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Robinhood
(NASDAQ:HOOD)
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Rating:60Neutral
Price Target:
$109.00
▼(-2.76% Downside)
Action:Reiterated
Date:07/31/26
The score is anchored by improved profitability but constrained by uneven cash flow and higher leverage in the financials. Technicals are notably weak with the stock trading below major moving averages, while valuation is demanding at ~43.5x earnings with no dividend support. Offsetting these is a strong latest earnings call featuring record results, tighter/lower expense guidance, and shareholder-friendly capital actions, though regulatory and crypto-cycle risks remain.
Positive Factors
Strong revenue and profitability growth
Record revenue growth combined with a high adjusted EBITDA margin indicates meaningful operating leverage and stronger earnings power. If sustained through broader product adoption, this can provide resources to fund innovation and reinforce Robinhood’s competitive position.
Negative Factors
Inconsistent cash generation
Recent cash-flow volatility weakens confidence in the durability of reported earnings and may constrain internally funded investment if activity or working-capital conditions deteriorate. This is important for a business exposed to trading volumes and customer behavior.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue and profitability growth
Record revenue growth combined with a high adjusted EBITDA margin indicates meaningful operating leverage and stronger earnings power. If sustained through broader product adoption, this can provide resources to fund innovation and reinforce Robinhood’s 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
$96.19B
Dividend YieldN/A
Average Volume (3M)19.30M
Price to Earnings (P/E)54.0
Beta (1Y)3.27
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. Volume22,144,266
30 Day Avg. Volume19,298,493
Financial Highlights & Ratios
PEG Ratio1.64
Price to Book (P/B)10.98
Price to Sales (P/S)22.47
P/FCF Ratio63.44
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$127.43Price Target Upside13.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)2.11
Revenue Forecast (FY)$5.20B
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 generates revenue primarily through transaction-based, net interest, and subscription streams.
1) Transaction-based revenues (largest component in many periods)
- Payment for order flow (PFOF): For equities and options, Robinhood routes...
Robinhood Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
Overall the call presented multiple strong operational and financial wins: record revenue (+32% YoY), robust adjusted EBITDA (+35% YoY) with a 57% margin, record net deposits ($22B) and meaningful product traction across cards, banking, prediction markets, agentic trading and Robinhood Chain (DEX volume >$12B, fastest to 100M txns). Management also strengthened the balance sheet ($2.2B raise) and returned capital via buybacks. The principal negatives were regulatory uncertainty for certain U.S. crypto/on-chain products and perps, early-stage nature of some international and on-chain rollouts, and short-term variability in crypto and monthly net deposits. On balance, the positives (strong growth, high profitability, clear product momentum and disciplined expense management) outweigh the lowlights.Positive Updates
Record Revenue and Strong Profitability
Q2 revenue of $1.3B, up 32% year-over-year; adjusted EBITDA $741M, up 35% YoY with a 57% adjusted EBITDA margin; diluted EPS $0.62, up 48% YoY.
Negative Updates
Crypto Activity Softness
Management noted crypto activity was slower in July relative to Q2; crypto take-rates and volumes were called out as more variable and early-stage in the month-to-month cadence.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Strong Profitability
Q2 revenue of $1.3B, up 32% year-over-year; adjusted EBITDA $741M, up 35% YoY with a 57% adjusted EBITDA margin; diluted EPS $0.62, up 48% YoY.
Read all positive updates
Company Guidance
Robinhood said it is lowering and tightening 2026 adjusted OpEx + SBC to $2.675–$2.775 billion (Q2 adjusted OpEx + SBC was $641 million), noting efficiency gains that will let it self‑fund new investments (Rothera, WonderFi); the company also raised $2.2 billion of capital (0% coupon, no net dilution until share price > $300) and repurchased 7.5 million shares for $664 million YTD. Q2 operating results that underpin the guidance included record revenue of $1.3 billion (+32% YoY), adjusted EBITDA $741 million (+35% YoY) at a 57% margin, EPS $0.62 (+48% YoY), record net deposits of $22 billion (28% annualized), 4.8 million Gold subscribers (17% attach), and nearly 1 million funded customers added in the quarter; management said July ADVs were roughly in line with Q2, July net deposits are tracking toward ~$4 billion (ex‑Trust accounts), and highlighted product metrics such as 1.0M Gold Cardholders driving >$17B annualized purchase volume, >$3B banking deposits, nearly $1.5B of contributions into Trust accounts (7M children signed up), 13 businesses at $100M+ ARR, >1M accounts outside the U.S., and Robinhood Chain DEX volume >$12B with well north of 150M transactions.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 | 4.16B | 4.47B | 2.95B | 1.86B | 1.36B | 1.81B |
| Gross Profit | 3.27B | 3.73B | 2.34B | 1.72B | 770.00M | 1.31B |
| EBITDA | 1.47B | 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 | 5.89B | 10.45B | 10.50B | 8.44B | 7.85B | 8.09B |
| Total Debt | 27.69B | 15.41B | 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 | 9.15B | 7.97B | 6.70B | 6.96B | 7.29B |
Cash Flow | ||||||
| Free Cash Flow | -638.00M | 1.58B | -207.00M | 1.16B | -909.00M | -968.43M |
| Operating Cash Flow | -583.00M | 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 | 3.99B | -590.00M | -345.00M | -610.00M | 0.00 | 5.20B |
Robinhood Technical Analysis
Positive
112.09
Price Trends
101.88
Positive
93.29
Positive
95.07
Positive
Market Momentum
4.02
Negative
68.92
Neutral
70.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOOD, the sentiment is Positive. The current price of 112.09 is above the 20-day moving average (MA) of 101.86, above the 50-day MA of 101.88, and above the 200-day MA of 95.07, indicating a bullish trend. The MACD of 4.02 indicates Negative momentum. The RSI at 68.92 is Neutral, neither overbought nor oversold. The STOCH value of 70.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $861.46M | 8.05 | 13.05% | ― | 41.46% | -8.31% | |
77 Outperform | $16.55B | 11.98 | 28.42% | 2.62% | 44.47% | 39.64% | |
75 Outperform | $187.18B | 20.00 | 20.40% | 1.16% | 10.13% | 48.07% | |
70 Outperform | $2.58B | 10.88 | 18.97% | ― | 9.87% | 32.48% | |
69 Neutral | $10.34B | 9.93 | 22.05% | 2.28% | 16.84% | 20.39% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $96.19B | 53.99 | 22.70% | ― | 39.14% | 14.06% |
* Financial Sector Average
HOOD
Robinhood
124.72
23.47
23.18%
SCHW
Charles Schwab
110.38
19.49
21.45%
FUTU
Futu Holdings
122.01
-62.37
-33.83%
TIGR
Up Fintech Holding
5.07
-7.22
-58.75%
XP
XP
20.00
1.52
8.21%
ETOR
eToro
32.75
-13.65
-29.42%
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.