HOOD · 10-Q · 2026Q1 · Full report

Credit Loss Provisions

Robinhood Markets, Inc. · 2026-04-29 · Importance 66 · Surprise 74

Provision for credit losses increased by $12 million for the three months ended March 31, 2026 compared to the prior year period, a 50% increase year-over-year. The increase was primarily driven by an $18 million rise in credit card-related provision for credit losses due to higher balances in purchased credit card receivables. This was partially offset by a $6 million decrease in brokerage-related losses reflecting lower fraud activity. The larger credit-card provision reflects the expansion of the credit card receivable portfolio (on-balance sheet and off-balance program amounts totaling $1,132 million of credit card exposure as of March 31, 2026).

Key facts

• Provision for credit losses increased by $12 million for the three months ended March 31, 2026, primarily driven by an $18 million increase in credit card related provision for credit losses, partially offset by a $6 million decrease in brokerage related losses.
• Brokerage related provision for credit losses decreased 55% year over year for the three months ended March 31, 2026.

Impact estimates