Raising Estimates Post June Trading Color & Recent Momentum in Transaction Revenue

Research evidence excerpt

Raising Estimates Post June Trading Color & Recent Momentum in Transaction Revenue

Deutsche Bank

Research

Rating Company Date

Buy Robinhood Markets 30 June 2026

North America Reuters Bloomberg Rating Buy

United States HOOD.OQ HOOD US Price target (USD) 113.00 Price at 26 Jun 26 98.69

52-week range 152.46 – 65.16

Financial

Exchanges and Liquidity Valuation & Risks

Providers

Raising Estimates Post June Trading Color &

Recent Momentum in Transaction Revenue BrianResearchBedell,AnalystCFA

+1-212-250-6600

Raising estimates on strong June volumes & transaction revenue momentum

Erika Nelson We view HOOD’s preliminary June metrics as very strong overall, with broad- Research Associate

based strength in equities, options and prediction markets (each tracking well +1-212-250-9986

ahead of our prior 2Q estimates), albeit crypto trading on the Robinhood app is

tracking generally in line with our estimate. We also believe revenue capture rates Son Nguyen

Research Associate are holding up well, with 2Q equities and options capture rates likely trending

+1-212-250-9311

relatively stable Q/Q, although we are modeling the crypto revenue capture rate

to drop 7bps linked-quarter, about in line with the 7-8bps drop mgmt. conveyed

late May. For prediction markets, we continue to model a 1.2c revenue capture

rate across HOOD app & Rothera event contracts. That said, there are puts and Key changes

takes on the NII side, with better trends in securities lending and margin interest, Price target (USD) 105 113 8%

partially offset by lower net yield in interest on cash & deposits on balance sheet Source: Deutsche Bank

(due to a full quarter impact of a portion of cash sweep balances moving to free

credit balances). We expect other revenue to more than double from 2Q given