Robinhood Markets, Inc. has filed to go public with the U.S. Securities and Exchange Commission (SEC), disclosing that it had $81 billion in assets under custody (AUC) and 18 million net cumulative funded accounts as of March 31, 2021, according to a Thursday (July 1) Form S-1.
The firm, which aims “to democratize finance for all,” is seeking to list its Class A shares on the Nasdaq under the “HOOD” ticker symbol, and will allow its users and other retail investors to buy stock.
“We use technology to deliver a new way for people to interact with the financial system. We believe investing should be familiar and welcoming, with a simple design and an intuitive interface, so that customers are empowered to achieve their goals. We started with a revolutionary, bold brand and design, and the Robinhood app now makes investing approachable for millions,” management said in the filing.
Retail investors now make up 10 percent of the daily trading on Wall Street, contributing to the recent rise of “meme stocks,” as PYMNTS has reported.
Robinhood Markets disclosed a net income loss of approximately $7.45 million for the year ending Dec. 31, 2020, swinging from a net income loss of approximately $106.57 million for the year ending Dec. 31, 2019.
For the top line, Robinhood Markets disclosed that it posted approximately $958.83 million in revenues for the year ending Dec. 31, 2020, up significantly from approximately $277.53 million for the year ending Dec. 31, 2019.
However, Robinhood Markets disclosed that it posted an approximately $1.44 billion loss for the three months ending March 31, 2021, on approximately $420.44 million in revenues. During that quarter, Robinhood Markets reported an approximately $1.49 billion “change in fair value of convertible notes and warrant liability.”
On Wednesday (June 30), FINRA said it had fined Robinhood Financial LLC $57 million and ordered the company to pay restitution of roughly $12.6 million, plus interest, to customers.
In March, PYMNTS reported that Robinhood had made a confidential filing with the SEC to go public.
Robinhood has faced controversy for limiting some stock trades after many retail investors rallied for “meme stocks” such as AMC and GameStop, putting the market into disarray. Later on, the firm said the shutdowns on some equities were fueled by collateral mandates from its clearinghouse.
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