Is Robinhood Markets, Inc. overvalued?

In our latest published analysis dated 2026-05-20, HOOD looks meaningfully overvalued. The price recorded at analysis is USD 75.4 versus a composite fair-value midpoint of USD 27.4 (range USD 12.1–USD 41.6), implying roughly 63.7% downside to the midpoint at that date.

What is HOOD's fair value?

Our latest published report, analyzed 2026-05-20, gives HOOD a composite fair-value range of USD 12.1–USD 41.6, with a midpoint of USD 27.4. The range is triangulated across multiple valuation models and weighted by reliability for Robinhood Markets, Inc.'s archetype; it is a dated research output, not a live price.

Should I buy HOOD now?

Our latest published rating for HOOD, analyzed 2026-05-20, is Sell with a confidence score of 82/100. Robinhood Markets, Inc. looks meaningfully overvalued at the analysis-date price of USD 75.4 versus a fair-value midpoint of USD 27.4. This is research for educational purposes, not personalized investment advice.

What are the biggest risks for HOOD?

The top risks our latest published report dated 2026-05-20 flags for Robinhood Markets, Inc. are: ZIRP Returns; PFOF Ban; Retail Exodus.

What is HOOD's rating?

Our latest published rating for HOOD, analyzed 2026-05-20, is Sell, with a confidence score of 82/100 and a moat score of 6.5/10. It reflects the composite fair-value range (USD 12.1–USD 41.6) versus the price recorded at analysis (USD 75.4).

What archetype is HOOD?

In the latest published report analyzed 2026-05-20, Robinhood Markets, Inc. is classified as a financial stock. Archetype determines how every downstream parameter — discount rate, terminal growth, deceleration curve, terminal multiple, scenario probability weights, scorecard weights, and which valuation models are prioritized — is calibrated for HOOD.

What does HOOD's income statement show?

Our financial-history view of Robinhood Markets, Inc. (HOOD) covers revenue, gross profit, operating income, and net income across the past five fiscal years, with year-over-year growth and margin context for each line.

Is HOOD's revenue growing?

The revenue trajectory is reported in the financial-history section with year-over-year growth rates. Direction and acceleration are summarised inline; the full table sits within the parent financials tab.

How do you read HOOD's operating income?

We track operating income alongside operating margin so the reader can separate top-line growth from operating leverage. The numbers analysis subsection flags one-offs, restructuring, and stock-based-compensation effects when material.

What is HOOD's net income trend?

Net income is shown together with EPS so dilution and buybacks are visible alongside profit. Where reported net income diverges materially from operating cash flow, the discrepancy is called out in the numbers-analysis subsection.

HOOD income statement: revenue, operating income, net income

Latest published researchAnalyzed 2026-05-20; report age: stale; sources: unverified. Age and source freshness are disclosed but do not remove the latest published report from discovery or indexing. Prices and valuation figures are the analysis-date snapshot, not a live quote.

Direct answer

Robinhood has matured from a disruptive trading app into a profitable financial platform. However, the massive swing to $1.88B in net income is driven by cyclical operating leverage, higher interest rates, and returning crypto volumes. Fair value range: low $12.1, high $41.6, with mid-point at $27.4.

INCOME STATEMENT FAQ

HOOD income statement questions

Our financial-history view of Robinhood Markets, Inc. (HOOD) covers revenue, gross profit, operating income, and net income across the past five fiscal years, with year-over-year growth and margin context for each line.

FAQ

HOOD — frequently asked questions

In our latest published analysis dated 2026-05-20, HOOD looks meaningfully overvalued. The price recorded at analysis is USD 75.4 versus a composite fair-value midpoint of USD 27.4 (range USD 12.1–USD 41.6), implying roughly 63.7% downside to the midpoint at that date.

Metric	Current	Trigger threshold
Operating margins fall below 40% after rate cuts	Monitor	Deterioration versus the report thesis
Gold subscription growth decelerates to single digits	Monitor	Deterioration versus the report thesis
Net asset inflows decline or turn negative	Monitor

Line item	2022-12-31	2023-12-31	2024-12-31	2025-12-31	Trend
Revenue	$1.36B	$1.87B+37.5%	$2.95B+57.8%	$4.47B+51.5%	+48.8%
Gross profit	$770.0M	$1.72B	$2.34B	$3.73B	+69.2%
Operating income	$-966.0M	$-536.0M	$1.05B	$2.09B	—
Net income	$-1.03B	$-541.0M	$1.41B	$1.88B+33.3%	—
EPS (diluted)	$-1.17	$-0.61	$1.56	$2.05	—
EBITDA	$-905.0M	$-465.0M	$1.13B	$2.18B	—
R&D	$878.0M	$805.0M	$818.0M	$897.0M	+0.7%
SG&A	$725.0M	$1.29B	$363.0M	$576.0M	-7.4%

HOOD income statement questions

HOOD — frequently asked questions

HOOD Robinhood Markets, Inc. fair value $12–$42

§1 Executive summary

Names readers of HOOD also follow

§2 Bear case

ZIRP Returns

PFOF Ban

Retail Exodus

§3 Financial history

Income statement — last six periods

Quality scores

Numbers analysis

Read the full analysis — 11 more sections.