HOOD — Robinhood Markets, Inc.

Fintech / Brokerage / Crypto / Payments · NASDAQ · Menlo Park, CA

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Our View: We Like It

Robinhood tripled its revenue in three years, hit record profits, and is transforming from a stock trading app into a full financial platform. The stock is 55% below its October high. That pullback creates a compelling entry — but this is a cyclical business tied to trading volumes and crypto, so the ride won't be smooth.

01

The Story

Balanced Grower Strong growth + profitability, but expect some volatility

A few years ago, Robinhood was the meme stock trading app — fun, controversial, and not particularly profitable. That company doesn't exist anymore. What replaced it is a fast-growing financial platform that just posted record revenue, record profits, and record deposits.

Revenue hit $4.5 billion in 2025, up 52% from the year before — and more than three times what it was in 2023. The company isn't just making money from trades anymore. Net interest revenue (from margin lending, cash balances, and securities lending) grew 39%. Gold subscription revenue is booming. The Gold Card has 600,000 customers spending $10 billion a year. Prediction markets — launched in 2025 — already have a $300 million run rate.

CEO Vlad Tenev calls it the "Financial SuperApp" — one place where you trade stocks, earn interest, get a credit card, save for retirement, trade futures and prediction markets, and eventually bank. Over 40% of platform assets are now in non-trading products like ETFs, advisory accounts, retirement, and cash. That diversification is the key to the investment thesis: Robinhood is becoming less dependent on the next crypto rally.

The stock got cut in half because crypto cooled off and trading volumes slowed. Q4 crypto revenue fell 38%. That's the cyclical reality of this business — when markets are quiet, Robinhood's revenue takes a hit. But the structural growth (deposits, subscribers, banking, international) keeps compounding underneath.

Recent catalysts: a $1.5 billion share buyback announced in March 2026, selection as the brokerage for the government's new Trump Accounts program (tax-deferred accounts for children), and continued international expansion with 750,000 customers outside the U.S.

02	The Numbers

Here's the data for those who want to dig in.

Stock Price

$69.65

Market Cap

~$63B

Revenue Growth

+52%

Platform Assets

$324B

Year	Revenue	Growth	Adj EBITDA	EPS
FY 2023	$1.9B	+37%	$0.6B	-$0.61
FY 2024	$2.95B	+52%	$1.4B	$1.56
FY 2025	$4.5B	+52%	$2.5B (56% margin)	$2.05
Q4 2025	$1.28B	+27%	—	$0.66

What the numbers tell us:

The growth trajectory is remarkable. Revenue tripled in three years. Adjusted EBITDA margins hit 56% — meaning for every dollar that comes in, more than half is profit before some accounting adjustments. EPS went from a loss to a record $2.05. Gold subscribers grew 58% to 4.2 million. Platform assets hit $324 billion.

At 34x trailing earnings with this growth rate, the valuation makes sense. If EPS grows to $2.50–$3.00 in 2026 (which the trajectory supports), the stock at $70 would be trading at 23–28x — cheap for a fintech growing this fast.

But this is a cyclical business — and that matters. Trading volumes and crypto prices directly impact revenue. When markets are hot, Robinhood thrives. When they cool off, so does the stock. The 55% pullback happened because crypto revenue dropped and trading activity slowed. That risk doesn't go away just because the company is diversifying.

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HOOD — Robinhood Markets, Inc.

The Story

The Numbers

The Chart

Deep Dive: Revenue tripled but the stock got cut in half.

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