At a glance
Robinhood Markets Inc is worth $75.50B, about 41 times its fiscal 2025 earnings. Revenue grew 51.6% to $4.47B in fiscal 2025, with 42.1% kept as profit; over 5 years it has grown 36.1% a year. It pays no dividend; it spent $1.52B buying back its shares over FY2021–FY2025. The stock returned −42.9% over the past year with dividends reinvested and +19.1% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 62.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 21 months after the low.
The business in plain English
Robinhood runs an investing app and website for individual investors, from beginners to active traders. Founded in 2013, it was the first U.S. retail broker to offer commission-free stock trading with no account minimums. Customers can trade stocks, ETFs, options, futures, crypto and event contracts, which pay out if a trader correctly predicts a yes-or-no outcome, such as a sports result. It also offers fractional shares from $1, retirement accounts (IRAs) with a Robinhood match, and a desktop platform called Robinhood Legend. Besides the U.S., it serves customers in the U.K. and the EU.
Because stock and ETF trades carry no commission, Robinhood earns money in other ways. In fiscal 2025, revenue rose 51.6% to $4.47 billion. Transaction-based revenue was $2.63 billion, or 58.8%. It includes payments from trading firms that execute customers' orders, known as payment for order flow. Crypto trading alone brought in $901 million (20.1% of revenue) and stock trading $302 million (6.8%).
Net interest income, the interest Robinhood earns minus what it pays, added $1.51 billion. Sources include margin loans, which let customers borrow to invest, and lending out customers' shares with their permission. Robinhood Gold, a paid subscription, brought in $179 million (4%). It also charges commissions on futures and event contracts.
Price history
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HOOD -42.9% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Transaction-based revenues | $2.63B | 58.8% |
| Cryptocurrencies | $901.0M | 20.1% |
| Equities | $302.0M | 6.8% |
| Other | $302.0M | 6.8% |
| Gold subscription revenues | $179.0M | 4% |
| Other | $89.0M | 2% |
| Proxy revenues | $63.0M | 1.4% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $1.42B, up 11.8% from a year earlier, and net income was $468.0M (-15.8%).
- For fiscal 2025, revenue was $4.47B (+51.6% year over year; +36.1% a year from FY2020 to FY2025) with a 42.1% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +36.1% good |
|---|---|
| Return on equity | 20.6% good |
| Net income / revenue | 42.1% good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $958.0M | $7.0M | — |
| FY2021 | $1.81B | $-3.69B | — |
| FY2022 | $1.36B | $-1.03B | — |
| FY2023 | $1.86B | $-541.0M | — |
| FY2024 | $2.95B | $1.41B | — |
| FY2025 | $4.47B | $1.88B | — |
Valuation snapshot
| Market value | $75.50B |
|---|---|
| P/E ratio | 40.9 |
| Dividend yield | None |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| HOOD price data to Nov 2, 2026 | -25.9% | -42.9% | +106.8% | +19.1% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -25.9% |
| 2025 | +203.5% |
| 2024 | +192.5% |
| 2023 | +56.5% |
| 2022 | -54.2% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 42.2% over that stretch · deepest drop along the way 62.6%, back to its old high 21.1 months after the low |
Insider activity
Form 4 filings from 2025-11-03 to 2026-11-03 (16 read): 0 open-market purchases and 25 sales ($117.9M), 25 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 21, 2026 | Vladimir Tenev Chief Executive Officer, Director | sell (plan) | $31.2M |
| Sep 22, 2026 | Vladimir Tenev Chief Executive Officer, Director | sell (plan) | $30.0M |
| Oct 5, 2026 | Vladimir Tenev Chief Executive Officer, Director | sell (plan) | $22.1M |
| Oct 5, 2026 | Vladimir Tenev Chief Executive Officer, Director | sell (plan) | $18.0M |
| Oct 5, 2026 | Vladimir Tenev Chief Executive Officer, Director | sell (plan) | $2.6M |
Who owns it
Large shareholders (13G filings)
| Baiju Bhatt | 7.6% | Sep 30, 2025 |
| Vanguard Capital Management | 7.48% | Mar 31, 2026 |
| BlackRock, Inc. | 7.2% | Sep 30, 2025 |
| FMR LLC | 4% | Sep 30, 2025 |
| Bullfrog Capital, L.P. | 1.5% | Dec 31, 2024 |
ETFs with the most weight in HOOD
| ARKF ARK Fintech Innovation ETF | 5.75% |
| ARKW ARK Next Generation Internet ETF | 5.47% |
| ARKD ARK 21Shares Blockchain and Digital Economy Innovation ETF | 4.69% |
| CRPT First Trust SkyBridge Crypto Industry & Digital Economy ETF | 4.68% |
| BLOK Amplify Transformational Data Sharing ETF | 4.5% |
| ARKK ARK Innovation ETF | 4.41% |
| BKCH Global X Blockchain ETF | 4.41% |
| DECO SPDR Galaxy Digital Asset Ecosystem ETF | 4.34% |
What could go wrong
- Less trading or limits on order-flow payments. Transactions produced 58.8% of fiscal 2025 revenue. Lower trading activity, narrower price spreads, trouble with the trading firms that pay for orders, or a ban on payment for order flow could cut profits.
- Crypto rules are unsettled. Crypto made up 20.1% of fiscal 2025 revenue. If regulators treat a coin it offers as a security, or crypto rules change, Robinhood could face fines and crypto trading could suffer.
- Prediction markets face legal challenges. Enforcement actions, lawsuits or changes in federal or state law could stop Robinhood from offering event contracts. Rothera, its exchange joint venture with SIG, is not wholly owned or run by Robinhood.
- Regulators, lawsuits and reputation. Robinhood has faced regulatory investigations, settlements and numerous lawsuits, and expects more. These can be costly, force changes to its business and hurt its brand; bad press has cost it revenue and customers before.
- Interest rate swings can shrink income. Net interest income was $1.51 billion in fiscal 2025. Rapid interest rate changes have reduced this income before and could do so again, lowering profits.
- Growth could slow and losses could return. Results swing from quarter to quarter, and growth may not match past rates. Robinhood had operating losses in most full years since it was founded, including net losses in 2021 through 2023.
Recent events
- Quarterly results released
- Quarterly results released
- Executive or board change
- Major agreement signed; New debt or financial obligation; Unregistered sale of shares; Investor presentation or announcement; Other company announcement
- Other company announcement
- Restructuring or exit costs
- Shareholder vote results
- Executive or board change
- Quarterly results released
- Major agreement signed; New debt or financial obligation; Investor presentation or announcement
For income and retirement investors
Robinhood does not pay a dividend and paid none in fiscal 2021 through 2025, so the shares offer no regular income. An investor needing income from this holding would have to cash in shares at the going price. The company does return cash through share repurchases, or buybacks: $1.52 billion over fiscal 2021–2025, including $653 million in 2025. Repurchases can shrink the share count but pay nothing to shareholders who keep their shares.
The shares have been very volatile. Their price history doesn't reach back to the 2008 or 2020 crashes. In the 2022 bear market, they fell 62.6% from January 3 to June 16, 2022, then took about 21 months to recover, on March 20, 2024. As of October 28, 2026, the stock was down 37.5% over one year, and its deepest drop since its price history began was 87.9%. A single stock like this carries far more risk than a diversified fund.
Questions investors ask
Does Robinhood pay a dividend?
No. Robinhood paid no dividends in fiscal 2021 through 2025. It returns cash through share repurchases instead, totaling $1.52 billion over that period, including $653 million in fiscal 2025. Repurchases don't send cash to shareholders who keep their shares, so anyone wanting regular income from HOOD would have to cash in shares at the going price.
How does Robinhood make money if trading is free?
Mostly from trading and interest. In fiscal 2025, transaction-based revenue was $2.63 billion, or 58.8% of its $4.47 billion total. That includes payment for order flow, where trading firms pay Robinhood to handle customer orders, and crypto trading, which alone brought in $901 million. Net interest income, from sources such as margin loans and lending out customers' shares, added $1.51 billion. Robinhood Gold subscriptions contributed $179 million.
Is Robinhood profitable?
Yes, in its latest two fiscal years. Net income was $1.41 billion in fiscal 2024 and $1.88 billion in fiscal 2025, or $2.05 per diluted share, after net losses in 2021, 2022 and 2023. Return on equity, profit measured against shareholders' money, was 20.6% in fiscal 2025. In the quarter ended September 30, 2026, revenue rose 11.8% from a year earlier to $1.42 billion, but net income fell 15.8% to $468 million. The company warns it might not stay profitable.
How volatile is Robinhood stock?
Very volatile. As of October 28, 2026, its beta over the past year was 3.08. Beta measures how much a stock moves compared with the overall market, so HOOD tended to swing about three times as much. The shares gained 192.5% in 2024 and 203.5% in 2025, but lost 54.2% in 2022 and were down 37.5% over the year to October 28, 2026. Its deepest drop since its price history began was 87.9%.
Do Robinhood's founders control the company?
Yes, through voting power. Robinhood's multi-class share structure concentrates voting power with its founders, which limits other shareholders' say, according to its annual report. Among large holders, Baiju Bhatt reported a 7.6% stake and BlackRock 7.2% as of September 30, 2025, and Vanguard Capital Management 7.48% as of March 31, 2026. In the year to October 29, 2026, insiders, led by CEO Vladimir Tenev, reported at least 35 share sales worth about $121 million under plans set up in advance, and no purchases.