Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Robinhood Markets, Inc.

HOOD · Nasdaq · Financial

Fundamental quality

EXCELLENT

93

out of 100

Robinhood Markets, Inc. fits the profile of a quality compounder: it pairs high return on capital (ROE 21.7%) with wide margins (net margin 42%) and a business that keeps growing (34.7% a year). On fundamental quality it scores 93 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Robinhood is the broker that turned the stock market into an app: zero commissions, video-game design and an entire generation of first-time investors as its clientele. It makes money on crypto, interest on customer cash and selling order flow to market makers.

What will shape its future

  • Retail investor mood: when stocks and crypto heat up, its activity explodes.
  • Its clientele maturing: keeping the kid who started with $100 until they have $100,000.
  • Regulation of payment for order flow and crypto, its two permanent fronts.

Breakdown by area

I.Growth
95

EPS growth: 150% · Revenue growth: 34.7%

II.Profitability
91

Net margin: 42% · ROE: 21.7%

Source: SEC EDGAR · TTM through 30/06/2026

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 71 Financial companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 94%
ROEbeats 80%
Growthbeats 91%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Robinhood Markets, Inc. strengths

  • Growing earnings per share (150% annualized).
  • Expanding margins: net margin has risen from 1% to 42% in recent years.
  • Exceptional net margin (42%): the business is clearly profitable.
  • Revenue growing strongly (34.7% annualized).

Robinhood Markets, Inc. risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Robinhood Markets, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
202095871,852-1,403
20211,815-3,687-948-6,253
20221,358-1,028-880-6,339
20231,865-541-4,835
20242,9511,411-4,332
20254,4731,883-4,261

Between 2020 and 2025, revenue went from $958M to $4,473M (+367%) and net income went from $7M to $1,883M (+26800%). Meanwhile, its margins have widened (from 1% to 42%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+24%
  • Net income+26.2%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score9293
  • Net margin41.1%42%
  • ROE19.6%21.7%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

Advertising

Want to invest in Robinhood Markets, Inc.?

Open your account in minutes with regulated brokers and buy U.S. and European stocks from small amounts. No paperwork.

Interactive BrokersGlobal markets

The serious investor's standard

Open free account →
WebullCommission-free

Popular in the U.S.

Open free account →

Investing carries risk of loss.

Is Robinhood Markets, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Robinhood Markets, Inc. a good company to invest in?

In terms of business quality, Robinhood Markets, Inc. scores 93 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Robinhood Markets, Inc. a profitable company?

Very. Robinhood Markets, Inc. shows a net margin of 42% and an ROE of 21.7%, typical of a highly profitable business.

Is Robinhood Markets, Inc. growing?

Its revenue has grown 34.7% annualized in recent years and its earnings per share 150%.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

Was this page helpful?