Robinhood Markets Inc. (HOOD.US) has announced a new share repurchase program, authorizing the company to buy back up to $1.5 billion worth of its stock amid a sustained decline in its share price. After its stock surged more than 200% last year, the Menlo Park, California-based firm has seen its shares fall 39% since the beginning of 2026, creating a window for repurchases.
Chief Financial Officer Shiv Verma stated on Tuesday, "This authorization reflects the confidence of our management team and board in our ability to consistently deliver innovative products for customers, create value for shareholders, and achieve long-term capital returns." Verma assumed the CFO role in February, a period when Robinhood's stock was under pressure due to a sharp downturn in the cryptocurrency market.
According to the announcement, the buyback plan has no set expiration date and is expected to be executed over approximately three years.
On February 11, Robinhood Markets Inc. released its fourth-quarter financial results. Although the company achieved record overall revenue, its quarterly performance fell short of Wall Street expectations due to a significant drop in cryptocurrency trading revenue, leading to a notable decline in after-hours trading.
However, the company's emerging prediction markets business showed impressive growth potential, standing out as a bright spot in an otherwise subdued earnings report. The new CFO, Shiv Verma, commented on the company's cryptocurrency trading pricing structure in an interview, stating, "For high-frequency trading clients, we apply a lower-tier fee structure." He added, "Active traders continue to transact frequently, but these clients are subject to the lowest rates. As a result, the actual rebate rate we receive is slightly below market expectations."
While its traditional trading business faces challenges, Robinhood's prediction markets business emerged as the biggest growth surprise in the earnings report. This service allows users to place bets on outcomes of various events, including sports. Robinhood reported on Tuesday that more than 12 billion event contracts were traded on its platform last year. The company's CEO described it as the fastest-growing business in the company's history during an analyst call.
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