Robinhood Reveals Profitability in Long-Awaited IPO Filing

Crystal Tse, Annie Massa and Katie Roof
·1 min read

(Bloomberg) -- Robinhood Markets Inc. filed publicly for an initial public offering, disclosing it became profitable last year, in one of the most high-profile upcoming listings of the year.

The company, which pitches its trading platform to novice investors, listed the size of the offering as $100 million, a placeholder that will change when it sets terms for the share sale. Thursday’s registration statement follows Robinhood’s announcement in March that it had filed confidentially to go public.

It said in generated net income of $7.45 million on net revenue of $959 million in 2020, compared with a loss of $107 million on $278 million the previous year, according to the filing.

The Financial Industry Regulatory Authority imposed a nearly $70 million fine on Robinhood on Wednesday, a record for the watchdog. Finra alleged Robinhood misled its customers about margin trading, and lapsed in its oversight of technology and approvals for options traders. Robinhood neither admitted nor denied the claims.

The offering is being led by Goldman Sachs Group Inc. and JPMorgan Chase & Co. The shares are expected to trade on the Nasdaq Stock Market under the symbol HOOD.

(Updates with financial results in third paragraph)

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