Financial Analysis

NOTE 3: BUSINESS COMBINATIONS Acquisition of TradePMR On February 26, 2025, we acquired all of the outstanding equity of TradePMR, a custodial and portfolio management platform for RIAs. The acquisition of TradePMR allows us to deliver investment advisory capabilities to customers by bringing in a scaled RIA custodial and portfolio management platform that connects financial advisors to a new generation of investors. The acquisition date fair value of the consideration transferred for TradePMR was approximately $169 million following customary purchase price adjustments and was entirely paid in cash. The post-close compensation consisted of approximately 2 million unvested shares of the Companys Class A common stock, valued at approximately $100 million as of the closing date of the acquisition, which will vest over a four-year period post-acquisition, subject to the terms of a vesting agreement. Shares of unvested restricted stock have the same voting rights as all other Class A common stock and are considered to be issued and outstanding. These shares are not part of the equity incentive plans described in Note 12 - Common Stock and Stockholders Equity. The following table summarizes the final purchase price allocation of assets acquired and liabilities assumed based on their respective estimated fair values as of the date of acquisition. During the first quarter of 2026, we finalized the purchase price allocation based on changes in managements estimates and assumptions wh …

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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 managements 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 $71 million as of December 31, 2025 and $89 million as of June 30, 2026. In our opinion, an adequate accrual had been made as of each such date 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, and many other industries in which we operate, are highly regulated and many aspects of our business involve substantial risk of liability. In past years, there has been an increase in litigation and regulatory investigations involving the brokerage, cryptocurrency, derivatives, advisory and credit card industries. Litigation has included and may in the future include class action suits that generally seek substantial and, in some cases …

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NOTE 11: FINANCING ACTIVITIES AND OFF-BALANCE SHEET RISK Convertible Notes On June 25, 2026, we issued $2.2 billion aggregate principal amount of 0.00% convertible senior notes due 2029 pursuant to an indenture between RHM and U.S. Bank Trust Company, National Association, as trustee, in a private offering pursuant to Rule 144A under the Securities Act. The Convertible Notes are senior unsecured obligations of RHM. The $2.2 billion aggregate principal amount of the Convertible Notes included $200 million in aggregate principal amount of Notes issued pursuant to the initial purchasers option to purchase additional Convertible Notes on the same terms and conditions, which the initial purchasers exercised in full on June 23, 2026.The Convertible Notes do not bear regular interest , and the principal amount of the Notes will not accrete. The Convertible Notes will mature on October 1, 2029, unless earlier repurchased, redeemed, or converted. We may pay special interest on the Notes under certain circumstances in accordance with the terms of the Indenture. In connection with the offering of the Convertible Notes, we used approximately $290 million of the net proceeds from the offering of the Convertible Notes to repurchase approximately 2.7 million shares of our Class A common stock in privately negotiated transactions effected with or through one of the initial purchasers of the Convertible Notes or its affiliate at a purchase price per share equal to $105.71, the last reported s …

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The following table presents our revenues disaggregated by revenue source: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2025 2026 2025 2026 Transaction-based revenues: Options $ 265 $ 342 $ 505 $ 602 Event contracts 10 156 13 260 Cryptocurrencies 160 100 412 234 Equities 66 129 122 211 Other 38 49 70 92 Total transaction-based revenues 539 776 1,122 1,399 Net interest revenues: Margin interest 114 215 224 408 Interest on segregated cash, cash equivalents, securities, and deposits, net 77 60 133 118 Cash Sweep 60 41 108 86 Credit card, net 13 40 23 72 Interest on corporate cash and investments 46 31 95 65 Securities lending, net 54 10 77 14 Interest expenses related to credit facilities (8) (10) (14) (18) Other 1 2 1 3 Total net interest revenues 357 389 647 748 Other revenues: Gold subscription revenues 44 54 82 104 Proxy revenues 36 42 45 50 Other 13 47 20 74 Total other revenues 93 143 147 228 Total net revenues $ 989 $ 1,308 $ 1,916 $ 2,375

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NOTE 8: INVESTMENTS AND FAIR VALUE MEASUREMENT 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, 2025 (in millions) Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 52 $ $ $ 52 Cash, cash equivalents, and securities segregated under federal and other regulations: U.S. Treasury securities 311 311 Foreign Treasury securities 53 53 Deposits with clearing organizations: U.S. Treasury securities (1) 1 1 Other current assets: U.S. Treasury securities (2) 200 200 Stablecoin 152 152 Equity securities - securities owned 28 28 Other non-current assets: Non-marketable securities (3) 232 232 Money market funds - escrow account 2 2 User-held fractional shares 3,782 3,782 Total financial assets $ 4,581 $ $ 232 $ 4,813 Liabilities Fractional shares repurchase obligations $ 3,782 $ $ $ 3,782 Total financial liabilities $ 3,782 $ $ $ 3,782 June 30, 2026 (in millions) Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 27 $ $ $ 27 Cash, cash equivalents, and securities segregated under federal and other regulations: U.S. Treasury securities 4,024 4,024 Foreign Treasury securities 41 41 Deposits with clearing organizations: U.S. Treasury securities (1) 400 400 Other current assets: Equity securities - securities owned 484 484 Stablecoin 155 155 Other non-current assets: Non-marketable secu …

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NOTE 5: GOODWILL AND INTANGIBLE ASSETS Goodwill The carrying amount of goodwill for the period indicated was as follows: (in millions) Carrying Amount As of December 31, 2025 $ 385 Additions 143 Measurement period adjustment (6) Foreign currency translation adjustment (6) As of June 30, 2026 $ 516 There was no impairment of goodwill during the six months ended June 30, 2026. Intangible Assets The components of intangible assets, net as of June 30, 2026 were as follows: (in millions, except years) Gross Carrying Value Accumulated Amortization Net Carrying Value Weighted Average Remaining Useful Life - Years Finite-lived intangible assets: Developed technology $ 104 $ (36) $ 68 3.74 Customer relationships 86 (10) 76 12.03 Trade names 3 (2) 1 1.88 Indefinite-lived intangible assets 101 101 N/A Total $ 294 $ (48) $ 246 Amortization expense of intangible assets was $7 million and $14 million for the three and six months ended June 30, 2026. As of June 30, 2026, the estimated future amortization expense of finite-lived intangible assets was as follows: (in millions) Finite-lived Intangible Assets Remainder of 2026 $ 18 2027 26 2028 20 2029 20 2030 14 Thereafter 47 Total $ 145 …

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NOTE 9: INCOME TAXES Three Months Ended June 30, Six Months Ended June 30, (in millions, except percentages) 2025 2026 2025 2026 Income before income taxes $ 442 $ 709 $ 813 $ 1,120 Provision for income taxes 56 136 91 201 Effective tax rate 12.7 % 19.2 % 11.2 % 17.9 % 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 six months ended June 30, 2025, the ETR was lower than the U.S. federal statutory rate primarily due to excess tax benefits from SBC. For the three months ended June 30, 2026, the ETR was lower than the U.S. federal statutory rate primarily due to the excess tax benefits from SBC and the release of the valuation allowance on certain California deferred tax assets. For the six months ended June 30, 2026, the ETR was lower than the U.S. federal statutory rate primarily due to excess tax benefits from SBC. The realization of tax benefits of net deferred 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 for the six months ended June 30, 2026, we believe it is more likely than not that the tax benefits of certain California, other U.S. states and certain foreign net deferred tax assets may not be re …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 14: LEASES Our operating leases are substantially comprised of office facilities, and we do not have any finance leases. Lease assets and liabilities recognized on our unaudited condensed consolidated balance sheets were as follows: December 31, June 30, (in millions) Classification 2025 2026 Lease right-of-use assets: Operating lease assets Other non-current assets $ 182 $ 175 Lease liabilities: Current operating lease liabilities Other current liabilities 22 20 Non-current operating lease liabilities Other non-current liabilities 199 199 Total lease liabilities $ 221 $ 219 Cash flows related to leases were as follows: Six Months Ended June 30, (in millions) 2025 2026 Operating cash flows: Payments for operating lease liabilities $ 15 $ 16 Supplemental cash flow data: Lease liabilities arising from obtaining right-of-use assets $ 14 $ 6

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Recently Adopted Accounting Pronouncements There were no new accounting pronouncements adopted during the six months ended June 30, 2026 that materially impacted our unaudited condensed consolidated financial statements and related disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SECs Disclosure Update and Simplification Initiative. The amendments will impact various disclosure areas, including the statement of cash flows, accounting changes and error corrections, earnings per share, debt, equity, derivatives, and transfers of financial assets. The amendments in this guidance will be effective on the date the related disclosures are removed from Regulation S-X or Regulation S-K by the SEC, and will no longer be effective if the SEC has not removed the applicable disclosure requirement by June 30, 2027. Early adoption is prohibited. We are currently evaluating the impacts of the amendments on our consolidated financial statements. In March 2024, the SEC adopted final rules under SEC Release No. 34-99678 and No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors (the Final Rules), which the SEC has proposed to rescind, requires registrants to provide certain climate-related information in their registration statements and annual reports. The Final Rules require, among other things, disclosure in the notes …

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NOTE 6: REVENUES Disaggregation of Revenues The following table presents our revenues disaggregated by revenue source: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2025 2026 2025 2026 Transaction-based revenues: Options $ 265 $ 342 $ 505 $ 602 Event contracts 10 156 13 260 Cryptocurrencies 160 100 412 234 Equities 66 129 122 211 Other 38 49 70 92 Total transaction-based revenues 539 776 1,122 1,399 Net interest revenues: Margin interest 114 215 224 408 Interest on segregated cash, cash equivalents, securities, and deposits, net 77 60 133 118 Cash Sweep 60 41 108 86 Credit card, net 13 40 23 72 Interest on corporate cash and investments 46 31 95 65 Securities lending, net 54 10 77 14 Interest expenses related to credit facilities (8) (10) (14) (18) Other 1 2 1 3 Total net interest revenues 357 389 647 748 Other revenues: Gold subscription revenues 44 54 82 104 Proxy revenues 36 42 45 50 Other 13 47 20 74 Total other revenues 93 143 147 228 Total net revenues $ 989 $ 1,308 $ 1,916 $ 2,375 The following table presents interest revenue earned and interest expense paid from securities lending: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2025 2026 2025 2026 Interest revenue $ 153 $ 112 $ 253 $ 209 Interest expense (99) (102) (176) (195) Securities lending, net $ 54 $ 10 $ 77 $ 14 The following table presents interest revenue earned from segregated cash, cash equivalents, securities, and deposits, and interest expense paid to users on u …

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