Robinhood Markets, Inc. HOOD

119.40 (1.42) (1.18%) as of 25 Sep
Market cap
$109.1B
P/E
51.7×
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Robinhood Markets, Inc. (HOOD) Business Profile

Updated · Covers results through FY2025 · Sources · How this is made

What it does

Robinhood states that its mission is to democratize finance for all through technology-based financial services platforms. Its offerings span brokerage investing in stocks, ETFs, options, ADRs, futures, event contracts and margin; cryptocurrency trading and custody; a self-custody wallet; and subscription, card, banking and wealth-management services. The company also provides market information, news and education through its apps and desktop platform. Its platforms support both newer investors and customers using more advanced trading products and tools.

Source: Robinhood Markets, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov

How it makes money

The filing describes several fee-based and subscription sources of revenue alongside the segment information shown below. Robinhood Gold subscribers pay a flat recurring rate after a 30-day free trial. The company charges commissions on prediction-market contracts, futures contracts and certain EU cryptocurrency trades; it also charges a fee for eligible instant withdrawals. Customers may pay for smart exchange routing of certain U.S. crypto orders. The filing also identifies payment-for-order-flow and transaction-rebate arrangements with liquidity providers as business relationships that are a matter of practice and business understanding.

Source: Robinhood Markets, Inc. Form 10-K for fiscal 2025, Item 1 and Item 1A — sec.gov

Customers and geography

The company states that it serves customers across varied social and economic backgrounds, including people for whom Robinhood was their first brokerage account, while also focusing on active traders. In the United States, it offers cryptocurrency trading in every state, the U.S. Virgin Islands, Puerto Rico and the District of Columbia. It offers most brokerage services in the U.K. through RHUK and cryptocurrency trading in select EU jurisdictions through RHEU. Separately, its self-custody Robinhood Wallet is available in over 150 countries.

Source: Robinhood Markets, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov

Competition

The filing says Robinhood competes with large legacy financial institutions, large technology companies and smaller, newer financial-technology entrants. It does not name specific competitors. The company lists product innovation, operating efficiency, engineering talent, brand recognition, security and trust, cloud-based architecture, regulatory licenses and vertical integration as competitive factors. It states that it seeks to differentiate through its vertically integrated mobile and desktop platforms and its focus on accessibility, customer experience and trust.

Source: Robinhood Markets, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov

Key risks

The filing identifies the following among its most material risks:

  • It might not grow in line with historical rates.
  • Its ability to retain and engage existing customers and attract new customers may affect results.
  • Market volatility and meme trading can cause trading volumes to fluctuate.
  • Customers may be unable to place trades because of system disruptions, outages or trading restrictions.
  • Cybersecurity attacks, privacy or data-security breaches, or other security incidents could damage customer confidence and the brand.
  • PFOF and transaction-rebate practices face scrutiny and negative publicity could harm reputation.

Source: Robinhood Markets, Inc. Form 10-K for fiscal 2025, Item 1A — sec.gov

People and operations

Robinhood had 2,900 employees in FY2025. The company states that it values in-person work and creates office environments intended to foster collaboration and connection. Its core infrastructure and data platform are built on Amazon Web Services, while its self-clearing system clears and settles stock, ETF and option trades without a third-party clearing firm. The filing says business activity can be seasonal, influenced by retail interest in investing and crypto trading, market participation and trading volumes, the number of trading days, holidays, and proxy and investor communications activity.

Source: Robinhood Markets, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov

Sources

This page is for information only. It is not investment advice, a recommendation or an offer to buy or sell any security. Figures come from the sources listed above and may contain errors; verify against the company's filings.