# Robinhood Markets (HOOD.US)

Canonical: https://gigainvestors.com/s/HOOD

Analysis as of: 2026-10-16T07:33:43.882Z. Financial observations: FY2019–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $103.99 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- positive earnings in fewer than 7 of 7 years

- Financial history: 7 years

- Profitable years in the last ten: 3

- Required profitable years: 7

Chart: Net income; fiscal year observations.

- FY2019: -$107M

- FY2020: $2.8M

- FY2021: -$3.7B

- FY2022: -$1.0B

- FY2023: -$541M

- FY2024: $1.4B

- FY2025: $1.9B

### moat: fail

- Tangible common book per share

- Parent-total proxy for preferred equity

- median return on common equity below threshold

- return on tangible common equity below 5% in more than one year

- Bank / P&C ROTE, median of available years: 0.0%

- Required median return: 12.0%

- Return uses tangible common equity: Yes

- Bank ROTE, second-lowest year: -15.0%

- Years with reported combined ratio: 0

Chart: Return on tangible common equity; fiscal year observations.

- FY2019: 0.0%

- FY2020: 0.0%

- FY2021: -51.5%

- FY2022: -15.0%

- FY2023: -8.4%

- FY2024: 18.2%

- FY2025: 21.9%

### economics: fail

- Tangible common book per share

- Parent-total proxy for preferred equity

- nonpositive book value in the compounding window

- Book return interval: 6 years

- Starting book value per share: -$0.44

- Ending book value per share: $9.35

### management: fail

- Tangible common book per share

- Parent-total proxy for preferred equity

- ordinary share count growth exceeds 2% annually in both the full and five-year windows

- Diluted shares, 10-year annual growth: 26.7%

- Diluted shares, 5-year annual growth: 30.3%

- Share growth excluding flagged crisis recapitalisations: 26.7%

- Five-year share growth excluding flagged crisis recapitalisations: 30.3%

- Flagged crisis recapitalisations: 0

- Book value created per share: $9.78

- Earnings retained per share after dividends and buybacks: -$7.35

### accounting: pass

- Financial accounting warning count: 0

- Known restatement years: 0

## Holders

## Price story

Down 29% since Oct 2025 · "Robinhood delivers record Q2 revenue, but crypto slowdown weighs on shares" (finance.yahoo.com, Jul 2026) · net income +33.5%

Story as of 2026-10-16T09:59:57.552Z; price observation 2026-10-15.

- 2025-04-30: Trading Surge Lifts Robinhood Profit as Company Expands Product Suite ([finance.yahoo.com](https://finance.yahoo.com/m/a2019941-11a6-360b-bd05-0d1f910def26/trading-surge-lifts-robinhood.html))

- 2025-05-05: HOOD Q1 Earnings Call: Product Expansion Drives Outperformance and Diversification ([finance.yahoo.com](https://finance.yahoo.com/news/hood-q1-earnings-call-product-233203727.html))

- 2025-06-04: Robinhood shares surge to record high following completion of Bitstamp acquisition ([finance.yahoo.com](https://finance.yahoo.com/news/robinhood-shares-surge-record-high-153354827.html))

- 2026-02-10: Robinhood misses Q4 revenue estimates as fourth-quarter results dinged by crypto slump ([finance.yahoo.com](https://finance.yahoo.com/news/robinhood-misses-q4-revenue-estimates-213627835.html))

- 2026-05-29: Coinbase, Robinhood Stocks Soar as Regulator Permits Crypto Perpetual Futures for U.S. ([finance.yahoo.com](https://finance.yahoo.com/m/e400a8c4-18b2-34b1-b7f3-faef0a0305f8/coinbase%2C-robinhood-stocks.html))

- 2026-08-19: Webull Climbs 7% Ahead of Q2 Earnings, Robinhood Gains 7% on Tokenization Push ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/webull-climbs-7-ahead-q2-162223269.html))

### Net income · FY2025

net income +33.5%; source https://www.sec.gov/Archives/edgar/data/1783879/000178387926000023/hood-20251231.htm; observed 2026-02-18.

- FY2019: -$107M 

- FY2020: $2.8M 

- FY2021: -$3.7B 

- FY2022: -$1.0B 

- FY2023: -$541M 

- FY2024: $1.4B 

- FY2025: $1.9B 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in capital markets; annual sales are USD 4.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1783879/000178387926000023/hood-20251231.htm#000178387926000023 (filed 2026-02-18); FY2025: revenue 4473000000.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HOOD.US: Robinhood Markets, Inc. operates financial services platform in the United States. The company's platform allows users to invest in stocks, exchange-traded funds (ETFs), and American depository receipts. It offers fractional trading, recurring investments, access to investing on margin, fully-paid securities lending, cash sweep, instant withdrawals, retirement program, around-the-clock trading, joint investing accounts, event contracts, future contract services, and short selling. The company also provides various learning and education solutions comprise Snacks, an accessible digest of business news stories for a new generation of investors; Learn, which is an online collection of guides, feature tutorials, and financial dictionary; Newsfeeds that offer access to free, premium news from sites from various sites, such as Barron's, Reuters, and Dow Jones. In addition, the company offers In-App Education, a resource that covers investing fundamentals, including why people invest, a stock market overview, and tips on how to define investing goals, as well as allows customers to understand the basics of investing before their first trade; and Crypto Learn and Earn, an educational module available to various crypto customers through Robinhood Learn to teach customers the basics related to cryptocurrency. Further, it provides Robinhood credit cards, cash card and spending accounts, and wallets. Robinhood Markets, Inc. was incorporated in 2013 and is headquartered in Menlo Park, California.

### Why customers stay

It earns 0% on shareholders’ money, excluding intangible assets.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); 7-year return on tangible equity observations [[2019,0],[2020,0],[2021,-0.5150086616373288],[2022,-0.15049041135997657],[2023,-0.08357793913177816],[2024,0.18194713088330108],[2025,0.21928496564574357]]; median 0. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 1 of 7 years; bought back USD 653 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Dividend observations: [[2019,0],[2020,0],[2021,7344000],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/HOOD.US.json#2025-12-31 (filed 2026-02-18); FY2025: cash repurchases 653000000 USD.

### Are managers owners

Insiders own 1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HOOD.US SharesStats.PercentInsiders = 0.958 percentage points; cache date 2026-10-16.

### What could break it

"We have been subject to regulatory investigations, actions, and settlements" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1783879/000178387926000023/hood-20251231.htm (filed 2026-02-18); We have been subject to regulatory investigations, actions, and settlements

### What the price says

The price is 21.4 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Closing price 103.99 USD; reporting-to-trading FX 1; FY2025 annual sales per share 4.868402678474341; price multiple 21.360188724690364. FY2025 cash earnings/share 2.0842814954791784. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2021-07: $35.15 per share

- 2021-08: $44.32 per share

- 2021-09: $42.08 per share

- 2021-10: $34.97 per share

- 2021-11: $25.94 per share

- 2021-12: $17.76 per share

- 2022-01: $14.15 per share

- 2022-02: $12.01 per share

- 2022-03: $13.51 per share

- 2022-04: $9.81 per share

- 2022-05: $10.06 per share

- 2022-06: $8.22 per share

- 2022-07: $9.05 per share

- 2022-08: $9.55 per share

- 2022-09: $10.10 per share

- 2022-10: $11.68 per share

- 2022-11: $9.59 per share

- 2022-12: $8.14 per share

- 2023-01: $10.41 per share

- 2023-02: $10.07 per share

- 2023-03: $9.71 per share

- 2023-04: $8.85 per share

- 2023-05: $8.92 per share

- 2023-06: $9.98 per share

- 2023-07: $12.86 per share

- 2023-08: $10.89 per share

- 2023-09: $9.81 per share

- 2023-10: $9.14 per share

- 2023-11: $8.80 per share

- 2023-12: $12.74 per share

- 2024-01: $10.74 per share

- 2024-02: $16.31 per share

- 2024-03: $20.13 per share

- 2024-04: $16.49 per share

- 2024-05: $20.90 per share

- 2024-06: $22.71 per share

- 2024-07: $20.57 per share

- 2024-08: $20.12 per share

- 2024-09: $23.42 per share

- 2024-10: $23.49 per share

- 2024-11: $37.54 per share

- 2024-12: $37.26 per share

- 2025-01: $51.95 per share

- 2025-02: $50.10 per share

- 2025-03: $41.62 per share

- 2025-04: $49.11 per share

- 2025-05: $66.15 per share

- 2025-06: $93.63 per share

- 2025-07: $103.05 per share

- 2025-08: $104.03 per share

- 2025-09: $143.18 per share

- 2025-10: $146.78 per share

- 2025-11: $128.49 per share

- 2025-12: $113.10 per share

- 2026-01: $99.48 per share

- 2026-02: $75.85 per share

- 2026-03: $69.30 per share

- 2026-04: $72.89 per share

- 2026-05: $94.30 per share

- 2026-06: $100.28 per share

- 2026-07: $86.56 per share

- 2026-08: $104.81 per share

- 2026-09: $112.50 per share

- 2026-10: $110.52 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1783879/000178387926000023/hood-20251231.htm); period 2025-12-31, filed 2026-02-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.