US · Nasdaq · HOOD
Robinhood (HOOD) stock analysis: valuation and financials
Finance · Investment Bankers/Brokers/Service
$109.52 +0.3% Price as of Oct 13, 2026
High-growth, high-margin retail trading franchise with $5.36B net cash, but 55% counterparty concentration and 18.9x EV/sales (47.5x P/E) already price in durability it has yet to prove.
- Market cap
- $98.5B
- P/E
- 47.5x
- EV/Sales
- 18.9x
- FCF yield
- —
- 52-week range
- $65.16 – $152.46
- Next earnings
- Oct 27, 2026
Research as of Oct 13, 2026
Business quality scorecard
- Growth100
- Cash flow62
- Balance sheet68
- Capital allocation50
- Innovation40
- Valuation25
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Retail investors pay commission-free but Robinhood earns market-maker order-flow rebates and commissions on options, crypto, equities, event contracts and futures, plus net interest on margin, cash sweep and securities lending and flat Gold subscription fees; transaction-based streams (options 25.1% and crypto 20.1% of FY2025 revenue) are the profit engine, with a 42.1% net margin on $4.47B revenue.
Financials by year
| FY2021Jan–Dec 2021 | FY2022Jan–Dec 2022 | FY2023Jan–Dec 2023 | FY2024Jan–Dec 2024 | FY2025Jan–Dec 2025 | |
|---|---|---|---|---|---|
| Revenue | $1.8B | $1.4B | $1.9B | $3.0B | $4.5B |
| Revenue growth | +89.5% | -25.2% | +37.3% | +58.2% | +51.6% |
| Net income | -$3.7B | -$1.0B | -$541.0M | $1.4B | $1.9B |
| Free cash flow | -$948.0M | -$880.0M | — | — | — |
| FCF margin | -52.2% | -64.8% | — | — | — |
Amounts in USD · What is free cash flow?
Margins Gross margin not disclosed; no separate cost of revenue. Net margin fell to 42.1% FY2025 from 47.8% FY2024 on a $572M tax swing, while pretax margin rose to 47.1% from 36.1%. TTM net margin 42.0%; Q2 FY2026 42.9% vs 39.0%.
- Cash flow WatchOperating cash flow is balance-sheet driven and volatile: quarterly swings ran from +$3,509M (Q2 FY2025) to -$1,576M (Q3 FY2025) and -$937M (Q4 FY2025). TTM operating cash flow was only $245M versus TTM net income of $2,072M.
- Debt LowNet cash of $5,362M; gross debt is limited to Credit Card Funding Trust borrowings and the $2,200M convertible senior notes issued in H1 FY2026. Net debt/EBITDA is not meaningful given the net cash position.
Balance sheet Leverage · Net cash
- Cash & short-term investments
- $5.4B
- Total debt
- —
- Net cash
- $5.4B
- Current ratio
- 1.2x
As of Jun 30, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management AdequateExecution is strong: FY2025 revenue $4.5B (+51.6% y/y) and net income $1.9B at a 42.0% net margin, with 3-year revenue CAGR of 48.8% and FY2025 revenue growth of 51.6%.
- Credibility HighProduct-led growth promises translated into results: revenue rose from $1.865 billion in FY2023 to $4.473 billion in FY2025 and diluted EPS from -$0.61 to $2.05.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
The full report is for members.