The company, headquartered in Menlo Park, California, expects to shoulder approximately $20 million in severance costs alongside $8 million in share-based compensation expenses. These charges are slated for the second quarter, marking a pivot toward efficiency despite Tenev’s insistence that the business remains in a position of strength. According to recent filings, the firm employed about 2,900 people at the end of last year.

Investors reacted positively to the news, with shares climbing nearly 3% in premarket trading, a welcome shift after a 13% decline throughout the year. While the firm missed profit expectations in April due to crypto-driven market instability, current performance shows record trading volumes across equities and options. To move beyond its dependence on volatile retail trading, Robinhood is continuing its push into broader financial services, including credit cards and wealth management.