'Robinhood' CLO Sells $760,000 Stake, Major Shareholder Implements Large-Scale Put Option Hedge

On May 4, Robinhood Markets, Inc. (NASDAQ: HOOD) Chief Legal Officer Daniel Gallagher sold 10,000 shares of Class A common stock in multiple tranches under a pre-established Rule 10b5-1 trading plan, generating proceeds of approximately $763,000 (about KRW 1 billion). As a result, his direct holdings declined slightly from 442,649 shares to 432,849 shares, though he continues to maintain a substantial stake.

Separately, major shareholder Meyer Malka, through Bullfrog Capital, implemented a structured hedge strategy on May 22 by combining 30,000 put-option contracts expiring December 31, 2027, to adjust his upside and downside exposure to Robinhood shares; his reported indirect ownership remains unchanged.

In its first-quarter 2026 earnings announced on April 28, Robinhood posted revenue of around $1.07 billion (roughly KRW 1.5 trillion), marking double-digit year-over-year growth, although slightly below market expectations. The company emphasized contributions from new business segments such as prediction markets and options.

Alongside April operating metrics, the company also approved a new $1.5 billion (approximately KRW 2 trillion) share repurchase program at the end of March. On May 27, management is scheduled to present recent results and strategy directly to investors at key events, including the Bernstein Strategic Decisions Conference.

Headquartered in Menlo Park, California, Robinhood is a U.S. fintech brokerage offering a mobile app–based, commission-free trading platform for stocks, ETFs, options, and cryptocurrencies, rapidly growing its retail investor base.

Daniel Gallagher is a financial legal expert and former commissioner of the U.S. Securities and Exchange Commission, while venture investor Meyer “Micky” Malka is the founder of fintech-focused Ribbit Capital, a member of Robinhood’s board, and holds equity in the company through Bullfrog affiliates.