Robinhood reports a $1.44 billion net loss on $522 million in revenue in the first three months of 2021!!
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| Author       | Source       | 
| :-------------: |:-------------:|
| [Dan Primack](https://www.axios.com/authors/danprimack/) posted by [u/FatGuyOnEbay](https://www.reddit.com/user/FatGuyOnEbay/) | [Reddit](https://www.reddit.com/r/Superstonk/comments/obuz6z/robinhood_reports_a_144_billion_net_loss_on_522/) | 

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Robinhood files for long-awaited IPO
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[Dan Primack](https://www.axios.com/authors/danprimack/), author of [Pro Rata](https://www.axios.com/newsletters/axios-pro-rata)

![Illustration of a teenager on a laptop covered in wall-street related decals including a bull, a trend line, and an emoji with dollar sign eyes](https://images.axios.com/2lFgZ5GO8Zi77Fsd6zwce4XPE7Y=/0x0:1920x1080/1920x1080/2021/07/01/1625157520980.jpg)

Illustration: Sarah Grillo/Axios

Popular trading app Robinhood on Thursday [filed](https://www.sec.gov/Archives/edgar/data/1783879/000162828021013318/robinhoods-1.htm) for its initial public offering, and disclosed that it will set aside up to 35% of shares for retail investors who rarely get to buy at a company's IPO price.

Driving the news: Earlier this week, Robinhood [agreed to pay](https://www.axios.com/robinhood-harmed-millions-of-customers-ff182dd2-c166-4447-b964-05903c8600ee.html) a record $70 million in fines and restitution, as part of a settlement with the Financial Industry Regulatory Authority over providing customers with "false or misleading information."

-   The deal was viewed as key to letting Robinhood "flip" its IPO filing from confidential to public.
-   It plans to list on the Nasdaq under ticker symbol "HOOD."

Background: Today's move also comes several months after Robinhood came under fire for restricting certain trades, related to a burst of activity on GameStop and other meme stocks.

-   The SEC continues to investigate the trading halt, which also sparked Congressional hearings, and Robinhood remains the defendant in several related class action lawsuits.
-   It also was [sued by Massachusetts regulators](https://www.axios.com/robinhood-sec-lawsuit-massachusetts-violations-trading-6d349c57-c138-441d-a263-d5a225823dfa.html) for alleged securities law violations.
-   The SEC also reportedly [slowed down](https://www.bloomberg.com/news/articles/2021-06-24/robinhood-ipo-plans-said-to-be-slowed-by-sec-review) Robinhood's IPO process over questions about its growing crypto-trading business, where assets grew from $481 million in Q1 2020 to $11.6 billion in Q1 2021 (aided by a major rise in Dogecoin trades).

Share set-aside: Robinhood says that between 20% and 35% of its shares will be allocated for sale to company customers, most of whom are retail investors, at the IPO price.

ROI: Robinhood has raised over $5.5 billion since being founded in 2013, including [$3.4 billion](https://www.axios.com/robinhood-investors-amc-gamestock-6cd7b237-004a-4ded-b91f-8313f885ef18.html) via a convertible note investment in the aftermath of the trading fiasco.

-   Major VC backers include DST Global, Ribbit Capital, Index Ventures and NEA.

Financials: The Silicon Valley company reports a $1.44 billion net loss on $522 million in revenue for the first three months of 2021, but the entire loss was tied to a fair market value adjustment to the convertible note financing.

-   It reported a $52 million net loss on $128 million in revenue for Q1 2020, and a $7.5 million profit on $959 million in revenue.

**[Source]([axios.com/robinh...](https://www.axios.com/robinhood-ipo-0b9a27b1-69d1-41d0-b44e-69e137b92dd2.html)
)**
