and the $65m SEC case (2016–20); crypto trading (2018–25); outages, the Kearns tragedy and FINRA's record fine (2020–21); GameStop restrictions and the congressional hearing (2021); IPO and the 2022 collapse (2021–23); Gold, retirement and the turn to profit (2022–24); Bitstamp and global crypto (2025–26); prediction markets and Rothera (2024–26); S&P 500 entry and the 2025–26 results

10 strategic moves analysed

Each one gets a full strategy file in the companion: context, the decision, the financing, what happened, and the lesson.

  1. 2015

    Zero Commission App Launch

    Founding / launch / pricing change

  2. 2016

    Payment for Order Flow Model

    Business model / regulatory settlement

  3. 2018

    Crypto Trading Launch

    Launch / regulatory

  4. 2020

    Outages Options and FINRA Record Fine

    Failure / regulatory settlement

  5. 2021

    GameStop Restrictions and Congressional Hearing

    Crisis / emergency funding

  6. 2021

    Nasdaq IPO and 2022 Collapse

    IPO / restructuring

  7. 2022

    Gold Retirement and Turn to Profit

    Diversification / pivot

  8. 2025

    Bitstamp and Global Crypto Expansion

    Acquisition / international expansion

  9. 2025

    Prediction Markets and Rothera Exchange

    Launch / joint venture / acquisition

  10. 2025

    S and P 500 Entry and 2026 Results

    Milestone / regulatory settlement / results