Robinhood Markets approved a $1.5 billion share repurchase program on Tuesday, adding more than $1.1 billion in new capacity on top of any residual from prior authorizations.
The move came as HOOD shares fell roughly 5% on the day, extending a 39% year-to-date decline after a more than threefold gain in 2025.
Management expects to execute the program over approximately three years starting in Q1 2026, with flexibility to accelerate depending on market conditions.
The board previously approved a $1 billion buyback in May 2024 and a $500 million repurchase in April 2025.
Alongside the buyback, Robinhood Securities expanded its JPMorgan-led revolving credit facility to $3.25 billion, with an option to increase it to $4.875 billion.
What Drove the Decline
Robinhood shares roughly tripled in 2025, propelled by a crypto boom.
The stock has since reversed sharply as Bitcoin dropped from its October 2025 all-time high near $126,000 to around $71,000, compressing trading volumes across the industry.
The company reported cryptocurrency transaction revenue fell 38% year-over-year to $221 million in Q4 2025.
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Robinhood's Crypto Infrastructure Bet
The buyback comes alongside an expanding push into onchain infrastructure. On February 10, Robinhood launched the public testnet for Robinhood Chain, an Ethereum (ETH) Layer 2 built on Arbitrum designed for tokenized real-world assets including equities and ETFs. The testnet processed 4 million transactions in its first week. A mainnet launch is planned for later in 2026.
The company already offers European customers tokenized exposure to more than 2,000 U.S.-listed equities via Arbitrum One, with 24/7 trading. The chain is designed to support DeFi applications - including lending protocols and perpetual futures exchanges - alongside tokenized stock products. Robinhood has also extended private company exposure to non-U.S. users through a separate offering.
CFO Shiv Verma described the buyback as reflecting confidence in the company's "long-term opportunity" and its ability to "return capital over time." No minimum purchase threshold was disclosed.
Robinhood also faces regulatory questions on crypto staking in the U.S.: CEO Vlad Tenev has publicly noted that staking remains blocked in four states, while the EU has moved ahead with clearer rules. The company is one of several major trading platforms - alongside Coinbase and Kraken - expanding tokenized equity offerings as the lines between crypto exchanges and traditional brokerages continue to narrow.
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