Robinhood Markets (NASDAQ:HOOD) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Robinhood Markets (NASDAQ:HOOD) announced its quarterly earnings data on Tuesday. The company reported $0.66 EPS for the quarter, beating analysts’ consensus estimates of $0.63 by $0.03, FiscalAI reports. Robinhood Markets had a net margin of 52.19% and a return on equity of 21.74%. The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.32 billion. During the same quarter in the prior year, the business earned $1.01 earnings per share. The firm’s revenue for the quarter 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 Trading Down 1.1%

Shares of HOOD stock opened at $85.60 on Wednesday. Robinhood Markets has a 1 year low of $29.66 and a 1 year high of $153.86. The firm’s 50 day moving average is $112.45 and its 200-day moving average is $118.97. The firm has a market capitalization of $76.97 billion, a price-to-earnings ratio of 35.52, a PEG ratio of 1.34 and a beta of 2.43.

Analyst Upgrades and Downgrades

HOOD has been the subject of a number of recent research reports. Truist Financial cut their target price on Robinhood Markets from $155.00 to $130.00 and set a “buy” rating for the company in a research note on Friday, February 6th. The Goldman Sachs Group reissued a “buy” rating on shares of Robinhood Markets in a report on Monday, January 5th. Argus initiated coverage on shares of Robinhood Markets in a report on Friday, January 9th. They set a “buy” rating and a $145.00 price objective for the company. Citizens Jmp lifted their target price on shares of Robinhood Markets from $170.00 to $180.00 and gave the company a “market outperform” rating in a research report on Friday, November 7th. Finally, Cantor Fitzgerald reissued an “overweight” rating and issued a $130.00 price target on shares of Robinhood Markets in a research report on Monday. Seventeen research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $131.82.

Robinhood Markets News Summary

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

• Positive Sentiment: Q4 EPS beat consensus — Robinhood reported $0.66 diluted EPS (vs. ~$0.58 consensus), showing continued profitability and topping estimates which supports near-term earnings confidence. Robinhood Q4 Tops Estimates (Zacks)
• Positive Sentiment: Record full‑year results — 2025 revenue hit ~$4.5B with record net deposits ($68B), 27M funded customers and 4.2M Gold subscribers, giving management runway to expand fee-bearing products and monetize customers. Q4 & Full‑Year Results (GlobeNewswire)
• Positive Sentiment: Product & strategic wins — Expansion of Prediction Markets, Rothera JV and the MIAXdx acquisition position Robinhood to create new, differentiated revenue streams beyond traditional P&L drivers. This is cited as a longer‑term catalyst by media/analysts. Prediction‑Market Lift (WSJ)
• Neutral Sentiment: Analyst reactions mixed but mostly constructive — Several firms raised/maintained bullish ratings and price targets (Wolfe, Cantor, others), providing potential upside support even after the pullback. Wolfe Upgrade
• Neutral Sentiment: CFO transition & buybacks — Shiv Verma named CFO (effective Feb 6) and the company resumed repurchases ($100M in Q4, $653M YTD), items investors will watch but are not immediate swing factors. CFO Transition & Buybacks
• Negative Sentiment: Revenue missed estimates — Q4 revenue of $1.28B missed Street estimates (~$1.32B); investors punished the stock on concern that growth quality is uneven despite strong headline metrics. Revenue Miss Coverage (Reuters)
• Negative Sentiment: Crypto revenue slump — Crypto revenue fell ~38% YoY and Robinhood app crypto volumes dropped sharply, which was flagged as the main driver of the negative after‑hours reaction and implies volatility in a meaningful revenue bucket. Crypto Decline (Proactive)
• Negative Sentiment: Margin/expense profile and guidance risks — Operating expenses rose (marketing, acquisitions) and 2026 expense guidance calls for continued investment, which could pressure near‑term margins despite higher adjusted EBITDA. Expense Outlook (GlobeNewswire)
• Negative Sentiment: Large insider selling flagged — Recent disclosures show extensive insider sales over the past 6 months, which some investors interpret as a negative signal on timing of further share issuance/sales. Insider Selling (QuiverQuant summary)

Insider Activity at Robinhood Markets

In other news, CEO Vladimir Tenev sold 375,000 shares of the firm’s stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $121.63, for a total value of $45,611,250.00. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Steven M. Quirk sold 52,540 shares of the business’s stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $87.81, for a total transaction of $4,613,537.40. Following the sale, the insider directly owned 27,564 shares of the company’s stock, valued at approximately $2,420,394.84. This trade represents a 65.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 1,537,615 shares of company stock worth $182,272,702. 19.95% of the stock is currently owned by company insiders.

Institutional Trading of Robinhood Markets

Hedge funds have recently modified their holdings of the company. Sunbelt Securities Inc. acquired a new position in shares of Robinhood Markets in the 3rd quarter valued at approximately $105,000. Coldstream Capital Management Inc. lifted its stake in Robinhood Markets by 4.5% in the third quarter. Coldstream Capital Management Inc. now owns 7,708 shares of the company’s stock valued at $1,104,000 after buying an additional 332 shares in the last quarter. Advisory Services Network LLC lifted its stake in Robinhood Markets by 40.7% in the third quarter. Advisory Services Network LLC now owns 35,339 shares of the company’s stock valued at $5,060,000 after buying an additional 10,228 shares in the last quarter. Tcfg Wealth Management LLC boosted its holdings in shares of Robinhood Markets by 35.0% in the third quarter. Tcfg Wealth Management LLC now owns 3,626 shares of the company’s stock valued at $519,000 after buying an additional 941 shares during the period. Finally, Jasper Ridge Partners L.P. increased its position in shares of Robinhood Markets by 1.0% during the third quarter. Jasper Ridge Partners L.P. now owns 123,903 shares of the company’s stock worth $17,740,000 after acquiring an additional 1,272 shares in the last quarter. 93.27% of the stock is currently owned by institutional investors and hedge funds.

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.