Robinhood Markets (HOOD) 10-Q 2 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2022	Oct. 31, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-40691
Entity Registrant Name	Robinhood Markets, Inc.
Entity Incorporation, State	DE
Entity Tax Identification Number	46-4364776
Entity Address, Street	85 Willow Rd
Entity Address, City	Menlo Park
Entity Address, State	CA
Entity Address, Postal Zip Code	94025
City Area Code	844
Local Phone Number	428-5411
Title of each class	Class A Common Stock$0.0001 par value per share
Trading Symbol(s)	HOOD
Name of each exchange on which registered	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001783879
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Common Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		758,805,255
Common Class B
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		127,955,246

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 6,187	$ 6,253
Cash and cash equivalents segregated under federal and other regulations	2,954	3,992
Receivables from brokers, dealers, and clearing organizations	75	88
Receivables from users, net	4,046	6,639
Securities borrowed	139	0
Deposits with clearing organizations	201	328
Asset related to user cryptocurrencies safeguarding obligation	9,361	0
User-held fractional shares	1,029	1,834
Investments	32	27
Prepaid expenses	80	92
Other current assets	41	30
Total current assets	24,145	19,283
Property, software, and equipment, net	151	146
Goodwill	100	101
Intangible assets, net	27	34
Restricted cash	22	24
Operating lease right-of-use-assets	100	129
Non-current prepaid expenses	27	44
Other non-current assets	29	8
Total assets	24,601	19,769
Current liabilities:
Accounts payable and accrued expenses	203	252
Payables to users	5,396	6,476
Securities loaned	1,423	3,651
User cryptocurrencies safeguarding obligation	9,361	0
Fractional shares repurchase obligation	1,029	1,834
Operating lease liabilities	22	22
Other current liabilities	75	112
Total current liabilities	17,509	12,347
Operating lease liabilities, non-current	138	129
Total liabilities	17,647	12,476
Commitments and contingencies (Note 15)
Stockholders’ equity:
Additional paid-in capital	11,694	11,169
Accumulated other comprehensive income (loss)	(1)	1
Accumulated deficit	(4,739)	(3,877)
Total stockholders’ equity	6,954	7,293
Total liabilities and stockholders’ equity	24,601	19,769
Common Class A
Stockholders’ equity:
Common stock, value	0	0
Common Class B
Stockholders’ equity:
Common stock, value	0	0
Common Class C
Stockholders’ equity:
Common stock, value	$ 0	$ 0

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Common Class A
Common stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	21,000,000,000	21,000,000,000
Common stock, shares issued (in shares)	756,758,543	735,957,367
Common stock, shares outstanding (in shares)	756,758,543	735,957,367
Common Class B
Common stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	700,000,000	700,000,000
Common stock, shares issued (in shares)	127,955,246	127,955,246
Common stock, shares outstanding (in shares)	127,955,246	127,955,246
Common Class C
Common stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	7,000,000,000	7,000,000,000
Common stock, shares issued (in shares)	0	0
Common stock, shares outstanding (in shares)	0	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues:
Net interest revenues	$ 128	$ 63	$ 257	$ 193
Total net revenues	361	365	978	1,452
Operating expenses:
Brokerage and transaction	33	44	94	123
Technology and development	185	679	695	952
Operations	64	108	241	276
Marketing	19	87	77	283
General and administrative	234	790	728	1,039
Total operating expenses	535	1,708	1,835	2,673
Change in fair value of convertible notes and warrant liability	0	25	0	2,045
Other expense (income), net	0	(1)	2	(1)
Loss before income taxes	(174)	(1,367)	(859)	(3,265)
Provision for (benefit from) income taxes	1	(50)	3	(1)
Net loss	(175)	(1,317)	(862)	(3,264)
Net loss attributable to common stockholders:
Basic	(175)	(1,317)	(862)	(3,264)
Diluted	$ (175)	$ (1,317)	$ (862)	$ (3,264)
Net loss per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.20)	$ (2.06)	$ (0.99)	$ (8.85)
Diluted (in dollars per share)	$ (0.20)	$ (2.06)	$ (0.99)	$ (8.85)
Weighted-average shares used to compute net loss per share attributable to common stockholders:
Basic (in shares)	882,356,575	638,168,188	875,055,571	368,518,894
Diluted (in shares)	882,356,575	638,168,188	875,055,571	368,518,894
Transaction-based revenues
Revenues:
Revenues	$ 208	$ 267	$ 628	$ 1,138
Other revenues
Revenues:
Revenues	$ 25	$ 35	$ 93	$ 121

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (175)	$ (1,317)	$ (862)	$ (3,264)
Other comprehensive loss, net of tax:
Foreign currency translation	(1)	0	(2)	0
Total other comprehensive loss, net of tax	(1)	0	(2)	0
Total comprehensive loss	$ (176)	$ (1,317)	$ (864)	$ (3,264)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Operating activities:
Net loss	$ (862)	$ (3,264)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	44	17
Impairment of long-lived assets	47	0
Provision for credit losses	28	62
Share-based compensation	494	1,253
Change in fair value of convertible notes and warrant liability	0	2,045
Other	8	0
Changes in operating assets and liabilities:
Segregated securities under federal and other regulations	0	85
Receivables from brokers, dealers, and clearing organizations	13	0
Receivables from users, net	2,565	(2,805)
Securities borrowed	(139)	0
Deposits with clearing organizations	127	(91)
Operating lease right-of-use assets	8	(86)
Current and non-current prepaid expenses	29	(112)
Other current and non-current assets	(3)	771
Accounts payable and accrued expenses	(45)	118
Payables to users	(1,080)	914
Securities loaned	(2,228)	1,209
Current and non-current operating lease liabilities	(2)	100
Other current and non-current liabilities	(37)	(826)
Net cash used in operating activities	(1,033)	(610)
Investing activities:
Purchase of property, software, and equipment	(25)	(46)
Capitalization of internally developed software	(22)	(13)
Acquisitions of a business, net of cash acquired	0	(119)
Purchase of investments	(27)	0
Sales of investments	19	0
Other	(16)	(2)
Net cash used in investing activities	(71)	(180)
Financing activities:
Proceeds from issuance of common stock in connection with initial public offering, net of offering costs	0	2,058
Proceeds from issuance of common stock under the Employee Stock Purchase Plan	13	0
Taxes paid related to net share settlement of equity awards	(9)	(412)
Proceeds from issuance of convertible notes and warrants	0	3,552
Payments of debt issuance costs	(10)	0
Draws on credit facilities	21	1,958
Repayments on credit facilities	(21)	(1,958)
Proceeds from exercise of stock options, net of repurchases	6	12
Net cash provided by financing activities	0	5,210
Effect of foreign exchange rate changes on cash and cash equivalents	(2)	0
Net increase (decrease) in cash, cash equivalents, segregated cash and restricted cash	(1,106)	4,420
Cash, cash equivalents, segregated cash and restricted cash, beginning of the period	10,270	6,190
Cash, cash equivalents, segregated cash and restricted cash, end of the period	9,164	10,610
Cash and cash equivalents, end of the period	6,187	6,167
Segregated cash, end of the period	2,954	4,418
Restricted cash (current and non-current), end of the period	23	25
Cash, cash equivalents, segregated cash and restricted cash, end of the period	9,164	10,610
Supplemental disclosures:
Cash paid for interest	6	6
Cash paid for income taxes, net of refund received	4	3
Non-cash operating activities:
Asset related to user cryptocurrencies safeguarding obligation	9,361	0
Total user cryptocurrencies safeguarding obligation and corresponding asset	9,361	0
Non-cash financing activities:
Unpaid offering costs in connection with initial public offering	$ 0	$ 5

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ (DEFICIT) EQUITY - USD ($) $ in Millions		Total	Common stock		Additional paid-in capital	Accumulated other comprehensive income (loss)	Accumulated deficit	Redeemable convertible preferred stock
Balance at beginning of period, Redeemable convertible preferred stock (in shares) at Dec. 31, 2020								412,742,897
Balance at beginning of period, Redeemable convertible preferred stock at Dec. 31, 2020								$ 2,180
Balance at end of period, Redeemable convertible preferred stock (in shares) at Sep. 30, 2021								0
Balance at end of period, Redeemable convertible preferred stock at Sep. 30, 2021								$ 0
Balance at beginning of period, Common stock (in shares) at Dec. 31, 2020	[1]		229,031,546
Balance at beginning of period at Dec. 31, 2020		$ (55)	$ 0	[1]	$ 134	$ 1	$ (190)
Increase (decrease) in stockholder's equity
Net loss		(3,264)					(3,264)
Shares issued in connection with stock option exercise, net of repurchases (in shares)	[1]		5,816,855
Shares issued in connection with stock option exercise, net of repurchases		13			13
Issuance of common stock in connection with initial public offering, net of issuance costs (in shares)	[1]		56,729,194
Issuance of common stock in connection with initial public offering, net of issuance costs		2,052			2,052
Issuance of common stock upon settlement of restricted stock units, net of shares withheld (in shares)	[1]		13,759,434
Issuance of common stock upon settlement of restricted stock units, net of shares withheld		(412)			(412)
Conversion of preferred stock to common stock (in shares)			412,742,897	[1]				(412,742,897)
Conversion of preferred stock to common stock		2,180			2,180			$ (2,180)
Conversion of convertible notes to common stock (in shares)	[1]		137,305,156
Conversion of convertible notes to common stock		5,218			5,218
Reclassification of warrant liability to stockholders' equity		380			380
Change in other comprehensive income		0
Share-based compensation		1,272			1,272
Balance at end of period, Common stock (in shares) at Sep. 30, 2021	[1],[2]		855,385,082
Balance at end of period at Sep. 30, 2021		7,384	$ 0	[1],[2]	10,837	1	(3,454)
Balance at beginning of period, Redeemable convertible preferred stock (in shares) at Jun. 30, 2021								412,742,897
Balance at beginning of period, Redeemable convertible preferred stock at Jun. 30, 2021								$ 2,180
Balance at end of period, Redeemable convertible preferred stock (in shares) at Sep. 30, 2021								0
Balance at end of period, Redeemable convertible preferred stock at Sep. 30, 2021								$ 0
Balance at beginning of period, Common stock (in shares) at Jun. 30, 2021	[2]		232,609,957
Balance at beginning of period at Jun. 30, 2021		(1,985)	$ 0	[2]	151	1	(2,137)
Increase (decrease) in stockholder's equity
Net loss		(1,317)					(1,317)
Shares issued in connection with stock option exercise, net of repurchases (in shares)	[2]		2,238,444
Shares issued in connection with stock option exercise, net of repurchases		6			6
Issuance of common stock in connection with initial public offering, net of issuance costs (in shares)	[2]		56,729,194
Issuance of common stock in connection with initial public offering, net of issuance costs		2,052			2,052
Issuance of common stock upon settlement of restricted stock units, net of shares withheld (in shares)	[2]		13,759,434
Issuance of common stock upon settlement of restricted stock units, net of shares withheld		(412)			(412)
Conversion of preferred stock to common stock (in shares)			412,742,897	[2]				(412,742,897)
Conversion of preferred stock to common stock		2,180			2,180			$ (2,180)
Conversion of convertible notes to common stock (in shares)	[2]		137,305,156
Conversion of convertible notes to common stock		5,218			5,218
Reclassification of warrant liability to stockholders' equity		380			380
Change in other comprehensive income		0
Share-based compensation		1,262			1,262
Balance at end of period, Common stock (in shares) at Sep. 30, 2021	[1],[2]		855,385,082
Balance at end of period at Sep. 30, 2021		7,384	$ 0	[1],[2]	10,837	1	(3,454)
Balance at beginning of period, Redeemable convertible preferred stock (in shares) at Dec. 31, 2021								0
Balance at beginning of period, Redeemable convertible preferred stock at Dec. 31, 2021								$ 0
Balance at end of period, Redeemable convertible preferred stock (in shares) at Sep. 30, 2022								0
Balance at end of period, Redeemable convertible preferred stock at Sep. 30, 2022								$ 0
Balance at beginning of period, Common stock (in shares) at Dec. 31, 2021			863,912,613
Balance at beginning of period at Dec. 31, 2021		7,293	$ 0		11,169	1	(3,877)
Increase (decrease) in stockholder's equity
Net loss		(862)					(862)
Shares issued in connection with stock option exercise, net of repurchases (in shares)			2,152,493
Shares issued in connection with stock option exercise, net of repurchases		6			6
Issuance of common stock in connection with Employee Stock Purchase Plan (in shares)			1,529,727
Issuance of common stock in connection with Employee Stock Purchase Plan		13			13
Issuance of common stock upon settlement of restricted stock units, net of shares withheld (in shares)			17,118,956
Issuance of common stock upon settlement of restricted stock units, net of shares withheld		(9)			(9)
Change in other comprehensive income		(2)				(2)
Share-based compensation		515			515
Balance at end of period, Common stock (in shares) at Sep. 30, 2022			884,713,789
Balance at end of period at Sep. 30, 2022		6,954	$ 0		11,694	(1)	(4,739)
Balance at beginning of period, Redeemable convertible preferred stock (in shares) at Jun. 30, 2022								0
Balance at beginning of period, Redeemable convertible preferred stock at Jun. 30, 2022								$ 0
Balance at end of period, Redeemable convertible preferred stock (in shares) at Sep. 30, 2022								0
Balance at end of period, Redeemable convertible preferred stock at Sep. 30, 2022								$ 0
Balance at beginning of period, Common stock (in shares) at Jun. 30, 2022			878,257,164
Balance at beginning of period at Jun. 30, 2022		7,017	$ 0		11,581	0	(4,564)
Increase (decrease) in stockholder's equity
Net loss		(175)					(175)
Shares issued in connection with stock option exercise, net of repurchases (in shares)			289,539
Shares issued in connection with stock option exercise, net of repurchases		1			1
Issuance of common stock upon settlement of restricted stock units, net of shares withheld (in shares)			6,437,108
Shares withheld related to net share settlement (in shares)			(270,022)
Shares withheld related to net share settlement		(2)			(2)
Change in other comprehensive income		(1)				(1)
Share-based compensation		114			114
Balance at end of period, Common stock (in shares) at Sep. 30, 2022			884,713,789
Balance at end of period at Sep. 30, 2022		$ 6,954	$ 0		$ 11,694	$ (1)	$ (4,739)
[1]The share amounts listed above combine common stock, Class A common stock and Class B common stock. In connection with the completion of our initial public offering, all previously outstanding shares of common stock were reclassified into Class A common stock and Class B common stock. Refer to Note 1 of the Annual Report on Form 10-K for the year ended December 31, 2021 for more information.[2]The share amounts listed above combine common stock, Class A common stock and Class B common stock. In connection with the completion of our initial public offering , all previously outstanding shares of common stock were reclassified into Class A common stock and Class B common stock. Refer to Note 1 of the Annual Report on Form 10-K for the year ended December 31, 2021 for more information.

DESCRIPTION OF BUSINESS AND SUM

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1: DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Robinhood Markets, Inc. (“RHM” and, together with its subsidiaries, “Robinhood,” the “Company,” “we,” or “us”) was incorporated in the State of Delaware on November 22, 2013. Our most significant, wholly-owned subsidiaries are: • Robinhood Financial LLC (“RHF”), a registered introducing broker-dealer; • Robinhood Securities, LLC (“RHS”), a registered clearing broker-dealer; • Robinhood Crypto, LLC (“RHC”), which provides users the ability to buy, sell, and transfer cryptocurrencies; and • Robinhood Money, LLC (“RHY”), which offers a pre-paid debit card (the “Robinhood Cash Card”) and a spending account that help customers invest, save, and earn rewards. Acting as the agent of the user, we facilitate the purchase and sale of options, cryptocurrencies, and equities through our platform by routing transactions through market makers, who are responsible for trade execution. Upon execution of a trade, users are legally required to purchase options, cryptocurrencies, or equities for cash from the transaction counterparty or to sell options, cryptocurrencies, or equities for cash to the transaction counterparty, depending on the transaction. We facilitate and confirm trades only when there are binding, matched legal obligations from the user and the market maker on both sides of the trade. Our users have ownership of the securities they transact on our platform, including those that collateralize margin loans, and, as a result, such securities are not presented on our unaudited condensed consolidated balance sheets, other than user-held fractional shares which are presented gross. Our users also have ownership of the cryptocurrencies they transact on our platform (none of which are allowed to be purchased on margin and which do not serve as collateral for margin loans); however, following our adoption of Staff Accounting Bulletin 121 (“SAB 121”), we recognize a liability to reflect our safeguarding obligation along with a corresponding asset on our balance sheet related to the cryptocurrencies we hold in custody for users (refer to Note 2 for more information on the recent adoption of SAB 121). On August 2, 2021, we closed our initial public offering (“IPO”) of 55.0 million shares of Class A common stock. On August 31, 2021, we sold an additional 4.4 million shares of Class A common stock pursuant to the option granted to the underwriters to purchase additional shares. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC for interim financial reporting. The condensed consolidated financial statements are unaudited, and in management’s opinion, include all adjustments, including normal recurring adjustments and accruals necessary for a fair presentation of the results for the interim periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full fiscal year ending December 31, 2022 or any future period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K”). There have been no material changes in our significant accounting policies as described in our consolidated financial statements included in our audited annual consolidated financial statements for the year ended December 31, 2021, other than recently adopted accounting pronouncements as described in Note 2. The unaudited condensed consolidated financial statements include the accounts of RHM and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. Certain prior-period amounts have been reclassified to conform to the current period’s presentation. The impact of these reclassifications is immaterial to the presentation of the unaudited condensed consolidated financial statements. Use of Estimates In accordance with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses, as well as related disclosures, on the unaudited condensed consolidated financial statements. We base our estimates on current and historical experience and other assumptions we believe to be reasonable under the circumstances. Assumptions and estimates used in preparing our unaudited condensed consolidated financial statements include those related to revenue recognition, the determination of allowances for credit losses, the capitalization and estimated useful life of internally developed software, investment valuation, valuation of user cryptocurrencies safeguarding obligation and the corresponding asset, contingent liabilities, useful lives of property and equipment, the incremental borrowing rate used to determine the present value of lease payments, the valuation and recognition of share-based compensation, the valuation of the convertible notes and warrant liability, the valuation and estimated useful lives of acquired intangible assets, uncertain tax positions, accrued liabilities, and the recognition and measurement of current and deferred income tax assets and liabilities. Actual results could differ from these estimates and could have a material adverse effect on our operating results. Concentration of Revenue and Credit Risk Concentrations of Revenue We derived transaction-based revenues from individual market makers in excess of 10% of total revenues, as follows: Three Months Ended Nine Months Ended 2021 2022 2021 2022 Market maker: Citadel Securities, LLC 23 % 12 % 21 % 17 % Entities affiliated with Susquehanna International Group, LLP (1) 13 % 6 % 11 % 9 % Entities affiliated with Wolverine Holdings, L.P. (2) 13 % 6 % 10 % 8 % Tai Mo Shan Limited (3) 8 % 2 % 17 % 4 % All others individually less than 10% 16 % 30 % 19 % 25 % Total as percentage of total revenue: 73 % 56 % 78 % 63 % ________________ (1) Consists of Global Execution Brokers, LP and G1X Execution Services, LLC (2) Consists of Wolverine Execution Services, LLC and Wolverine Securities, LLC (3) Member of Jump Trading Group Concentrations of Credit We are engaged in various trading and brokerage activities in which the counterparties primarily include broker-dealers, banks, and other financial institutions. In the event our counterparties do not fulfill their obligations, we may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty. Default of a counterparty in equities and options trades, which are facilitated through clearinghouses, would generally be spread among the clearinghouse's members rather than falling entirely on us. It is our policy to review, as necessary, the credit standing of each counterparty. Cryptocurrencies We act as an agent in the cryptocurrency transactions that users initiate on our platform (i.e., in their RHC accounts). We have determined we are an agent, for accounting purposes, because we do not control the cryptocurrency before delivery to the user, we are not primarily responsible for the delivery of cryptocurrency to our users, we are not exposed to risks arising from fluctuations of the market price of cryptocurrency before delivery to the user, and we do not set the prices charged to users. After purchasing cryptocurrency on the platform, users are the legal owners of cryptocurrency held under custody by us and users have all the rights and benefits of ownership, including the rights to appreciation and depreciation of the cryptocurrency. We do not allow users to purchase cryptocurrency on margin and cryptocurrency does not serve as collateral for margin loans. We hold cryptocurrency in custody for users in one or more omnibus cryptocurrency wallets; we do not utilize third-party custodians. We hold cryptographic key information and maintain internal record keeping for the cryptocurrencies we hold in custody for users, and we are obligated to secure such assets from loss or theft. Based on the terms of our user agreement and applicable law, we believe the cryptocurrency we hold in custody for users of our platform should be respected as users’ property (and should not be available to satisfy the claims of our general creditors) in the event we were to enter bankruptcy. For additional information relating to platform bankruptcy generally, see Item 2, Part II of this Quarterly Report on Form 10-Q, “Risk Factors—Risks Related to Cryptocurrency Products and Services—Cryptocurrency laws, regulations, and accounting standards are often difficult to interpret and are rapidly evolving in ways that are difficult to predict. Changes in these laws and regulations, or our failure to comply with them, could negatively impact cryptocurrency trading on our platform.” Securities Borrowing and Lending We operate a securities lending program under which shares that users have pledged to us to collateralize their margin borrowing are lent by us to third parties (“Margin Securities Lending”) and a securities lending program under which we borrow fully-paid shares from participating users and lend them to third parties (“Fully-Paid Securities Lending”). We also occasionally borrow securities from third parties for operational purposes, and we occasionally lend to third parties securities that we hold for our own account (such as our holdings to support fractional share operations). When we lend securities to third parties, the borrower provides cash as collateral. We earn interest revenue on cash collateral deposited by borrowers, and we can also earn additional revenue for lending certain securities based on demand for those securities. For our Fully-Paid Securities Lending, portions of such revenues are paid to participating users, and those payments are recorded as interest expense. For the three and nine months ended September 30, 2022 , interest revenue earned and interest expenses incurred related to the Fully-Paid Securities Lending program were not material. When we borrow securities from users participating in the Fully-Paid Securities Lending program (or from third parties), we provide cash as collateral and we record a receivable representing our right to the return of that collateral. Commencing in the quarter ended September 30, 2022, the amount of that receivable is presented in "securities borrowed" on our consolidated balance sheets. Prior period amounts (which were not material) have been reclassified to conform to the current presentation. In the case of our Fully-Paid Securities Lending program, the cash collateral is held by a third-party bank in a deposit account pledged to the user, which we administer as the user’s agent. Users are not entitled to interest on such account, and any interest earned is for our benefit. Our authorization from users to lend shares that collateralize their margin borrowing is found in our margin account agreement, our borrowing of fully-paid shares from users is conducted under the terms of our Fully-Paid Securities Lending program to which users consent when they enroll in that program, and substantially all of our securities lending and borrowing transactions with third parties are conducted under the terms of an industry-standard master securities loan agreement (“MSLA”), which has an open contractual term and may be terminated upon notice by either party. We have also entered into fixed-term securities lending agreements with two financial institution counterparties (the “Fixed-Term Securities Lending Agreements”). One of these agreements has a contractual term of 30 days per lending transaction with a daily minimum commitment of $25 million and the other has a contractual term of 21 days per lending transaction with a daily minimum commitment of $35 million. Under these two agreements we lend to the counterparties (for a fixed term) securities that collateralize users’ margin borrowing, and we obtain cash collateral from the counterparties that we use to provide liquidity support for our margin lending to users. Each of the MSLAs and Fixed-Term Securities Lending Agreements establishes a master netting arrangement between the lender and the borrower. A master netting arrangement is an agreement between two counterparties that creates a right of set-off for amounts due to and from that same counterparty that is enforceable in the event of a default or bankruptcy. In connection with our securities borrowing and lending activities, however, our policy is to recognize all amounts that are subject to master netting arrangements on a gross basis in our consolidated balance sheets even though some of those amounts may be eligible for offset (i.e., to be presented on a net basis) under GAAP. Refer to Note 9 for more information and the gross presentation in tabular format. Variable Interest Entities We evaluate our ownership, contractual and other interests in entities to determine if we have a variable interest in an entity. These evaluations are complex, involve judgment, and the use of estimates and assumptions based on available historical and prospective information, among other factors. If we determine that an entity for which we hold a contractual or ownership interest in is a variable interest entity (“VIE”) and that we are the primary beneficiary, we consolidate such entity in the consolidated financial statements. The primary beneficiary of a VIE is the party that meets both of the following criteria: (1) has the power to make decisions that most significantly affect the economic performance of the VIE; and (2) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Periodically, we determine whether any changes in the interest or relationship with the entity impacts the determination of whether we are still the primary beneficiary. If we are not deemed to be the primary beneficiary in a VIE, we account for the investment or other variable interests in a VIE in accordance with applicable GAAP. Non-Marketable Equity Securities Investments in equity securities without readily determinable fair values are initially recorded at cost and are subsequently adjusted to fair value for impairments and price changes from observable transactions in the same or a similar security from the same issuer. Non-marketable equity securities were not material for the periods presented and were included in other non-current assets on the unaudited condensed consolidated balance sheets.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 2: RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements In March 2022, the staff of the SEC issued SAB 121, which provides guidance to entities that have obligations to safeguard crypto-assets held in custody on behalf of their platform users. SAB 121 states that the entity should recognize a liability representing its obligation to safeguard such crypto-assets accompanied by a corresponding asset on its balance sheet representing the platform users’ crypto-assets held in custody measured at fair value initially and at each subsequent reporting period. SAB 121 also states that accompanying disclosures should be considered regarding the entity’s obligation to safeguard crypto-assets for platform users. We adopted SAB 121 as part of the financial statements covering the interim period ended June 30, 2022, with retrospective application as of the beginning of fiscal year 2022. As a result of (and solely by virtue of) our adoption of SAB 121, we recognized an asset captioned “Asset related to user cryptocurrencies safeguarding obligation” and a liability captioned “User cryptocurrencies safeguarding obligation” on our unaudited condensed consolidated balance sheets. As of September 30, 2022, the carrying value of each was $9.4 billion. We also added disclosures to Note 1 - Description of business and summary of significant accounting policies and Note 7 - Investments and fair value measurement. Recently Issued Accounting Pronouncements Not Yet Adopted In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This guidance requires contract assets and contract liabilities from contracts with customers that are acquired in a business combination to be recognized and measured as if the acquirer had originated the original contract. The guidance is effective for fiscal years beginning after December 15, 2022 on a prospective basis, including interim periods within those fiscal years. Early adoption is permitted. As of September 30, 2022, the planned adoption of this guidance is not expected to have any impact on our financial statements.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	9 Months Ended
	Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]
BUSINESS COMBINATIONS	NOTE 3: BUSINESS COMBINATIONS Pending Acquisition of Ziglu On April 16, 2022, we entered into a definitive stock purchase agreement to acquire all outstanding equity of Ziglu Limited (“Ziglu”), a U.K.-based electronic money institution and crypto-asset firm that allows customers to buy and sell eligible cryptocurrencies, earn yield via its ‘Boost’ products, pay using a debit card, and move and spend money without fees. On August 15, 2022, the stock purchase agreement was amended, resulting in a purchase price reduction. Under the amendment, the aggregate purchase consideration to be paid by us is approximately $73 million. This purchase price remains subject to customary adjustments as set forth in the agreement, including a deduction to account for any pre-closing advances we make to Ziglu for working capital purposes in accordance with the terms of the agreement. To date, we have funded advances of $12 million in the aggregate which Ziglu may use for working and regulatory capital needs until close, and will either i) be treated a direct deduction to the purchase price at close, ii) becomes convertible into Ziglu equity upon a next round of financing, IPO, sale or dissolution of Ziglu, or iii) becomes convertible at our option beginning July 16, 2023. Purchase consideration will be payable primarily in cash with the remainder to be paid in stock (with the number of shares determined at closing). The transaction is subject to regulatory approval and other customary closing conditions. Based on communications with regulators to date, we believe the transaction will close, if at all, no sooner than the first quarter of 2023. Advances made to Ziglu were accounted for as non-marketable equity securities under the fair value alternative, considering the securities lack a readily determinable fair value. We are exposed to Ziglu’s economic risks and rewards through the funded advances, which represent variable interests. The

REVENUES

REVENUES	9 Months Ended
	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
REVENUES	NOTE 4: REVENUES Disaggregation of Revenues The following table presents our revenue disaggregated by revenue source: Three Months Ended Nine Months Ended (in millions) 2021 2022 2021 2022 Transaction-based revenues: Options $ 164 $ 124 $ 527 $ 364 Cryptocurrencies 51 51 372 163 Equities 50 31 235 96 Other 2 2 4 5 Total transaction-based revenues 267 208 1,138 628 Net interest revenues: Margin interest 34 48 93 122 Securities lending, net 33 29 107 76 Interest on investments and corporate cash — 29 1 40 Interest on segregated cash and cash equivalents and deposits 1 20 3 27 Cash sweep 1 8 3 10 Interest expenses related to credit facilities (6) (6) (14) (18) Total net interest revenues 63 128 193 257 Other revenues 35 25 121 93 Total net revenues $ 365 $ 361 $ 1,452 $ 978 Contract Balances Contract receivables are recognized when we have an unconditional right to invoice and receive payment under a contract and are derecognized when cash is received. Transaction-based revenue receivables due from market makers are reported in receivables from brokers, dealers, and clearing organizations while other revenue receivables due from our relationship with a third-party investor communications company are reported in other current assets on the unaudited condensed consolidated balance sheets. Contract liabilities, which consist of unearned subscription revenue, are recognized when users remit cash payments in advance of the time we satisfy our performance obligations and are recorded as other current liabilities on the unaudited condensed consolidated balance sheets. The table below sets forth contract receivables and liabilities for the period indicated: (in millions) Contract Receivables Contract Liabilities Beginning of period, January 1, 2022 $ 83 $ 3 End of period, September 30, 2022 73 3 Changes during the period $ (10) $ —

RESTRUCTURING ACTIVITIES

RESTRUCTURING ACTIVITIES	9 Months Ended
	Sep. 30, 2022
Restructuring and Related Activities [Abstract]
RESTRUCTURING ACTIVITIES	NOTE 5: RESTRUCTURING ACTIVITIES April 2022 Restructuring On April 26, 2022, we announced a reduction in force (the “April 2022 Restructuring”) as part of our efforts to improve efficiency and operating costs, increase our velocity, and ensure that we are responsive to the changing needs of our customers. The April 2022 Restructuring involved approximately 330 employees, representing approximately 9% of our full-time employees at that time. We allowed affected employees’ share-based awards to continue vesting over a transitional period (generally two months during which they remained employed but were not expected to provide active service), which were generally accounted for as a modification allowing a portion of the awards to vest that otherwise would have been forfeited. However, as a result of the reversal of share-based compensation expense that had been previously recognized (under the accelerated attribution method, generally), the April 2022 Restructuring resulted in a net reduction to share-based compensation of $24 million, which was recognized in the second quarter of 2022 (refer to Note 11 for more information). In addition, we recognized $17 million of cash restructuring and related charges in the second quarter of 2022, which primarily consisted of employee-related wages, benefits, and severance expense. As of September 30, 2022, all of the restructuring charges relating to the April 2022 Restructuring had been paid in full. August 2022 Restructuring On August 2, 2022, we announced an additional reduction in force involving approximately 780 employees, representing approximately 23% of our full-time employees at the time, the planned closure of two offices, and related matters (the “August 2022 Restructuring”). These actions were part of a Company reorganization into a general manager (“GM”) structure under which GMs have assumed broad responsibility for our individual businesses. As we continued to execute the August 2022 Restructuring, our lower headcount led us to evaluate our real estate portfolio. On September 30, 2022, we decided to partially or completely close five additional offices as part of the August 2022 Restructuring, four of which were not occupied. In connection with the office closures describe above, we determined the carrying amount of the right-of-use assets and associated leasehold improvements exceeded their respective fair value, resulting in impairments of $32 million and $15 million. We utilized a probability-weighted approach and market estimates from a third-party real estate brokerage firm to project sublease income cash flows, net of brokerage commissions, for each of the office spaces and applied a market rate of return on similar assets as a discount factor to determine fair value. We attributed the impairments on a relative carrying value basis between the right-of-use assets and leasehold improvements. In addition, we accelerated depreciation of $9 million related to other fixed assets. The impairments were recognized in general and administrative expense on our unaudited condensed consolidated statements of operations. Similar to the April 2022 Restructuring, we allowed affected employees’ share-based awards to continue vesting over a transitional period allowing a portion of the awards to vest that otherwise would have been forfeited. However, as a result of the reversal of share-based compensation expense that had been previously recognized (under the accelerated attribution method, generally), the August 2022 Restructuring resulted in a net reduction to share-based compensation of $53 million, which was recognized in the third quarter of 2022 (refer to Note 11 for more information). In addition, we recognized $34 million of cash restructuring and related charges primarily related to employee-related wages, benefits, and severance expense. As of September 30, 2022, $21 million of the restructuring charges relating to the August 2022 Restructuring remained unpaid and were included in accounts payable and accrued liabilities on our unaudited condensed consolidated balance sheets, substantially all of which are expected to be paid in the fourth quarter of 2022.

ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES	9 Months Ended
	Sep. 30, 2022
Credit Loss [Abstract]
ALLOWANCE FOR CREDIT LOSSES	NOTE 6: ALLOWANCE FOR CREDIT LOSSES The following table summarizes the allowance for credit losses, which substantially all relate to unsecured balances of receivables from users due to “Fraudulent Deposit Transactions” and losses on margin lending. Fraudulent Deposit Transactions are fraudulent, unlawful or otherwise inappropriate customer behavior, such as when customers initiate deposits into their accounts, make trades on our platform using a short-term extension of credit from us, and then repatriate or reverse the deposits, resulting in a loss to us of the credited amount. Three Months Ended Nine Months Ended (in millions) 2021 2022 2021 2022 Beginning balance $ 35 $ 18 $ 34 $ 40 Provision for credit losses 26 9 62 28 Write-offs (23) (9) (58) (50) Ending balance $ 38 $ 18 $ 38 $ 18

INVESTMENTS AND FAIR VALUE MEAS

INVESTMENTS AND FAIR VALUE MEASUREMENT	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
INVESTMENTS AND FAIR VALUE MEASUREMENT	NOTE 7: INVESTMENTS AND FAIR VALUE MEASUREMENT Investments We invest in marketable debt securities which are classified as available-for-sale. We elected the fair value option on our available-for-sale debt securities and carry them at fair value with adjustments to fair value presented in other expense (income), net on our unaudited condensed consolidated statements of operations. Investments on our unaudited condensed consolidated balance sheet consisted of the following: December 31, 2021 (in millions) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Debt securities: Asset-backed securities $ 5 $ — $ — $ 5 Commercial paper 14 — — 14 Corporate bonds 7 — — 7 Government bonds 1 — — 1 Total investments $ 27 $ — $ — $ 27 September 30, 2022 (in millions) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Debt securities: Asset-backed securities $ 4 $ — $ — $ 4 Commercial paper 16 — — 16 Corporate bonds 6 — — 6 Government bonds 6 — — 6 Total investments $ 32 $ — $ — $ 32 All of our debt securities as of December 31, 2021 and September 30, 2022 had a stated contractual maturity or redemption date within one year. Fair Value of Financial Instruments Financial assets and liabilities measured at fair value on a recurring basis were presented on our unaudited condensed consolidated balance sheets as follows: December 31, 2021 (in millions) Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 4,004 $ — $ — $ 4,004 Investments: Asset-backed securities — 5 — 5 Commercial paper — 14 — 14 Corporate bonds — 7 — 7 Government bonds 1 — 1 User-held fractional shares 1,834 — — 1,834 Other current assets: Equity securities - securities owned 14 — — 14 Total financial assets $ 5,853 $ 26 $ — $ 5,879 Liabilities Fractional share repurchase obligations $ 1,834 $ — $ — $ 1,834 Total financial liabilities $ 1,834 $ — $ — $ 1,834 September 30, 2022 (in millions) Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 629 $ — $ — $ 629 Investments: Asset-backed securities — 4 — 4 Commercial paper — 16 — 16 Corporate bonds — 6 — 6 Government bonds 6 — — 6 Asset related to user cryptocurrencies safeguarding obligation — 9,361 — 9,361 User-held fractional shares 1,029 — — 1,029 Other current assets: Equity securities - securities owned 7 — — 7 Total financial assets $ 1,671 $ 9,387 $ — $ 11,058 Liabilities User cryptocurrencies safeguarding obligation $ — $ 9,361 $ — $ 9,361 Fractional shares repurchase obligations 1,029 — — 1,029 Total financial liabilities $ 1,029 $ 9,361 $ — $ 10,390 During the nine months ended September 30, 2022, we did not have any transfers in or out of Level 3 assets or liabilities. Safeguarded user cryptocurrencies Safeguarded user cryptocurrencies were as follows: (in millions) September 30, 2022 Ethereum (ETH) $ 2,783 Bitcoin (BTC) 2,759 Dogecoin (DOGE) 2,603 Other 1,216 Total user cryptocurrencies safeguarding obligation and corresponding asset $ 9,361 The fair value of the user cryptocurrencies safeguarding obligation and the corresponding asset were determined based on observed market pricing representing the last price executed for trades of each cryptocurrency as of September 30, 2022. Convertible Notes and Warrant Liability In February 2021, we issued two tranches of convertible notes (the “convertible notes”) and granted to each purchaser of the Tranche I convertible notes a warrant to purchase equity securities (the “warrant liability”). We elected the fair value option for both tranches of the convertible notes as we believe it best reflects their underlying economics. Under the fair value option, the convertible notes were initially measured at their issuance date estimated fair value and subsequently remeasured at their estimated fair value at the end of each reporting period. We elected to present the component related to accrued interest in the change in fair value of convertible notes and warrant liability. Upon the closing of our IPO, all of our outstanding convertible notes and warrants were reclassified from liability to equity and the fair value was no longer required to be remeasured. For the three and nine months ended September 30, 2021, due to changes in fair value, we recorded expense of $28 million and $1.9 billion for the convertible notes, none of which was attributable to the change in the instrument-specific credit risk, and income of $2 million and $127 million for the warrant liability in our unaudited condensed consolidated statements of operations. The following table sets forth a summary of the changes in the estimated fair value of our convertible notes and warrant liability: (in millions) Convertible notes Warrant liability Beginning of period, January 1, 2021 $ — $ — Issued during the period 3,299 253 Change in fair value 1,919 127 Reclassifications to equity (5,218) (380) End of period, September 30, 2021 $ — $ —

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 8: INCOME TAXES Three Months Ended Nine Months Ended (in millions, except percentages) 2021 2022 2021 2022 Loss before income taxes $ (1,367) $ (174) $ (3,265) $ (859) Provision for (benefit from) income taxes (50) 1 (1) 3 Effective tax rate 3.7 % (0.8) % — % (0.4) % Our tax provision for interim periods is determined using an estimated annual effective tax rate (“ETR”), adjusted for discrete items arising in the period. In each quarter, we update our estimated annual ETR and make a year-to-date calculation of the provision. For the three and nine months ended September 30, 2021, the ETR differs from the U.S. federal statutory rate primarily due to the recognition of tax benefits from share-based compensation upon the IPO offset by the change in valuation allowance on our remaining U.S. federal and state deferred tax assets. For the nine months ended September 30, 2021, the ETR differs from the U.S. federal statutory rate primarily due to the partial release of our valuation allowance resulting from the recognition of net deferred tax liabilities with the Say Technologies acquisition, and the change in valuation allowance on our remaining U.S. federal and state deferred tax assets partially offset by our current state taxes payable. The acquired net deferred tax liabilities primarily consisted of the allocation of the purchase consideration to non-deductible identifiable intangible assets related to developed technology, customer relationship and trade names. For the three and nine months ended September 30, 2022, the ETR was lower than the U.S. federal statutory rate primarily due to the full valuation allowance on our U.S. federal and state deferred tax assets offset by our current state taxes payable. The realization of tax benefits of net deferred tax assets is dependent upon future levels of taxable income, of an appropriate character, in the periods the items are expected to be deductible or taxable. Based on the available objective evidence during the nine months ended September 30, 2022, we believe it is more likely than not that the tax benefits of the remaining U.S. net deferred tax assets may not be realized.

SECURITIES BORROWING AND LENDIN

SECURITIES BORROWING AND LENDING	9 Months Ended
	Sep. 30, 2022
Offsetting [Abstract]
SECURITIES BORROWING AND LENDING	NOTE 9: SECURITIES BORROWING AND LENDING When we lend securities to third parties we receive cash as collateral for the securities loaned. In the table below, the cash collateral we hold related to loaned securities is presented in “securities loaned” and the fair value of securities lent is presented in “security collateral pledged.” Similarly, when we borrow securities from third parties or fully-paid securities from users, we provide cash collateral. In the table below, the amount of that cash collateral is presented in “securities borrowed” and the fair value of the securities received is presented in “security collateral received.” Our securities lending transactions are subject to enforceable master netting arrangements with other broker-dealers; however, we do not net securities borrowing and lending transactions. Therefore, activity related to securities borrowing and lending activities are presented gross in our consolidated balance sheets (refer to Note 1 for more information). The following tables set forth certain balances related to our securities borrowing and lending activities as of December 31, 2021 and September 30, 2022: December 31, September 30, (in millions) 2021 2022 Assets Securities borrowed Gross amount of securities borrowed $ — $ 139 Gross amount offset on the consolidated balance sheets — — Amounts of assets presented on the consolidated balance sheets — 139 Gross amount of securities borrowed not offset on the consolidated balance sheets: Securities borrowed — 139 Security collateral received — (135) Net amount $ — $ 4 Liabilities Securities loaned Gross amount of securities loaned $ 3,651 $ 1,423 Gross amount of securities loaned offset on the consolidated balance sheets — — Amounts of liabilities presented on the consolidated balance sheets 3,651 1,423 Gross amount of securities loaned not offset on the consolidated balance sheets: Securities loaned 3,651 1,423 Security collateral pledged (3,427) (1,288) Net amount $ 224 $ 135 As described in Note 1, we obtain securities on terms that permit us to pledge and/or transfer securities to others. As of December 31, 2021 and September 30, 2022, we were permitted to re-pledge securities with a fair value of $9.21 billion and $5.45 billion under margin account agreements with users, and securities with a fair value of $0.3 million and $0.1 million that we had borrowed under MSLAs with third parties. Under the Fully-Paid Securities Lending program, as of September 30, 2022, we were

FINANCING ACTIVITIES AND OFF-BA

FINANCING ACTIVITIES AND OFF-BALANCE SHEET RISK	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
FINANCING ACTIVITIES AND OFF-BALANCE SHEET RISK	NOTE 10: FINANCING ACTIVITIES AND OFF-BALANCE SHEET RISK Revolving Credit Facilities In October 2019, we entered into a $200.0 million committed and unsecured revolving line of credit with a syndicate of banks maturing in October 2023 (the “October 2019 Credit Facility”). In October 2020, we amended the October 2019 Credit Facility and, among other things, increased the aggregate committed and unsecured revolving line of credit amount to $600.0 million with a maturity date of October 29, 2024. In April 2021, we further increased the aggregate credit amount available under the October 2019 Credit Facility to $625.0 million. Loans under the October 2019 Credit Facility bear interest, at our option, at a per annum rate of either (a) the Eurodollar Rate plus 1.00% or (b) the Alternative Base Rate. The Eurodollar Rate is equal to the Eurodollar Base Rate, which is derived from London Interbank Offered Rate (“LIBOR”), multiplied by the Statutory Reserve Rate (as defined in the agreement) at the applicable time. The Alternative Base Rate is the greatest of (i) the prime rate then in effect, (ii) the Federal Reserve Bank of New York rate then in effect plus 0.50% and (iii) the Eurodollar Rate at such time for a one month interest period plus 1.00%. If LIBOR is unavailable or if we and the administrative agent elect, the Eurodollar Rate will be replaced by a rate calculated with reference to the Secured Overnight Financing Rate (as defined in the agreement) as set forth in the October 2019 Credit Facility agreement or an alternate benchmark rate selected by us and the administrative agent. There were no outstanding borrowings under the October 2019 Credit Facility at December 31, 2021 and September 30, 2022. We are obligated to pay a commitment fee calculated as a per annum rate equal to 0.10% on any unused amount of the October 2019 Credit Facility quarterly in arrears. In April 2021, we entered into a $2.18 billion committed and secured revolving line of credit, subject to certain borrowing base limitations, with a maturity date of April 15, 2022 (the “April 2021 Credit Facility”). Borrowings from the April 2021 Credit Facility must be specified to be Tranche A, Tranche B, Tranche C or a combination thereof. Tranche A loans are secured by users’ securities purchased on margin and are used primarily to finance margin loans. Tranche B loans are secured by the right to the return from National Securities Clearing Corporation (“NSCC”) of NSCC margin deposits and cash and property in a designated collateral account and used for the purpose of satisfying NSCC deposit requirements. Tranche C loans are secured by the right to the return of eligible funds from any reserve account of the borrower and cash and property in a designated collateral account and used for the purpose of satisfying reserve requirements under Rule 15c3-3 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Interest for this line of credit is determined at the time a loan is initiated and the applicable interest rate is calculated as a per annum rate equal to 1.25% for Tranche A loans and 2.50% for Tranche B and Tranche C loans, plus the Short-Term Funding Rate at the applicable time. The Short-Term Funding Rate is equal to the greatest of (i) the Eurodollar Rate for a one month interest period on such day, which equals to the Eurodollar Base Rate that is derived from LIBOR, multiplied by the Statutory Reserve Rate at the applicable time, (ii) the Federal Funds Effective Rate (as defined in the agreement) and (iii) the Overnight Bank Funding Rate (as defined in the agreement) in effect on such day. There were no outstanding borrowings under the April 2021 Credit Facility at December 31, 2021. We are obligated to pay a commitment fee calculated as a per annum rate equal to 0.50% on any unused amount of the April 2021 Credit Facility quarterly in arrears. In April 2022, we entered into a $2.28 billion committed and secured revolving line of credit (the “April 2022 Credit Facility”) with a maturity date of April 10, 2023, amending and restating the April 2021 Credit Facility. Under circumstances described in the agreement for the April 2022 Credit Facility, the aggregate commitments may be increased by up to $1.14 billion, for a total commitment under the agreement of $3.65 billion. The April 2022 Credit Facility terms are the same as the April 2021 Credit Facility in all material aspects except for the Short-Term Funding Rate is equal to the greatest of (i) Daily Simple SOFR (as defined in the agreement) plus 0.10%, (ii) the Federal Funds Effective Rate (as defined in the agreement) and (iii) the Overnight Bank Funding Rate (as defined in the agreement), in each case, in effect on such day. There were no outstanding borrowings under the April 2022 Credit Facility at September 30, 2022. The October 2019 Credit Facility and April 2022 Credit Facility contain customary covenants, including limitations with respect to debt, liens, fundamental changes, asset sales, restricted payments, investments and transactions with affiliates, subject to certain exceptions. We were in compliance with all covenants under these facilities as of December 31, 2021 and September 30, 2022, as applicable. Off-Balance Sheet Risk two one

COMMON STOCK AND STOCKHOLDERS'

COMMON STOCK AND STOCKHOLDERS' (DEFICIT) EQUITY	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
COMMON STOCK AND STOCKHOLDERS' (DEFICIT) EQUITY	NOTE 11: COMMON STOCK AND STOCKHOLDERS' (DEFICIT) EQUITY Preferred Stock As of September 30, 2022, no terms of the preferred stock had been designated, no shares of preferred stock were outstanding, and we had no present plan to issue any shares of preferred stock. Common Stock We have three authorized classes of common stock: Class A, Class B, and Class C. Holders of our Class A common stock are entitled to one vote per share on all matters to be voted upon by our stockholders, holders of our Class B common stock are entitled to 10 votes per share on all matters to be voted upon by our stockholders and, except as otherwise required by applicable law, holders of our Class C common stock are not entitled to vote on any matter to be voted upon by our stockholders. The holders of our Class A common stock and Class B common stock vote together as a single class, unless otherwise required by our Charter or applicable law. The convertible notes issued in February 2021 (see Note 7 for further information) were converted into 137.3 million shares of Class A common stock at a conversion price of $26.60 per share upon completion of our IPO. Warrants As of September 30, 2022, warrants outstanding consisted of warrants to purchase 14.3 million shares of Class A common stock with a strike price of $26.60 per share for a maximum purchase amount of $380 million. The warrants expire on February 12, 2031 and can be exercised in cash or for net shares at the holder’s option. As of September 30, 2022, the warrants have not been exercised and are included as a component of additional paid in capital on the unaudited condensed consolidated balance sheets. Equity Incentive Plans Amended and Restated 2013 Stock Plan and 2020 Equity Incentive Plan Our Amended and Restated 2013 Stock Plan, as amended (the “2013 Plan”), and our 2020 Equity Incentive Plan, as amended (the “2020 Plan”), provided for share-based awards to eligible participants, granted as incentive stock options (“ISOs”), non-statutory stock options (“NSOs”), restricted stock units ("RSUs"), stock appreciation rights (“SARs”) or restricted stock awards (“RSAs”). Our 2013 Plan was terminated in connection with adoption of our 2020 Plan, and our 2020 Plan was terminated in connection with the adoption of our 2021 Plan (defined below) but any awards outstanding under our 2013 Plan and 2020 Plan remain in effect in accordance with their terms. Any shares that were or otherwise would become available for grant under the 2013 Plan or 2020 Plan will be available for grant under the 2021 Plan. No new awards may be granted under our 2013 Plan or 2020 Plan. 2021 Omnibus Incentive Plan Our 2021 Omnibus Incentive Plan (the “2021 Plan”) became effective on July 27, 2021, and provides for the grant of share-based awards (such as options, including ISOs and NSOs, SARs, RSAs, RSUs, performance units, and other equity-based awards) and cash-based awards. As of September 30, 2022, an aggregate of 360 million shares had been authorized for issuance under the 2013 Plan, 2020 Plan, and 2021 Plan, of which 90 million shares had been issued under the plans, 146 million shares were reserved for issuance upon the exercise or settlement of outstanding equity awards under the plans, and 123 million shares remained available for new grants under the 2021 Plan. Stock Option Activity A summary of stock option activity for the nine months ended September 30, 2022 is as follows: Number of Shares Weighted-Average Exercise Price Weighted- Average Remaining Life Total Intrinsic Value (in millions) Balance at December 31, 2021 14,527,468 $ 2.20 5.37 $ 226 Granted during the period 4,463,248 14.15 Exercised during the period (2,272,363) 2.22 Cancelled and forfeited during the period (812,778) 12.90 Balance at September 30, 2022 15,905,575 $ 5.01 4.93 $ 96 Options vested and expected to vest at September 30, 2022 15,905,575 $ 5.01 4.93 $ 96 Options exercisable at September 30, 2022 11,916,639 $ 2.05 4.58 $ 96 Time-Based RSUs We grant RSUs that vest upon the satisfaction of a time-based service condition (“Time-Based RSUs”). The following table summarizes the activity related to our Time-Based RSUs for the nine months ended September 30, 2022: Number of RSUs Weighted- average grant date fair value Unvested at December 31, 2021 49,428,070 $ 31.78 Granted 59,499,760 11.70 Vested (17,524,831) 23.37 Forfeited (19,475,105) 25.88 Unvested at September 30, 2022 71,927,894 $ 18.81 Market-Based RSUs In 2019 and 2021, we granted to our founders RSUs under which vesting is conditioned upon both the achievement of share price targets and the continued employment by each recipient over defined service periods (“Market-Based RSUs”). The following table summarizes the activity related to our Market-Based RSUs for the nine months ended September 30, 2022: Eligible to Vest (1) Not Eligible to Vest (2) Total Number of RSUs Weighted- average grant date fair value Unvested at December 31, 2021 1,267,918 57,650,926 58,918,844 $ 23.50 Granted — — — Vested (345,796) — (345,796) 2.34 Forfeited — — — Unvested at September 30, 2022 922,122 57,650,926 58,573,048 $ 23.63 ________________ (1) Represents RSUs that became eligible to vest upon achievement of share price targets and vest upon satisfaction of time-based service requirements. (2) Represents RSUs that have not yet become eligible to vest because share price targets have not yet been achieved. Share-Based Compensation The following table presents share-based compensation on our unaudited condensed consolidated statements of operations for the periods indicated: Three Months Ended Nine Months Ended (in millions) 2021 2022 2021 2022 Brokerage and transaction $ 6 $ 2 $ 6 $ 4 Technology and development 503 25 505 166 Operations 16 — 16 5 Marketing 41 — 41 3 General and administrative 678 83 686 316 Total $ 1,244 $ 110 $ 1,254 $ 494 The following table presents share-based compensation by award type for the periods indicated: Three Months Ended Nine Months Ended (in millions) 2021 2022 2021 2022 Time-Based RSUs $ 881 $ 27 $ 889 $ 235 Market-Based RSUs 360 79 360 245 Employee Share Purchase Plan (“ESPP”) 2 2 2 9 Options 1 2 3 5 Total $ 1,244 $ 110 $ 1,254 $ 494 The April 2022 Restructuring and the August 2022 Restructuring resulted in net reductions of $24 million and $53 million in share-based compensation expense, recognized in the three months ended June 30, 2022 and September 30, 2022, respectively. Both reductions were substantially all related to Time-Based RSUs. The net reductions were primarily recognized in technology and development expense, $16 million and $22 million, and general and administrative expense, $6 million and $28 million. We capitalized share-based compensation expense related to internally developed software of $4 million and $21 million during the three and nine months ended September 30, 2022. The corresponding amount during the three and nine months ended September 30, 2021 was $20 million in both periods. As of September 30, 2022, there was $1.4 billion of unrecognized share-based compensation expense that is expected to be recognized over a weighted-average period of 2.1 years . Scheduled vesting for awards outstanding as of September 30, 2022, is as follows: (in millions, except for number of shares) Number of Shares (1) Expense Remainder of 2022 8,513,485 $ 194 2023 28,262,503 577 2024 20,943,065 378 2025 14,571,511 253 2026 4,565,337 48 Total 76,855,901 $ 1,450 ________________ (1) Excludes future ESPP shares and Market-Based RSUs for which the share price target has not been met as we cannot forecast the vesting of these shares. The above schedule describes awards actually outstanding on September 30, 2022, without any adjustments for potential subsequent forfeitures, which are recognized as they occur, or subsequent equity grants.

NET LOSS PER SHARE

NET LOSS PER SHARE	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
NET LOSS PER SHARE	NOTE 12: NET LOSS PER SHARE We present net loss per share using the two-class method required for multiple classes of common stock. The rights, including the liquidation and dividend rights, of the holders of Class A common stock and Class B common stock are identical, except with respect to voting. As the liquidation and dividend rights are identical for Class A common stock and Class B common stock, the undistributed earnings are allocated on a proportionate basis and the resulting loss per share will, therefore, be the same for both Class A common stock and Class B common stock on an individual or combined basis. The following table presents the calculation of basic and diluted loss per share: (in millions, except share and per share data) Three Months Ended Nine Months Ended 2021 2022 2021 2022 Net loss $ (1,317) $ (175) $ (3,264) $ (862) Less: allocation of earnings to participating securities — — — — Net loss attributable to common stockholders $ (1,317) $ (175) $ (3,264) $ (862) Weighted-average common shares outstanding - basic 638,168,188 882,356,575 368,518,894 875,055,571 Dilutive effect of stock options and unvested shares — — — — Weighted-average common shares used to compute diluted loss per share 638,168,188 882,356,575 368,518,894 875,055,571 Net loss per share attributable to common stockholders: Basic $ (2.06) $ (0.20) $ (8.85) $ (0.99) Diluted $ (2.06) $ (0.20) $ (8.85) $ (0.99) The following potential common shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period: Three Months Ended Nine Months Ended 2021 2022 2021 2022 RSUs 112,492,359 130,510,263 112,492,359 130,510,263 Stock options 15,447,206 15,905,575 15,447,206 15,905,575 Early-exercised stock options 65,435 — 65,435 — Warrants 14,278,034 14,278,034 14,278,034 14,278,034 ESPP shares 93,738 824,292 93,738 824,292 Total anti-dilutive securities 142,376,772 161,518,164 142,376,772 161,518,164

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 13: RELATED PARTY TRANSACTIONS Related party transactions may include any transaction between entities under common control or with a related party. We have defined related parties as members of the Board of Directors, executive officers, principal owners of our outstanding stock and any immediate family members of each such related party, as well as any other person or entity with significant influence over our management or operations and any other affiliates.

LEASES

LEASES	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
LEASES	NOTE 14: LEASES Our operating leases are comprised of office facilities, with the most significant leases relating to our corporate headquarters in Menlo Park and our office in New York City. Our leases have remaining terms of 1 to 11 years, and many leases include one or more options to renew. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. We do not have any finance leases. See Note 5 for further information relating to impacts on leases due to the August 2022 Restructuring. During the second quarter of 2022, we executed an agreement to assign one of our operating leases to a third-party assignee who assumed all of our obligations, liabilities, covenants, and conditions under the assigned lease. As a result of this agreement, we derecognized the related right-of-use assets of $23 million and lease liability of $22 million and recognized an immaterial amount of loss. The components of lease expense were as follows: Three Months Ended Nine Months Ended (in millions) 2021 2022 2021 2022 Fixed operating lease costs $ 7 $ 9 $ 16 $ 27 Variable operating lease costs 1 2 4 5 Short-term lease costs 1 — 1 — Total lease costs $ 9 $ 11 $ 21 $ 32 Fixed operating lease costs primarily consist of monthly base rent amounts due. Variable operating lease expenses are primarily related to payments made to our landlords for common area maintenance, property taxes, insurance, and other operating expenses. Other information related to our operating leases was as follows: December 31, September 30, 2021 2022 Weighted-average remaining lease term 7.29 years 7.45 years Weighted-average discount rate 6.27 % 6.41 % Cash flows related to leases were as follows: Nine Months Ended (in millions) 2021 2022 Operating cash flows: Payments for operating lease liabilities $ — $ 18 Supplemental cash flow data: Lease liabilities arising from obtaining right-of-use assets $ 97 $ 32 Future minimum lease payments under non-cancellable operating leases (with initial lease terms in excess of one year) as of September 30, 2022 are as follows: (in millions) Remainder of 2022 $ 8 2023 33 2024 31 2025 30 2026 22 Thereafter 85 Total undiscounted lease payments 209 Less: imputed interest (44) Less: lease incentives (5) Total lease liabilities $ 160

COMMITMENTS & CONTINGENCIES

COMMITMENTS & CONTINGENCIES	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 15: COMMITMENTS & CONTINGENCIES We are subject to contingencies arising in the ordinary course of our business, including contingencies related to legal, regulatory, non-income tax, and other matters. We record an accrual for loss contingencies at management’s best estimate when we determine that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. If the reasonable estimate is a range and no amount within that range is considered a better estimate than any other amount, an accrual is recorded based on the bottom amount of the range. If a loss is not probable, or a probable loss cannot be reasonably estimated, no accrual is recorded. Amounts accrued for contingencies in the aggregate were $85 million as of December 31, 2021 and $82 million as of September 30, 2022. In our opinion, an adequate accrual had been made as of September 30, 2022 to provide for the probable losses of which we are aware and for which we can reasonably estimate an amount. Legal and Regulatory Matters The securities industry is highly regulated and many aspects of our business involve substantial risk of liability. In past years, there has been an increasing incidence of litigation involving the brokerage industry, including class action suits that generally seek substantial damages. Damages may include, in some cases, punitive damages. Compliance and trading problems that are reported to federal and state regulators, exchanges, or other SROs by dissatisfied users are investigated by such regulatory bodies, and, if pursued by such regulatory bodies or such users, may rise to the level of arbitration or disciplinary action. We are also subject to periodic regulatory audits and inspections. We have been named as a defendant in lawsuits and from time to time we have been threatened with, or named as a defendant in arbitrations and administrative proceedings. The outcomes of these matters are inherently uncertain and some may result in adverse judgments or awards, including penalties, injunctions, or other relief, and we may also determine to settle a matter because of the uncertainty and risks of litigation. With respect to matters discussed below, we believe, based on current knowledge, that any losses (in excess of amounts accrued, if applicable) as of September 30, 2022 that are reasonably possible and can be reasonably estimated will not, in the aggregate, have a material adverse effect on our business, financial position, operating results, or cash flows. However, for many of the matters disclosed below, particularly those in early stages, we cannot reasonably estimate the reasonably possible loss (or range of loss), if any. In addition, the ultimate outcome of legal proceedings involves judgments and inherent uncertainties and cannot be predicted with certainty. Any judgment entered against us, or any adverse settlement, could materially and adversely impact our business, financial condition, operating results, and cash flows. We might also incur substantial legal fees, which are expensed as incurred, in defending against legal and regulatory claims. Described below are certain pending matters in which there is at least a reasonable possibility that a material loss could be incurred. We intend to continue to defend these matters vigorously. Best Execution, Payment for Order Flow, and Sources of Revenue Matters Beginning in December 2020, multiple putative securities fraud class action lawsuits were filed against RHM, RHF, and RHS. Five cases were consolidated in the United States District Court for the Northern District of California. An amended consolidated complaint was filed in May 2021, alleging violations of Section 10(b) of the Exchange Act and various state law causes of action based on claims that we violated the duty of best execution and misled putative class members by publishing misleading statements and omissions in customer communications relating to the execution of trades and revenue sources (including PFOF). Plaintiffs seek damages, restitution, disgorgement, and other relief. In February 2022, the court granted Robinhood’s motion to dismiss the amended consolidated complaint without prejudice. In March 2022, plaintiffs filed a second consolidated amended complaint, alleging only violations of Section 10(b) of the Exchange Act, which Robinhood moved to dismiss. In October 2022, the court granted Robinhood’s motion in part and denied it in part. March 2020 Outages A consolidated putative class action lawsuit relating to service outages on our stock trading platform on March 2-3, 2020 and March 9, 2020 (the “March 2020 Outages”) is pending in the United States District Court for the Northern District of California. The lawsuit generally alleges that putative class members were unable to execute trades during the March 2020 Outages because our platform was inadequately designed to handle customer demand and we failed to implement appropriate backup systems. The lawsuit includes, among other things, claims for breach of contract, negligence, gross negligence, breach of fiduciary duty, unjust enrichment and violations of certain California consumer protection statutes. The lawsuit generally seeks damages, restitution, and/or disgorgement, as well as declaratory and injunctive relief. In May 2022, the parties notified the court that they had reached an agreement in principle resolving this action. The settlement agreement is subject to court approval. In September 2021, approximately 400 jointly-represented customers initiated an arbitration of individual claims against us arising out of the March 2020 Outages and other alleged system outages. Robinhood is contesting the claims, and a hearing has been scheduled to begin in January 2023. Options Trading and Related Customer Communications and Displays Certain state regulatory authorities are conducting investigations regarding RHF’s options trading and related customer communications and displays and options trading approval process. RHF is cooperating with the regulators’ requests. FINRA previously conducted an investigation and reached a settlement with RHF regarding the same options trading issues. RHS Trade Reporting, Large Options Position Reporting, and ACATS Processing In June 2021, RHF resolved with FINRA, on a no admit, no deny basis, certain investigations and examinations. As previously disclosed, that resolution did not address all the matters FINRA is investigating. In April 2022, FINRA Enforcement staff requested additional information related to RHS’s reporting of fractional share trades, as applicable, to a Trade Reporting Facility (“TRF”), the Over-the-Counter Reporting Facility (“ORF”), the Order Audit Trail System (“OATS”), and the Consolidated Audit Trail (“CAT”); reporting of accounts holding significant options positions to the Large Option Position Report (“LOPR”) system; and processing of certain requests for transfers of assets from Robinhood through the Automated Customer Account Transfer Service (“ACATS”), an automated industry system for account asset transfers. RHS is cooperating with these investigations. In October 2021, RHS received requests from the SEC Division of Enforcement regarding its compliance with Regulation SHO, and previously received similar requests from FINRA examinations staff. During the second quarter of 2022, RHS received additional requests from the SEC for information related to, among other things, RHS’s compliance with Regulation SHO’s trade reporting and other requirements in connection with securities lending and fractional share trading. We are cooperating with this investigation. RHC Anti-Money Laundering, Cybersecurity, and Other Issues In July 2020, the New York State Department of Financial Services (“NYDFS”) issued a report of its examination of RHC citing a number of “matters requiring attention” focused primarily on anti-money laundering and cybersecurity-related issues. The matter was subsequently referred to the NYDFS’s Consumer Protection and Financial Enforcement Division for investigation. In March 2021, the NYDFS informed RHC of alleged violations of applicable (i) anti-money laundering and New York Banking Law requirements, including the failure to maintain and certify a compliant anti-money laundering program, (ii) notification provisions under RHC’s Supervisory Agreement with the NYDFS, and (iii) cybersecurity and virtual currency requirements, including deficiencies in our policies and procedures regarding risk assessment, lack of an adequate incident response and business continuity plan, and deficiencies in our application development security. RHC and the NYDFS settled with respect to these allegations in connection with which, among other things, RHC paid a monetary penalty of $30 million and has engaged an independent compliance consultant. Additionally, in April 2021, the California Attorney General’s Office issued an investigative subpoena to RHC, seeking documents and answers to interrogatories about RHC’s trading platform, business and operations, application of California’s commodities regulations to RHC, customer disclosures, and other matters. RHC is cooperating with this investigation. Account Takeovers In November 2020, FINRA Enforcement commenced an investigation into RHF concerning account takeovers, or circumstances under which an unauthorized actor successfully logs into a customer account, as well as anti-money laundering and cybersecurity issues. Since February 2021, RHF has received requests for documents and information from the SEC’s Division of Enforcement in connection with its investigation into account takeovers and, more recently, suspicious activity report filings and issues related to the Electronic Funds Transfer Act. Additionally, state regulators, including the New York Attorney General’s Office, have opened inquiries into RHM, RHF, and RHC related to account takeovers. We are cooperating with these investigations and inquiries. In January 2021, Siddharth Mehta filed a putative class action in California state court against RHF and RHS, purportedly on behalf of approximately 2,000 Robinhood customers whose accounts were allegedly accessed by unauthorized users. RHF and RHS removed this action to the United States District Court for the Northern District of California. Plaintiff generally alleges that RHF and RHS breached commitments made and duties owed to customers to safeguard customer data and assets and seek monetary damages and injunctive relief. In April 2022, the parties reached a settlement in principle to resolve this matter. The settlement agreement has been preliminarily approved by the court. Massachusetts Securities Division Matter In December 2020, the Enforcement Section of the Massachusetts Securities Division (“MSD”) filed an administrative complaint against RHF, which stems from an investigation initiated by the MSD in July 2020. The complaint alleged three counts of Massachusetts securities law violations regarding alleged unethical and dishonest conduct or practices, failure to supervise, and failure to act in accordance with the Massachusetts fiduciary duty standard, which became effective on March 6, 2020 and had an effective enforcement date beginning September 1, 2020. Among other things, the MSD alleged that our product features and marketing strategies, outages, and options trading approval process constitute violations of Massachusetts securities laws. MSD subsequently filed an amended complaint that seeks, among other things, injunctive relief (a permanent cease and desist order), censure, restitution, disgorgement, appointment of an independent consultant, an administrative fine, and revocation of RHF's license to operate in Massachusetts. If RHF were to lose its license to operate in Massachusetts, we would not be able to acquire any new customers in Massachusetts, and we expect that our current customers in Massachusetts would be unable to continue utilizing any of the services or products offered on our platform (other than closing their positions) and that we may be forced to transfer such customers’ accounts to other broker-dealers. Additionally, revocation of RHF’s Massachusetts license could trigger similar disqualification or proceedings to restrict or condition RHF’s registration by other state regulators. A revocation of RHF’s license to operate in Massachusetts would result in RHF and RHS being subject to statutory disqualification by FINRA and the SEC, which would then result in RHF needing to obtain relief from FINRA subject to SEC review in order to remain a FINRA member and RHS possibly needing relief from FINRA or other SROs. In April 2021, RHF filed a complaint and motion for preliminary injunction and declaratory relief in Massachusetts state court seeking to enjoin the MSD administrative proceeding and challenging the legality of the Massachusetts fiduciary duty standard. In September 2021, the parties filed cross-motions for partial judgment on the pleadings. In March 2022, the court ruled in favor of RHF, declaring that the Massachusetts fiduciary duty regulation was unlawful. The MSD has filed a notice of appeal. A hearing on the two remaining counts alleged by the MSD in its amended administrative complaint is expected to begin in early 2023. Text Message Litigation In August 2021, Cooper Moore filed a putative class action against RHF alleging that RHF initiated or assisted in the transmission of commercial electronic text messages to Washington State residents without their consent in violation of Washington state law. The complaint seeks statutory and treble damages, injunctive relief, and attorneys’ fees and costs. The case is currently pending in the U.S. District Court for the Western District of Washington. RHF filed a motion to dismiss the complaint. In February 2022, Moore and Andrew Gillette filed an amended complaint, which RHF again moved to dismiss. In August 2022, the court denied RHF’s motion to dismiss. Early 2021 Trading Restrictions Matters Beginning on January 28, 2021, due to increased deposit requirements imposed on RHS by the NSCC in response to unprecedented market volatility, particularly in certain securities, RHS temporarily restricted or limited its customers’ purchase of certain securities, including GameStop Corp. and AMC Entertainment Holdings, Inc., on our platform (the “Early 2021 Trading Restrictions”). A number of individual and putative class actions related to the Early 2021 Trading Restrictions were filed against RHM, RHF, and RHS, among others, in various federal and state courts. In April 2021, the Judicial Panel on Multidistrict Litigation entered an order centralizing the federal cases identified in a motion to transfer and coordinate or consolidate the actions filed in connection with the Early 2021 Trading Restrictions in the United States District Court for the Southern District of Florida (the “MDL”). The court subsequently divided plaintiffs’ claims against Robinhood into three tranches: federal antitrust claims, federal securities law claims, and state law claims. In July 2021, plaintiffs filed consolidated complaints seeking monetary damages in connection with the federal antitrust and state law tranches. The federal antitrust complaint asserted one violation of Section 1 of the Sherman Act; the state law complaint asserted negligence and breach of fiduciary duty claims. In August 2021, we moved to dismiss both of these complaints. In September 2021, plaintiffs filed an amended complaint asserting state law claims of negligence, breach of fiduciary duty, tortious interference with contract and business relationship, civil conspiracy, and breaches of the covenant of good faith and fair dealing and implied duty of care. In January 2022, the court dismissed the state law complaint with prejudice. Plaintiffs have appealed the court’s order to the United States Court of Appeals for the Eleventh Circuit. In November 2021, the court dismissed the federal antitrust complaint without prejudice. In January 2022, plaintiffs filed an amended complaint in connection with the federal antitrust tranche and Robinhood moved to dismiss the amended complaint. In May 2022, the court dismissed the federal antitrust complaint with prejudice. Plaintiffs have appealed the court’s order to the United States Court of Appeals for the Eleventh Circuit. In November 2021, plaintiffs for the federal securities tranche filed a complaint alleging violations of Sections 9(a) and 10(b) of the Exchange Act. In January 2022, we moved to dismiss the federal securities law complaint. In August 2022, the court granted in part and denied in part Robinhood’s motion to dismiss. RHM, RHF, RHS, and our Co-Founder and CEO, Vladimir Tenev, among others, have received requests for information, and in some cases, subpoenas and requests for testimony, related to investigations and examinations of the Early 2021 Trading Restrictions from the United States Attorney’s Office for the Northern District of California (“USAO”), the U.S. Department of Justice, Antitrust Division, the SEC’s Division of Enforcement, FINRA, the New York Attorney General’s Office, other state attorneys general offices, and a number of state securities regulators. Also, a related search warrant was executed by the USAO to obtain Mr. Tenev’s cell phone. There have been several inquiries based on specific customer complaints. We have also received requests from the SEC’s Division of Examinations and Division of Enforcement and FINRA related to employee trading in certain securities that were subject to the Early 2021 Trading Restrictions, including GameStop Corp. and AMC Entertainment Holdings, Inc., during the week of January 25, 2021. These matters include requests related to whether any employee trading in these securities may have occurred after the decision to impose the Early 2021 Trading Restrictions and before the public announcement of the Early 2021 Trading Restrictions on January 28, 2021. We are cooperating with these investigations and examinations. The SEC’s Division of Examinations concluded their examinations related to the Early 2021 Trading Restrictions. In February 2022, SEC staff notified us of their findings to which we responded in April 2022. FINRA Enforcement has also requested information about policies, procedures, and supervision related to employee trading generally. Registration Requirements for Member Personnel In July 2021, RHF received a FINRA investigative request seeking documents and information related to its compliance with FINRA registration requirements for member personnel, including related to the FINRA non-registration status of Mr. Tenev and Co-Founder and Chief Creative Officer Mr. Bhatt. Robinhood is cooperating with the investigation. IPO Litigation In December 2021, Philip Golubowski filed a putative class action in the U.S. District Court for the Northern District of California against RHM, the officers and directors who signed Robinhood’s IPO offering documents, and Robinhood’s IPO underwriters. Plaintiff’s claims are based on alleged false or misleading statements in Robinhood’s IPO offering documents allegedly in violation of Sections 11 and 12(a) of the Securities Act of 1933, as amended (the “Securities Act”). Plaintiff seeks compensatory damages, rescission of shareholders’ share purchases, and an award for attorneys’ fees and costs. In February 2022, certain alleged Robinhood stockholders submitted applications seeking appointment by the court to be the lead plaintiff to represent the putative class in this matter, and in March 2022, the court appointed lead plaintiffs. In June 2022, plaintiffs filed an amended complaint. In August 2022, Robinhood filed a motion to dismiss the complaint. In January 2022, Robert Zito filed a complaint derivatively on behalf of Robinhood against Robinhood’s directors at the time of its IPO in the U.S. District Court for the District of Delaware. Plaintiff alleges breach of fiduciary duties, waste of corporate assets, unjust enrichment, and violations of Section 10(b) of the Exchange Act. Plaintiff’s claims are based on allegations of false or misleading statements in Robinhood’s IPO offering documents, and plaintiff seeks an award of damages and restitution to the Company, injunctive relief, and an award for attorney’s fees and costs. In March 2022, the district court entered a stay of this litigation pending resolution of Robinhood’s motion to dismiss in the Golubowski securities action discussed above. In August 2022, a shareholder sent a letter to the RHM Board of Directors demanding, among other things, that the Board of Directors pursue causes of action on behalf of the Company related to allegations of misconduct in connection with the Early 2021 Trading Restrictions, Robinhood’s IPO offering documents, and the November 2021 Data Security Incident. The Board has formed a Demand Review Committee that is reviewing the demand.

DESCRIPTION OF BUSINESS AND S_2

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC for interim financial reporting. The condensed consolidated financial statements are unaudited, and in management’s opinion, include all adjustments, including normal recurring adjustments and accruals necessary for a fair presentation of the results for the interim periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full fiscal year ending December 31, 2022 or any future period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K”). There have been no material changes in our significant accounting policies as described in our consolidated financial statements included in our audited annual consolidated financial statements for the year ended December 31, 2021, other than recently adopted accounting pronouncements as described in
Use of Estimates	Use of Estimates In accordance with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses, as well as related disclosures, on the unaudited condensed consolidated financial statements. We base our estimates on current and historical experience and other assumptions we believe to be reasonable under the circumstances. Assumptions and estimates used in preparing our unaudited condensed consolidated financial statements include those related to revenue recognition, the determination of allowances for credit losses, the capitalization and estimated useful life of internally developed software, investment valuation, valuation of user cryptocurrencies safeguarding obligation and the corresponding asset, contingent liabilities, useful lives of property and equipment, the incremental borrowing rate used to determine the present value of lease payments, the valuation and recognition of share-based compensation, the valuation of the convertible notes and warrant liability, the valuation and estimated useful lives of acquired intangible assets, uncertain tax positions, accrued liabilities, and the recognition and measurement of current and deferred income tax assets and liabilities. Actual results could differ from these estimates and could have a material adverse effect on our operating results.
Concentrations of Credit	Concentrations of Credit We are engaged in various trading and brokerage activities in which the counterparties primarily include broker-dealers, banks, and other financial institutions. In the event our counterparties do not fulfill their obligations, we may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty. Default of a counterparty in equities and options trades, which are facilitated through
Cryptocurrencies	Cryptocurrencies We act as an agent in the cryptocurrency transactions that users initiate on our platform (i.e., in their RHC accounts). We have determined we are an agent, for accounting purposes, because we do not control the cryptocurrency before delivery to the user, we are not primarily responsible for the delivery of cryptocurrency to our users, we are not exposed to risks arising from fluctuations of the market price of cryptocurrency before delivery to the user, and we do not set the prices charged to users. After purchasing cryptocurrency on the platform, users are the legal owners of cryptocurrency held under custody by us and users have all the rights and benefits of ownership, including the rights to appreciation and depreciation of the cryptocurrency. We do not allow users to purchase cryptocurrency on margin and cryptocurrency does not serve as collateral for margin loans. We hold cryptocurrency in custody for users in one or more omnibus cryptocurrency wallets; we do not utilize third-party custodians. We hold cryptographic key information and maintain internal record keeping for the cryptocurrencies we hold in custody for users, and we are obligated to secure such assets from loss or theft. Based on the terms of our user agreement and applicable law, we believe the cryptocurrency we hold in custody for users of our platform should be respected as users’ property (and should not be available to satisfy the claims of our general creditors) in the event we were to enter bankruptcy. For additional information relating to platform bankruptcy generally, see Item 2, Part II of this Quarterly Report on Form 10-Q, “Risk Factors—Risks Related to Cryptocurrency Products and Services—Cryptocurrency laws, regulations, and accounting standards are often difficult to interpret and are rapidly evolving in ways that are difficult to predict. Changes in these laws and regulations, or our failure to comply with them, could negatively impact cryptocurrency trading on our platform.”
Securities Borrowing and Lending	Securities Borrowing and Lending We operate a securities lending program under which shares that users have pledged to us to collateralize their margin borrowing are lent by us to third parties (“Margin Securities Lending”) and a securities lending program under which we borrow fully-paid shares from participating users and lend them to third parties (“Fully-Paid Securities Lending”). We also occasionally borrow securities from third parties for operational purposes, and we occasionally lend to third parties securities that we hold for our own account (such as our holdings to support fractional share operations). When we lend securities to third parties, the borrower provides cash as collateral. We earn interest revenue on cash collateral deposited by borrowers, and we can also earn additional revenue for lending certain securities based on demand for those securities. For our Fully-Paid Securities Lending, portions of such revenues are paid to participating users, and those payments are recorded as interest expense. For the three and nine months ended September 30, 2022 , interest revenue earned and interest expenses incurred related to the Fully-Paid Securities Lending program were not material. When we borrow securities from users participating in the Fully-Paid Securities Lending program (or from third parties), we provide cash as collateral and we record a receivable representing our right to the return of that collateral. Commencing in the quarter ended September 30, 2022, the amount of that receivable is presented in "securities borrowed" on our consolidated balance sheets. Prior period amounts (which were not material) have been reclassified to conform to the current presentation. In the case of our Fully-Paid Securities Lending program, the cash collateral is held by a third-party bank in a deposit account pledged to the user, which we administer as the user’s agent. Users are not entitled to interest on such account, and any interest earned is for our benefit. Our authorization from users to lend shares that collateralize their margin borrowing is found in our margin account agreement, our borrowing of fully-paid shares from users is conducted under the terms of our Fully-Paid Securities Lending program to which users consent when they enroll in that program, and substantially all of our securities lending and borrowing transactions with third parties are conducted
Variable Interest Entities	Variable Interest EntitiesWe evaluate our ownership, contractual and other interests in entities to determine if we have a variable interest in an entity. These evaluations are complex, involve judgment, and the use of estimates and assumptions based on available historical and prospective information, among other factors. If we determine that an entity for which we hold a contractual or ownership interest in is a variable interest entity (“VIE”) and that we are the primary beneficiary, we consolidate such entity in the consolidated financial statements. The primary beneficiary of a VIE is the party that meets both of the following criteria: (1) has the power to make decisions that most significantly affect the economic performance of the VIE; and (2) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Periodically, we determine whether any changes in the interest or relationship with the entity impacts the determination of whether we are still the primary beneficiary. If we are not deemed to be the primary beneficiary in a VIE, we account for the investment or other variable interests in a VIE in accordance with applicable GAAP.
Non-Marketable Equity Securities	Non-Marketable Equity Securities Investments in equity securities without readily determinable fair values are initially recorded at cost and are subsequently adjusted to fair value for impairments and price changes from observable transactions in the same or a similar security from the same issuer. Non-marketable equity securities were not material for the periods presented and were included in other non-current assets on the unaudited condensed consolidated balance sheets.
Recently Adopted Accounting Pronouncements/Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Adopted Accounting Pronouncements In March 2022, the staff of the SEC issued SAB 121, which provides guidance to entities that have obligations to safeguard crypto-assets held in custody on behalf of their platform users. SAB 121 states that the entity should recognize a liability representing its obligation to safeguard such crypto-assets accompanied by a corresponding asset on its balance sheet representing the platform users’ crypto-assets held in custody measured at fair value initially and at each subsequent reporting period. SAB 121 also states that accompanying disclosures should be considered regarding the entity’s obligation to safeguard crypto-assets for platform users. We adopted SAB 121 as part of the financial statements covering the interim period ended June 30, 2022, with retrospective application as of the beginning of fiscal year 2022. As a result of (and solely by virtue of) our adoption of SAB 121, we recognized an asset captioned “Asset related to user cryptocurrencies safeguarding obligation” and a liability captioned “User cryptocurrencies safeguarding obligation” on our unaudited condensed consolidated balance sheets. As of September 30, 2022, the carrying value of each was $9.4 billion. We also added disclosures to Note 1 - Description of business and summary of significant accounting policies and Note 7 - Investments and fair value measurement. Recently Issued Accounting Pronouncements Not Yet Adopted In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This guidance requires contract assets and contract liabilities from contracts with customers that are acquired in a business combination to be recognized and measured as if the acquirer had originated the original contract. The guidance is effective for fiscal years beginning after December 15, 2022 on a prospective basis, including interim periods within those fiscal years. Early adoption is permitted. As of September 30, 2022, the planned adoption of this guidance is not expected to have any impact on our financial statements.

DESCRIPTION OF BUSINESS AND S_3

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Schedule of Concentration of Credit Risk	We derived transaction-based revenues from individual market makers in excess of 10% of total revenues, as follows: Three Months Ended Nine Months Ended 2021 2022 2021 2022 Market maker: Citadel Securities, LLC 23 % 12 % 21 % 17 % Entities affiliated with Susquehanna International Group, LLP (1) 13 % 6 % 11 % 9 % Entities affiliated with Wolverine Holdings, L.P. (2) 13 % 6 % 10 % 8 % Tai Mo Shan Limited (3) 8 % 2 % 17 % 4 % All others individually less than 10% 16 % 30 % 19 % 25 % Total as percentage of total revenue: 73 % 56 % 78 % 63 % ________________ (1) Consists of Global Execution Brokers, LP and G1X Execution Services, LLC (2) Consists of Wolverine Execution Services, LLC and Wolverine Securities, LLC (3) Member of Jump Trading Group

REVENUES (Tables)

REVENUES (Tables)	9 Months Ended
	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Revenue Disaggregated by Revenue Source	The following table presents our revenue disaggregated by revenue source: Three Months Ended Nine Months Ended (in millions) 2021 2022 2021 2022 Transaction-based revenues: Options $ 164 $ 124 $ 527 $ 364 Cryptocurrencies 51 51 372 163 Equities 50 31 235 96 Other 2 2 4 5 Total transaction-based revenues 267 208 1,138 628 Net interest revenues: Margin interest 34 48 93 122 Securities lending, net 33 29 107 76 Interest on investments and corporate cash — 29 1 40 Interest on segregated cash and cash equivalents and deposits 1 20 3 27 Cash sweep 1 8 3 10 Interest expenses related to credit facilities (6) (6) (14) (18) Total net interest revenues 63 128 193 257 Other revenues 35 25 121 93 Total net revenues $ 365 $ 361 $ 1,452 $ 978
Schedule of Contract Receivables and Liabilities Balances	The table below sets forth contract receivables and liabilities for the period indicated: (in millions) Contract Receivables Contract Liabilities Beginning of period, January 1, 2022 $ 83 $ 3 End of period, September 30, 2022 73 3 Changes during the period $ (10) $ —

ALLOWANCE FOR CREDIT LOSSES (Ta

ALLOWANCE FOR CREDIT LOSSES (Tables)	9 Months Ended
	Sep. 30, 2022
Credit Loss [Abstract]
Schedule of Allowance for Credit Losses Receivable	The following table summarizes the allowance for credit losses, which substantially all relate to unsecured balances of receivables from users due to “Fraudulent Deposit Transactions” and losses on margin lending. Fraudulent Deposit Transactions are fraudulent, unlawful or otherwise inappropriate customer behavior, such as when customers initiate deposits into their accounts, make trades on our platform using a short-term extension of credit from us, and then repatriate or reverse the deposits, resulting in a loss to us of the credited amount. Three Months Ended Nine Months Ended (in millions) 2021 2022 2021 2022 Beginning balance $ 35 $ 18 $ 34 $ 40 Provision for credit losses 26 9 62 28 Write-offs (23) (9) (58) (50) Ending balance $ 38 $ 18 $ 38 $ 18

INVESTMENTS AND FAIR VALUE ME_2

INVESTMENTS AND FAIR VALUE MEASUREMENT (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Debt Securities, Available-for-sale	Investments on our unaudited condensed consolidated balance sheet consisted of the following: December 31, 2021 (in millions) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Debt securities: Asset-backed securities $ 5 $ — $ — $ 5 Commercial paper 14 — — 14 Corporate bonds 7 — — 7 Government bonds 1 — — 1 Total investments $ 27 $ — $ — $ 27 September 30, 2022 (in millions) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Debt securities: Asset-backed securities $ 4 $ — $ — $ 4 Commercial paper 16 — — 16 Corporate bonds 6 — — 6 Government bonds 6 — — 6 Total investments $ 32 $ — $ — $ 32
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis	Financial assets and liabilities measured at fair value on a recurring basis were presented on our unaudited condensed consolidated balance sheets as follows: December 31, 2021 (in millions) Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 4,004 $ — $ — $ 4,004 Investments: Asset-backed securities — 5 — 5 Commercial paper — 14 — 14 Corporate bonds — 7 — 7 Government bonds 1 — 1 User-held fractional shares 1,834 — — 1,834 Other current assets: Equity securities - securities owned 14 — — 14 Total financial assets $ 5,853 $ 26 $ — $ 5,879 Liabilities Fractional share repurchase obligations $ 1,834 $ — $ — $ 1,834 Total financial liabilities $ 1,834 $ — $ — $ 1,834 September 30, 2022 (in millions) Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 629 $ — $ — $ 629 Investments: Asset-backed securities — 4 — 4 Commercial paper — 16 — 16 Corporate bonds — 6 — 6 Government bonds 6 — — 6 Asset related to user cryptocurrencies safeguarding obligation — 9,361 — 9,361 User-held fractional shares 1,029 — — 1,029 Other current assets: Equity securities - securities owned 7 — — 7 Total financial assets $ 1,671 $ 9,387 $ — $ 11,058 Liabilities User cryptocurrencies safeguarding obligation $ — $ 9,361 $ — $ 9,361 Fractional shares repurchase obligations 1,029 — — 1,029 Total financial liabilities $ 1,029 $ 9,361 $ — $ 10,390
Schedule of Safeguarded Cryptocurrencies	Safeguarded user cryptocurrencies were as follows: (in millions) September 30, 2022 Ethereum (ETH) $ 2,783 Bitcoin (BTC) 2,759 Dogecoin (DOGE) 2,603 Other 1,216 Total user cryptocurrencies safeguarding obligation and corresponding asset $ 9,361
Schedule of Changes in Estimated Fair Value of Convertible Notes and Warrant Liability	The following table sets forth a summary of the changes in the estimated fair value of our convertible notes and warrant liability: (in millions) Convertible notes Warrant liability Beginning of period, January 1, 2021 $ — $ — Issued during the period 3,299 253 Change in fair value 1,919 127 Reclassifications to equity (5,218) (380) End of period, September 30, 2021 $ — $ —

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Schedule of Income Tax Provision (Benefit)	Three Months Ended Nine Months Ended (in millions, except percentages) 2021 2022 2021 2022 Loss before income taxes $ (1,367) $ (174) $ (3,265) $ (859) Provision for (benefit from) income taxes (50) 1 (1) 3 Effective tax rate 3.7 % (0.8) % — % (0.4) %

SECURITIES BORROWING AND LEND_2

SECURITIES BORROWING AND LENDING (Tables)	9 Months Ended
	Sep. 30, 2022
Offsetting [Abstract]
Schedule of Assets Subject to Master Netting Arrangement	The following tables set forth certain balances related to our securities borrowing and lending activities as of December 31, 2021 and September 30, 2022: December 31, September 30, (in millions) 2021 2022 Assets Securities borrowed Gross amount of securities borrowed $ — $ 139 Gross amount offset on the consolidated balance sheets — — Amounts of assets presented on the consolidated balance sheets — 139 Gross amount of securities borrowed not offset on the consolidated balance sheets: Securities borrowed — 139 Security collateral received — (135) Net amount $ — $ 4 Liabilities Securities loaned Gross amount of securities loaned $ 3,651 $ 1,423 Gross amount of securities loaned offset on the consolidated balance sheets — — Amounts of liabilities presented on the consolidated balance sheets 3,651 1,423 Gross amount of securities loaned not offset on the consolidated balance sheets: Securities loaned 3,651 1,423 Security collateral pledged (3,427) (1,288) Net amount $ 224 $ 135
Schedule of liabilities Subject to Master Netting Arrangement	The following tables set forth certain balances related to our securities borrowing and lending activities as of December 31, 2021 and September 30, 2022: December 31, September 30, (in millions) 2021 2022 Assets Securities borrowed Gross amount of securities borrowed $ — $ 139 Gross amount offset on the consolidated balance sheets — — Amounts of assets presented on the consolidated balance sheets — 139 Gross amount of securities borrowed not offset on the consolidated balance sheets: Securities borrowed — 139 Security collateral received — (135) Net amount $ — $ 4 Liabilities Securities loaned Gross amount of securities loaned $ 3,651 $ 1,423 Gross amount of securities loaned offset on the consolidated balance sheets — — Amounts of liabilities presented on the consolidated balance sheets 3,651 1,423 Gross amount of securities loaned not offset on the consolidated balance sheets: Securities loaned 3,651 1,423 Security collateral pledged (3,427) (1,288) Net amount $ 224 $ 135

COMMON STOCK AND STOCKHOLDERS_2

COMMON STOCK AND STOCKHOLDERS' (DEFICIT) EQUITY (Tables)	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Schedule of Stock Option Activity	A summary of stock option activity for the nine months ended September 30, 2022 is as follows: Number of Shares Weighted-Average Exercise Price Weighted- Average Remaining Life Total Intrinsic Value (in millions) Balance at December 31, 2021 14,527,468 $ 2.20 5.37 $ 226 Granted during the period 4,463,248 14.15 Exercised during the period (2,272,363) 2.22 Cancelled and forfeited during the period (812,778) 12.90 Balance at September 30, 2022 15,905,575 $ 5.01 4.93 $ 96 Options vested and expected to vest at September 30, 2022 15,905,575 $ 5.01 4.93 $ 96 Options exercisable at September 30, 2022 11,916,639 $ 2.05 4.58 $ 96
Schedule of Activity Related to Time-Based and Market-Based RSUs	The following table summarizes the activity related to our Time-Based RSUs for the nine months ended September 30, 2022: Number of RSUs Weighted- average grant date fair value Unvested at December 31, 2021 49,428,070 $ 31.78 Granted 59,499,760 11.70 Vested (17,524,831) 23.37 Forfeited (19,475,105) 25.88 Unvested at September 30, 2022 71,927,894 $ 18.81 Eligible to Vest (1) Not Eligible to Vest (2) Total Number of RSUs Weighted- average grant date fair value Unvested at December 31, 2021 1,267,918 57,650,926 58,918,844 $ 23.50 Granted — — — Vested (345,796) — (345,796) 2.34 Forfeited — — — Unvested at September 30, 2022 922,122 57,650,926 58,573,048 $ 23.63 ________________ (1) Represents RSUs that became eligible to vest upon achievement of share price targets and vest upon satisfaction of time-based service requirements.
Schedule of Share-Based Compensation	The following table presents share-based compensation on our unaudited condensed consolidated statements of operations for the periods indicated: Three Months Ended Nine Months Ended (in millions) 2021 2022 2021 2022 Brokerage and transaction $ 6 $ 2 $ 6 $ 4 Technology and development 503 25 505 166 Operations 16 — 16 5 Marketing 41 — 41 3 General and administrative 678 83 686 316 Total $ 1,244 $ 110 $ 1,254 $ 494 The following table presents share-based compensation by award type for the periods indicated: Three Months Ended Nine Months Ended (in millions) 2021 2022 2021 2022 Time-Based RSUs $ 881 $ 27 $ 889 $ 235 Market-Based RSUs 360 79 360 245 Employee Share Purchase Plan (“ESPP”) 2 2 2 9 Options 1 2 3 5 Total $ 1,244 $ 110 $ 1,254 $ 494
Schedule Of Vesting For Awards Outstanding	Scheduled vesting for awards outstanding as of September 30, 2022, is as follows: (in millions, except for number of shares) Number of Shares (1) Expense Remainder of 2022 8,513,485 $ 194 2023 28,262,503 577 2024 20,943,065 378 2025 14,571,511 253 2026 4,565,337 48 Total 76,855,901 $ 1,450 ________________

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Income (Loss) Per Share	The following table presents the calculation of basic and diluted loss per share: (in millions, except share and per share data) Three Months Ended Nine Months Ended 2021 2022 2021 2022 Net loss $ (1,317) $ (175) $ (3,264) $ (862) Less: allocation of earnings to participating securities — — — — Net loss attributable to common stockholders $ (1,317) $ (175) $ (3,264) $ (862) Weighted-average common shares outstanding - basic 638,168,188 882,356,575 368,518,894 875,055,571 Dilutive effect of stock options and unvested shares — — — — Weighted-average common shares used to compute diluted loss per share 638,168,188 882,356,575 368,518,894 875,055,571 Net loss per share attributable to common stockholders: Basic $ (2.06) $ (0.20) $ (8.85) $ (0.99) Diluted $ (2.06) $ (0.20) $ (8.85) $ (0.99)
Schedule of Potential Common Shares Excluded from the Calculation of Diluted Net Income (Loss) Per Share	The following potential common shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period: Three Months Ended Nine Months Ended 2021 2022 2021 2022 RSUs 112,492,359 130,510,263 112,492,359 130,510,263 Stock options 15,447,206 15,905,575 15,447,206 15,905,575 Early-exercised stock options 65,435 — 65,435 — Warrants 14,278,034 14,278,034 14,278,034 14,278,034 ESPP shares 93,738 824,292 93,738 824,292 Total anti-dilutive securities 142,376,772 161,518,164 142,376,772 161,518,164

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Schedule of Component of Lease Expense, Other Information and Cash Flows	The components of lease expense were as follows: Three Months Ended Nine Months Ended (in millions) 2021 2022 2021 2022 Fixed operating lease costs $ 7 $ 9 $ 16 $ 27 Variable operating lease costs 1 2 4 5 Short-term lease costs 1 — 1 — Total lease costs $ 9 $ 11 $ 21 $ 32 Other information related to our operating leases was as follows: December 31, September 30, 2021 2022 Weighted-average remaining lease term 7.29 years 7.45 years Weighted-average discount rate 6.27 % 6.41 % Cash flows related to leases were as follows: Nine Months Ended (in millions) 2021 2022 Operating cash flows: Payments for operating lease liabilities $ — $ 18 Supplemental cash flow data: Lease liabilities arising from obtaining right-of-use assets $ 97 $ 32
Schedule of Future Minimum Lease Payments	Future minimum lease payments under non-cancellable operating leases (with initial lease terms in excess of one year) as of September 30, 2022 are as follows: (in millions) Remainder of 2022 $ 8 2023 33 2024 31 2025 30 2026 22 Thereafter 85 Total undiscounted lease payments 209 Less: imputed interest (44) Less: lease incentives (5) Total lease liabilities $ 160

DESCRIPTION OF BUSINESS AND S_4

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SCHEDULE OF CONCENTRATION OF CREDIT RISK (Details) shares in Millions, $ in Millions			3 Months Ended		9 Months Ended
	Aug. 31, 2021 shares	Aug. 02, 2021 shares	Sep. 30, 2022 USD ($) counterparty agreement institution	Sep. 30, 2021	Sep. 30, 2022 USD ($) counterparty agreement institution	Sep. 30, 2021
Concentration Risk [Line Items]
Number of financial institution counterparties | institution			2		2
Number of agreements with contractual term of 30 days | agreement			1		1
Number of fixed term agreements | agreement			2		2
Number of fixed term counterparties | counterparty			2		2
Agreement One
Concentration Risk [Line Items]
Contractual term					30 days
Contractual obligation | $			$ 25		$ 25
Agreement Two
Concentration Risk [Line Items]
Contractual term					21 days
Contractual obligation | $			$ 35		$ 35
Customer Concentration Risk | Revenue Benchmark | Citadel Securities, LLC
Concentration Risk [Line Items]
Concentration risk, percentage			12%	23%	17%	21%
Customer Concentration Risk | Revenue Benchmark | Entities affiliated with Susquehanna International Group, LLP
Concentration Risk [Line Items]
Concentration risk, percentage			6%	13%	9%	11%
Customer Concentration Risk | Revenue Benchmark | Entities affiliated with Wolverine Holdings, L.P.
Concentration Risk [Line Items]
Concentration risk, percentage			6%	13%	8%	10%
Customer Concentration Risk | Revenue Benchmark | Tai Mo Shan Limited
Concentration Risk [Line Items]
Concentration risk, percentage			2%	8%	4%	17%
Customer Concentration Risk | Revenue Benchmark | All others individually less than 10%
Concentration Risk [Line Items]
Concentration risk, percentage			30%	16%	25%	19%
Customer Concentration Risk | Revenue Benchmark | Total as percentage of total revenue
Concentration Risk [Line Items]
Concentration risk, percentage			56%	73%	63%	78%
Common Class A | IPO
Concentration Risk [Line Items]
Shares issued (in shares) | shares		55
Common Class A | Over-Allotment Option
Concentration Risk [Line Items]
Shares issued (in shares) | shares	4.4

RECENT ACCOUNTING PRONOUCEMENTS

RECENT ACCOUNTING PRONOUCEMENTS (Details) $ in Billions	Sep. 30, 2022 USD ($)
Accounting Policies [Abstract]
Crypto-asset at fair value	$ 9.4
Crypto-asset, corresponding liability	$ 9.4

BUSINESS COMBINATIONS (Details)

BUSINESS COMBINATIONS (Details) - Ziglu $ in Millions	Aug. 15, 2022 USD ($)
Business Acquisition [Line Items]
Purchase price in cash	$ 73
Aggregate funded advances	$ 12

REVENUES - REVENUE DISAGGREGATE

REVENUES - REVENUE DISAGGREGATED BY REVENUE SOURCE (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Margin interest	$ 48	$ 34	$ 122	$ 93
Securities lending, net	29	33	76	107
Interest on investments and corporate cash	29	0	40	1
Interest on segregated cash and cash equivalents and deposits	20	1	27	3
Cash sweep	8	1	10	3
Interest expenses related to credit facilities	(6)	(6)	(18)	(14)
Net interest revenues	128	63	257	193
Total net revenues	361	365	978	1,452
Options
Disaggregation of Revenue [Line Items]
Revenues	124	164	364	527
Cryptocurrencies
Disaggregation of Revenue [Line Items]
Revenues	51	51	163	372
Equities
Disaggregation of Revenue [Line Items]
Revenues	31	50	96	235
Other
Disaggregation of Revenue [Line Items]
Revenues	2	2	5	4
Transaction-based revenues
Disaggregation of Revenue [Line Items]
Revenues	208	267	628	1,138
Other revenues
Disaggregation of Revenue [Line Items]
Revenues	$ 25	$ 35	$ 93	$ 121

REVENUES - RECEIVABLES AND CONT

REVENUES - RECEIVABLES AND CONTRACT LIABILITIES BALANCES (Details) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Contract with Customer, Asset [Roll Forward]
Beginning of period, January 1, 2022	$ 83
End of period, September 30, 2022	73
Changes during the period	(10)
Contract with Customer, Liability [Roll Forward]
Beginning of period, January 1, 2022	3
End of period, September 30, 2022	3
Changes during the period	$ 0

RESTRUCTURING ACTIVITIES - NARR

RESTRUCTURING ACTIVITIES - NARRATIVE (Details) $ in Millions			3 Months Ended			9 Months Ended
	Aug. 02, 2022 USD ($) office	Apr. 26, 2022 employee	Sep. 30, 2022 USD ($) office	Jun. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) office	Sep. 30, 2021 USD ($)
Restructuring Cost and Reserve [Line Items]
Share-based compensation			$ 110		$ 1,244	$ 494	$ 1,254
April 2022 Restructuring | Workforce Reduction
Restructuring Cost and Reserve [Line Items]
Number Of employees involved in workforce reduction | employee		330
Number of employees involved in workforce reduction, percentage		9%
Vesting period		2 months
Share-based compensation				$ 24
Restructuring charges				$ 17
August 2022 Restructuring | Workforce Reduction
Restructuring Cost and Reserve [Line Items]
Number Of employees involved in workforce reduction | employee		780
Number of employees involved in workforce reduction, percentage		23%
Share-based compensation			$ 53
Restructuring charges	$ 34
Number of office closures | office	2		5			5
Number of unoccupied office closures | office			4			4
Right-of-use assets	$ 32
Leasehold improvements	15
Other asset impairment charges	$ 9
August 2022 Restructuring | Workforce Reduction | Accounts Payable and Accrued Liabilities
Restructuring Cost and Reserve [Line Items]
Unpaid restructuring charges			$ 21			$ 21

ALLOWANCE FOR CREDIT LOSSES - A

ALLOWANCE FOR CREDIT LOSSES - ALLOWANCE FOR CREDIT LOSSES OF RECEIVABLES FROM USERS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Contract with Customer, Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 18	$ 35	$ 40	$ 34
Provision for credit losses	9	26	28	62
Write-offs	(9)	(23)	(50)	(58)
Ending balance	$ 18	$ 38	$ 18	$ 38

INVESTMENTS AND FAIR VALUE ME_3

INVESTMENTS AND FAIR VALUE MEASUREMENT - DEBT SECURITIES AVAILABLE-FOR-SALE (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	$ 32	$ 27
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	32	27
Asset-backed securities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	4	5
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	4	5
Commercial paper
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	16	14
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	16	14
Corporate bonds
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	6	7
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	6	7
Government bonds
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	6	1
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	$ 6	$ 1

INVESTMENTS AND FAIR VALUE ME_4

INVESTMENTS AND FAIR VALUE MEASUREMENT - SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS (Details) - Fair Value, Recurring - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Assets
Total financial assets	$ 11,058	$ 5,879
Liabilities
Total financial liabilities	10,390	1,834
Asset-backed securities
Assets
Investments	4	5
Commercial paper
Assets
Investments	16	14
Corporate bonds
Assets
Investments	6	7
Government bonds
Assets
Investments	6	1
Asset related to user cryptocurrencies safeguarding obligation
Assets
Other current assets	9,361
User-held fractional shares
Assets
Other current assets	1,029	1,834
Equity securities - securities owned
Assets
Other current assets	7	14
User cryptocurrencies safeguarding obligation
Liabilities
Other liabilities	9,361
Fractional share repurchase obligations
Liabilities
Other liabilities	1,029	1,834
Money market funds
Assets
Cash equivalents	629	4,004
Level 1
Assets
Total financial assets	1,671	5,853
Liabilities
Total financial liabilities	1,029	1,834
Level 1 | Asset-backed securities
Assets
Investments	0	0
Level 1 | Commercial paper
Assets
Investments	0	0
Level 1 | Corporate bonds
Assets
Investments	0	0
Level 1 | Government bonds
Assets
Investments	6	1
Level 1 | Asset related to user cryptocurrencies safeguarding obligation
Assets
Other current assets	0
Level 1 | User-held fractional shares
Assets
Other current assets	1,029	1,834
Level 1 | Equity securities - securities owned
Assets
Other current assets	7	14
Level 1 | User cryptocurrencies safeguarding obligation
Liabilities
Other liabilities	0
Level 1 | Fractional share repurchase obligations
Liabilities
Other liabilities	1,029	1,834
Level 1 | Money market funds
Assets
Cash equivalents	629	4,004
Level 2
Assets
Total financial assets	9,387	26
Liabilities
Total financial liabilities	9,361	0
Level 2 | Asset-backed securities
Assets
Investments	4	5
Level 2 | Commercial paper
Assets
Investments	16	14
Level 2 | Corporate bonds
Assets
Investments	6	7
Level 2 | Government bonds
Assets
Investments	0	0
Level 2 | Asset related to user cryptocurrencies safeguarding obligation
Assets
Other current assets	9,361
Level 2 | User-held fractional shares
Assets
Other current assets	0	0
Level 2 | Equity securities - securities owned
Assets
Other current assets	0	0
Level 2 | User cryptocurrencies safeguarding obligation
Liabilities
Other liabilities	9,361
Level 2 | Fractional share repurchase obligations
Liabilities
Other liabilities		0
Level 2 | Money market funds
Assets
Cash equivalents	0	0
Level 3
Assets
Total financial assets	0	0
Liabilities
Total financial liabilities	0	0
Level 3 | Asset-backed securities
Assets
Investments	0	0
Level 3 | Commercial paper
Assets
Investments	0	0
Level 3 | Corporate bonds
Assets
Investments	0	0
Level 3 | Government bonds
Assets
Investments	0
Level 3 | Asset related to user cryptocurrencies safeguarding obligation
Assets
Other current assets	0
Level 3 | User-held fractional shares
Assets
Other current assets	0	0
Level 3 | Equity securities - securities owned
Assets
Other current assets	0	0
Level 3 | User cryptocurrencies safeguarding obligation
Liabilities
Other liabilities	0
Level 3 | Fractional share repurchase obligations
Liabilities
Other liabilities		0
Level 3 | Money market funds
Assets
Cash equivalents	$ 0	$ 0

INVESTMENTS AND FAIR VALUE ME_5

INVESTMENTS AND FAIR VALUE MEASUREMENT - SUMMARY OF CRYPTO ASSETS HELD IN CUSTODY (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total user cryptocurrencies safeguarding obligation and corresponding asset	$ 9,361	$ 0	$ 0
Ethereum (ETH)
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total user cryptocurrencies safeguarding obligation and corresponding asset	2,783
Bitcoin (BTC)
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total user cryptocurrencies safeguarding obligation and corresponding asset	2,759
Dogecoin (DOGE)
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total user cryptocurrencies safeguarding obligation and corresponding asset	2,603
Other
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total user cryptocurrencies safeguarding obligation and corresponding asset	$ 1,216

INVESTMENTS AND FAIR VALUE ME_6

INVESTMENTS AND FAIR VALUE MEASUREMENT - NARRATIVE (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Feb. 28, 2021 tranche
Convertible notes
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Change in fair value	$ 28	$ 1,919	$ 1,900
Warrants
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Change in fair value	$ 2	$ 127	$ 127
Convertible notes | Investor
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Number of tranches issued | tranche				2

INVESTMENTS AND FAIR VALUE ME_7

INVESTMENTS AND FAIR VALUE MEASUREMENT - SCHEDULE OF CHANGES IN ESTIMATED FAIR VALUE OF CONVERTIBLE NOTES AND WARRANT LIABILITY (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Convertible notes
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning of period, January 1, 2021		$ 0
Issued during the period		3,299
Change in fair value	$ 28	1,919	$ 1,900
Reclassifications to equity		(5,218)
End of period, September 30, 2021		0
Warrants
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning of period, January 1, 2021		0
Issued during the period		253
Change in fair value	$ 2	127	$ 127
Reclassifications to equity		(380)
End of period, September 30, 2021		$ 0

INCOME TAXES - SCHEDULE OF INCO

INCOME TAXES - SCHEDULE OF INCOME TAX PROVISION (BENEFIT) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Loss before income taxes	$ (174)	$ (1,367)	$ (859)	$ (3,265)
Provision for (benefit from) income taxes	$ 1	$ (50)	$ 3	$ (1)
Effective tax rate	(0.80%)	3.70%	(0.40%)	0%

SECURITIES BORROWING AND LEND_3

SECURITIES BORROWING AND LENDING - SCHEDULE OF ASSETS AND LIABILITIES SUBJECT TO MASTER NETTING ARRANGEMENTS (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Assets
Gross amount of securities borrowed	$ 139	$ 0
Gross amount offset on the consolidated balance sheets	0	0
Amounts of assets presented on the unaudited condensed consolidated balance sheets	139	0
Securities borrowed	139	0
Security collateral received	(135)	0
Net amount	4	0
Liabilities
Gross amount of securities loaned	1,423	3,651
Gross amount of securities loaned offset on the consolidated balance sheets	0	0
Amounts of liabilities presented on the consolidated balance sheets	1,423	3,651
Securities loaned	1,423	3,651
Security collateral pledged	(1,288)	(3,427)
Net amount	$ 135	$ 224

SECURITIES BORROWING AND LEND_4

SECURITIES BORROWING AND LENDING - NARRATIVE (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Offsetting Assets [Line Items]
Security collateral received	$ 135	$ 0
Security collateral pledged	1,288	3,427
Amount re-pledged with clearing organizations to meet deposit requirements	250.8	220.1
Third Parties
Offsetting Assets [Line Items]
Security collateral received	0.1	0.3
Asset Pledged as Collateral
Offsetting Assets [Line Items]
Securities pledged	5,450	$ 9,210
Asset Pledged as Collateral | Securities Sold under Agreements to Repurchase
Offsetting Assets [Line Items]
Securities pledged	3,580
Security collateral received	$ 134.4

FINANCING ACTIVITIES AND OFF-_2

FINANCING ACTIVITIES AND OFF-BALANCE SHEET RISK - NARRATIVE (Details) - USD ($)	1 Months Ended			9 Months Ended
	Apr. 30, 2022	Apr. 30, 2021	Oct. 31, 2019	Sep. 30, 2022	Dec. 31, 2021	Oct. 31, 2020
Debt Instrument [Line Items]
Settlement date basis, equities				2 days
Settlement date basis, options				1 day
Revolving Credit Facility | October 2019 Credit Facility | Line of Credit
Debt Instrument [Line Items]
Line of credit facility, amount entered into			$ 200,000,000
Outstanding borrowings, long-term				$ 0	$ 0
Commitment fee percentage			0.10%
Revolving Credit Facility | October 2019 Credit Facility | Eurodollar | Line of Credit
Debt Instrument [Line Items]
Variable rate on loan			1%
Revolving Credit Facility | October 2019 Credit Facility | Federal Reserve Bank of New York Rate | Line of Credit
Debt Instrument [Line Items]
Variable rate on loan			0.50%
Revolving Credit Facility | October 2019 Credit Facility | Eurodollar, One Month Interest Period | Line of Credit
Debt Instrument [Line Items]
Variable rate on loan			1%
Revolving Credit Facility | October 2019 Credit Facility, As Amended | Line of Credit
Debt Instrument [Line Items]
Line of credit facility, amount entered into		$ 625,000,000				$ 600,000,000
Revolving Credit Facility | Line of Credit | April 2021 Credit Facility
Debt Instrument [Line Items]
Line of credit facility, amount entered into		$ 2,180,000,000
Outstanding borrowings, short-term				$ 0	$ 0
Commitment fee percentage		0.50%
Revolving Credit Facility | Line of Credit | April 2021 Credit Facility, Tranche A | Short-Term Funding Rate
Debt Instrument [Line Items]
Variable rate on loan		1.25%
Revolving Credit Facility | Line of Credit | April 2021 Credit Facility, Tranche B and C | Short-Term Funding Rate
Debt Instrument [Line Items]
Variable rate on loan		2.50%
Revolving Credit Facility | Line of Credit | April 2022 Credit Facility
Debt Instrument [Line Items]
Line of credit facility, amount entered into	$ 2,280,000,000
Increase limit on credit facility	1,140,000,000
Agreement fee	$ 3,650,000,000
Revolving Credit Facility | Line of Credit | April 2022 Credit Facility, Tranche B and C | SOFR
Debt Instrument [Line Items]
Variable rate on loan	0.10%

COMMON STOCK AND STOCKHOLDERS_3

COMMON STOCK AND STOCKHOLDERS' (DEFICIT) EQUITY - NARRATIVE (Details) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended			9 Months Ended
	Apr. 30, 2022 USD ($)	Feb. 28, 2021 $ / shares shares	Sep. 30, 2022 USD ($) vote class $ / shares shares	Jun. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) vote class $ / shares shares	Sep. 30, 2021 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock, shares outstanding (in shares) | shares			0			0
Number of classes of common stock | class			3			3
Share-based compensation			$ 110		$ 1,244	$ 494	$ 1,254
Capitalized share-based compensation expense			4		20	21	20
Unrecognized compensation cost			1,400			$ 1,400
Unrecognized compensation cost related to outstanding stock options, weighted-average period						2 years 1 month 6 days
Technology and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation			25		503	$ 166	505
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation			83		678	316	686
Workforce Reduction | April 2022 Restructuring
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation				$ 24
Workforce Reduction | August 2022 Restructuring
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation			53
Employee Severance | April 2022 Restructuring | Technology and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	$ 16
Employee Severance | April 2022 Restructuring | General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	6
Employee Severance | August 2022 Restructuring | Technology and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	22
Employee Severance | August 2022 Restructuring | General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	$ 28
Time-Based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation			27		881	235	889
Market-Based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation			79		360	245	360
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation			$ 2		1	$ 5	3
2013, 2020 and 2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock authorized (in shares) | shares			360,000,000			360,000,000
Shares issued under plans (in shares) | shares						90,000,000
Common stock reserved for issuance (in shares) | shares						146,000,000
2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares remaining available for issuance (in shares) | shares			123,000,000			123,000,000
2021 ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation			$ 2		$ 2	$ 9	$ 2
Tranche 1 Convertible Note Holders
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum amount of all warrants			$ 380			$ 380
Common Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of voting rights per share | vote			1			1
Common Class A | IPO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Conversion of common stock (in shares) | shares		137,300,000
Conversion price (in dollars per share) | $ / shares		$ 26.60
Aggregate warrants exercisable (in shares) | shares			14,300,000			14,300,000
Exercise price (in dollars per share) | $ / shares			$ 26.60			$ 26.60
Common Class B
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of voting rights per share | vote			10			10

COMMON STOCK AND STOCKHOLDERS_4

COMMON STOCK AND STOCKHOLDERS' (DEFICIT) EQUITY - SCHEDULE OF STOCK OPTION ACTIVITY (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Number of Shares
Beginning balance (in shares)	14,527,468
Granted during the period (in shares)	4,463,248
Exercised during the period (in shares)	(2,272,363)
Cancelled and forfeited during the period (in shares)	(812,778)
Ending balance (in shares)	15,905,575	14,527,468
Options vested and expected to vest (in shares)	15,905,575
Options exercisable (in shares)	11,916,639
Weighted-Average Exercise Price
Beginning balance, Weighted-Average Exercise Price (in dollars per share)	$ 2.20
Granted during the period, Weighted-Average Exercise Price (in dollars per share)	14.15
Exercised during the period, Weighted-Average Exercise Price (in dollars per share)	2.22
Cancelled and forfeited during the period, Weighted-Average Exercise Price (in dollars per share)	12.90
Ending balance, Weighted-Average Exercise Price (in dollars per share)	5.01	$ 2.20
Options vested and expected to vest, Weighted-Average Exercise Price (in dollars per share)	5.01
Options exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 2.05
Weighted- Average Remaining Life
Weighted- Average Remaining Life	4 years 11 months 4 days	5 years 4 months 13 days
Options vested and expected to vest, weighted-average remaining life	4 years 11 months 4 days
Options exercisable, weighted-average remaining life	4 years 6 months 29 days
Total Intrinsic Value (in millions)
Total Intrinsic Value (in millions)	$ 96	$ 226
Options vested and expected to vest, total intrinsic value	96
Options exercisable, total intrinsic value	$ 96

COMMON STOCK AND STOCKHOLDERS_5

COMMON STOCK AND STOCKHOLDERS' (DEFICIT) EQUITY- SCHEDULE OF ACTIVITY RELATED TO TIME-BASED AND MARKET-BASED RSUs (Details)	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Time-Based RSUs
Number of RSUs
Unvested restricted stock, beginning balance (in shares)	49,428,070
Granted (in shares)	59,499,760
Vested (in shares)	(17,524,831)
Forfeited (in shares)	(19,475,105)
Unvested restricted stock, ending balance (in shares)	71,927,894
Weighted- average grant date fair value
Unvested restricted stock, Weighted-average grant date fair value, beginning balance (in dollars per share) | $ / shares	$ 31.78
Granted, Weighted-average grant date fair value (in dollars per share) | $ / shares	11.70
Vested, Weighted-average grant date fair value (in dollars per share) | $ / shares	23.37
Forfeited, weighted-average grant date fair value (in dollars per share) | $ / shares	25.88
Unvested restricted stock, Weighted-average grant date fair value, ending balance (in dollars per share) | $ / shares	$ 18.81
Market-Based RSUs Eligible to Vest
Number of RSUs
Unvested restricted stock, beginning balance (in shares)	1,267,918
Granted (in shares)	0
Vested (in shares)	(345,796)
Forfeited (in shares)	0
Unvested restricted stock, ending balance (in shares)	922,122
Market-Based RSUs Not Eligible to Vest
Number of RSUs
Unvested restricted stock, beginning balance (in shares)	57,650,926
Granted (in shares)	0
Vested (in shares)	0
Forfeited (in shares)	0
Unvested restricted stock, ending balance (in shares)	57,650,926
Market-Based RSUs
Number of RSUs
Unvested restricted stock, beginning balance (in shares)	58,918,844
Granted (in shares)	0
Vested (in shares)	(345,796)
Forfeited (in shares)	0
Unvested restricted stock, ending balance (in shares)	58,573,048
Weighted- average grant date fair value
Unvested restricted stock, Weighted-average grant date fair value, beginning balance (in dollars per share) | $ / shares	$ 23.50
Granted, Weighted-average grant date fair value (in dollars per share) | $ / shares
Vested, Weighted-average grant date fair value (in dollars per share) | $ / shares	2.34
Forfeited, weighted-average grant date fair value (in dollars per share) | $ / shares
Unvested restricted stock, Weighted-average grant date fair value, ending balance (in dollars per share) | $ / shares	$ 23.63

COMMON STOCK AND STOCKHOLDERS_6

COMMON STOCK AND STOCKHOLDERS' (DEFICIT) EQUITY - SCHEDULE OF SHARE-BASED COMPENSATION (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	$ 110	$ 1,244	$ 494	$ 1,254
2021 ESPP
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	2	2	9	2
Time-Based RSUs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	27	881	235	889
Market-Based RSUs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	79	360	245	360
Options
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	2	1	5	3
Brokerage and transaction
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	2	6	4	6
Technology and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	25	503	166	505
Operations
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	0	16	5	16
Marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	0	41	3	41
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	$ 83	$ 678	$ 316	$ 686

COMMON STOCK AND STOCKHOLDERS_7

COMMON STOCK AND STOCKHOLDERS' (DEFICIT) EQUITY- SCHEDULE OF VESTING FOR AWARDS OUTSTANDING (Details) - Outstanding Awards $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares (in shares) | shares	76,855,901
Expense | $	$ 1,450
Remainder of 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares (in shares) | shares	8,513,485
Expense | $	$ 194
2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares (in shares) | shares	28,262,503
Expense | $	$ 577
2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares (in shares) | shares	20,943,065
Expense | $	$ 378
2025
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares (in shares) | shares	14,571,511
Expense | $	$ 253
2026
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares (in shares) | shares	4,565,337
Expense | $	$ 48

NET LOSS PER SHARE - CALCULATIO

NET LOSS PER SHARE - CALCULATION OF BASIC AND DILUTED INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Net loss	$ (175)	$ (1,317)	$ (862)	$ (3,264)
Less: allocation of earnings to participating securities	0	0	0	0
Net loss attributable to common stockholders	(175)	(1,317)	(862)	(3,264)
Net loss attributable to common stockholders	$ (175)	$ (1,317)	$ (862)	$ (3,264)
Weighted-average common shares outstanding - basic (in shares)	882,356,575	638,168,188	875,055,571	368,518,894
Dilutive effect of stock options and unvested shares (in shares)	0	0	0	0
Weighted-average common shares used to compute diluted loss per share (in shares)	882,356,575	638,168,188	875,055,571	368,518,894
Basic (in dollars per share)	$ (0.20)	$ (2.06)	$ (0.99)	$ (8.85)
Diluted (in dollars per share)	$ (0.20)	$ (2.06)	$ (0.99)	$ (8.85)

NET LOSS PER SHARE - POTENTIAL

NET LOSS PER SHARE - POTENTIAL COMMON SHARES EXCLUDED FROM THE CALCULATION OF DILUTED NET INCOME (LOSS) PER SHARE (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	161,518,164	142,376,772	161,518,164	142,376,772
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	130,510,263	112,492,359	130,510,263	112,492,359
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	15,905,575	15,447,206	15,905,575	15,447,206
Early-exercised stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	0	65,435	0	65,435
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	14,278,034	14,278,034	14,278,034	14,278,034
ESPP shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	824,292	93,738	824,292	93,738

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - Investor	Sep. 30, 2022 party	Feb. 28, 2021 tranche
Related Party Transaction [Line Items]
Number of related parties | party	2
Convertible notes
Related Party Transaction [Line Items]
Number of tranches issued | tranche		2

LEASES - NARRATIVE (Details)

LEASES - NARRATIVE (Details) $ in Millions	3 Months Ended
	Jun. 30, 2022 USD ($)	Sep. 30, 2022 option
Lessee, Lease, Description [Line Items]
Number of renewal options (or more) | option		1
Derecognition of right-of-use assets	$ 23
Derecognition of lease liability	$ 22
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term		1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term		11 years

LEASES - SCHEDULE OF LEASE EXPE

LEASES - SCHEDULE OF LEASE EXPENSE AND OTHER INFORMATION AND CASH FLOWS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Lease, Cost [Abstract]
Fixed operating lease costs	$ 9	$ 7	$ 27	$ 16
Variable operating lease costs	2	1	5	4
Short-term lease costs	0	1	0	1
Total lease costs	$ 11	$ 9	$ 32	21
Weighted Average Remaining Lease Term and Discount Rate [Abstract]
Weighted-average remaining lease term	7 years 5 months 12 days		7 years 5 months 12 days		7 years 3 months 14 days
Weighted-average discount rate	6.41%		6.41%		6.27%
Operating cash flows:
Payments for operating lease liabilities			$ 18	0
Supplemental cash flow data:
Lease liabilities arising from obtaining right-of-use assets			$ 32	$ 97

LEASES - SCHEDULE OF FUTURE MIN

LEASES - SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details) $ in Millions	Sep. 30, 2022 USD ($)
Leases [Abstract]
Remainder of 2022	$ 8
2023	33
2024	31
2025	30
2026	22
Thereafter	85
Total undiscounted lease payments	209
Less: imputed interest	(44)
Less: lease incentives	(5)
Total lease liabilities	$ 160

COMMITMENTS & CONTINGENCIES (De

COMMITMENTS & CONTINGENCIES (Details) customer in Thousands, $ in Millions	1 Months Ended
	Sep. 30, 2021 plaintiff	Jan. 31, 2021 customer	Dec. 31, 2020 case count	Jul. 31, 2020 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jan. 28, 2021 tranche
Loss Contingencies [Line Items]
Accrued for legal and regulatory contingencies					$ 82	$ 85
Number of tranches | tranche							3
Massachusetts Securities Law Violations
Loss Contingencies [Line Items]
Number of lawsuits | count			3
Putative Securities Fraud Class Action Lawsuit
Loss Contingencies [Line Items]
Number of lawsuits | case			5
March 2020 Outages
Loss Contingencies [Line Items]
Number of customers | plaintiff	400
R H C Anti Money Laundering Cybersecurity And Other Issues | Unfavorable Regulatory Action
Loss Contingencies [Line Items]
Expected monetary penalty				$ 30
Putative Class Actions
Loss Contingencies [Line Items]
Number of customers | customer		2