Robinhood Revenues Breakdown

Revenues breakdown2021
Transaction-based revenues$1.4 Billion
Net interest revenues$257 Million
Other revenues$155.9 Million
Total Revenues$1.81 Billion
Net Losses$-3.68 Billion
In 2021, Robinhood generated $1.81 billion in revenues. Most of them came through transaction-baseds revenues, for $1.4 billion. While the remaining part was net interest revenues, for $257 million, and other revenues for $155.9 million. Transaction-based revenues are revenues that Robinhood makes mostly in the form of payment-for-order-flow. In short, the company facilitates the liquidity in the marketplace, thus getting fees for that, from market makers.
Transaction-based revenues breakdown2021%
Of the transaction-based revenues, most of them came from options and cryptocurrencies. Transaction-based revenues for options generated almost $689 million revenue or 49% of the total transaction revenues. While cryptocurrencies-based revenues generated $419 million in revenue, about 30% of the total transaction-based revenues. Within cryptocurrencies, most of the revenues were generated, in 2021, by the intermediation of DOGE. The rest were equities.
Key Facts
FoundersVladimir Tenev & Baiju Bhatt
Year FoundedApril 18, 2013
Year of IPO7/28/2021
IPO Price$38.00
Total Revenues at IPO$958 Million
Total Revenues in 2021$1.4 Billion
Employees3,800 full-time employees as of December 2021
Revenues per Employee$369,039.47
Founded by Vladimir Tenev & Baiju Bhatt, on April 18, 2013, Robinhood IPOed on July 2021, at a $38 price per share, with total revenues at IPO of $958 million. In 2021, the company had 3,800 full-time employees and it generated $369,039.47 per employee.
Robinhood is an app that gamifies investing in stocks, ETFs, options, and cryptocurrencies, all commission-free. While the app is commission-free Robinhood made $1.81 billion in total revenues in 2021, primarily based on transaction-based revenue which represented over 77% ($1.4 billion) of the company’s overall revenues. Transaction-based revenues primarily include payment for order flow from routing customer orders for options, cryptocurrencies, and equities to market makers.
Payment for order flow consists of a “kickback” or commission that the broker routing customers to a market maker (in charge of enabling the bid and ask price) will pay a commission to the broker as a sort of market-making fee.
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