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Robinhood Markets HOOD

Robinhood Markets scores excellent on business quality (7.6 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$109.02Oct 9, 2026
Business qualityExcellent
Next earningsOct 27, 2026, after the close
Insiders, 90 daysQuiet

Why it matters

  1. What Robinhood Markets does

    Robinhood operates a retail brokerage platform making money primarily through transaction fees, net interest, and crypto trading. Users pay indirectly via order flow routing and margin interest while accessing equities and options.

  2. What it does best

    Robinhood dominates digital retail engagement with a gross margin of 95.2%, putting it in the top decile of its sector. This elite margin beats traditional peers like Morgan Stanley at 56.7%, driven by a software-first cost structure that scales without adding human brokers.

  3. The main risk

    Regulatory scrutiny and extreme leverage risks threaten core balances, exemplified by the introduction of 10x leverage on Bitcoin and Ether following a market period that saw massive liquidations.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityStrong

Operating margins stand at 46.0% with a net margin of 42.0%, proving that the platform scales efficiently as trading volume expands.

MoatFair

Network effects lock in retail traders via a gamified app interface, though a mediocre moat score reflects low switching costs compared to traditional wealth managers.

GrowthFast

Revenue growth surges at 51.6%, ranking in the top decile of its sector and accelerating significantly past historical multi-year figures.

Financial healthStrong

Debt-to-equity sits at 1.3 alongside $4.3B in cash, while free cash flow registers at $178M, reflecting improving balance-sheet health.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

No open market buys or unplanned sales by executives or directors.

Our sealed record on HOOD

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is HOOD a good business?

Robinhood Markets scores excellent on the Cluenex quality check (7.6 of 10), measured against its own industry. Profitability is strong, moat fair, growth fast and financial health strong.

Are insiders buying HOOD?

In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.

When does HOOD report earnings?

Oct 27, 2026, after the close.

For members

See HOOD today

  • Today's verdict on HOOD, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Robinhood Markets (HOOD)”, https://cluenex.com/stocks/hood/, data as of Oct 10, 2026.