HOOD changes
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- Price
- $83.32
- Discount category
- Far above intrinsic value
- Next earnings
- 2027-02-10
- Next earnings is estimate
- Yes
- Company name
- Robinhood Markets
- Sector
- Brokerage and financial technology
- About
- Robinhood Markets (Robinhood) offers retail brokerage, cryptocurrency trading, advisory services, digital banking and access to private markets, mainly through its mobile app. Customers trade equities, options, cryptocurrencies and event contracts, and they can pay for the Robinhood Gold subscription. The company also offers the Robinhood Gold Card, Robinhood Banking, Robinhood Strategies and retirement accounts. It owns Bitstamp, a cryptocurrency exchange, TradePMR, a platform for registered investment advisers, and WonderFi in Canada. Rothera, a joint venture with SIG, owns an exchange for event contracts. At September 30, 2026, Robinhood had 28.7 million Funded Customers, Total Platform Assets of $396 billion and 5.2 million Gold subscribers. The founders hold all Class B shares, which have 10 votes each. The head office is in Menlo Park, California. Vlad Tenev is Chairman and Chief Executive Officer.
- Thesis
- Robinhood trades at a premium because investors pay for its fast growth in customers' assets, subscribers and new businesses. In Q3 2026, revenue rose 12% to a record $1,424 million, Net Deposits were $15.7 billion and Gold subscribers rose 34% to 5.2 million. Event contracts revenue rose more than six times to $173 million, and Robinhood now has 14 business lines with annualized revenues of $100 million or more. But diluted EPS fell 16% to $0.51, cryptocurrency revenue fell 55% and net interest revenues fell 9%. For the premium to be earned, three things must be true. Revenue must keep growing fast when trading activity is lower. New businesses, such as event contracts, banking and the Gold Card, must stay legal in each state and give profits. Expenses must stay within the company's plan. The Q4 2026 report, expected in February 2027, is the next test. Only several years of fast growth in earnings can earn the premium.
- Risks
- Most revenue comes from trading. Cryptocurrency revenue fell 55% in Q3 2026, and lower trading in options, equities or event contracts can cut revenue fast. States and regulators challenge event contracts. Enforcement actions or new laws can stop Robinhood from offering some contracts, and other litigation and regulatory investigations are pending. Lower short-term interest rates and less securities lending lower net interest revenues, which fell 9% in Q3 2026. The credit card loan book grows fast. The provision for credit losses rose to $71 million in Q3 2026 from $26 million a year earlier. The convertible notes can add up to 20,811,560 Class A shares. The founders control the votes through Class B shares.
- Balance sheet
- Robinhood is a broker, and most of its $58.3 billion of assets at September 30, 2026 relate to customers, such as segregated cash, margin loans and securities borrowed. Corporate cash and cash equivalents were $5,829 million. Long-term borrowings were $2,660 million: $2.2 billion of 0.00% convertible senior notes due October 2029, issued in June 2026, and $500 million of asset-backed notes that the Credit Card Funding Trust issued in July 2026. Revolving credit facilities had total commitments of $4.450 billion, and the Trust could borrow up to $1.55 billion. Stockholders' equity was $10,078 million. In the first nine months of 2026, Robinhood bought $689 million of its own Class A shares. The company pays no dividend. For a broker, net debt and interest cover are not useful measures, so this profile does not show debt figures. As of 2026-09-30.
- Checkpoints
- Oct 27, 2026: Q3 2026 results: revenue growth. Passed. Watch: Record revenue with strong Net Deposits passes; a fall in revenue fails. Outcome: Revenue rose 12% to a record $1,424 million and Net Deposits were $15.7 billion, but diluted EPS fell 16%. Feb 10, 2027 (estimate): Q4 2026 results. Pending. Watch: Revenue and EPS growth over Q4 2025 pass; lower EPS fails. Apr 28, 2027 (estimate): Q1 2027 results: new businesses. Pending. Watch: Growth in event contracts, Gold and banking with steady expenses passes; a fall in transaction revenue fails.
- Recent events
- 2026-10-27: Robinhood reported Q3 2026 results. Revenue rose 12% to $1,424 million, diluted EPS fell 16% to $0.51 and adjusted EPS fell 3% to $0.60. Net Deposits were $15.7 billion and Total Platform Assets were $396 billion. The company lowered the top end of its 2026 outlook for adjusted operating expenses and share-based compensation to $2.75 billion. 2026-06-25: Robinhood issued $2.2 billion of 0.00% convertible senior notes due 2029. It used about $290 million of the proceeds to buy back 2,743,000 Class A shares at $105.71 per share. 2026-06-16: Robinhood announced a reduction of about 10% of its full-time employees. It expected charges of about $20 million in cash and about $8 million of share-based compensation. 2026-06-01: Robinhood completed its acquisition of WonderFi, a Canadian company with digital asset products, for about $178 million in cash. 2026-02-10: Robinhood reported full-year 2025 results. Revenue rose 52% to $4.5 billion, diluted EPS rose to a record $2.05 and Net Deposits were a record $68 billion.