A Business at a Glance
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Robinhood Markets, Inc.
HOOD
$87.2B
Mkt Cap
$94.91
-6.57%
Robinhood Markets, Inc. (HOOD) has a current P/E ratio of 46.3, compared to its historical median P/E of 41.3. The stock is currently considered Fair based on its historical valuation range.
Robinhood Markets, Inc. (HOOD) has a 5-year average return on invested capital (ROIC) of -16.6%. This is below average and may indicate limited pricing power.
Robinhood Markets, Inc. (HOOD) has a market capitalization of $86.8B. It is classified as a large-cap stock.
Robinhood Markets, Inc. (HOOD) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 0.67%.
Based on historical P/E analysis, Robinhood Markets, Inc. (HOOD) appears fair. The current P/E of 46.3 is 12% above its historical median of 41.3. The estimated fair value CAGR (P/E method) is 118.5%.
Robinhood Markets, Inc. (HOOD) operates in the Security Brokers, Dealers & Flotation Companies industry, within the Financials sector.
Robinhood Markets, Inc. (HOOD) reported annual revenue of $4.5 billion in its most recent fiscal year, based on SEC EDGAR filings.
Robinhood is a financial services platform founded in 2013 that democratizes access to investing through commission-free trading and a mobile-first interface. The company operates a diversified brokerage business offering commission-free trading in U.S.-listed stocks, ETFs, options, and fractional shares, along with advanced features such as margin investing, recurring investments, fully-paid securities lending, cash sweep programs, and 24-hour market access. Beyond equities, Robinhood has expanded into cryptocurrency trading (supporting 58 cryptocurrencies across multiple jurisdictions), futures contracts, prediction markets (event contracts traded on a regulated exchange), and retirement accounts (traditional and Roth IRAs with employer matching). The company generates revenue through multiple channels including trading commissions on certain products (options, futures, prediction markets, crypto), interest income from margin lending and cash sweep programs, and subscription services like Robinhood Gold. Robinhood operates internationally, offering brokerage services in the U.K. through RHUK (including stocks and shares ISAs) and in the EU through RHEU with stock tokens, while expanding crypto offerings to Canada and other markets. The platform is designed to be intuitive and accessible to retail investors of all experience levels, with advanced tools like Robinhood Legend (a desktop platform for active traders) and API access for seasoned traders, supported by educational content and market data at no additional cost.
【Accelerating product velocity and profitability】 Management expects 2026 to deliver another year of profitable growth with accelerated product velocity, including the rollout of Robinhood Banking, expansion of Gold Card subscriptions to over 1 million by year-end, and continued momentum in prediction markets where customers have already traded over $4 billion in 2026. The company plans to invest an incremental $100 million in building Trump Accounts with expectations that revenues will exceed costs for this project, while targeting 20%+ net deposit growth and a path to exceed $1 trillion in assets in coming years. Management is prioritizing AI capabilities as a technology company and expects to lead that charge, while continuing to expand internationally with products like Robinhood Social and broader tokenization opportunities, which management views as a "tokenization super cycle" with significant potential for multi-product adoption over the next year.
| Metric | Target | Period |
|---|---|---|
| Adjusted OpEx and SBC | $2.7 billion–$2.825 billion | FY2026 |
| Net deposit growth | 20%+ | FY2026 |
| Gold Card subscribers | well over 1 million | End of FY2026 |
Adjusted OpEx and SBC (FY2026): “Given this $100 million investment in building Trump Accounts, we are raising our full year 2026 outlook for adjusted OpEx and SBC by equivalent $100 million, our updated range is $2.7 billion-$2.825 billion.”
Net deposit growth (FY2026): “Second, we aim to deliver another year of 20%+ net deposit growth.”
Gold Card subscribers (End of FY2026): “So we plan to continue accelerating the rollout, more than doubling the amount of customers with Gold Cards this year to well over 1 million by the end of the year.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 4.6B | 4.5B | 3.0B | 1.9B | 1.4B | - |
| Net Income | 1.9B | 1.9B | 1.4B | -541M | -1.0B | -3.7B |
| EPS | $2.07 | $2.05 | $1.56 | $-0.61 | $-1.17 | $-7.49 |
| Free Cash Flow | 0 | 1.6B | -157M | 1.2B | -880M | -948M |
| ROIC | 0.0% | 22.0% | 19.2% | -7.9% | -14.4% | -101.9% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.01 | 0.05 | 0.02 | 1.63 | 2.35 | 1.71 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 0 | 2.1B | 1.1B | -533M | -1.0B | -3.7B |
| Operating Margin | 0.0% | 47.1% | 36.1% | -28.6% | -75.6% | - |
| ROE | 19.6% | 22.0% | 19.2% | -7.9% | -14.4% | -101.9% |
| Shares Outstanding | 915M | 919M | 904M | 887M | 879M | 492M |
| Metric | ||||||||
|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||
| Revenue | 278M | 958M | N/A | 1.4B | 1.9B | 3.0B | 4.5B | 4.6B |
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | 28M | 52M | 438M | 381M | 349M | 323M | 355M | 355M |
| SG&A | 86M | 295M | 1.4B | 924M | 1.2B | 455M | 628M | 669M |
| EBIT | -108M | 13M | -3.7B | -1.0B | -533M | 1.1B | 2.1B | 0 |
| Op. Margin | -38.8% | 1.4% | N/A | -75.6% | -28.6% | 36.1% | 47.1% | 0.0% |
| Net Income | -107M | 3.0M | -3.7B | -1.0B | -541M | 1.4B | 1.9B | 1.9B |
| Net Margin | -38.4% | 0.3% | N/A | -75.7% | -29.0% | 47.8% | 42.1% | 41.1% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | ||||||||
| ROIC | -99.4% | 0.0% | -101.9% | -14.4% | -7.9% | 19.2% | 22.0% | 0.0% |
| ROE | 179.9% | -3.9% | -101.9% | -14.4% | -7.9% | 19.2% | 22.0% | 19.6% |
| ROA | -124.6% | 0.1% | -24.0% | -4.8% | -2.6% | 6.4% | 5.9% | 4.2% |
| Cash Flow | ||||||||
| Op. Cash Flow | 1.3B | 1.9B | -885M | -852M | 1.2B | -157M | 1.6B | 3.0B |
| Free Cash Flow | 1.3B | 1.9B | -948M | -880M | 1.2B | -157M | 1.6B | 0 |
| Owner Earnings | 1.2B | 1.8B | -2.5B | -1.6B | 239M | -538M | 1.2B | 2.6B |
| CapEx | 7.3M | 24M | 63M | 28M | 0 | 0 | 0 | 0 |
| Maint. CapEx | 5.4M | 10M | 26M | 61M | 71M | 77M | 86M | 89M |
| Growth CapEx | 1.8M | 14M | 37M | 0 | N/A | N/A | N/A | 0 |
| D&A | 5.4M | 10M | 26M | 61M | 71M | 77M | 86M | 89M |
| CapEx/OCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Capital Allocation | ||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 608M | 257M | 653M | 581M |
| Buyback Yield | 0.0% | N/A | N/A | N/A | 5.2% | 0.7% | 0.6% | 0.7% |
| Stock-Based Comp | 27M | 24M | 1.6B | 654M | 871M | 304M | 305M | 324M |
| Debt Repayment | 0 | 0 | 0 | 10M | 10M | 15M | 17M | 17M |
| Balance Sheet | ||||||||
| Net Debt | N/A | N/A | N/A | N/A | N/A | -4.2B | -3.8B | -4.9B |
| Cash & Equiv. | 644M | 1.4B | 6.3B | 6.3B | 4.8B | 4.3B | 4.3B | 5.0B |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 117M |
| Debt/Equity | -0.14 | -161.16 | 1.71 | 2.35 | 1.63 | 0.02 | 0.05 | 0.01 |
| Interest Coverage | -1.5 | 0.1 | -14.4 | -2.4 | -0.6 | 1.0 | 1.4 | 1.4 |
| Equity | -97M | -55M | 7.3B | 7.0B | 6.7B | 8.0B | 9.2B | 9.7B |
| Total Assets | 86M | 11.0B | 19.8B | 23.3B | 17.6B | 26.2B | 38.1B | 45.5B |
| Total Liabilities | 14M | 8.9B | 12.5B | 16.4B | 10.9B | 18.2B | 29.0B | 35.8B |
| Intangibles | N/A | 185K | 34M | 25M | 48M | 38M | 168M | 203M |
| Retained Earnings | N/A | -190M | -3.9B | -4.9B | -5.4B | -4.0B | -2.2B | -1.8B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | ||||||||
| EPS | -0.48 | 0.01 | -7.49 | -1.17 | -0.61 | 1.56 | 2.05 | 2.07 |
| Owner EPS | 5.53 | 6.14 | -5.04 | -1.78 | 0.27 | -0.59 | 1.36 | 2.86 |
| Book Value | -0.44 | -0.18 | 14.82 | 7.92 | 7.55 | 8.81 | 9.96 | 10.59 |
| Cash Flow/Share | 5.68 | 6.25 | -1.80 | -0.97 | 1.33 | -0.17 | 1.78 | 2.17 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 222.0M | 300.0M | 492.3M | 878.6M | 886.9M | 904.5M | 918.5M | 915.0M |
| Valuation | ||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | 25.0 | 57.6 | 45.9 |
| P/FCF | N/A | N/A | N/A | N/A | 9.9 | N/A | 66.2 | N/A |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Book | N/A | N/A | 1.2 | 1.0 | 1.7 | 4.4 | 11.9 | 9.0 |
| Price/Sales | N/A | N/A | N/A | N/A | 9.5 | 17.7 | 52.5 | 18.8 |
| FCF Yield | N/A | N/A | -11.0% | -13.0% | 10.1% | -0.4% | 1.5% | N/A |
| Market Cap | 0 | N/A | 8.6B | 6.8B | 11.7B | 35.3B | 108.5B | 86.8B |
| Avg. Price | 0.00 | N/A | 37.39 | 10.75 | 9.94 | 21.68 | 86.56 | 94.91 |
| Year-End Price | 0.00 | N/A | 17.45 | 7.70 | 13.18 | 39.02 | 118.13 | 94.91 |
Robinhood Markets, Inc. passes 3 of 9 quality checks, indicating weak fundamentals.
Robinhood Markets, Inc. trades at 46.3x trailing earnings, compared to its 15-year median P/E of 41.3x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 53.2x vs a median of 38.1x. Total shareholder yield (buybacks) is 0.7%. At current prices, the estimated annualized return to fair value is -4.9%.
Robinhood Markets, Inc. (HOOD) has a net profit margin of 42.1%. This is a strong margin indicating high profitability.
Robinhood Markets, Inc. (HOOD) generated $1.6 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Robinhood Markets, Inc. (HOOD) has a debt-to-equity ratio of 0.05. This indicates a conservatively financed balance sheet.
Robinhood Markets, Inc. (HOOD) reported earnings per share (EPS) of $2.05 in its most recent fiscal year.
Robinhood Markets, Inc. (HOOD) has a return on equity (ROE) of 22.0%. This indicates the company generates strong returns for shareholders.
The Ledger Terminal provides 7 years of financial data for Robinhood Markets, Inc. (HOOD), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Robinhood Markets, Inc. (HOOD) has a book value per share of $9.96, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects 2026 to deliver another year of profitable growth with accelerated product velocity, including the rollout of Robinhood Banking, expansion of Gold Card subscriptions to over 1 million by year-end, and continued momentum in prediction markets where customers have already traded over $4 billion in 2026. The company plans to invest an incremental $100 million in building Trump Accounts with expectations that revenues will exceed costs for this project, while targeting 20%+ net deposit growth and a path to exceed $1 trillion in assets in coming years. Management is prioritizing AI capabilities as a technology company and expects to lead that charge, while continuing to expand internationally with products like Robinhood Social and broader tokenization opportunities, which management views as a "tokenization super cycle" with significant potential for multi-product adoption over the next year.
Based on recent SEC filings and earnings calls, Robinhood Markets, Inc. (HOOD) has provided the following forward guidance: Adjusted OpEx and SBC: $2.7 billion–$2.825 billion (FY2026); Net deposit growth: 20%+ (FY2026); Gold Card subscribers: well over 1 million (End of FY2026).