Robinhood Backs Itself With $1.5 Billion Share Buyback as Stock Declines

Robinhood has announced a new $1.5 billion stock repurchase
plan, coming as crypto and tech markets face pressure from wider geopolitical
and economic uncertainty. Shares in Robinhood Markets dropped to their lowest
level this year.

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$1.5 Billion Program Extends Earlier Buybacks

Robinhood’s board approved the buyback on Tuesday, adding
$1.1 billion in new capacity to its remaining authorization. The plan will run
for about three years, with flexibility to speed up depending on market
conditions.

The latest plan extends an earlier $1.5 billion program
started in 2024 and expanded in 2025. By March 2025, Robinhood had repurchased
25 million shares for more than $1.1 billion. The firm went public on July 29, 2021, listing its shares on the Nasdaq under the ticker.

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Robinhood shares closed 4.7% lower Tuesday at $69.08 before
recovering slightly after hours. The stock has dropped almost 40% this year and
is down more than half from its October peak of more than $150. However, at the
time of writing, the price was 7% up, trading at $73.

Separately, Robinhood Securities entered a $3.25 billion
revolving credit facility with JPMorgan Chase, replacing a smaller one and
allowing expansion up to $4.87 billion.

Social Trading, Prediction Markets, and Tokenization

Robinhood’s latest buyback comes as the broker leans harder into social trading, testing a U.S. product that lets users share and discuss
portfolios in‑app while trying not to provoke another regulatory
backlash.

At the same time, the company is pouring resources into prediction markets, which have quickly become one of its fastest‑growing
businesses and a key pillar of its post‑meme‑stock story. Robinhood is building
its own futures and derivatives exchange and gradually loosening its reliance
on Kalshi, even if volumes and fee sharing still tie the two together for now.

Further out on the risk curve sits Robinhood’s tokenization push, where it is working with blockchain partners on a three‑phase
plan that would see users hold tokenized equities, withdraw them off‑platform
and eventually pledge them as collateral for crypto loans. If it works,
Robinhood could position itself at the center of a retail capital‑markets
stack that spans stocks, prediction markets and on‑chain
finance.

This article was written by Jared Kirui at www.financemagnates.com.

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