Robinhood Markets (HOOD)

Financials · $112B market cap · SEC CIK 0001783879

Next reports on Nov 3, 2026, after the close, with analysts expecting $0.53 in earnings per share.

The case for HOOD

• Revenue up 38.3% on the year.
• 42% of revenue drops through to net profit.
• Has compounded revenue at 36.1% a year over five years.
• Return on equity of 23%.
• Gross margin of 95% absorbs cost shocks.

The case against

• Pricey at 53.9× earnings, against a long-run market average nearer 20×.
• Priced at 22.7× sales, which leaves no room for a stumble.
• Swings harder than the market (beta 2.53).

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. 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 74 Financials companies.

Key numbers

Five years of financials, as filed

Pulled from Robinhood Markets's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.

Share count is up 86.6% over 4 years. Your slice has been diluted.

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

Filings

Other Financials companies