Robinhood Markets, Inc. (HOOD) AI Stock Analysis

Robinhood Markets, Inc. operates a financial services platform in the United States, giving users access to trading in stocks, exchange-traded funds (ETFs), options, gold, and cryptocurrencies. The company offers educational materials through products like its business news digest "Snacks" and educational library "Learn." Users also receive news feeds from Barron's, Reuters, and The Wall Street Journal, along with customizable alerts and lists. Additionally, the platform provides cash management features and first trade recommendations for beginners. Founded in 2013 and based in Menlo Park, California, Robinhood focuses on democratizing finance through an accessible online brokerage interface.

Robinhood increased its revenue from $1.81B in FY2021 to $4.47B in FY2025, achieving a 5-year revenue CAGR of 36.1%. While revenue fell 25.2% in FY2022 to $1.36B, it rebounded with 37.3% growth in FY2023, 58.2% in FY2024, and 51.6% in FY2025. Operating margins improved from -90.4% in FY2021 to 46.8% in FY2025. Net income turned positive in FY2024 at $1.41B and reached $1.88B in FY2025, representing a net margin of 42.1% and EPS of $2.13. For the latest quarter ending June 30, 2026, quarterly revenue grew 32.3% year-over-year, while quarterly earnings grew 47.6% year-over-year.

As of June 30, 2026, Robinhood held $16.16B in cash and short-term investments against total debt of $22.71B, resulting in net debt of $6.54B. Shareholders' equity stood at $9.48B, yielding a debt-to-equity ratio of 2.40 and a current ratio of 1.22. Total assets were $56.55B. In FY2025, operating cash flow was $1.64B and free cash flow was $1.58B. Cash usage in FY2025 included $54.0M in capital expenditures and $653.0M directed toward share buybacks.

Robinhood trades at a trailing P/E of 43.6x and a forward P/E of 45.0x, compared to medians of 14.2x and 12.2x for its S&P 500 Financial Services peers. The stock's price-to-sales multiple is 18.0x versus the peer median of 3.1x, and its EV/EBITDA is 49.5x against a peer median of 15.1x. HOOD carries a market cap of $88.89B and an enterprise value of $116.86B. Over the past 1-year period, the stock fell 24.8%, trailing the S&P 500 return of 16.8%. Over 5 years, HOOD gained 141.0% versus 83.0% for the S&P 500.

Wall Street analysts issue 19 Strong Buy, 6 Buy, 4 Hold, 1 Sell, and 1 Strong Sell ratings on the stock. The mean price target is $134.38, representing an upside of 35.9% from the last close of $98.87. For the fiscal year ending December 31, 2026, analysts estimate EPS of $2.15 on revenue of $5.30B. For the next fiscal year, consensus estimates project EPS of $2.94 and revenue of $6.85B across 25 analysts. Robinhood beat EPS estimates in each of the last 4 quarters, with next earnings scheduled for October 27, 2026.

This page is an AI-written research summary of Robinhood Markets, Inc. (HOOD). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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