Robinhood Markets (HOOD)

Financials · $73.2B market cap · SEC CIK 0001783879

Next reports on Feb 8, 2027, after the close, with analysts expecting $0.59 in earnings per share.

52-week range $63.52 to $139.75. 42% below its 52-week high and 28% above its low.

The case for HOOD

• Revenue up 20.9% on the year.
• 39% of revenue drops through to net profit.
• Has compounded revenue at 36.1% a year over five years.
• Return on equity of 21%.
• Gross margin of 95% absorbs cost shocks.

The case against

• Expensive for its growth: 36.9× earnings, where 10%+ a year of growth would justify about 23×.
• Down 36.1% over the past year.
• Priced at 14.4× sales, which leaves no room for a stumble.
• Swings harder than the market (beta 2.65).
• Growth is slowing: revenue up 20.9% this year against 36.1% a year over five.
• Earnings per share fell 9.7%.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
• Each factor except momentum is half fixed thresholds, half rank among the 76 Financials companies.

The financials

The financials, five years deep

Pulled from Robinhood Markets's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Robinhood Markets says it does

Company Overview Robinhood was founded in 2013 on the belief that everyone should be welcome to participate in our financial system. We are creating modern financial services platforms for everyone, regardless of their wealth, income, or background. Our mission is to democratize finance for all. We use technology to provide access to the financial system in a way that is simple and convenient for our customers. We believe the financial system should be built to work for everyone. That’s why we create products that let our customers start investing at their own pace, on their own terms. We believe investing should be familiar and welcoming, with a simple design and an intuitive interface, so that customers are empowered to achieve their goals. We started with a revolutionary, bold brand and design in the Robinhood app which makes investing approachable for millions. Over the last decade, we have disrupted and changed the industry,…

Risk factors HOOD lists in its 10-K

• We might not grow in line with historical rates
• Our results of operations and other operating metrics fluctuate from quarter to quarter, which makes these metrics difficult to predict
• Unfavorable media coverage and other events that harm our brand and reputation have in the past, and may in the future, adversely affect our revenue and the size, engagement, and loyalty of our customer base
• Our business has been and might continue to be harmed by changes in business, economic, or political conditions that impact global financial markets, or by a systemic market event
• Our future success depends on the continuing efforts of our key employees and our ability to attract and retain senior management and other highly skilled personnel
• We currently operate in certain international markets and plan to further expand our international operations, which exposes us to significant new risks, and our international expansion efforts might not succeed
• We are involved in numerous litigation matters that are expensive and time consuming, and, if resolved adversely, could expose us to significant liability and reputational harm
• We operate in highly competitive markets, and many of our competitors have greater resources than we do and may have products and services that are more appealing than ours to our current or potential customers
• If we fail to retain existing customers or attract new customers, or if our customers decrease their use of our products and services, our revenue will decline
• If we fail to provide and monetize new and innovative products and services that are adopted by customers, our business may become less competitive and our revenue might decline
• We rely on third parties to perform some key functions, and their failure to perform those functions could adversely affect our business, financial condition and results of operations
• We continue to incorporate AI technologies into some of our products and processes. These technologies may present business, compliance, and reputational risks
• Our business could be materially and adversely affected by a cybersecurity breach or other attack involving our computer systems or data or those of our customers or third-party or fourth-party service providers
• If we do not maintain the net capital levels required by regulators, our broker-dealer business may be restricted, and we may be fined or subject to other disciplinary or corrective actions
• Our introduction of Robinhood Stock Tokens in the EEA may expose us to significant regulatory, litigation, contractual, operational, and reputational risks
• our ability to retain and engage existing customers and attract new customers
• the timing and success of new product and service introductions by us or our competitors, or other changes in the competitive landscape of our market
• futures and swaps, including cleared swaps and event contracts (“Futures”)) which can cause our trading volumes to fluctuate
• the timing and amount of non-cash expenses, such as SBC and asset impairments
• the success of our expansion into new markets or acquisitions
• trading volume and the prevailing trading prices for cryptocurrencies, which can be highly volatile
• changes in the public’s perception, adoption, and use of cryptocurrencies and other asset classes
• any inability of customers to place trades, due to system disruptions, outages, or trading restrictions
• any events that damage customer confidence in Robinhood, such as breaches of security or privacy
• the impacts of public health threats (including pandemics such as COVID-19), unemployment, and inflation
• changes in domestic or global business or macroeconomic conditions, including as a result of tariffs and trade policy shifts, geopolitical conflicts, banking instability, or responses to these events; and
• changes in tax laws or judicial or regulatory interpretations of tax laws, which are recorded in the period such laws are enacted or interpretations are issued, and might significantly affect the effective tax rate of that period
• In most full year periods since our inception, we have incurred operating losses and might not be profitable in the future
• cybersecurity attacks, privacy or data security breaches, or other security incidents, payment disruptions or other incidents that impact the reliability of our platforms
• future restructurings or any similar such reductions or activities in the future
• any repeat imposition of temporary trading restrictions (similar to our Early 2021 Trading Restrictions), or any outright failure to meet our deposit requirements
• litigation, regulatory actions, settlements, or investigations involving our platforms or our business
• regulators requesting or requiring us to cease offering specific products or services
• any failures to comply with legal, tax and regulatory requirements
• any perceived or actual weakness in our financial strength or liquidity
• any regulatory action or settlement that results in changes to, or prohibits us from offering, certain features, products or services
• a failure to operate our business in a way that is consistent with our values and mission
• inadequate or unsatisfactory customer support experiences
• negative responses by customers, regulators, or other third parties to our business model or to particular features, products or services
• a failure to adapt to new or changing customer preferences
• our decision to offer products viewed by some as controversial
• our inability to successfully expand into new markets or make successful acquisitions of, or investments in, other companies, products or technologies
• a prolonged weakness in popular equities or cryptocurrencies specifically or in U.S. or international equity and cryptocurrency markets generally, or a sustained downturn in the U.S. or international economies
• negative claims or publicity involving our culture or businesses, regardless of whether such claims are accurate; and
• any of the foregoing with respect to our competitors, to the extent the resulting negative perception affects the public’s perception of us or our industry as a whole
• We could incur substantial losses from our cash and investment accounts if one or more of the financial institutions that we use fails or is taken over by the FDIC
• We are exposed to funding transaction losses due to reversals or insufficient funds
• Our working model, which allows a subset of our employees to work remotely, subjects us to heightened operational risks
• Broker-Dealer, FCM, Investment Adviser, and Insurance Regulations
• Our ability to offer event contracts is subject to the outcome of currently ongoing and potential future regulatory enforcement actions and litigation,
• as well as potential changes in federal or
• law, that could immediately or subsequently prevent us from offering, or continuing to offer, event contracts
• providing easy-to-use, innovative, and attractive products and services that are adopted by customers
• retaining customers (such as by providing effective customer support and avoiding outages, security breaches, and trading restrictions)
• recruiting and retaining highly skilled personnel and senior management
• maintaining and improving our reputation and the market perception of our brand and overall value
• maintaining our relationships with our counterparties; and
• adjusting to a dynamic regulatory environment
• a decline in our brand and reputation
• increased pricing for our products and services
• a shift in pricing models, including allowing customers to choose a fee-based model for cryptocurrency orders
• ineffective marketing efforts or a reduction in marketing activity
• certain of our customers, due to being new and inexperienced, might be less loyal to our product or less likely to maintain historical trading patterns and interest in investing
• a broad decline in the equity or other financial markets, which could result in many of these investors feeling discouraged and exiting the markets altogether (as has occurred in connection with prior bear market cycles)
• rising inflation resulting in less disposable income for our customers to invest
• our customers experiencing difficulties using the Robinhood app as intended, due to any number of reasons such as design errors, service outages, or trading restrictions imposed by us
• our customers experiencing security or data breaches, account intrusions, or other unauthorized access
• our failure to provide adequate customer service
• customer resistance to and non-acceptance of cryptocurrencies; and
• customer dissatisfaction with the RHC and Bitstamp USA, Inc. platforms removing certain cryptocurrencies because the SEC or a court has asserted or determined that the cryptocurrencies or similar cryptocurrencies are securities
• Our success depends in part upon continued distribution through app stores and effective operation with mobile operating systems, networks, technologies, products, hardware and standards that we do not control
• We are subject to potential losses as a result of our clearing and execution activities
• Our exposure to credit risk with customers, Liquidity Providers, and other counterparties could result in losses
• Our wholly-owned subsidiary, RHV, serves as the investment adviser to RVI,
• a closed-end investment company, which will subject us to additional burdens and risks and could subject us to potential liability
• Our provision of brokerage and custodial services to RIAs exposes us to operational, regulatory and reputational risks
• Changes in the rights, obligations, incentives, or rewards for the various participants in a blockchain network
• The maintenance and development of the software protocol of cryptocurrencies
• Cryptocurrency exchanges’ deposit and withdrawal policies and practices, liquidity on such exchanges and interruptions in service from or failures of such exchanges
• Regulatory measures, if any, that affect the use and value of cryptocurrencies or regulatory or judicial assertions or determinations that certain cryptocurrencies are securities

Filings

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