HOOD
Robinhood Markets, Inc.
Financial Services · Capital Markets · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The growth factor earned a perfect score driven by 51.6% revenue growth and 33.5% net income growth in FY2025, anchoring the composite score strongly.
- Near-top profitability scores reflecting a 47.1% operating margin and 42.1% net margin added significant positive weight to the overall rating.
- Zero scores in both the dividend and theme factors, combined with a tempered momentum score reflecting the 2026Q1 pullback, held the composite score to 56.6/100.
Why Not Higher
- The dividend factor contributes zero points because Robinhood does not pay a dividend, and the theme factor also contributes zero as the company is not assigned to any of the 24 tracked macro themes.
- The momentum score was tempered by a meaningful sequential pullback in 2026Q1, with revenue falling from $1.28 billion to $1.07 billion and net income dropping from $605 million to $350 million quarter-over-quarter.
Data Confidence
6 / 10
Medium — some data gaps
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from $2,951,000,000 in FY2024 to $4,473,000,000 in FY2025, a gain of +51.6%. Net income rose from $1,411,000,000 in FY2024 to $1,883,000,000 in FY2025 (+33.5%), while diluted EPS increased from $1.56 in FY2024 to $2.05 in FY2025 (+31.4%).
The model rewarded the combination of exceptional top-line expansion and meaningful bottom-line growth across all three key growth metrics, resulting in a perfect sub-score.
In FY2025, Robinhood posted an operating margin of 47.1%, a net margin of 42.1%, and a return on equity of 20.6%.
The model rewarded the combination of exceptionally high operating and net margins alongside a solid return on equity, placing the score near the top of the range with only a modest deduction.
Filing evidence currently available does not support a more specific explanation for this factor.
Quarterly revenue rose from $989,000,000 in 2025Q2 to a peak of $1,283,000,000 in 2025Q4 before pulling back to $1,067,000,000 in 2026Q1. Operating income followed a similar arc, climbing from $442,000,000 in 2025Q2 to $661,000,000 in 2025Q4 then declining to $411,000,000 in 2026Q1, with net income moving from $386,000,000 in 2025Q2 to $605,000,000 in 2025Q4 and back to $350,000,000 in 2026Q1.
The model recognized the strong mid-period acceleration through 2025Q4 but tempered the score to reflect the meaningful sequential pullback in 2026Q1 across revenue, operating income, and net income.
Robinhood Markets does not currently pay a dividend; this is a genuine characteristic of the company, not a data limitation.
The model assigns a score of zero for this factor because no dividend income is available to investors, which is consistent with the company's growth-oriented capital allocation approach.
Robinhood Markets is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment means the security did not receive any theme-based score contribution under the model's current methodology; this is a neutral classification rather than a negative signal.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Robinhood Markets delivered exceptional financial performance in FY2025, with revenue surging 51.6% year-over-year to $4.47 billion and net income rising 33.5% to $1.88 billion, earning a perfect growth score. Profitability metrics are equally impressive, with an operating margin of 47.1% and a net margin of 42.1%, reflecting strong operational efficiency. However, quarterly momentum showed a meaningful pullback in 2026Q1 across revenue, operating income, and net income after peaking in 2025Q4, and the company pays no dividend, contributing to a composite score of 56.6/100 with a High risk rating.
Plain English
Robinhood is growing fast and keeping a lot of what it earns as profit, but its most recent quarter showed a noticeable slowdown, it doesn't pay any dividends, and overall the model rates it as high risk with a 'Research Further' label.
Bull Case vs. Bear Case
Bull Case
- Revenue grew an exceptional 51.6% year-over-year from $2.95 billion to $4.47 billion in FY2025, demonstrating powerful top-line momentum.
- Operating and net margins of 47.1% and 42.1% respectively in FY2025 indicate that Robinhood converts a very high share of revenue into profit, reflecting strong operational leverage.
- Diluted EPS rose 31.4% from $1.56 to $2.05 in FY2025, showing that bottom-line growth is accruing meaningfully to shareholders on a per-share basis.
Bear Case
- Quarterly revenue pulled back from a peak of $1.28 billion in 2025Q4 to $1.07 billion in 2026Q1, signaling a meaningful sequential deceleration that tempered the momentum score.
- Net income dropped from $605 million in 2025Q4 to $350 million in 2026Q1, a sharp sequential decline that raises questions about the sustainability of recent profitability levels.
- Robinhood pays no dividend, meaning investors receive no current income, which is a structural zero in the model's dividend factor.
What Could Change the Picture
Bullish Triggers
- A return to sequential revenue and earnings growth in subsequent quarters beyond 2026Q1 would suggest the pullback was temporary and reinforce the strong FY2025 growth trajectory.
- Sustained operating margins near or above the 47.1% FY2025 level would confirm that the high-profitability profile is durable rather than cyclical.
Bearish Triggers
- Continued sequential declines in revenue and operating income beyond 2026Q1 would suggest the 2025 peak was a high-water mark rather than a new baseline.
- Any deterioration in net margin from the current 42.1% level would signal that the exceptional profitability seen in FY2025 may not be repeatable.
Red Flags
- ONE_TIME_REVIEW: 2024 OCF/NI ratio = -0.11 (OCF=-157,000,000, NI=1,411,000,000) — possible large one-time item
Risk Profile
High RiskThe High risk rating reflects the meaningful sequential pullback in 2026Q1 across revenue, operating income, and net income after a strong peak in 2025Q4, introducing uncertainty about near-term trajectory. The financial health factor score was limited by available filing evidence, adding further uncertainty to the overall risk assessment.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.