Robinhood Markets (NASDAQ:HOOD) Issues Earnings Results, Beats Estimates By $0.18 EPS

Robinhood Markets (NASDAQ:HOOD) announced its quarterly earnings data on Wednesday. The company reported $0.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.44 by $0.18, Zacks reports. Robinhood Markets had a net margin of 41.12% and a return on equity of 21.39%. The business had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.29 billion. During the same period last year, the firm posted $0.42 earnings per share. The firm’s quarterly revenue was up 32.5% compared to the same quarter last year.

Here are the key takeaways from Robinhood Markets’ conference call:

• Record Q2 results: Revenue rose 32% year over year to $1.3 billion, while adjusted EBITDA increased 35% to $741 million, representing a 57% margin. Earnings per share rose 48% to $0.62.
• Strong customer and asset growth: Net deposits reached a record $22 billion, nearly 1 million funded customers were added, and Gold subscribers rose to 4.8 million. Total platform assets also reached a record level.
• Expansion of the product ecosystem: The Gold Card surpassed 1 million cardholders, banking deposits exceeded $3 billion, and prediction markets, agentic trading, international offerings, and Robinhood Chain continued to gain traction.
• Improved expense discipline: Robinhood lowered its 2026 adjusted operating expense and stock-based compensation outlook to $2.675 billion-$2.775 billion, saying efficiency gains are helping self-fund investments in Rothera, WonderFi, and other new businesses.
• Growth remains dependent on execution and market conditions: July equity, options, and event-contract volumes were tracking near Q2 levels, but crypto activity was somewhat slower and monthly net deposits were expected to be around $4 billion. Management also raised $2.2 billion of capital to support future expansion.

Robinhood Markets Stock Performance

Shares of Robinhood Markets stock traded down $2.22 on Thursday, hitting $87.62. The stock had a trading volume of 18,766,483 shares, compared to its average volume of 29,212,859. The stock has a 50 day moving average of $97.55 and a 200 day moving average of $87.84. The firm has a market capitalization of $78.91 billion, a P/E ratio of 42.31, a PEG ratio of 1.87 and a beta of 2.33. Robinhood Markets has a twelve month low of $63.51 and a twelve month high of $153.86.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. Loop Capital set a $105.00 price target on Robinhood Markets in a research note on Thursday. Cantor Fitzgerald reiterated an “overweight” rating and issued a $110.00 target price on shares of Robinhood Markets in a research report on Tuesday, June 9th. China Renaissance started coverage on Robinhood Markets in a research note on Tuesday, July 7th. They set a “buy” rating for the company. Wall Street Zen raised Robinhood Markets from a “strong sell” rating to a “sell” rating in a research note on Sunday, July 12th. Finally, Morgan Stanley increased their target price on shares of Robinhood Markets from $95.00 to $124.00 and gave the stock an “equal weight” rating in a report on Friday, July 10th. Twenty-one investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $121.13.

Insider Buying and Selling at Robinhood Markets

In other news, CEO Vladimir Tenev sold 375,000 shares of the firm’s stock in a transaction on Monday, July 6th. The shares were sold at an average price of $116.17, for a total transaction of $43,563,750.00. Following the completion of the transaction, the chief executive officer owned 375,000 shares of the company’s stock, valued at approximately $43,563,750. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Daniel Martin Gallagher, Jr. sold 10,000 shares of Robinhood Markets stock in a transaction on Monday, July 6th. The stock was sold at an average price of $116.14, for a total transaction of $1,161,400.00. Following the transaction, the insider owned 471,396 shares in the company, valued at approximately $54,747,931.44. This trade represents a 2.08% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders acquired 680,000 shares of company stock worth $55,306,560 and sold 631,263 shares worth $66,793,857. 13.48% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Swiss RE Ltd. acquired a new stake in shares of Robinhood Markets in the fourth quarter valued at about $27,000. Ankerstar Wealth LLC bought a new stake in Robinhood Markets in the fourth quarter valued at approximately $30,000. Wilkerson Advisory Group LLC bought a new stake in Robinhood Markets in the fourth quarter valued at approximately $36,000. Binnacle Investments Inc acquired a new stake in Robinhood Markets during the 2nd quarter valued at approximately $41,000. Finally, IFC & Insurance Marketing Inc. acquired a new stake in Robinhood Markets during the 4th quarter valued at approximately $49,000. 93.27% of the stock is owned by institutional investors.

Robinhood Markets News Roundup

Here are the key news stories impacting Robinhood Markets this week:

• Positive Sentiment: Robinhood reported record second-quarter revenue of $1.31 billion, up 32% year over year, while diluted EPS rose 48% to $0.62, exceeding the $0.44 analyst estimate. Net deposits reached a record $22 billion, and Robinhood Gold subscribers climbed to 4.8 million. Robinhood Reports Second Quarter 2026 Results
• Positive Sentiment: Prediction markets emerged as a major growth driver. Event-contract revenue reached $156 million, making the business Robinhood’s second-largest trading segment and surpassing crypto revenue. The expansion supports management’s strategy of building a broader financial ecosystem. Robinhood Beats Estimates as Prediction Markets Overtake Crypto
• Positive Sentiment: Citizens JMP reaffirmed a “market outperform” rating with a $155 price target, while BTIG maintained a “buy” rating and a $125 target. These targets imply substantial upside and signal continued confidence in Robinhood’s product expansion and operating leverage. Analyst Ratings
• Neutral Sentiment: CEO Vlad Tenev said a $1 trillion market capitalization is possible over time, but the claim remains aspirational and analysts are focused on near-term user growth, monetization and execution. Robinhood CEO Discusses Market-Cap Goal
• Negative Sentiment: Crypto revenue fell 38% to $100 million, highlighting the risk that prediction-market growth may not fully offset weakness in a historically important business. Higher expenses also weighed on the earnings reaction. HOOD Q2 Earnings Analysis
• Negative Sentiment: Barclays cut its price target to $105 from $122, citing a meaningful slowdown in new accounts during July. Needham also lowered its target to $120 from $123, indicating that analysts see execution and growth risks despite the quarterly beat. Robinhood Analysts Cut Forecasts

Robinhood Markets Company Profile

Robinhood Markets, Inc (NASDAQ: HOOD) is a U.S.-based financial services company best known for its mobile-first brokerage platform that aims to “democratize finance for all.” Founded in 2013 by Vladimir Tenev and Baiju Bhatt and headquartered in Menlo Park, California, the company built early traction by offering commission-free trading and a simplified user experience that attracted a large base of retail investors.

Robinhood’s core products and services include a mobile app and web platform for trading U.S.