Update quarterly. Last updated August 23, 2021.
|IPO Date||July 29, 2021|
|TTM Revenue||$1.6 billion|
|TTM FCF||$177 million|
How Robinhood Makes Money—Its Business Model
Robinhood makes money in three ways:
- Transaction revenue: Revenue earned from routing customer orders from options, equities, and cryptocurrencies to market makers (a.k.a. payment for order flow).
- Net-interest revenues: Interest earned from securities lending. They also earn interest from margin loans to customers.
- Other revenues: Revenue earned primarily from Robinhood Gold.
Transaction revenue breakdown
Robinhood's Key Business Metrics
Robinhood uses four metrics to measure the health of its business:
- Net cumulative funded accounts
- Monthly active users (MAU)
- Assets under custody (AUC)
- Average revenue per user (ARPU)
Net cumulative funded accounts & monthly active users (MAU)
- Net cumulative funded accounts: The number of people who signed up and deposited money into an account for a specific period.
- Monthly active users (MAU): A user who made a debit card transaction and used Robinhood's mobile or desktop app during the month.
Assets under custody (AUC)
- Assets under custody (AUC): The total value of equities, options, cryptocurrencies, and cash held by users on Robinhood's platform.
Average revenue per user (ARPU)
- Average revenue per user (ARPU): Total revenue divided by net cumulative funded accounts.