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Robinhood
(NASDAQ:HOOD)
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Rating:60Neutral
Price Target:
$99.00
▼(-11.68% Downside)
Action:Reiterated
Date:10/28/26
The score reflects a strong profitability turnaround and an upbeat earnings outlook with record operational metrics, tempered by materially volatile cash generation, higher leverage, and weak current price momentum. A relatively high P/E and lack of dividend support further limit the valuation cushion.
Positive Factors
Profitability Turnaround
The shift from earlier losses to margins above 40% demonstrates substantially improved earnings power and operating leverage. If profitability remains resilient across market cycles, Robinhood can reinvest in products, international growth and infrastructure while strengthening its competitive position.
Negative Factors
Elevated Leverage
The sharp increase in leverage raises financial risk and leaves less flexibility if trading activity, interest income or other operating conditions weaken. Higher indebtedness can constrain capital allocation and make Robinhood more vulnerable to prolonged volatility in its revenue base.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Turnaround
The shift from earlier losses to margins above 40% demonstrates substantially improved earnings power and operating leverage. If profitability remains resilient across market cycles, Robinhood can reinvest in products, international growth and infrastructure while strengthening its competitive position.
Read all positive factors
Robinhood Key Performance Indicators (KPIs)
Any
Gold Subscribers
Counts 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.
Counts 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.
Data provided by:
The Fly
The FlyRobinhood (HOOD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$85.02B
Dividend YieldN/A
Average Volume (3M)20.09M
Price to Earnings (P/E)43.0
Beta (1Y)3.32
Revenue Growth39.14%
EPS Growth14.06%
CountryUS
Employees2,900
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)2.31
Shares Outstanding790,630,250
10 Day Avg. Volume17,145,558
30 Day Avg. Volume20,092,655
Financial Highlights & Ratios
PEG Ratio1.64
Price to Book (P/B)10.99
Price to Sales (P/S)22.47
P/FCF Ratio63.44
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue21.36
Enterprise Value/Gross Profit26.21
Enterprise Value/Ebitda44.62
Forecast
1Y Price Target
$134.61Price Target Upside20.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering23
EPS Forecast (FY)2.22
Revenue Forecast (FY)$5.36B
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), ...
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 opti...
Robinhood Earnings Call Summary
Earnings Call Date:Oct 27, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 16, 2027
Earnings Call Sentiment Positive
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.Positive Updates
Record Revenue, EBITDA and Platform Assets
Q3 revenue grew 12% year-over-year to a record $1.4 billion, adjusted EBITDA increased 9% to a record $808 million, adjusted EBITDA margin was 57%, and platform assets reached nearly $400 billion.
Negative Updates
October Trading Volumes Were Slightly Below Q3 Records
Although October trading activity was strong, average daily volumes for equities, options and crypto were about 5% lighter than the exceptionally strong Q3 levels.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Revenue, EBITDA and Platform Assets
Q3 revenue grew 12% year-over-year to a record $1.4 billion, adjusted EBITDA increased 9% to a record $808 million, adjusted EBITDA margin was 57%, and platform assets reached nearly $400 billion.
Read all positive 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
Income Statement
76
Positive
Balance Sheet
62
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.93B | 4.47B | 2.95B | 1.86B | 1.36B | 1.81B |
| Gross Profit | 4.02B | 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 | 2.07B | 1.88B | 1.41B | -541.00M | -1.03B | -3.69B |
Balance Sheet | ||||||
| Total Assets | 56.55B | 38.14B | 26.19B | 17.62B | 23.34B | 19.77B |
| Cash, Cash Equivalents and Short-Term Investments | 16.16B | 10.45B | 10.50B | 8.44B | 7.85B | 8.09B |
| Total Debt | 22.71B | 11.63B | 7.46B | 3.55B | 1.83B | 3.65B |
| Total Liabilities | 47.01B | 28.99B | 18.21B | 10.93B | 16.38B | 12.48B |
| Stockholders Equity | 9.48B | 9.14B | 7.97B | 6.70B | 6.96B | 7.29B |
Cash Flow | ||||||
| Free Cash Flow | 178.00M | 1.58B | -207.00M | 1.16B | -909.00M | -968.43M |
| Operating Cash Flow | 245.00M | 1.64B | -157.00M | 1.18B | -852.00M | -884.77M |
| Investing Cash Flow | -1.75B | 141.00M | -148.00M | -582.00M | -60.00M | -237.88M |
| Financing Cash Flow | 2.20B | -590.00M | -345.00M | -610.00M | 0.00 | 5.20B |
Robinhood Technical Analysis
Negative
112.09
Price Trends
108.78
Negative
104.01
Negative
93.04
Positive
Market Momentum
-4.56
Positive
37.28
Neutral
10.99
Positive
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 112.09 is above the 20-day moving average (MA) of 104.37, above the 50-day MA of 108.78, and above the 200-day MA of 93.04, indicating a neutral trend. The MACD of -4.56 indicates Positive momentum. The RSI at 37.28 is Neutral, neither overbought nor oversold. The STOCH value of 10.99 is Positive, 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Robinhood Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $748.16M | 6.60 | 13.05% | 1.19% | 41.46% | -8.31% | |
77 Outperform | $14.35B | 10.06 | 28.42% | 2.54% | 44.47% | 39.64% | |
71 Outperform | $154.43B | 15.16 | 21.29% | 1.38% | 12.30% | 37.56% | |
70 Outperform | $1.92B | 7.69 | 18.97% | ― | 9.87% | 32.48% | |
68 Neutral | $8.25B | 8.32 | 22.05% | 2.38% | 16.84% | 20.39% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $85.02B | 42.98 | 20.96% | ― | 39.14% | 14.06% |
* Financial Sector Average
HOOD
Robinhood
91.43
-53.37
-36.86%
SCHW
Charles Schwab
88.76
-4.66
-4.98%
FUTU
Futu Holdings
101.83
-92.73
-47.66%
TIGR
Up Fintech Holding
4.11
-6.71
-62.01%
XP
XP
16.09
-1.70
-9.57%
ETOR
eToro
23.61
-14.30
-37.72%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.