Retail brokerage and financial platform offering equities, options, crypto, event contracts, margin lending and cash management to 28.4m funded customers.
Robinhood is compounding faster than almost any broker, but three of its fastest-growing lines (event contracts, margin interest and equities) depend on market activity or unsettled regulation, while the lines that cushioned FY25A (crypto, securities lending and corporate cash interest) are shrinking. The price needs 36.5% annual net income growth for FY29E to FY36E, against 13% in our base case.
Net revenue of $1,412m was 3.7% above our estimate, led by $236m of event-contract revenue, but FY26 spending guidance rose by $125m at the midpoint. Sell and $92 target unchanged. Sample update with illustrative figures and sources.
Robinhood has become a financial platform with FY25A revenue of $4.5bn, but at 43.8x our FY27E EPS the shares discount more growth than our base case. We initiate at Sell with a $92 target.
Answers come from Penmark’s HOOD research and the company’s filings, with a source for each claim. Change an assumption and the assistant reruns the report’s valuation.
