Robinhood sees US$100 million costs tied to regulatory issues in third quarter

Robinhood Markets expects a US$100 million charge in the third quarter to resolve some legal and regulatory matters that were previously disclosed, the trading app operator said on Friday (Sep 29).

The company has had several run-ins with regulators. It was also at the centre of the “meme stock” trading frenzy in early 2021, when a group of retail investors on social media bought shares of highly-shorted stocks such as GameStop.

However, a stormy economic climate last year spooked retail traders, Robinhood’s chief customer base.

The company beat revenue expectations during the second quarter and reported a profit for the first time as a public company in August.

Robinhood’s shares were marginally higher after the bell.