Robinhood (HOOD): analysis in plain words
Is Robinhood cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
Robinhood (HOOD) is listed on the Nasdaq and we classify it in financial services and payments. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against Robinhood according to those figures, and the questions people ask most about the stock. No buy or sell tips.
Robinhood (HOOD) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $87.41 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 40.3x | Price over earnings per share |
| Revenue growth | +11.8% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 39.0% | Profit for every 100 of sales |
| Net debt / EBITDA | N/A | Years of operating profit to repay debt |
| Dividend yield | 0.00% | Annual dividend over price |
| Market cap | $78.7 billion | What the stock market values it at |
The Robinhood figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any HOOD figure that is not available shows as N/A: we do not estimate it.
How Robinhood makes money
Robinhood Markets runs an investing app for individuals. It earns transaction revenue by getting paid by market makers to route options, stock and crypto orders, net interest on customer cash and securities lending, and fees from its Robinhood Gold subscription. Most business is in the U.S., with expansion underway in Europe.
Over the last 12 months, Robinhood brought in revenue of $5.1 billion. For every 100 it sells, Robinhood keeps 91.0 after the direct cost of what it sells (gross margin) and 48.1 after all operating costs (operating margin). With 2,900 full-time employees, that is about $2 million of revenue per employee.
Robinhood against its sector
To know whether a Robinhood figure is high or low you have to put it next to similar companies. This table compares Robinhood with the median of the 21 financial services and payments companies Fintols covers, with data as of November 4, 2026.
| Figure | Robinhood | financial services and payments median |
|---|---|---|
| P/E | 40.3x | 27.9x (21) |
| Revenue growth | +11.8% | +12.4% (24) |
| Net margin | 39.0% | 25.8% (24) |
| Dividend yield | 0.00% | 0.81% (24) |
In short, against the typical financial services and payments company, Robinhood trades on a higher P/E, earns a wider margin and pays a lower dividend yield. By size, Robinhood ranks number 13 of 22 financial services and payments companies quoted in USD on Fintols.
The bull case for Robinhood
What works in favour of Robinhood, according to its figures as of November 4, 2026:
- Robinhood keeps 39.0 of every 100 it sells as net profit, against 25.8 for the median financial services and payments company: a margin like that leaves money to invest, buy back shares or pay dividends.
- Analysts expect Robinhood earnings to rise: its P/E on the next 12 months of estimated earnings is 25.6x, below the current 40.3x.
- Robinhood earns 21.5% a year on its shareholders' money (return on equity).
The main risk for Robinhood
Robinhood stock sits 40% below its 52-week high ($144.77): the market has cut its expectations, and it is worth understanding why first.
On top of that: the price already assumes a lot: Robinhood trades at 40.3x its last 12 months of earnings, against 27.9x for the financial services and payments median. If growth disappoints, the multiple can shrink and the share price with it.
And, like the rest of financial services and payments, Robinhood is exposed to a drop in the payment, investment or trading volumes it earns fees on, plus regulation.
Frequently asked questions about Robinhood
Is it a good time to buy Robinhood stock?
Fintols does not tell you whether to buy or sell Robinhood, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, Robinhood stock trades at $87.41, 40% below its 52-week high ($144.77) and 38% above its low ($63.52). Its P/E is 40.3x against a financial services and payments median of 27.9x, and 25.6x on the earnings analysts expect over the next 12 months. With Robinhood, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does Robinhood pay a dividend?
No. As of November 4, 2026, Robinhood does not pay a dividend: what it earns stays in the company to grow, invest or, where it does so, buy back shares. Anyone buying Robinhood today is counting on the share price rising, not on income.
Is Robinhood stock expensive?
It depends on what you compare it with. On P/E, Robinhood trades at 40.3x its last 12 months of earnings: more expensive than the financial services and payments median (27.9x). A high P/E alone does not make Robinhood expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are Robinhood's competitors?
On Fintols we compare Robinhood with Blackstone, PayPal and Fiserv, which are also in financial services and payments. As of November 4, 2026, Blackstone is worth $150.1 billion and trades on a P/E of 28.0; PayPal is worth $50.0 billion and trades on a P/E of 11.5. Each has a side-by-side comparison with Robinhood below.
Robinhood competitors
- Blackstone (BX) analysis · Robinhood vs Blackstone comparison
- PayPal (PYPL) analysis · Robinhood vs PayPal comparison
- Fiserv (FI) analysis · Robinhood vs Fiserv comparison
To understand Robinhood better
- Economic Moats Explained: From Warren Buffett to AI
- P/E Ratio and EPS Explained: How to Read Them Without Traps
More companies like Robinhood: financial services and payments stocks and S&P 500 companies. Open the full HOOD analysis with its valuation and scenarios. Educational content about Robinhood, not investment advice.