Robinhood Markets Inc. (NASDAQ:HOOD) expects to spend approximately $100 million on Trump account-related expenses this year, with additional investment planned.
During Robinhood’s third-quarter earnings call on Tuesday, a Barclays analyst asked CFO Shiv Verma about the expenses and the company’s outlook.
Verma said Robinhood is “doing even more for the Trump account,” signaling that spending could increase during the remainder of 2026. He said quarterly expense changes primarily reflect timing, while reiterating that the full-year investment tied specifically to Trump accounts should remain near $100 million.
For the third quarter, Robinhood’s operating expenses rose 16% year-over-year to $739 million, driven by higher credit-loss provisions, Trump Accounts and Rothera-related costs, and increased marketing and growth investments.
The company has not finalized its 2027 budget. Verma said the company expects to complete planning and provide a broader outlook in January or February.
Robinhood Sees Strong Trump Account Inflows
On Tuesday, Robinhood reported third-quarter revenue of $1.424 billion, up 12% year-over-year. The revenue total beat a Street consensus estimate of $1.422 billion, according to data from Benzinga Pro. Other revenue rose 61% year-over-year to $142 million, driven primarily by Trump Account service revenue and higher Robinhood Gold subscription revenue.
Verma said the company entered the fourth quarter with strong momentum, citing more than $13 billion in October-to-date net deposits, including $6 billion from the Dell Inc.‘s (NASDAQ:DELL) family’s contribution to Trump Accounts.
Robinhood Backs Trump Accounts With ETF Access
Trump Accounts are investment accounts for eligible U.S. children, designed to help them build long-term wealth through investments in financial markets. Children are eligible for a tax-deferred $1,000 federal contribution if they were born between January 1, 2025, and December 31, 2028. Families can also contribute up to $5,000 annually, potentially allowing investments to compound over nearly two decades. Robinhood joined in as an initial broker alongside The Bank of New York Mellon Corp. (NYSE: BNY).
In August, Robinhood CEO Vlad Tenev said Trump Accounts currently give children exposure to the S&P 500 through a State Street SPDR Portfolio S&P 500 ETF (NYSE:SPYM). He said the goal is to make investing accessible from birth, allowing children to own shares in major U.S. companies and benefit from compound interest. Tenev said the diversified portfolio offers a simple starting point, although additional investment options could be considered over time.
The Treasury had also selected the State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (NYSE:SPTM) as a future investment option, alongside other ETFs like iShares Core S&P 500 ETF (NYSE: IVV), iShares Core S&P Total U.S. Stock Market ETF (NYSE: ITOT) and Vanguard Total Stock Market ETF (NYSE: VTI).
Benzinga’s Edge Rankings place HOOD in the 85th percentile for growth and the 28th percentile for momentum, reflecting its mixed performance. Benzinga’s screener allows you to compare HOOD’s performance with its peers.
Price Action: Year-to-date, HOOD stock has declined 16.39%, as per Benzinga Pro. During Wednesday’s pre-market trading session, the stock was trading 7.63% lower at $87.34.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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