Popular online brokerage Robinhood Markets (NASDAQ:HOOD) has announced that it expects to face a significant financial setback in the third quarter of 2023, estimating a cost of approximately $100 million due to ongoing legal and regulatory challenges.
The Menlo Park, California-based company’s shares remained relatively unaffected in extended trading.
This expense is directly associated with Robinhood’s efforts to address and resolve certain historical legal and regulatory matters, as previously disclosed in its Form 10-Q filing on August 3, 2023.
It’s important to note that this anticipated expense has not been factored into the company’s current operating expense outlook for 2023, which ranges between $2.33 billion and $2.41 billion.
Robinhood plans to provide an updated expense guidance when it reports its third-quarter results.