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Robinhood (HOOD) AI Stock Analysis
Robinhood
(NASDAQ:HOOD)
HOOD scores well on financial performance and a constructive earnings-call outlook (strong profitability, improved leverage, and strong cash generation alongside record operating metrics). The overall score is held back by weak technical momentum (below key moving averages with negative MACD) and a premium valuation (P/E ~41.6) without dividend support.
Robinhood Key Performance Indicators (KPIs)
Gold SubscribersCounts paying subscribers to Robinhood Gold, showing how successful the company is at converting users to a recurring‑revenue model and the potential stability of future cash flow.
Gold membership has become a powerful engagement and monetization engine, expanding rapidly as Robinhood adds benefits across trading, prediction markets, credit and banking. Growth has moderated slightly from its earlier surge but remains strong, with management reporting record adoption and particularly high conversion among newly acquired customers. This suggests Gold is increasingly strengthening customer retention and encouraging multi-product usage, though international and younger-customer expansion could gradually weigh on average revenue per subscriber.
The FlyRobinhood (HOOD) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $67.98B
- Dividend Yield
- ―
- Average Volume (3M)
- 20.40M
- Price to Earnings (P/E)
- 39.7
- Beta (1Y)
- 3.32
- Revenue Growth
- 21.65%
- EPS Growth
- -11.10%
- Country
- US
- Employees
- 2,900
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Financial - Capital Markets
Robinhood Business Overview & Revenue Model
Company Description
Robinhood Markets, Inc. operates a financial services platform available to users throughout the United States. This platform empowers individuals to engage in a wide array of investments, encompassing common stocks, exchange-traded funds (ETFs), opt...
How the Company Makes Money
Robinhood primarily generates revenue through transaction-based and interest-based sources, supplemented by subscription and other fees. 1) Transaction-based revenues - Payment for Order Flow (PFOF): Robinhood routes many customer equity and options...
Robinhood Earnings Call Summary
The call was strongly positive, with record revenue, adjusted EBITDA, platform assets, net deposits and trading volumes, broad product expansion, increasing Gold adoption, early Robinhood Chain traction and continued international growth. The main challenges were modestly lighter early-Q4 trading volumes, tighter spreads and lower take-rate dynamics, quarter-to-quarter variability in net deposits and monthly activity, staged product rollouts, and regulatory uncertainty around U.S. tokenization. Management remained confident in customer engagement, product momentum and long-term expansion.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management expects full year adjusted OpEx in SBC to be between $2.675 billion and $2.75 billion, with the top end lowered by $25 million and the midpoint $13 million lower versus prior outlook; Trump accounts are expected to represent about $100 million investment for the full year. Net deposits have already surpassed the 20% annualized growth target, reaching over $13 billion in October and over $68 billion year-to-date, while Q4 average daily volumes for equities, options and cryptos are about 5% lighter relative to the really strong Q3 and event contract ADVs are up about 10%; in a normalized environment, Robinhood expects to monetize Robinhood Chain at probably a couple of basis points on notional values, and each 25 basis point hike or decline is expected to produce about a 1.5% change to revenue. Over the long run, management’s vision is that more than half of the business should be outside the U.S. and more than half should be institutional; no 2027 expense guidance was provided, with the company saying it will share the full plan in January and February.
Robinhood Financial Statement Overview
Summary
Strong turnaround with very high TTM margins (gross ~82.6%, operating ~44.5%, net ~39.0%), solid net income (~$2.0B), and robust free cash flow (~$3.0B) closely matching earnings (~97.5% of net income). Balance sheet leverage has improved materially (debt-to-equity ~0.27x TTM). Main risk is historical volatility across earnings and cash flow, indicating sensitivity to market cycles.
Income Statement
86Very PositiveBalance Sheet
74PositiveCash Flow
81Very Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.09B | 4.47B | 2.95B | 1.86B | 1.36B | 1.81B |
| Gross Profit | 4.24B | 3.73B | 2.34B | 1.72B | 770.00M | 1.31B |
| EBITDA | 2.36B | 2.18B | 1.13B | -465.00M | -905.00M | -1.61B |
| Net Income | 1.98B | 1.88B | 1.41B | -541.00M | -1.03B | -3.69B |
Balance Sheet | ||||||
| Total Assets | 58.27B | 38.14B | 26.19B | 17.62B | 23.34B | 19.77B |
| Cash, Cash Equivalents and Short-Term Investments | 5.83B | 10.45B | 10.50B | 8.44B | 7.85B | 8.09B |
| Total Debt | 2.66B | 11.63B | 7.46B | 3.55B | 1.83B | 3.65B |
| Total Liabilities | 48.19B | 28.99B | 18.21B | 10.93B | 16.38B | 12.48B |
| Stockholders Equity | 10.00B | 9.14B | 7.97B | 6.70B | 6.96B | 7.29B |
Cash Flow | ||||||
| Free Cash Flow | 2.97B | 1.58B | -207.00M | 1.16B | -909.00M | -968.43M |
| Operating Cash Flow | 3.05B | 1.64B | -157.00M | 1.18B | -852.00M | -884.77M |
| Investing Cash Flow | -2.09B | 141.00M | -148.00M | -582.00M | -60.00M | -237.88M |
| Financing Cash Flow | 2.56B | -590.00M | -345.00M | -610.00M | 0 | 5.20B |
Robinhood Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOOD, the sentiment is Negative. The current price of 87.41 is below the 20-day moving average (MA) of 97.02, below the 50-day MA of 107.15, and below the 200-day MA of 92.25, indicating a bearish trend. The MACD of -6.25 indicates Positive momentum. The RSI at 34.89 is Neutral, neither overbought nor oversold. The STOCH value of 20.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HOOD.
Robinhood Risk Analysis
Robinhood disclosed 65 risk factors in its most recent earnings report. Robinhood reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
3 New RisksRobinhood Peers Comparison
Overall Rating
TIGR83Outperform
FUTU80Outperform
SCHW77Outperform
BULL71Outperform- HOOD68Neutral
ETOR66Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TIGR | 83Outperform | $692.40M | 6.27 | 13.05% | ― | 41.46% | -8.31% |
| FUTU | 80Outperform | $14.39B | 9.62 | 28.42% | 2.66% | 44.47% | 39.64% |
| SCHW | 77Outperform | $154.40B | 15.85 | 21.29% | 1.32% | 12.30% | 37.56% |
| BULL | 71Outperform | $2.81B | 62.89 | 4.18% | ― | 47.94% | -97.17% |
| HOOD | 68Neutral | $77.15B | 39.73 | 20.92% | ― | 21.65% | -11.10% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| ETOR | 66Neutral | $1.83B | 7.88 | 18.97% | ― | 9.87% | 32.48% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HOOD | Robinhood Markets, Inc. Class A | 87.41 | -39.67 | -31.22% | |
| SCHW | Charles Schwab Corp. | 93.37 | 0.36 | 0.39% | |
| FUTU | Futu Holdings | 97.92 | -83.32 | -45.97% | |
| TIGR | Up Fintech Holding | 3.95 | -6.40 | -61.84% | |
| BULL | Webull Corporation | 5.39 | -4.24 | -44.03% | |
| ETOR | Etoro Group Ltd. | 23.72 | -9.75 | -29.13% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 29, 2026