Robinhood Markets Inc
NASDAQ:HOOD
Robinhood Markets Inc
Robinhood Markets Inc., the financial services powerhouse founded in 2013 by Vladimir Tenev and Baiju Bhatt, set out to demystify investing for the general populace. The company's inception was rooted in a bold mission: to democratize finance for all. By eliminating traditional barriers such as high commission fees and minimum balance requirements, Robinhood tapped into the digital-savvy younger demographic eager to enter the stock market. Central to Robinhood's allure is its sleek, user-friendly mobile app that empowers users to trade stocks, options, and cryptocurrencies with ease. Further enhancing its utility are features like fractional shares, which allow users to invest in expensive stocks at a more accessible price point, thereby broadening participation to novice investors with limited capital.
The brilliance of Robinhood's business model lies in its ability to offer commission-free trading while maintaining profitability. The company primarily generates revenue through a practice known as "payment for order flow," earning a small fee by routing its users' trades to market makers. In addition, Robinhood makes money by lending out user deposits and offering a premium service, Robinhood Gold, which provides members with additional features such as margin trading and professional research. While these strategies have proven lucrative, they have also attracted scrutiny and regulatory challenges, illustrating the company's delicate balancing act between innovation and compliance in a highly regulated industry. Despite these challenges, Robinhood has cemented itself as a seminal force in modern finance, continually transforming the way individuals engage with the stock market.
Robinhood Markets Inc., the financial services powerhouse founded in 2013 by Vladimir Tenev and Baiju Bhatt, set out to demystify investing for the general populace. The company's inception was rooted in a bold mission: to democratize finance for all. By eliminating traditional barriers such as high commission fees and minimum balance requirements, Robinhood tapped into the digital-savvy younger demographic eager to enter the stock market. Central to Robinhood's allure is its sleek, user-friendly mobile app that empowers users to trade stocks, options, and cryptocurrencies with ease. Further enhancing its utility are features like fractional shares, which allow users to invest in expensive stocks at a more accessible price point, thereby broadening participation to novice investors with limited capital.
The brilliance of Robinhood's business model lies in its ability to offer commission-free trading while maintaining profitability. The company primarily generates revenue through a practice known as "payment for order flow," earning a small fee by routing its users' trades to market makers. In addition, Robinhood makes money by lending out user deposits and offering a premium service, Robinhood Gold, which provides members with additional features such as margin trading and professional research. While these strategies have proven lucrative, they have also attracted scrutiny and regulatory challenges, illustrating the company's delicate balancing act between innovation and compliance in a highly regulated industry. Despite these challenges, Robinhood has cemented itself as a seminal force in modern finance, continually transforming the way individuals engage with the stock market.
Record Growth: Robinhood delivered record results in 2025, with revenue up 52% to $4.5 billion and total platform assets growing nearly 70% year-over-year to $324 billion.
Profitability: Adjusted EBITDA rose 76% to $2.5 billion, with a record margin of 56%, and EPS reached $2.05.
Business Diversification: The company now has 11 business lines each generating over $100 million in annualized revenue, with further progress in new areas like Gold Card, prediction markets, and banking.
Product Innovation: Major new products launched or scaled include shorting, prediction markets, Robinhood Gold Card, and Robinhood Banking, with strong customer adoption across segments.
International Expansion: Robinhood accelerated its push outside the U.S., reaching 0.75 million international customers and launching key features in the U.K. and EU.
AI and Efficiency: Over 75% of customer support cases are now handled by AI, delivering estimated nine-figure cost savings in 2025.
2026 Guidance: The company expects continued revenue and net deposit growth, further product launches, and expense growth of 18%—below last year’s rate.
Momentum in 2026: Early Q1 data shows January equity trading volumes up over 50% year-over-year and net deposits off to a strong start.
