Robinhood Markets, Inc.HOOD
NASDAQ • Financial Services
$77.19
P/E
36.24
PEG
8.63
FCF Yield
—
Rev Growth YoY
+15.1% YoY
Gross Margin
80.6%
Health Score
7/10
D/E Ratio
1.68
Confidence
—
Business Snapshot
Robinhood Markets operates a commission-free trading platform targeting retail investors, generating revenue primarily from payment for order flow, margin lending, and cryptocurrency trading. The company competes in the online brokerage space alongside incumbents like Charles Schwab and Fidelity, positioning itself as a mobile-first challenger with a younger user base. With TTM revenue of $4.61B and net income of $1.90B, the firm operates at a significant scale, though market capitalisation is not provided in the data. A defining characteristic is its reliance on transaction-driven revenue, which is inherently tied to retail trading volumes and market activity, making earnings more cyclical than subscription-based peers.
Financial Health
Gross margin improved to 80.6% from 76.5% a year earlier, reflecting operating leverage, while net margin stands at a strong 41.1%, indicating high profitability per dollar of revenue. Debt/equity of 1.68x is elevated relative to conservative thresholds (often 1.0x), and the current ratio of exactly 1.0x suggests minimal liquidity buffer, meaning current assets barely cover short-term liabilities...
Risk Assessment
- VALUATION — P/E of 36.24x is 126% above the sector average of 16x, leaving little room for multiple compression if growth disappoints.
- REVENUE DECELERATION — Revenue declined 16.8% quarter-over-quarter, a sharp reversal from the 15.1% year-over-year growth, flagging a loss of near-term momentum.
- DEBT / LIQUIDITY — Debt/equity of 1.68x and a current ratio of exactly 1.0x indicate a stretched balance sheet with minimal liquidity headroom.
- 52-WEEK POSITION — At $77.19, the stock is 50% below its 52-week high of $153.86 and only 34% above the low...