Robinhood Markets (NASDAQ:HOOD) Announces Quarterly Earnings Results

Robinhood Markets (NASDAQ:HOOD) issued its earnings results on Tuesday. The company reported $0.66 earnings per share for the quarter, beating analysts’ consensus estimates of $0.63 by $0.03, FiscalAI reports. Robinhood Markets had a return on equity of 22.97% and a net margin of 42.10%.The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.32 billion. During the same period in the previous year, the company posted $1.01 EPS. Robinhood Markets’s revenue was up 26.5% on a year-over-year basis.

Here are the key takeaways from Robinhood Markets’ conference call:

• Record 2025 financials: Revenues reached $4.5B (up 52% YoY) with Adjusted EBITDA of $2.5B (56% margin), total platform assets of $324B, and record net deposits of $68B.
• Strong product momentum and diversification — prediction markets scaled rapidly (>$12B contracts in 2025 and continued traction in 2026), shorting launched (> $11B equity notional early), Gold Card and Robinhood Banking are growing fast and the company now has multiple revenue lines crossing $100M ARR.
• 2026 guidance balances growth and profitability: adjusted OpEx + SBC outlook of $2.6–$2.725B (≈18% YoY) while targeting 20%+ net deposit growth and disciplined, ROI‑driven investment across new and scaling businesses.
• Big push on tokenization and international expansion — Bitstamp volumes have doubled since acquisition, ~750k international customers, ~2,000 stock tokens in Europe, and plans for Robinhood Chain and private‑market products (Robinhood Ventures), though timing and regulatory/workflow integration remain material execution risks.
• AI and automation are a core productivity lever — Cortex assistant and Legend integrations are rolling out, >75% of support cases are AI‑resolved, and engineering automation delivered estimated nine‑figure savings in 2025, enabling higher product velocity.

Robinhood Markets Stock Performance

HOOD traded down $5.33 during trading on Thursday, hitting $72.64. The stock had a trading volume of 13,228,807 shares, compared to its average volume of 29,584,467. The stock has a 50 day simple moving average of $111.33 and a two-hundred day simple moving average of $118.68. Robinhood Markets has a twelve month low of $29.66 and a twelve month high of $153.86. The company has a market capitalization of $65.32 billion, a PE ratio of 35.53, a PEG ratio of 1.32 and a beta of 2.43.

Robinhood Markets News Summary

Here are the key news stories impacting Robinhood Markets this week:

• Positive Sentiment: Solid operating results: Robinhood posted record 2025 revenue ($4.5B) and Q4 revenue of $1.28B, beat EPS estimates ($0.66 vs $0.63) and reported strong net deposits and growth in Gold subscribers — metrics that support long-term monetization. Robinhood Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Product expansion & product-velocity thesis: Management emphasized prediction markets (record event-contract volumes), a JV to acquire MIAXdx (Rothera) and international rollouts — initiatives management says will drive future revenue diversification. Robinhood outlines path to $1T in platform assets
• Positive Sentiment: Institutional buying signal: ARK Invest added roughly $34M of HOOD earlier in January, signaling some long‑term investor conviction despite recent volatility. ARK buys HOOD stock worth $34M
• Neutral Sentiment: CFO transition & expense plan: New CFO Shiv Verma takes the role; management expects 2026 adjusted operating expenses & SBC to grow ~18% at midpoint as it funds product expansion — a deliberate tradeoff between growth and near-term cost pressure. Press release (CFO transition & outlook)
• Neutral Sentiment: Mixed analyst responses: Several firms trimmed price targets (Goldman Sachs, Piper Sandler, Barclays, Needham) but many maintain buy/overweight ratings and elevated targets — signaling disagreement on timing vs. longer-term upside. Analyst moves summary (Benzinga)
• Negative Sentiment: Crypto revenue collapse weighed on sentiment: Crypto revenue fell ~38% YoY in Q4, driving a revenue miss vs. Street estimates and triggering selling pressure given HOOD’s exposure to crypto volumes/volatility. Crypto revenue collapse coverage
• Negative Sentiment: Revenue short of consensus and stock reaction: The $1.28B Q4 revenue came below consensus (~$1.32B), prompting downward stock pressure despite earnings beat; media/market commentary highlighted the miss. Earnings recap & call
• Negative Sentiment: Significant insider selling and volatile valuation: Recent data show heavy insider share sales (disclosed via Quiver/filings) and a high beta; both increase downside risk if market sentiment remains weak. Quiver/summary (insider & metrics)

Analyst Upgrades and Downgrades

Several analysts recently weighed in on HOOD shares. CICC Research started coverage on Robinhood Markets in a report on Monday, October 27th. They issued an “outperform” rating and a $155.00 price objective for the company. Loop Capital set a $130.00 price target on shares of Robinhood Markets in a report on Monday. Dbs Bank raised shares of Robinhood Markets to a “moderate buy” rating in a research report on Wednesday, November 12th. Wolfe Research upgraded shares of Robinhood Markets from a “peer perform” rating to an “outperform” rating and set a $125.00 price objective on the stock in a research note on Monday. Finally, Compass Point reissued a “buy” rating on shares of Robinhood Markets in a report on Wednesday. Eighteen research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $126.95.

Insiders Place Their Bets

In other news, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of the firm’s stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $87.07, for a total value of $870,700.00. Following the completion of the sale, the insider owned 393,612 shares of the company’s stock, valued at $34,271,796.84. This trade represents a 2.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CTO Jeffrey Tsvi Pinner sold 5,864 shares of the business’s stock in a transaction on Monday, January 26th. The stock was sold at an average price of $107.48, for a total value of $630,262.72. Following the transaction, the chief technology officer owned 9,133 shares in the company, valued at approximately $981,614.84. This trade represents a 39.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 1,537,615 shares of company stock worth $182,272,702. 14.47% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Robinhood Markets

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Binnacle Investments Inc acquired a new stake in Robinhood Markets in the 2nd quarter worth approximately $41,000. Capital Analysts LLC raised its holdings in shares of Robinhood Markets by 757.6% in the fourth quarter. Capital Analysts LLC now owns 566 shares of the company’s stock worth $64,000 after buying an additional 500 shares during the last quarter. Quadrant Capital Group LLC acquired a new stake in shares of Robinhood Markets during the third quarter worth $104,000. Sunbelt Securities Inc. acquired a new stake in shares of Robinhood Markets during the third quarter worth $105,000. Finally, Jupiter Wealth Management LLC purchased a new stake in shares of Robinhood Markets during the second quarter valued at $112,000. 93.27% of the stock is owned by hedge funds and other institutional investors.

Robinhood Markets Company Profile

Robinhood Markets, Inc (NASDAQ: HOOD) is a U.S.-based financial services company best known for its mobile-first brokerage platform that aims to “democratize finance for all.” Founded in 2013 by Vladimir Tenev and Baiju Bhatt and headquartered in Menlo Park, California, the company built early traction by offering commission-free trading and a simplified user experience that attracted a large base of retail investors.

Robinhood’s core products and services include a mobile app and web platform for trading U.S.