Robinhood launches $1.5B share buyback program as stock hits year low

Robinhood Markets approved a $1.5 billion share repurchase program to be carried out over three years and arranged a new $3.25 billion revolving credit facility with JPMorgan Chase, according to a filing with the U.S. Securities and Exchange Commission. The facility replaces a prior $2.65 billion line and includes the option to increase borrowing capacity by up to $1.62 billion, for a maximum of $4.87 billion.

The authorization includes $1.1 billion in new capacity, with the balance carried forward from an earlier repurchase program. The company did not detail how it will pace or allocate purchases across the three-year period.

Robinhood shares fell 4.7% to $69.08 on March 24, the lowest close of the year, and later traded at $70.90 after hours. The stock is down nearly 39% year to date and has declined 54.7% from its October record of $152.46. Over the past 12 months, the shares are up nearly 43%.

In a statement, Chief Financial Officer Shiv Verma wrote: “Robinhood is a generational company with a massive long-term opportunity. This authorization reflects the confidence of our management team and board in our ability to continue delivering innovative products for customers and creating value for shareholders while returning capital over time.”

The company has expanded beyond its core brokerage platform, adding products such as prediction markets and banking services covered in more detail in our Robinhood review. It continues to invest in digital assets and tokenization. In February, Robinhood opened the testnet of Robinhood Chain, an Ethereum layer-2 network designed to support tokenized equities, exchange-traded funds and other traditional financial instruments. Chief Executive Vlad Tenev put the first-week public testnet activity at about 4 million transactions, with a mainnet launch planned later this year.

Robinhood did not disclose further intended uses for the new credit line beyond noting that it replaces the prior facility.