Robinhood Markets Inc. (NASDAQ: HOOD) has a number in mind for its Trump Accounts push this year: about $100 million. And apparently, that number might not be the ceiling.
On the company's third-quarter earnings call Tuesday, a Barclays analyst asked CFO Shiv Verma about the expenses and what investors should expect going forward. Verma's answer was that Robinhood is "doing even more for the Trump account," which is a polite way of saying spending could keep climbing through the rest of 2026.
He did offer some reassurance on timing. Verma said quarterly expense changes mostly reflect when costs land, and he reiterated that the full-year investment tied specifically to Trump accounts should stay near $100 million. So the headline number holds, even if the quarterly rhythm bounces around.
The broader expense picture is less tidy. For the third quarter, Robinhood's operating expenses rose 16% year-over-year to $739 million. The culprits: higher credit-loss provisions, Trump Accounts and Rothera-related costs, and increased marketing and growth investments. That is a lot of buckets, and they all got heavier at once.
As for 2027, Robinhood hasn't finalized its budget yet. Verma said the company expects to complete planning and provide a broader outlook in January or February. So investors will have to wait a few months for the next big reveal.
Trump Accounts Are Bringing In Real Money
The spending is not happening in a vacuum. On Tuesday, Robinhood reported third-quarter revenue of $1.424 billion, up 12% year-over-year. That beat a Street consensus estimate of $1.422 billion, according to data from MarketDash Pro. A narrow beat, but a beat.
Other revenue rose 61% year-over-year to $142 million, driven primarily by Trump Account service revenue and higher Robinhood Gold subscription revenue. That is a serious jump, and it suggests the Trump Accounts program is already contributing meaningfully to the top line.
Verma said the company entered the fourth quarter with strong momentum, citing more than $13 billion in October-to-date net deposits. That figure includes $6 billion from the Dell Inc. (NASDAQ: DELL) family's contribution to Trump Accounts. Yes, the Dell family. That is one way to seed a program.
What Exactly Are Trump Accounts?
For the uninitiated, Trump Accounts are investment accounts for eligible U.S. children, designed to help them build long-term wealth through investments in financial markets. Children are eligible for a tax-deferred $1,000 federal contribution if they were born between January 1, 2025, and December 31, 2028. Families can also contribute up to $5,000 annually, potentially allowing investments to compound over nearly two decades. Robinhood joined in as an initial broker alongside The Bank of New York Mellon Corp. (NYSE: BNY).
In August, Robinhood CEO Vlad Tenev said Trump Accounts currently give children exposure to the S&P 500 through a State Street SPDR Portfolio S&P 500 ETF (NYSE: SPYM). He said the goal is to make investing accessible from birth, allowing children to own shares in major U.S. companies and benefit from compound interest. Tenev said the diversified portfolio offers a simple starting point, although additional investment options could be considered over time.
The Treasury had also selected the State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (NYSE: SPTM) as a future investment option, alongside other ETFs like iShares Core S&P 500 ETF (NYSE: IVV), iShares Core S&P Total U.S. Stock Market ETF (NYSE: ITOT) and Vanguard Total Stock Market ETF (NYSE: VTI). So the menu could expand later.
MarketDash's Edge Rankings place HOOD in the 85th percentile for growth and the 28th percentile for momentum, reflecting its mixed performance. MarketDash's screener allows you to compare HOOD's performance with its peers.
Price Action: Year-to-date, HOOD stock has declined 16.39%, as per MarketDash Pro. During Wednesday's pre-market trading session, the stock was trading 7.63% lower at $87.34.
