Robinhood Markets, Inc. Class A (HOOD)
NASDAQ:HOOD
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Robinhood
(NASDAQ:HOOD)
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Rating:72Outperform
Price Target:
$105.00
▲(15.70% Upside)
Action:Reiterated
Date:05/30/26
The score is driven primarily by the financial turnaround to strong profitability and cash generation, reinforced by a positive earnings call highlighting strong deposits and product adoption alongside solid margins. Technicals are supportive but somewhat extended and still below the 200-day average, while valuation is a meaningful headwind due to a high P/E and no dividend support.
Positive Factors
Sustained profitability and high margins
Consistently high adjusted EBITDA margins indicate durable operating leverage and disciplined cost control. Strong margins support free cash flow conversion, fund strategic investments (AI, product builds) and repurchases, and provide buffer against cyclical revenue swings over the next 2–6 months.
Negative Factors
Elevated leverage and 2025 debt step-up
Higher leverage reduces financial flexibility to weather trading slowdowns or fund opportunistic investments. A 2025 debt step‑up raises refinancing and covenant risk and could force tighter capital allocation if revenue softness or higher rates persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained profitability and high margins
Consistently high adjusted EBITDA margins indicate durable operating leverage and disciplined cost control. Strong margins support free cash flow conversion, fund strategic investments (AI, product builds) and repurchases, and provide buffer against cyclical revenue swings over the next 2–6 months.
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
$76.47B
Dividend YieldN/A
Average Volume (3M)29.37M
Price to Earnings (P/E)44.7
Beta (1Y)3.23
Revenue Growth41.76%
EPS Growth17.91%
CountryUS
Employees2,900
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)2.13
Shares Outstanding791,184,700
10 Day Avg. Volume20,294,123
30 Day Avg. Volume29,374,172
Financial Highlights & Ratios
PEG Ratio1.64
Price to Book (P/B)10.98
Price to Sales (P/S)22.47
P/FCF Ratio61.92
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue18.38
Enterprise Value/Gross Profit22.34
Enterprise Value/Ebitda38.12
Forecast
1Y Price Target
$98.83Price Target Upside8.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)1.85
Revenue Forecast (FY)$4.99B
Robinhood Business Overview & Revenue Model
Company Description
Robinhood Markets, Inc. operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), options, gold, and cryptocurrencies. The company also offers various learning and educa...
How the Company Makes Money
Robinhood primarily makes money from transaction-based and net interest revenues, plus smaller ancillary fees. (1) Transaction-based revenues: Robinhood earns revenue tied to customer trading activity, most notably through payment for order flow (...
Robinhood Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call emphasized strong product momentum, robust customer-level metrics and disciplined capital allocation: 15% revenue growth, $18B net deposits, record Gold adoption, rapid banking and card growth, AI-driven productivity gains, and active share repurchases. Headwinds highlighted were concentrated: securities lending rebate weakness, some take-rate compression, increased near-term OpEx related to Trump Accounts, and regulatory risks (prediction markets, perpetuals). On balance the positive operational and financial momentum materially outweigh the discrete risks and heightened investments.Positive Updates
Revenue Growth
Total net revenue grew 15% year-over-year to approximately $1.07 billion in Q1 2026, driven by growth across transaction volumes, interest-earning assets and increases in other revenue from Gold subscriber growth.
Negative Updates
Securities Lending Pressure
Securities lending net revenue was under pressure due to lower special rebates amid reduced volatility and fewer IPO-driven specials; management noted rebates are at a low and timing of a rebound is uncertain despite healthy adoption (≈25% of customers opted into fully paid program and ≈50% of assets opted in).
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total net revenue grew 15% year-over-year to approximately $1.07 billion in Q1 2026, driven by growth across transaction volumes, interest-earning assets and increases in other revenue from Gold subscriber growth.
Read all positive updates
Company Guidance
The company raised its full‑year 2026 adjusted OpEx & SBC outlook by $100M to $2.7B–$2.825B to fund the Trump Accounts build (incremental ~$100M, ~half in Q2) and said the Trump project is cost‑plus with revenues expected to exceed costs; Q1 results included revenues of $1.07B (↑15% YoY), $18B net deposits (another quarter of >20% annualized net deposit growth), adjusted OpEx & SBC of $607M, 50% adjusted EBITDA margin, Gold subscribers at a record 4.3M (↑36% YoY; 16% attach rate; 40% of new customers in Q1), Gold Card >800k cardholders with $15B annualized purchase volume (on track for >1M cards and $100M ARR this year), Robinhood Banking >$2B in net deposits with >125k funded customers and 40% direct deposit attach, retirement assets >$30B, prediction markets and futures at record levels (prediction markets ~ $3B in April), equities and options volumes up double‑digit YoY and April on track to be the year’s highest month (options/equities volumes among the company’s top months), repurchases >$300M (4M shares) YTD with a refreshed $1.5B buyback authorization, international approaching ~1M funded customers, and balance sheet/funding actions including moving ~$6B of sweep cash on‑balance (with ~ $24B in sweeps) to fund margin growth.Robinhood Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.61B | 4.47B | 2.95B | 1.86B | 1.36B | 1.81B |
| Gross Profit | 3.79B | 3.73B | 2.34B | 1.72B | 770.00M | 1.31B |
| EBITDA | 2.22B | 2.18B | 1.13B | -465.00M | -905.00M | -1.61B |
| Net Income | 1.90B | 1.88B | 1.41B | -541.00M | -1.03B | -3.69B |
Balance Sheet | ||||||
| Total Assets | 45.47B | 38.14B | 26.19B | 17.62B | 23.34B | 19.77B |
| Cash, Cash Equivalents and Short-Term Investments | 12.19B | 10.45B | 10.50B | 8.44B | 7.85B | 8.09B |
| Total Debt | 13.39B | 15.41B | 7.46B | 3.55B | 1.83B | 3.65B |
| Total Liabilities | 35.79B | 28.99B | 18.21B | 10.93B | 16.38B | 12.48B |
| Stockholders Equity | 9.32B | 9.15B | 7.97B | 6.70B | 6.96B | 7.29B |
Cash Flow | ||||||
| Free Cash Flow | 2.16B | 1.62B | -170.00M | 1.16B | -909.00M | -968.43M |
| Operating Cash Flow | 2.21B | 1.64B | -157.00M | 1.18B | -852.00M | -884.77M |
| Investing Cash Flow | -152.00M | 141.00M | -148.00M | -582.00M | -60.00M | -237.88M |
| Financing Cash Flow | 1.78B | -590.00M | -345.00M | -610.00M | 0.00 | 5.20B |
Robinhood Technical Analysis
Positive
90.75
Price Trends
76.78
Positive
83.25
Positive
103.91
Negative
Market Momentum
1.24
Negative
69.08
Neutral
77.90
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 90.75 is above the 20-day moving average (MA) of 77.97, above the 50-day MA of 76.78, and below the 200-day MA of 103.91, indicating a neutral trend. The MACD of 1.24 indicates Negative momentum. The RSI at 69.08 is Neutral, neither overbought nor oversold. The STOCH value of 77.90 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $37.02B | 37.32 | 19.89% | 0.46% | 12.92% | 28.20% | |
73 Outperform | $3.37B | -335.45 | -1.06% | ― | 86.62% | -126.98% | |
72 Outperform | $76.47B | 44.70 | 21.61% | ― | 41.76% | 17.91% | |
70 Outperform | $148.44B | 16.19 | 19.08% | 1.07% | 8.11% | 53.31% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $48.02B | 62.52 | 5.68% | ― | -4.24% | -43.98% | |
60 Neutral | $21.77B | 40.31 | 6.25% | ― | 32.00% | 10.31% |
* Financial Sector Average
HOOD
Robinhood
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38.72%
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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.