Robinhood Markets, Inc. (HOOD)

Price$120.82Cached quoteAs of 2026-09-25 12:48 UTC

AI: Overvalued

Price checkThe valuation demands sustained high growth after a strong run, leaving little room for ordinary execution.

At roughly 50.3 times trailing earnings and 47.4 times forward earnings, the valuation already assumes unusually fast growth. P/E means the market value investors place on each dollar of annual profit; forward P/E uses expected profit. Q2 was excellent, but trailing revenue growth of 38% has been much faster than trailing EPS growth of 15%, and part of Q2 profit came from a non-cash gain. I view the shares as Overvalued unless EPS can compound around 25% or better for several years.

Big pictureRobinhood is diversifying fast, but trading activity and interest conditions still make results meaningfully cyclical.

Robinhood Markets, Inc. is the Nasdaq-listed company under ticker HOOD. Its platform now spans stocks, options, crypto, margin, cash, retirement, credit cards, advisory, prediction markets and private-market access. Q2 revenue rose 32% year over year, while July showed strong equity, options and event-contract activity but much weaker crypto volumes. Diversification reduces reliance on one product, yet results still benefit when customers trade more and when interest-earning balances and market rates are favorable.

Business strengthProfitability and liquidity are strong, while new convertible debt and equity compensation create manageable dilution risk.

Q2 net income was $573 million, but $106 million came from a non-cash deconsolidation gain; first-half operating cash flow was $2.758 billion, though brokerage working capital makes that figure noisy. At June 30, cash and equivalents were $5.362 billion plus $155 million of stablecoin, and revolvers were undrawn. Robinhood issued $2.2 billion zero-coupon convertibles due 2029; no regular interest is owed, but up to 12.6 million shares could be issued, partly offset by capped calls. First-half repurchases were $664 million versus $197 million of share-based compensation; repurchases exceeded recognized equity pay in dollars, but dilution remains a watchpoint.

What could change the storyThe stock works best if growth stays exceptional; normalization in trading, rates or regulation would challenge the multiple.

A credible bull case needs platform assets and deposits to keep growing above 20%, revenue to compound around 20% to 25%, and EPS to grow at least about 25% for several years as Gold, prediction markets, wealth, credit and international products scale. The bear case is slower trading, persistently weak crypto, lower interest rates reducing interest income, tighter rules for prediction markets or tokenization, rising credit losses, and dilution from employee awards or acquisitions. At roughly 50 times trailing earnings, merely good growth may not be enough.

AI: News

Prediction markets expandRobinhood added Crypto.com and OG.com routing partnerships and took equity stakes to deepen prediction-market infrastructure.

On September 8, Robinhood said it would route selected football event contracts through Crypto.com and OG.com's CFTC-regulated infrastructure while taking equity stakes in both businesses. The move broadens the plumbing behind a fast-growing product: Robinhood said 13.6 billion event contracts traded in Q2. It could improve product depth and resilience, but it also increases exposure to a market where critics compare contracts to gambling and regulators are scrutinizing insider-trading risks.

July activity stays mixedCustomer assets and deposits stayed strong, while crypto trading weakened and event contracts remained elevated.

On August 12, Robinhood reported July funded customers of 28.5 million and total platform assets of $355 billion, up 19% year over year. Net deposits were $5.6 billion. Equity volume rose 59% and options contracts 66% from a year earlier, while crypto notional volume fell 62%. Event contracts were up about 20 times year over year. The mix shows strong engagement but also how quickly individual trading categories can cool.

Q2 sets recordsRecord revenue and deposits showed broad momentum, while crypto weakness and elevated expectations remained important counterweights.

On July 29, Robinhood reported record Q2 revenue of $1.31 billion, up 32% year over year, diluted EPS of $0.62, and record net deposits of $22 billion. Gold subscribers reached 4.8 million. Transaction-based revenue rose 44%, helped by equities, options and event contracts, while crypto transaction revenue fell 38% to $100 million. The quarter strengthened the earnings case, but it also highlighted the cyclical mix and the market's already demanding expectations.

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Revenue

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Net income

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Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$4.47B	$2.95B	$1.86B	$1.36B	$1.81B	$958.0M	$277.5M
Research & development	$355.0M	$323.0M	$349.0M	$381.0M	$438.0M	$52.0M	$27.7M
Operating expenses	$2.38B	$1.90B	$2.40B	$2.37B	$3.46B	$945.0M	$384.5M
Operating income	$2.09B	$1.05B	−$536.0M	−$966.0M	—	—	—
Operating margin	46.81%	35.72%	−28.74%	−71.13%	—	—	—
EBITDA	$2.18B	$1.13B	−$465.0M	−$905.0M	—	—	—
EBITDA margin	48.74%	38.33%	−24.93%	−66.64%	—	—	—
Net income	$1.88B	$1.41B	−$541.0M	−$1.03B	−$3.69B	$7.0M	−$106.6M
Net profit margin	42.10%	47.81%	−29.01%	−75.70%	−203.14%	0.73%	−38.40%
Basic EPSper basic share	$2.12	$1.60	-$0.61	-$1.17	-$7.49	$0.01	-$0.48
Diluted EPSper diluted share	$2.05	$1.56	-$0.61	-$1.17	-$7.49	$0.01	-$0.48

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Owners

Reported shareholders

Reference date Jun 30, 2026

8.58%of listed shares

BlackRock, Inc.67.79M shares · Jun 30, 2026

View holders

Top 20 reported holders of HOOD
Holder	% owned
BlackRock, Inc.	8.58%67.79M shares
VANGUARD CAPITAL MANAGEMENT LLC	6.54%51.66M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	4.72%37.31M shares
STATE STREET CORP	4.39%34.67M shares
FMR LLC	3.79%29.91M shares
Newlands Management Operations LLC	3.06%24.16M shares
GEODE CAPITAL MANAGEMENT, LLC	2.86%22.6M shares
JPMORGAN CHASE & CO	2.00%15.8M shares
NORGES BANK	1.44%11.41M shares
Index Venture Associates VI Ltd	1.28%10.13M shares
MORGAN STANLEY	1.28%10.11M shares
Malka Meyer	≈1.01%8M shares
BANK OF AMERICA CORP /DE/	0.84%6.64M shares
GOLDMAN SACHS GROUP INC	0.83%6.58M shares
Sumitomo Mitsui Trust Group, Inc.	0.83%6.57M shares
NORTHERN TRUST CORP	0.82%6.47M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	0.80%6.3M shares
PRICE T ROWE ASSOCIATES INC /MD/	0.70%5.55M shares
Invesco Ltd.	0.70%5.52M shares
ARK Investment Management LLC	0.66%5.24M shares

Percentages use 790M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys6$57.27M disclosed value

Sells (SEC code S)327$2.43B disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 15, 2026Form 4 · 10b5-1	Verma ShivChief Financial Officer	SellClass A Common Stock	4.0K	$98.84	$393.8K	59.9K
Jun 11, 2026Form 4 · 10b5-1	Bhatt BaijuDirector	SellClass A Common Stock · indirect	2.4K	$93.21	$225.0K	0
Jun 11, 2026Form 4 · 10b5-1	Bhatt BaijuDirector	SellClass A Common Stock · indirect	10.4K	$92.52	$961.5K	2.4K
Jun 11, 2026Form 4 · 10b5-1	Bhatt BaijuDirector	SellClass A Common Stock · indirect	6.4K	$91.59	$590.6K	12.8K
Jun 11, 2026Form 4 · 10b5-1	Bhatt BaijuDirector	SellClass A Common Stock · indirect	3.4K	$90.42	$307.4K	19.3K