HOOD · 10-Q · 2026Q1 · Full report

Provision for Credit Losses Increase

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

Provision for credit losses rose $12 million (a 50% increase) primarily driven by an $18 million increase in credit‑card‑related provision for credit losses tied to higher balances in purchased credit card receivables. This increase was partially offset by a $6 million decrease in brokerage‑related losses due to lower fraud activity. The change reflects growth in the company’s credit card receivable balances and the associated credit risk provisioning required as that business scales. Management disaggregated credit card and brokerage provisioning to show the different drivers across lending and trading products.

Key facts

• Credit card related provision for credit losses increased 138% year over year for the three months ended March 31, 2026.