COMPOSITE RISK SCORE
56
MODERATE
VAL:9/25 · FIN:24/25 · GRO:9/25 · TECH:14/25
📖 P/B RATIO
8.0x
Price to Book
🏛 MARKET CAP
$73.4B
Large Cap
📊 ROE
22.0%
Return on Equity
Overview
Technical
Financials
Analysis
Verdict
🏢 Company Analysis · Robinhood Markets, Inc.
💼 BUSINESS MODEL
Robinhood Markets, Inc.. operates financial services platform in the United States.. The company's platform allows users to invest in stocks, exchange-traded funds (ETFs), and American depository receipts.. It offers fractional trading, recurring investments, access to investing on margin, fully-paid securities lending, cash sweep, instant withdrawals, retirement program, around-the-clock trading, joint investing accounts, event contracts, future contract services, and short selling.. Operates in Capital Markets within the Financial Services sector. Workforce of 2,900 employees.
🏰 MOAT & COMPETITION
Large-cap ($73B) — established player with meaningful market presence. ROE of 22.0% indicates strong competitive advantage and efficient capital deployment. Profit margin of 42.1% suggests pricing power / cost moat.
🚀 CATALYSTS
Robinhood To Report As Growth Slows And Expansions Add Risk (Investor's Business Daily) Robinhood (HOOD) Q1 Earnings Today — What Investors Need to Watch (TipRanks) Revenue growing at 26% — strong top-line momentum.
⚖️ ASYMMETRY CHECK
Analyst target range: $50 — $155 (mean $101, 24 analysts). Favorable asymmetry — upside potential of +90% vs downside floor of -39% (2.3x reward-to-risk).P/E of 39.8x — fair value territory; catalysts needed for re-rating.
🔭 FUTURE OUTLOOK
Analyst consensus: Buy (24 analysts). Latest quarter earnings declined -34% YoY — watch for recovery signals.
P/E at 40x
P/B at 8.0x
Analyst target: $101.15 (+24.0%)
1Y return: +66.7%
ROE: 22.0%
Profit margin: 42.1%
Revenue growth: 26.5%
Debt/Equity: 136%
Revenue growth: 26.5%
Earnings growth: -34.5%
Beta: 2.46
Sector: Financial Services
RSI, MACD, MA crossovers
200 DMA & 50 EMA position
Volume trend analysis
Price momentum signals
📈 Price Movement
1D 1W 1M
6M 1Y 3Y 5Y
🕯 Candlestick Chart
1D 1W 1M
6M 1Y 3Y 5Y
🎯 Price Prediction · Analyst Target Cone
📉 Valuation Trends (at current CMP)
P/E P/B MCap/Sales EPS
60.1
53.6
47.0
40.4
33.8
2024
2025
2024: 52.3 2025: 39.8 39.8
11.1
9.8
8.5
7.3
6.0
2022
2023
2024
2025
2022: 9.3 2023: 9.6 2024: 8.1 2025: 7.0 7.0
62.2
50.1
38.1
26.0
14.0
2022
2023
2024
2025
2022: 54.1 2023: 39.4 2024: 24.9 2025: 16.4 16.4
2.4
2.1
1.8
1.6
1.3
2024
2025
2024: 1.6 2025: 2.0 2.0
💎 Valuation & Financial Metrics
P/E RATIO
39.8x
Trailing twelve months
P/B RATIO
8.0x
Price to Book value
PROFIT MARGIN
42.1%
Net profit margin
OPM
46.5%
Operating profit margin
ANALYST TARGET
$101.15
Range: $50.00 - $155.00
PEG RATIO
N/A
Price/Earnings to Growth
EV/EBITDA
N/A
Enterprise value ratio
CURRENT RATIO
1.13
Liquidity measure
DIVIDEND YIELD
N/A
Annual yield
GROSS MARGIN
92.4%
Gross profit margin
SECTOR BENCHMARKS — CAPITAL MARKETS
P/E (fair) 22.0x (sector mid)
P/B (fair) 3.0x (sector mid)
ROE (good) 18% (sector target)
OPM (good) 30% (sector target)
D/E comfort <200 (sector)
📋 Quarterly Performance Trend
Quarter Revenue QoQ % Net Profit QoQ % Op. Cash Flow EBITDA Margin
Q3 '24
N/A —
N/A —
N/A
N/A
Q4 '24
$1.0B —
$916.0M —
$-1.4B
57.2%
Q1 '25
$927.0M -8.6%
$336.0M -63.3%
$642.0M
42.3%
Q2 '25
$989.0M +6.7%
$386.0M +14.9%
$3.5B
46.5%
Q3 '25
$1.3B +28.8%
$556.0M +44.0%
$-1.6B
51.6%
Q4 '25
$1.3B +0.7%
$605.0M +8.8%
$-937.0M
52.5%
📊 Year-on-Year Trend
FY Revenue YoY % Net Profit YoY % Op. Cash Flow YoY %
2021
N/A —
N/A —
N/A —
2022
$1.4B —
$-1.0B —
$-852.0M —
2023
$1.9B +37.3%
$-541.0M +47.4%
$1.2B +238.6%
2024
$3.0B +58.2%
$1.4B +360.8%
$-157.0M -113.3%
2025
$4.5B +51.6%
$1.9B +33.5%
$1.6B +1143.3%
📈 Revenue vs Earnings
Quarterly
Annual
💰 How Robinhood Markets, Inc. Makes Its Money
Quarterly
Annual
Revenue
$1.3B
Cost of Revenue
$301M
Gross Profit
$982M
R&D
$232M
SG&A
$49M
Operating Inc.
$650M
Tax
$56M
Other
$11M
Net Income
$605M
(47.2% margin)
Dec 2025 · All values in $ Millions
Revenue
$1.3B
Cost of Revenue
$169M
Gross Profit
$1.1B
R&D
$237M
SG&A
$196M
Operating Inc.
$635M
Tax
$78M
Net Income
$556M
(43.6% margin)
Sep 2025 · All values in $ Millions
Revenue
$989M
Cost of Revenue
$141M
Gross Profit
$848M
R&D
$214M
SG&A
$157M
Operating Inc.
$439M
Tax
$56M
Net Income
$386M
(39.0% margin)
Jun 2025 · All values in $ Millions
Revenue
$927M
Cost of Revenue
$134M
Gross Profit
$793M
R&D
$214M
SG&A
$172M
Operating Inc.
$372M
Tax
$35M
Net Income
$336M
(36.2% margin)
Mar 2025 · All values in $ Millions
Revenue
$4.5B
Cost of Revenue
$745M
Gross Profit
$3.7B
R&D
$897M
SG&A
$576M
Operating Inc.
$2.1B
Tax
$225M
Net Income
$1.9B
(42.1% margin)
Dec 2025 · All values in $ Millions
Revenue
$3.0B
Cost of Revenue
$607M
Gross Profit
$2.3B
R&D
$818M
SG&A
$363M
Operating Inc.
$1.1B
Net Income
$1.4B
(47.8% margin)
Dec 2024 · All values in $ Millions
Revenue
$1.9B
Cost of Revenue
$146M
Gross Profit
$1.7B
R&D
$805M
SG&A
$1.3B
Operating Inc.
-$536M
Net Income
-$541M
(-29.0% margin)
Dec 2023 · All values in $ Millions
Revenue
$1.4B
Cost of Revenue
$588M
Gross Profit
$770M
R&D
$878M
SG&A
$725M
Operating Inc.
-$966M
Other
$61M
Net Income
-$1.0B
(-75.7% margin)
Dec 2022 · All values in $ Millions
Dec 2025
Sep 2025
Jun 2025
Mar 2025
🏦 Snapshot of Robinhood Markets, Inc.'s Balance Sheet
Quarterly
Annual
Total Assets
$38.1B
Cash & Equiv.: $4.3B (11.2%)
Receivables: $18.4B (48.3%)
Other Current: $13.6B (35.7%)
PP&E: $154M (0.4%)
Goodwill: $385M (1.0%)
Other Non-Curr.: $1.1B (2.9%)
Liab. + Equity
$38.1B
Current Liab.: $28.8B (75.4%)
Equity: $9.2B (24.0%)
As of Dec 2025 · All values in $ Millions
Total Assets
$41.5B
Cash & Equiv.: $4.3B (10.4%)
Receivables: $14.9B (35.9%)
Other Current: $20.8B (50.1%)
PP&E: $150M (0.4%)
Goodwill: $386M (0.9%)
Liab. + Equity
$41.5B
Current Liab.: $32.8B (79.0%)
Equity: $8.6B (20.7%)
As of Sep 2025 · All values in $ Millions
Total Assets
$35.3B
Cash & Equiv.: $4.2B (11.8%)
Receivables: $10.1B (28.5%)
Other Current: $19.6B (55.5%)
PP&E: $149M (0.4%)
Goodwill: $383M (1.1%)
Other Non-Curr.: $768M (2.2%)
Liab. + Equity
$35.3B
Current Liab.: $27.1B (76.8%)
Equity: $8.1B (22.9%)
As of Jun 2025 · All values in $ Millions
Total Assets
$27.5B
Cash & Equiv.: $4.4B (16.0%)
Receivables: $9.4B (34.3%)
Other Current: $12.4B (44.9%)
PP&E: $140M (0.5%)
Goodwill: $292M (1.1%)
Other Non-Curr.: $761M (2.8%)
Liab. + Equity
$27.5B
Current Liab.: $19.4B (70.6%)
Equity: $8.0B (28.9%)
As of Mar 2025 · All values in $ Millions
Total Assets
$38.1B
Cash & Equiv.: $4.3B (11.2%)
Receivables: $18.4B (48.3%)
Other Current: $13.6B (35.7%)
PP&E: $154M (0.4%)
Goodwill: $385M (1.0%)
Other Non-Curr.: $1.1B (2.9%)
Liab. + Equity
$38.1B
Current Liab.: $28.8B (75.4%)
Equity: $9.2B (24.0%)
As of Dec 2025 · All values in $ Millions
Total Assets
$26.2B
Cash & Equiv.: $4.3B (16.5%)
Receivables: $8.7B (33.3%)
Other Current: $12.1B (46.1%)
PP&E: $139M (0.5%)
Goodwill: $179M (0.7%)
Other Non-Curr.: $728M (2.8%)
Liab. + Equity
$26.2B
Current Liab.: $18.1B (69.1%)
Equity: $8.0B (30.4%)
As of Dec 2024 · All values in $ Millions
Total Assets
$17.6B
Cash & Equiv.: $4.8B (27.4%)
Receivables: $3.6B (20.3%)
Other Current: $8.7B (49.2%)
PP&E: $120M (0.7%)
Goodwill: $175M (1.0%)
Liab. + Equity
$17.6B
Current Liab.: $10.8B (61.5%)
Equity: $6.7B (38.0%)
As of Dec 2023 · All values in $ Millions
Total Assets
$23.3B
Cash & Equiv.: $6.3B (27.2%)
Receivables: $3.3B (14.1%)
Other Current: $13.3B (56.9%)
PP&E: $146M (0.6%)
Goodwill: $100M (0.4%)
Liab. + Equity
$23.3B
Current Liab.: $16.3B (69.6%)
Equity: $7.0B (29.8%)
As of Dec 2022 · All values in $ Millions
Dec 2025
Sep 2025
Jun 2025
Mar 2025
💸 Looking into Robinhood Markets, Inc.'s Cash Flow
Quarterly
Annual
Operating CF
$3.5B
Free Cash Flow
$3.5B
Buybacks
$124M
Retained / Other
$3.4B
FY2025 · All values in $ Millions
Operating CF
$642M
Capital Exp.
$11M
Free Cash Flow
$631M
Buybacks
$322M
Retained / Other
$309M
FY2025 · All values in $ Millions
Operating CF
$1.6B
Capital Exp.
$54M
Free Cash Flow
$1.6B
Buybacks
$653M
Debt Repaid
$4.8B
FY2025 · All values in $ Millions
Operating CF
$1.2B
Capital Exp.
$21M
Free Cash Flow
$1.2B
Buybacks
$608M
Debt Repaid
$20M
Retained / Other
$532M
FY2023 · All values in $ Millions
FY2025
FY2025
🎯 EPS: Estimate vs Actual
Estimates
Quarterly
Annual
📅 Quarterly Results
Item Dec '25 Sep '25 Jun '25 Mar '25 Dec '24 Sep '24 Total Revenue $1.28B $1.27B $989.0M $927.0M $1.01B — Cost of Revenue $301.0M $169.0M $141.0M $134.0M $144.0M — Gross Profit $982.0M $1.10B $848.0M $793.0M $870.0M — Operating Expense $332.0M $470.0M $409.0M $421.0M $312.0M — Operating Income $650.0M $635.0M $439.0M $372.0M $558.0M — Pretax Income $661.0M $634.0M $442.0M $371.0M $558.0M — Tax Provision $56.0M $78.0M $56.0M $35.0M $-358.0M — Net Income $605.0M $556.0M $386.0M $336.0M $916.0M — EBITDA $673.0M $657.0M $460.0M $392.0M $580.0M — EPS (Basic) $0.67 $0.63 $0.44 $0.37 $1.04 — EPS (Diluted) $0.66 $0.61 $0.42 $0.37 $1.01 — Shares Outstanding 917.7M 917.9M 909.1M 909.2M 907.8M —
📊 Profit & Loss Statement
Item Dec '25 Dec '24 Dec '23 Dec '22 Dec '21 Total Revenue $4.47B $2.95B $1.86B $1.36B — Cost of Revenue $745.0M $607.0M $146.0M $588.0M — Gross Profit $3.73B $2.34B $1.72B $770.0M — Operating Expense $1.63B $1.29B $2.25B $1.74B — Operating Income $2.09B $1.05B $-536.0M $-966.0M — Pretax Income $2.11B $1.06B $-533.0M $-1.03B — Tax Provision $225.0M $-347.0M $8.0M $1.0M — Net Income $1.88B $1.41B $-541.0M $-1.03B — EBITDA $2.18B $1.13B $-465.0M $-905.0M — EPS (Basic) $2.12 $1.60 $-0.61 $-1.17 — EPS (Diluted) $2.05 $1.56 $-0.61 $-1.17 — Shares Outstanding 918.8M 906.2M 890.9M 878.6M —
🏦 Balance Sheet
Item Dec '25 Dec '24 Dec '23 Dec '22 Dec '21 Total Assets $38.14B $26.19B $17.62B $23.34B — Current Assets $36.30B $25.10B $17.08B $22.92B — Cash & Equivalents $4.26B $4.33B $4.83B $6.34B — Accounts Receivable $18.42B $8.71B $3.58B $3.29B — Non-Current Assets $1.83B $1.08B $542.0M $420.0M — Property Plant & Equip $154.0M $139.0M $120.0M $146.0M — Goodwill $385.0M $179.0M $175.0M $100.0M — Intangible Assets $553.0M $217.0M $223.0M $125.0M — Total Liabilities $28.99B $18.21B $10.93B $16.38B — Current Liabilities $28.77B $18.10B $10.84B $16.25B — Accounts Payable $463.0M $397.0M $384.0M $185.0M — Short-Term Debt $11.63B $7.46B $3.55B $1.83B — Total Equity $9.15B $7.97B $6.70B $6.96B — Retained Earnings $-2.15B $-4.04B $-5.45B $-4.91B — Book Value/Share 8.59B 7.75B 6.47B 6.83B —
💰 Cash Flow Statement
Item Dec '25 Dec '24 Dec '23 Dec '22 Dec '21 Operating Cash Flow $1.64B $-157.0M $1.18B $-852.0M — Depreciation & Amort. $86.0M $77.0M $71.0M $61.0M — Change in Working Cap $-934.0M $-1.66B $729.0M $-655.0M — Capital Expenditure $-54.0M $-50.0M $-21.0M $-57.0M — Free Cash Flow $1.58B $-207.0M $1.16B $-909.0M — Investing Cash Flow $141.0M $-148.0M $-582.0M $-60.0M — Acquisitions $-399.0M $-134.0M $-107.0M $0 — Financing Cash Flow $-590.0M $-345.0M $-610.0M $0 — Debt Issued $5.22B $154.0M $20.0M $21.0M — Debt Repaid $-4.75B $-23.0M $-20.0M $-21.0M — Share Buyback $-653.0M $-257.0M $-608.0M $0 — Net Change in Cash $1.19B $-650.0M $-11.0M $-912.0M —
📈 Key Financial Ratios
Ratio FY2025 FY2024 FY2023 FY2022 FY2021 Gross Margin % 83.3% 79.4% 92.2% 56.7% — Operating Margin % 46.8% 35.7% -28.7% -71.1% — Net Margin % 42.1% 47.8% -29.0% -75.7% — EBITDA Margin % 48.7% 38.3% -24.9% -66.6% — ROE % 20.6% 17.7% -8.1% -14.8% — ROA % 4.9% 5.4% -3.1% -4.4% — Debt/Equity % 127.0% 93.6% 53.0% 26.4% — Current Ratio 1.26 1.39 1.58 1.41 — FCF Margin % 35.4% -7.0% 62.2% -66.9% — Asset Turnover 0.12 0.11 0.11 0.06 —
🚀 Compounded Growth Rates
Revenue
1-Year +51.6% 3-Year CAGR +54.9%
🏭 Industry Peers — Capital Markets
Ticker Company Price P/E P/B MCap ROE Margin Rev Growth JPM JP Morgan Chase & Co. $312.96 15.0 2.4 $838.6B 16.5% 33.9% 12.7% BAC Bank of America Corporation $52.94 13.2 1.4 $377.5B 10.6% 29.0% 11.8% WFC Wells Fargo & Company $81.92 12.7 1.5 $251.0B 12.0% 26.7% 5.7% GS Goldman Sachs Group, Inc. (The $929.60 17.0 2.6 $275.9B 14.6% 29.4% 14.5% MS Morgan Stanley $189.51 17.2 2.9 $300.9B — 24.8% 16.3% C Citigroup, Inc. $128.68 15.9 1.1 $225.1B 7.6% 20.4% 16.9% BLK BlackRock, Inc. $1,053.27 26.5 2.9 $163.6B — 24.4% 27.0% SCHW Charles Schwab Corporation (Th $90.74 18.0 3.2 $159.0B 19.1% 38.0% 15.8%
Peers selected from Financial Services sector · Data from Yahoo Finance
🏛 Shareholding Pattern
TOP HOLDERS
Holder Type Shares % Held Vanguard Group Inc Inst 95,771,497 12.11% Blackrock Inc. Inst 64,181,430 8.11% JPMORGAN CHASE & CO Inst 34,957,401 4.42% State Street Corporation Inst 33,121,452 4.19% Newlands Management Operations LLC Inst 24,158,860 3.05% VANGUARD INDEX FUNDS-Vanguard Total MF 24,718,166 3.12% VANGUARD INDEX FUNDS-Vanguard 500 I MF 19,829,616 2.51% VANGUARD INDEX FUNDS-Vanguard Mid-C MF 17,115,307 2.16%
🟢 CATALYSTS
🏆 Revenue Growth 26%: Above sector norm of 15% — strong top-line momentum.
💹 High ROE (22.0%): Above sector norm of 18% — efficient capital use.
🔀 Healthy Margins (42.1%): Above sector norm of 30%.
🇺 Analyst Upside (24%): Mean target of $101.15 above current price.
🔴 RISKS
📜 Elevated P/E (39.8x): Above sector expensive threshold of 35x.
💰 High P/B (8.0x): Well above sector expensive threshold of 5x.
🔓 High Beta (2.46): More volatile than market — higher swing risk.
🕸 Factor Analysis · Radar
Momentum 5/10: 1M +25.2%, 6M -44.2%, RSI 52, MACD bullish, Below 200DMA Sentiment 8/10: Analyst upside +24.0%, Rec: buy Value 5/10: P/E 39.8, P/B 8.0 Quality 7/10: ROE 22.0%, Margin 42.1%, D/E 136, CR 1.13 Low Volatility 0/10: Beta 2.46, Ann. vol 66% Momentum
5
Sentiment
8
Value
5
Quality
7
Low Vol
0
Momentum 5/10 1M +25.2%, 6M -44.2%, RSI 52, MACD bullish, Below 200DMA
Sentiment 8/10 Analyst upside +24.0%, Rec: buy
Value 5/10 P/E 39.8, P/B 8.0
Quality 7/10 ROE 22.0%, Margin 42.1%, D/E 136, CR 1.13
Low Volatility 0/10 Beta 2.46, Ann. vol 66%
🎯 Decision Matrix — Game Theory
Action If Stock Rises If Stock Falls
BUY Capture 24.0% analyst upside OPM of 47% provides margin buffer HOLD Retain existing position; wait for better entry Miss further upside if momentum continues; 1M return of +25.2% shows momentum SELL Lock in +66.7% 1Y return Avoid further drawdown
REASONS TO BUY
Analyst upside of 24.0% with mean target of $101.15
ROE of 22.0% above sector norm of 18%
Revenue growing at 26.5% YoY (sector norm: 6%)
Operating margin of 47% shows pricing power (sector norm: 30%)
REASONS TO SELL / AVOID
P/E of 39.8x exceeds sector expensive threshold of 35x
1Y return of +66.7% — profit booking opportunity
Robinhood Markets, Inc. trades at $81.57 with a composite risk score of 56/100.
The stock scores 9/25 on valuation, 24/25 on financial health, 9/25 on growth, and 14/25 on technicals.
The company is currently profitable with strong return on equity.
Bottom Line: Neutral for Financial Services — wait for better entry or catalyst. The current recommendation is HOLD .
PROFITABLE
HIGH ROE
STRONG GROWTH
UPSIDE POTENTIAL
VOLATILE
HIGH DEBT