CEO Vlad Tenev on Robinhood's Record Year (+200%, ~$100B Market Cap)

Vlad explains how Robinhood evolved from primarily options, crypto, and equities during COVID to 11 distinct business lines each generating $100M+ annually. He breaks down transaction revenue, net interest revenue (cash sweep, margin lending), and the Gold subscription product which now has 4M subscribers (15% of customers, 40% of new signups).

• •11 business lines now generate $100M+ annually vs 3 at IPO - includes prediction markets, margin, Gold subscriptions, cash sweep, crypto, and Bitstamp
• •Cash sweep program grew from zero in 2022 to tens of billions in custody, offering 3.5% yield while keeping 75 basis points spread
• •Margin book more than doubled in 2024 after becoming competitive on rates and user experience
• •Robinhood Gold reached 4M subscribers (15% of total customers, 40% of new customer cohorts)
• •Three strategic arcs: #1 for active traders, #1 wallet share for next generation, global expansion (50%+ revenue outside US and institutional within 10 years)

Discussion of recent prediction markets upgrades including web platform access, sports combos (parlay-style), and individual player action trading. Vlad outlines vision for prediction markets disrupting insurance industry through weather contracts and bespoke products, while addressing market integrity challenges and the 2024 election as the catalyst for mainstream adoption.

• •New features: web access for prediction markets (previously app-only), sports combos for complex bets, individual player action trading
• •Vision to disrupt insurance industry - weather prediction markets already competitive with traditional fire/hurricane insurance products
• •2024 presidential election was 'ground zero' that created prediction market super cycle and brought mass adoption
• •Market integrity is critical focus - monitoring for manipulation, spoofing, and insider trading using equity market surveillance tools
• •Prediction markets appeal across demographics, not just young users - institutional adoption still in early innings

Vlad introduces Cortex, Robinhood's AI model that provides voice-activated financial intelligence with full context of user portfolios and real-time market data. The assistant can scan the entire universe of tradable symbols, answer complex financial questions, and execute trades - solving the problem of getting AI insights without manually inputting financial data.

• •Cortex has full context of user's complete financial data plus real-time market information on all tradable instruments
• •Voice-activated interface can scan entire universe of stocks/prediction markets and place trades on command
• •Previously launched features: stock/crypto digest explanations, AI-powered screeners and indicators on Legend pro platform
• •Solves pain point of needing to manually export financial data to ChatGPT or other AI models for analysis
• •Positioned as 'super intelligent financial knowledge at your disposal' integrated where your money already lives

Vlad contrasts COVID-era retail trading (concentrated in bankrupt stocks, meme stocks like GameStop/AMC, and Dogecoin) with today's healthier, more diversified activity focused on AI companies with real revenue. He explains how Robinhood's $350B in assets under custody now mirrors this maturation with better diversification and record volumes spread across many stocks.

• •COVID trading waves: bankruptcy plays (Hertz), brick-and-mortar nostalgia (GameStop, AMC), stimulus-driven 'retail bailout' of struggling companies
• •2021 Robinhood was concentrated in crypto (especially Dogecoin) and meme stocks with 'ephemeral thesis' - felt unstable
• •Today: $350B AUC well-diversified, record volumes spread across many stocks, focus on AI companies with real revenue/products
• •Current retail activity feels 'qualitatively different' - investing in substantive technology disruption (AI) vs stories
• •Robinhood as bellwether: company's diversification mirrors retail investor maturation and health improvement

Vlad describes transforming Robinhood's earnings calls from boring scripted Polycom sessions to entertaining live video events at Chase Center, modeled after NBA post-game interviews. The innovation increased audience from hundreds to 100K+ viewers, includes retail investor Q&A, and inspired partners like Opendoor to livestream earnings in the Robinhood app.

• •Modeled earnings after NBA playoffs interviews - entertaining whether you win or lose, with personality and swagger
• •Evolution: Q4 2023 started live video from office, latest call at Chase Center with 100K+ viewers (vs hundreds before)
• •Broke traditional constraints: added retail investors, buy-side, and media to Q&A (not just sell-side analysts)
• •Opendoor became first partner to livestream earnings directly in Robinhood app to retail shareholders
• •Philosophy: being public is 'incredibly powerful' if you treat earnings as shareholder engagement opportunity vs chore

Vlad argues that AI companies lack the grassroots retail investor support that helped crypto survive regulatory threats. He advocates for retail access to AI companies to create a voting block that defends the industry, noting that only Google has significant retail ownership among major AI players while OpenAI and Anthropic remain out of reach.

• •Retail shareholders become 'defenders' and 'grassroots army' when companies face controversy or regulatory threats
• •Crypto succeeded partly because retail investors formed significant voting block that pushed for clear regulatory framework
• •AI is 'one of the fastest adopted products but also one of the least popular' - people fear job loss without ownership upside
• •Only Google has retail AI exposure; OpenAI, Anthropic, and AI startups remain inaccessible to normal investors
• •Retail ownership creates alignment: investors want their holdings to succeed and will advocate politically/socially

Vlad explains Robinhood's tokenization of 1,500 stocks in Europe (up from 400 at last earnings), with three-phase plan: expand stock coverage, integrate with Bitstamp for 24/7 trading, and enable DeFi for self-custody and collateralized lending. He outlines how tokenization solves the liquidity problem for private assets by combining traditional custody with crypto's trading infrastructure.

• •1,500 stocks now tokenized in Europe (up from 400 last quarter), with 3-phase roadmap ahead
• •Phase 1: tokenize more stocks; Phase 2: integrate with Bitstamp for 24/7 trading; Phase 3: enable DeFi self-custody and lending
• •Tokenization combines TradFi's easy custody with crypto's easy trading/liquidity - unlocks illiquid assets
• •Stablecoins as proof of concept: custody dollars, mint tokens, get 24/7 trading, instant settlement, and DeFi access
• •Vision: make private companies, art, cars, collectibles tradable in real-time like stocks through tokenization

Discussion of Robinhood Ventures Fund One, a closed-end listed fund providing retail access to private companies while tokenization remains illegal in the US. Vlad shares how company reception shifted from resistance in 2021 to proactive outreach in 2025, with every major IPO now asking for retail strategy advice. Vision extends to early-stage fundraising to increase entrepreneurship.

• •Robinhood Ventures Fund One: closed-end listed fund for diversified private company exposure (basket vs individual stocks)
• •Different from tokenization: more passive exposure to private companies as asset class until US regulations change
• •SpaceX and OpenAI token giveaway in EU demonstrated individual company trading mechanism outside US
• •2021: had to 'claw and scratch' to get into IPO deals; 2025: every major IPO proactively reaches out for retail strategy
• •Ultimate vision: enable early-stage fundraising for founders to increase entrepreneurship and offer higher-risk/higher-return opportunities

Vlad discusses Harmonic, his AI company building mathematical superintelligence to solve problems like the Riemann hypothesis and unify physics forces. Aristotle model achieved IMO gold medal and has already solved/assisted with 11 Erdős problems - progressing faster than expected toward solving century-old mathematical challenges and potentially unlocking faster-than-light travel.

• •North Star: solve Millennium Prize Problems (Riemann hypothesis, Hodge conjecture) to unlock theoretical physics breakthroughs
• •Ultimate goal: unify strong, weak, electromagnetic forces with gravity - could enable faster-than-light travel
• •Aristotle achieved IMO gold medal, then solved/assisted with 11 Erdős problems (half of 1,100 remain unsolved)
• •December 2024: Aristotle scored 10/12 on Putnam competition (Vlad scored 0) - 'child has surpassed parent'
• •Timeline accelerated: expected 1 year to unsolved problems, but already happening within months of IMO gold