Robinhood Reveals Rising Revenue and a $1.4 Billion Loss

The stock-trading app unveiled its initial public offering prospectus on Thursday, pulling back the curtain on its financial performance for the first time.

SAN FRANCISCO — Robinhood, the stock-trading app that has grown in popularity and notoriety during the pandemic, revealed skyrocketing revenue and a loss of more than $1.4 billion in the first three months of this year, as it took a key step on Thursday toward one of the year’s most anticipated initial public offerings.

Robinhood made the disclosures in an offering prospectus a day after saying it would pay a $70 million fine — the largest ever imposed by the Financial Industry Regulatory Authority, or FINRA — for misleading customers and harming them with outages.

Its offering, heading into an ebullient and unpredictable stock market, will test whether investors will continue to embrace fast-growing tech start-ups that arrive on Wall Street with uneven profits and plenty of baggage.

In January, Robinhood became the latest in a line of Silicon Valley companies to gain national attention for less-than-ideal reasons when it restricted some trading after a swarm of investors swelled the values of so-called meme stocks like GameStop, the video game retailer.

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