How Robinhood Makes Money—Financial & Key Business Statistics

Update quarterly. Last updated August 23, 2021.

Robinhood Overview

Ticker HOOD
Industry Capital Markets
CEO Vlad Tenev
Year Founded 2013
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.

Revenue breakdown

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.