Robinhood Markets (HOOD) — Company Research
Last Updated: 9 October 2026
Robinhood Markets runs a retail brokerage, crypto exchange, prediction-market hub and growing banking and credit business for 28.6 million funded customers. Net revenues rose 52% to $4.47bn in FY2025 and grew a further 32% year on year to $1.31bn in Q2 2026, with record total platform assets of $383.7bn at the end of August 2026. This refresh rebuilds every figure from the FY2025 10-K, the Q2 2026 10-Q and earnings release, and SEC XBRL data. Follow the live price on our Live Charts page and the macro backdrop on the Economic Calendar.
1. Company Snapshot
| Field | Value |
|---|---|
| Ticker | NASDAQ: HOOD (Class A common stock; member of the S&P 500 since 22 Sep 2025) |
| Sector | Financials — retail brokerage, crypto, prediction markets, banking |
| CEO / Leadership | Vlad Tenev (Co-founder, Chairman & CEO); Shiv Verma (CFO since 6 Feb 2026) |
| Employees | ~2,900 full-time (31 Dec 2025, FY2025 10-K); a ~10% reduction in force was announced on 16 Jun 2026 |
| Revenue (FY2025) | $4,473m total net revenues (+52% YoY) |
| Net income (FY2025) | $1,883m; diluted EPS $2.05 |
| Revenue (Q2 2026) | $1,308m (+32% YoY); net income attributable $561m; diluted EPS $0.62 |
| Market cap | ~$96.2bn (8 Oct 2026 close of $107.01 × ~899.1m Class A and Class B shares) |
| Funded customers | 28.6m (August 2026 operating data) |
| Total platform assets | $383.7bn (31 Aug 2026) |
| Gold subscribers | 4.8m (Q2 2026, +39% YoY) |
| Dividend | None |
2. Bull Case vs Bear Case
Bull Case
- Diversified revenue engine: Options, crypto, equities, event contracts, net interest and subscriptions each contribute meaningfully, and Q2 2026 event-contract revenue of $156m was more than ten times the prior-year level.
- High-margin operating leverage: Q2 2026 adjusted EBITDA was $741m, a 57% margin, while management lowered its 2026 adjusted opex plus SBC range to $2.675bn–$2.775bn.
- Asset gathering keeps compounding: Total platform assets reached $383.7bn in August 2026 and Q2 net deposits were $21.7bn, giving a larger base for margin, sweep and Gold revenue.
- New product pipeline: Robinhood Chain, Rothera, Robinhood Banking, Legend, Strategies and AI agents widen the product set beyond US retail trading.
Bear Case
- Prediction-market legal exposure: A 25 Sep 2026 Sixth Circuit ruling and Ohio cease-and-desist letters dated 2 Oct 2026 put the fastest-growing revenue line at risk in some states.
- Crypto revenue is volatile: Crypto transaction revenue fell 38% YoY to $100m in Q2 2026 after contributing 20% of FY2025 revenue.
- Rich trading multiples: The stock trades on ~47x trailing GAAP EPS and ~19.5x trailing sales, leaving little room for a slowdown in retail activity.
- Persistent insider selling and new leverage: The CEO sold 875,000 shares between 21 Sep and 5 Oct 2026 under a 10b5-1 plan, and the company added $2.2bn of convertible notes in June 2026.
3. Business Segments
Robinhood reports a single operating segment and discloses revenue by category. The table shows the FY2025 split of $4,473m total net revenues from the 10-K revenue disaggregation note.
| Segment / category | % of revenue | What it is |
|---|---|---|
| Options (transaction-based) | 25.1% ($1,123m) | Rebates and fees from routing customer options orders |
| Crypto (transaction-based) | 20.1% ($901m) | Spread and fee revenue from the app and the Bitstamp exchange |
| Equities (transaction-based) | 6.8% ($302m) | Order-routing revenue from stock and ETF trades |
| Other transaction-based | 6.8% ($302m) | Event contracts (prediction markets), instant withdrawals and similar fees |
| Net interest revenues | 33.8% ($1,514m) | Margin lending, interest on segregated and corporate cash, cash sweep, securities lending and credit card |
| Other revenues | 7.4% ($331m) | Gold subscriptions ($179m), proxy revenue and other services |
4. Business Model & Moat
How it makes money. Robinhood earns transaction revenue when customers trade options, equities, crypto and event contracts, net interest on customer margin balances, swept cash and securities lending, and recurring subscription income from Robinhood Gold. In FY2025, 58.8% of revenue was transaction-based, 33.8% was net interest and 7.4% was other revenue.
Scale and engagement. At the end of Q2 2026 the platform had 28.4m funded customers, 29.9m investment accounts, 4.8m Gold subscribers and average revenue per user of $187. A margin book of $21.6bn and cash sweep balances of $31.2bn (August 2026) anchor the interest-income base.
Vertical integration. Robinhood self-clears equities, owns the Bitstamp crypto exchange (acquired June 2025) and co-owns Rothera, the exchange and clearinghouse joint venture with Susquehanna that launched in June 2026. Owning more of the stack lets it keep a larger share of each trade's economics.
Moat assessment. The moat rests on brand, mobile product design and low-cost acquisition rather than switching costs. Rivals can match pricing, but few combine brokerage, crypto, prediction markets, banking and a credit card in one app.
5. Financial Health
Annual figures come from Robinhood's 10-K filings and Q4 earnings releases, cross-checked against SEC XBRL company facts. FY2020 revenue of $959m is the base for the FY2021 YoY figure.
| Fiscal Year | Revenue ($m) | YoY % | GAAP EPS | Adjusted EPS | Dividend/share | Long-term debt (YE) |
|---|---|---|---|---|---|---|
| FY2021 | $1,815m | +89.3% | $(7.49) | $(7.49)† | $0.00 | Nil |
| FY2022 | $1,358m | −25.2% | $(1.17) | $(1.17)† | $0.00 | Nil |
| FY2023 | $1,865m | +37.3% | $(0.61) | $(0.61)† | $0.00 | Nil |
| FY2024 | $2,951m | +58.2% | $1.56 | $1.56† | $0.00 | Nil |
| FY2025 | $4,473m | +51.6% | $2.05 | $2.05† | $0.00 | Nil |
† Robinhood does not report an adjusted EPS measure (its main non-GAAP metric is adjusted EBITDA, which was $2,522m in FY2025), so GAAP diluted EPS is repeated. FY2024 EPS includes a $0.47 tax and regulatory benefit. Year-end long-term debt was nil from FY2021 to FY2025 (XBRL ConvertibleDebtNoncurrent of $0 at 31 Dec 2025). On 25 Jun 2026 Robinhood issued $2.2bn of 0.00% convertible senior notes due 2029, carried at $2,170m at 30 Jun 2026.
| Quarter / Half | Revenue | Adjusted EPS | GAAP EPS |
|---|---|---|---|
| Q2 2026 | $1,308m | $0.62† | $0.62 |
| Q1 2026 | $1,067m | $0.38† | $0.38 |
| Q4 2025 | $1,283m | $0.66† | $0.66 |
| Q3 2025 | $1,274m | $0.61† | $0.61 |
| Q2 2025 | $989m | $0.42† | $0.42 |
| Q1 2025 | $927m | $0.37† | $0.37 |
| FY2025 total | $4,473m | $2.05† | $2.05 |
Q2 2026 net income of $573m includes $129m ($0.14 per diluted share) of gains, mainly from deconsolidating Robinhood Ventures Fund I. FY2025 operating cash flow was $1,638m, with capital expenditure of $54m ($15m property and equipment plus $39m capitalised software) and D&A of $86m. At 30 Jun 2026 corporate cash and equivalents were $5,362m and total equity was $9,541m.
6. Valuation
Raw metrics, October 2026. Not opinions on whether the stock is cheap or expensive.
| Metric | Value |
|---|---|
| Market cap | ~$96.2bn (8 Oct 2026 close of $107.01 × ~899.1m Class A and Class B shares per the Q2 2026 10-Q cover) |
| Trailing P/E (GAAP) | ~47x ($107.01 / TTM diluted EPS ~$2.26; TTM = FY2025 $2.05 − H1 2025 $0.79 + H1 2026 $1.00). Excluding the $0.14 of Q2 2026 deconsolidation gains, the multiple is ~50x. |
| P/E (forward) | ~40x (Yahoo Finance forward P/E, October 2026; Robinhood gives no EPS guidance) |
| P/S (TTM) | ~19.5x (market cap ~$96.2bn / TTM net revenues $4,932m; TTM = FY2025 $4,473m − H1 2025 $1,916m + H1 2026 $2,375m) |
| P/FCF | ~61x (market cap ~$96.2bn / FCF ~$1.58bn; FCF = operating CF $1,638m − capex $54m per FY2025 cash flow statement). For a broker, operating cash flow swings with customer balances: TTM operating CF was only $245m. |
| Enterprise value | ~$93.0bn (market cap ~$96.2bn + total debt ~$2.17bn of 2029 convertible notes − corporate cash ~$5.36bn per the 30 Jun 2026 balance sheet; segregated customer cash excluded) |
| EV/EBITDA (TTM) | ~39x (EV ~$93.0bn / GAAP EBITDA ~$2.36bn; EBITDA = TTM operating income $2,270m (net revenues $4,932m − total operating expenses $2,662m) + TTM D&A $91m from the cash flow statement). On TTM adjusted EBITDA of $2,778m the multiple is ~33x. |
| Price/book | ~10.1x (market cap ~$96.2bn / total equity $9.54bn at 30 Jun 2026) |
| 52-week high | $153.56 |
| 52-week low | $63.51 |
| Short interest (% of float) | 4.65% (36.17m shares, settlement date 15 Sep 2026, MarketBeat) |
| Days to cover | ~1.5 (on 27.18m average daily volume) |
7. What Are They Building
- Prediction markets and Rothera: Event contracts traded reached 13.6bn in Q2 2026. Rothera, the Susquehanna joint venture that bought MIAXdx in January 2026, launched in June, and from 8 Sep 2026 football contracts also route to Crypto.com and OG.com.
- Crypto and tokenisation: Robinhood Chain, an Ethereum layer-2 network, opened its public mainnet in mid-2026, and Stock Tokens are available in more than 120 countries. US crypto perpetual futures through Bitstamp were announced at HOOD Summit on 29–30 Sep 2026 for “the coming months”.
- Trading features: HOOD Summit also brought earnings contracts, extended options hours, intraday margin and planned weekend trading in selected US stocks and ETFs from early 2027, subject to regulatory review.
- AI: Cortex, Digests and the new Robinhood Agents product, which already has about 150,000 agentic accounts.
- Money and credit: Robinhood Banking held more than $3bn of deposits from over 240,000 funded customers at Q2 2026, and the Gold Card has more than 1m customers.
- Advisory and private markets: Robinhood Strategies has more than 300,000 customers and about $2bn of AUM. Robinhood Ventures Fund II listed on the NYSE in August 2026.
- International: WonderFi (Canada) closed in Q2 2026, a Toronto headquarters opened on 16 Sep 2026, UK crypto trading launched on 10 Aug 2026, and a Singapore capital markets licence was granted on 1 Jul 2026.
8. Peer Comparison
| Peer | Market cap (Oct 2026) | Key 2025 metric |
|---|---|---|
| Charles Schwab (SCHW) | ~$167.5bn (8 Oct 2026, Yahoo Finance) | Record total client assets $11.90trn; net revenues $23.9bn (+22%), per Schwab FY2025 release |
| Interactive Brokers (IBKR) | ~$149.5bn (early Oct 2026, Yahoo Finance) | GAAP net revenues $6.21bn (+19.7%); 4.4m customer accounts (+32%), per FY2025 results |
| Coinbase (COIN) | ~$45.4bn (8 Oct 2026, Yahoo Finance) | Total trading volume $5.2trn (+156%); subscription and services revenue $2.8bn, per FY2025 release |
| SoFi Technologies (SOFI) | ~$20.2bn (8 Oct 2026, Yahoo Finance) | 13.7m members (+35%) at Q4 2025; GAAP net revenue $3.61bn, per FY2025 release |
| eToro (ETOR) | ~$2.0bn (5 Oct 2026, Yahoo Finance; may not capture all share classes) | 3.81m funded accounts (+9%); net contribution $868m, per FY2025 release |
| Robinhood (HOOD) | ~$96.2bn (8 Oct 2026) | Net revenues $4.47bn (+52%); net income $1.88bn |
9. Insider Activity
CEO Vlad Tenev has sold regularly under a Rule 10b5-1 plan adopted on 5 Sep 2025 and still holds about 47.4m Class B shares. Director Meyer Malka bought roughly $55m of stock through Ribbit Capital entities in May and June 2026. Recent Form 4 filings:
| Name | Date | Type | Shares | Price | Value | Plan Type |
|---|---|---|---|---|---|---|
| Vlad Tenev (CEO) | 05 Oct 2026 | Sale | 375,000 | ~$113.72 avg | ~$42.6m | 10b5-1 |
| Dan Gallagher (Chief Legal Officer) | 05 Oct 2026 | Sale | 10,000 | ~$113.71 | ~$1.14m | 10b5-1 |
| Vlad Tenev (CEO) | 22 Sep 2026 | Sale | 240,834 | ~$125.33 | ~$30.2m | 10b5-1 |
| Vlad Tenev (CEO) | 21 Sep 2026 | Sale | 259,166 | ~$125.58 | ~$32.5m | 10b5-1 |
| Shiv Verma (CFO) | 15 Sep 2026 | Sale | 11,472 | ~$110.42 | ~$1.27m | 10b5-1 |
| Baiju Bhatt (Director) | 14 Aug 2026 | Sale | 50,317 | ~$96.80 | ~$4.87m | 10b5-1 |
| Meyer Malka (Director, indirect) | 05 Jun 2026 | Purchase | 250,000 | ~$80.74 | ~$20.2m | Open market |
| Meyer Malka (Director, indirect) | 28 May 2026 | Purchase | 249,000 | ~$80.39 | ~$20.0m | Open market |
10. Key Risks
- Event-contract regulation: The 25 Sep 2026 Sixth Circuit ruling that federal commodities law does not preempt Ohio gaming law, followed by Ohio cease-and-desist letters with a 16 Oct 2026 compliance deadline, could restrict sports contracts state by state.
- Payment for order flow: Transaction revenue depends on order-routing rebates, and any ban or restriction on payment for order flow would hit options and equities revenue.
- Crypto market cycles: Crypto revenue fell 38% YoY in Q2 2026, and questions over whether a token is a security keep listing and product risks open.
- Interest-rate sensitivity: Net interest revenue was 33.8% of FY2025 revenue, so lower short-term rates or smaller margin and cash balances would compress earnings.
- Execution and integration: Bitstamp, WonderFi, Rothera (which Robinhood does not control) and pending Indonesian deals add integration and operational risk.
- Governance and dilution: The dual-class structure concentrates voting control with the founders, and the $2.2bn 2029 convertible notes add potential dilution.
11. Recent Developments
- 07 Oct 2026 — Bitcoin added to the balance sheet. Robinhood said it now holds $25m of bitcoin as a corporate treasury asset.
- 02 Oct 2026 — Ohio cease-and-desist. The Ohio Casino Control Commission ordered ten operators, including Robinhood Derivatives, to stop offering sports event contracts, with written confirmation due by 16 Oct 2026.
- 01 Oct 2026 — Q3 date set. Robinhood scheduled Q3 2026 results for 27 Oct 2026, and Robinhood Ventures Fund II invested about $15.75m across 46 Y Combinator companies.
- 29 Sep 2026 — HOOD Summit launches. At HOOD Summit in Houston, Robinhood announced Robinhood Agents, US crypto perpetual futures via Bitstamp, earnings contracts, extended options hours, intraday margin and planned weekend stock trading.
- 25 Sep 2026 — Adverse Sixth Circuit ruling. The court held that federal commodities law does not preempt Ohio gaming law for sports event contracts.
- 16 Sep 2026 — Canadian headquarters. Robinhood Canada opened a Toronto headquarters following the WonderFi acquisition.
- 08 Sep 2026 — Prediction-market partnerships. Football event contracts began routing to Crypto.com and the CFTC-regulated exchange OG.com.
- 10 Aug 2026 — UK crypto launch. Crypto trading went live for UK customers through Bitstamp UK.
- 29 Jul 2026 — Q2 2026 results. Revenue rose 32% to $1.31bn, diluted EPS was $0.62 and adjusted EBITDA was $741m. Management lowered and tightened 2026 adjusted opex plus SBC guidance to $2.675bn–$2.775bn.
12. Key Dates
- 16 Oct 2026 — Deadline for Robinhood Derivatives to confirm compliance with Ohio's sports event-contract order
- 27 Oct 2026 — Q3 2026 results after the US close, with a 5:00 pm ET video call; full September operating data will be released with them
- Expected late 2026 — US crypto perpetual futures launch via Bitstamp (company wording: “coming months”; no date given)
- Expected early 2027 — Weekend trading in selected US stocks and ETFs, subject to regulatory review
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Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.
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13. Thesis Verdict
The central thesis. Robinhood earns transaction revenue from options, crypto, equities and event-contract trading, net interest on margin and customer cash, and subscription income from Robinhood Gold. FY2025 net revenues rose 52% to $4.47bn with net income of $1.88bn, and Q2 2026 revenue grew 32% to $1.31bn with a 57% adjusted EBITDA margin; management has lowered and tightened 2026 adjusted opex plus SBC guidance to $2.675bn–$2.775bn. The main growth drivers are prediction markets via Rothera, asset gathering ($383.7bn of platform assets in August 2026) and new products announced at HOOD Summit, with Q3 results due on 27 Oct 2026.
What would confirm or break it. Continued revenue growth across categories, rising net deposits and Gold subscribers, and cost discipline within guidance would confirm the bull case. The thesis would weaken if state actions such as Ohio’s cease-and-desist and the Sixth Circuit ruling curtail event contracts, if crypto revenue keeps falling, or if payment-for-order-flow rules change.
Watchpoints
- ConfirmsQ3 2026 earnings (27 Oct 2026) (18 days) landing in line with or above management guidance.
- ConfirmsEvidence supporting the "Diversified revenue engine:" thesis continuing to build across subsequent filings.
- InvalidatesMaterialisation of the "Event-contract regulation:" risk, or any disclosure that fundamentally alters the capital-return or growth profile stated by management.
Diagnostic grid
Generated by ChartsView research tooling. Thesis strength measures how well the evidence in this report supports the company's stated thesis — it is NOT a buy/sell rating or price target. ChartsView is not authorised by the FCA to provide regulated investment advice. Generated 9 Oct 2026.