Robinhood is a diversified financial services provider best known for its retail brokerage platform, which historically caters to a young, risk-seeking clientele that trades heavily on margin and in higher-risk asset classes like options, futures, cryptocurrencies, and more recently, in prediction markets. As those customers' financial needs have begun to mature, Robinhood has rolled out a suite of more conventional products, from retirement accounts to high-yield cash sweep accounts to nascent advisory services (Robinhood Strategies). With $322 billion in customer assets and 27 million active accounts at year-end 2025, the firm has emerged as a significant player in the large and quickly growing US brokerage market.
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The chart shows the growth of an initial investment of $10,000 in Robinhood Markets, Inc. Class A Common Stock, comparing it to the performance of the S&P 500 index.
All prices have been adjusted for splits and dividends.
Robinhood Markets, Inc. Class A Common Stock (HOOD) has returned -40.33% so far this year and 124.63% over the past 12 months. Looking at the last ten years, HOOD has achieved an annualized return of 6.13%, underperforming the Benchmark (SPY), which averaged 12.23% per year.
The table below presents the monthly returns of Robinhood Markets, Inc. Class A Common Stock (HOOD) with color gradation from worst to best to easily spot seasonal factors.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | -13.85% | -20.89% | -5.70% | -3.14% | ||||||||
| 2025 | 34.80% | 3.32% | -23.94% | 17.49% | 29.39% | 41.80% | 8.46% | 6.37% | 42.69% | 3.91% | -13.64% | -8.38% |
| 2024 | -15.70% | 51.16% | 23.50% | -17.47% | 27.21% | 3.70% | -9.86% | -3.69% | 18.55% | 0.38% | 58.40% | -1.75% |
| 2023 | 26.03% | -1.85% | -3.00% | -8.29% | 1.36% | 11.88% | 28.60% | -14.12% | -12.25% | -6.45% | -4.03% | 44.44% |
| 2022 | -21.61% | -15.96% | 12.07% | -27.58% | 3.07% | -17.47% | 10.10% | 6.82% | 7.45% | 16.57% | -20.22% | -15.21% |
| 2021 | -7.50% | 23.21% | -3.84% | -17.45% | -26.31% | -32.60% |
The charts below present risk-adjusted performance metrics for Robinhood Markets, Inc. Class A Common Stock (HOOD) and compare them to a Benchmark (SPY). These indicators evaluate an investment's returns against its associated risks.
The Sharpe ratio helps investors understand how much return they're getting for the level of risk taken. A higher Sharpe ratio indicates better risk-adjusted performance, meaning more reward for each unit of risk.
These values reflect how efficiently the investment has delivered returns relative to its volatility over different time periods. All figures are annualized and based on daily total returns.
The chart below shows the rolling Sharpe ratio of HOOD compared to the benchmark. This view highlights how the investment's risk-adjusted performance has changed over time.
The current Robinhood Markets, Inc. Class A Common Stock volatility is 3.33%, representing the standart deviation of percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.
The Drawdowns chart displays portfolio losses from any high point along the way. It shows the maximum percentage drop from a peak to a trough over a specified period, indicating the risk of significant losses.
Although chart shows positive values, it represents the percentage drop from the peak, so a value of 10% means the portfolio has dropped 10% from its highest point.
The income statement provides a summary of a company's revenues, expenses, and profits over a specific period. It shows how much money the company earned (revenues) and how much it spent (expenses), leading to the net income or profit. This statement is crucial for understanding a company's financial performance and profitability.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Liabilities And Equity (USD) | 38.14B | 26.19B | 32.33B | 23.34B | 19.77B |
| Temporary Equity Attributable To Parent (USD) | - | - | - | - | - |
| Temporary Equity (USD) | - | - | - | - | - |
| Equity Attributable To Parent (USD) | 9.14B | 7.97B | 6.70B | 6.96B | 7.29B |
| Equity Attributable To Noncontrolling Interest (USD) | 11.00M | - | - | - | - |
| Equity (USD) | 9.15B | 7.97B | 6.70B | 6.96B | 7.29B |
| Noncurrent Liabilities (USD) | 215.00M | 111.00M | 91.00M | 128.00M | 128.75M |
| Current Liabilities (USD) | 28.77B | 18.10B | 25.55B | 16.25B | 12.35B |
| Liabilities (USD) | 28.99B | 18.22B | 25.64B | 16.38B | 12.48B |
| Other Non-current Assets (USD) | 1.50B | 890.00M | 370.00M | 232.00M | 261.51M |
| Non-current Prepaid Expenses (USD) | 11.00M | 17.00M | 4.00M | 17.00M | 43.60M |
| Intangible Assets (USD) | 168.00M | 38.00M | 48.00M | 25.00M | 34.11M |
| Fixed Assets (USD) | 154.00M | 139.00M | 120.00M | 146.00M | 146.42M |
| Noncurrent Assets (USD) | 1.83B | 1.08B | 542.00M | 420.00M | 485.64M |
| Other Current Assets (USD) | 36.18B | 25.03B | 31.73B | 22.83B | 19.19B |
| Prepaid Expenses (USD) | 127.00M | 75.00M | 63.00M | 86.00M | 92.00M |
| Current Assets (USD) | 36.31B | 25.10B | 31.79B | 22.92B | 19.28B |
| Assets (USD) | 38.14B | 26.19B | 32.33B | 23.34B | 19.77B |
Robinhood is pivoting toward prediction markets as a more stable revenue source than its volatile cryptocurrency business. The company established Rothera, a derivatives exchange with Susquehanna International Group, expected to launch mid-2026. While prediction markets offer consistent growth potential due to year-round betting opportunities, significant regulatory risks could threaten the business if lawmakers introduce restrictions.
SpaceX's confidential IPO filing at a $1.75 trillion valuation highlights the significant missed profits from Sam Bankman-Fried's FTX/Alameda Research investments. FTX's $700 million investment through K5 Global in SpaceX and other companies could be worth billions today, while liquidated positions like Anthropic ($28.8B potential value) and Robinhood ($4.67B potential value) represent massive unrealized gains. Forbes estimates former FTX positions would be worth $52.5 billion today versus what they were sold for during bankruptcy.
JPMorgan Chase CEO Jamie Dimon revealed the bank is considering offering prediction market services to customers, though it would exclude sports and politics due to strict insider trading rules. The prediction market sector faces increased regulatory scrutiny from the CFTC and legal challenges, with platforms like Kalshi facing lawsuits and criticism over insufficient safeguards.
SpaceX is planning to go public in June 2026 with a potential IPO valuation of $1.75 trillion, aiming to raise $40-80 billion. The company plans to allocate up to 30% of IPO shares to retail investors, a larger-than-normal allocation. However, the analyst cautions against buying at IPO due to an extremely high price-to-sales ratio of nearly 100x, suggesting investors wait for better entry points after the IPO hype settles.
Elon Musk denied reports that SpaceX is excluding Robinhood Markets and SoFi Technologies from its IPO, calling the claims 'false.' The article highlights that while the IPO access debate continues, both platforms are already significantly influencing Tesla's trading through substantial retail flow, with combined estimates suggesting they control 35-40% of retail Tesla volume.
SpaceX is preparing for an IPO targeting a $1.75 trillion valuation and aiming to raise up to $75 billion, with plans to allocate up to 30% of shares to retail investors. E*Trade is reportedly leading the retail distribution effort, competing with Robinhood and SoFi. Analyst Gary Black warned investors to be skeptical of overly positive analyst coverage and cautioned that a potential Tesla-SpaceX merger could reduce Tesla's stock by 20-25% due to conglomerate discount concerns.
Robinhood stock has plummeted 42% in the first three months of 2026 and is down 50% over the past 12 months, making it one of the worst S&P 500 performers. Despite concerns about high valuation, rising competition in prediction markets, and potential economic slowdown, the stock now trades at a more attractive 32x trailing earnings. Analysts maintain a bullish outlook with a consensus price target of $117.48, suggesting 78% upside potential for long-term investors.
Robinhood Markets' board approved a $1.5 billion share repurchase program, replacing the previous authorization and adding over $1.1 billion in additional capacity. The program is expected to execute over roughly three years starting in Q1 2026. The company also appointed Shiv Verma as CFO effective February 6, 2026, and disclosed investments in Stripe and ElevenLabs through its Ventures Fund. February operating data showed crypto trading volumes of $25 billion (up 74% YoY) and total platform assets of $314 billion.
U.S. stock futures rose on Wednesday with the S&P 500, Dow, and Nasdaq 100 all gaining over 1% in premarket trading. Despite Iran's dismissive comments on ceasefire negotiations, markets remained positive. Key movers included Robinhood (up 3.81% on $1.5B buyback approval), Arm Holdings (surged 10.23% on $15B chip sales target), and Circle Internet Group (gained 3.09% after Tuesday's 20% drop). Treasury yields held steady at 4.34% for 10-year bonds, while crude oil fell 5.87% and Bitcoin rose 0.50%.
Robinhood is launching a platinum credit card with a $695 annual fee and over $3,000 in potential perks, mimicking American Express' successful Platinum Card strategy. While the move represents Robinhood's expansion into banking products, the author argues it's unlikely to significantly disrupt AmEx's market position due to differences in target customer demographics and AmEx's strong brand. However, Robinhood's strategy could prove effective long-term as its customer base accumulates wealth.