Key Stats for Robinhood Stock
- Price change for Robinhood stock in last 6 months: 15%
- $HOOD Stock Price as of Oct. 27: $95
- 52-Week High: $150
- $HOOD Stock Price Target: $135
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What Happened?
Robinhood (HOOD) shares fell in premarket trading after its Q3 report.
- Earnings per share were 51 cents, below the 55 cents analysts expected.
- Revenue was $1.42 billion, in line with estimates and up 12% from last year.
Net income fell to $468 million from $556 million a year ago, and transaction revenue was $867 million, up 19% but below the $879 million estimate.
Event contracts revenue jumped more than 500%, options revenue rose 31% to $399 million, and equities revenue rose 41% to $121 million.
Crypto was the weak spot as sales in the segment fell 55% to $120 million.
Management shared a few other numbers on the call.
Adjusted EBITDA hit a record $808 million, up 9%. Adjusted EPS was $0.60 because the 51 cents included a 7-cent hit from investment mark-to-market impact.
Net deposits were about $16 billion in the quarter and Robinhood Gold reached 5 million subscribers.
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What the Market Is Telling Us About Robinhood Stock
The selloff shows investors wanted more than a revenue match.
The EPS miss and softer transaction revenue were the focus. Revenue growth depends heavily on market activity, and that makes Robinhood stock sensitive to trading swings.
Analysts also asked about take rates, which were lighter than expected. CFO Shiv Verma said crypto was hurt by Robinhood Earn, a stablecoin product that earns less.
He said spreads in October were a bit tighter, too.
Revenue per user came up on the call too. Management said it does not set goals on that metric, with a focus on market share and customer deposits instead.
October net deposits topped $13 billion, including a $6 billion gift from the Dell family to Trump accounts. Year-to-date deposits are above $68 billion.
Event contract trading volumes are up about 10% to start the quarter. Trading in stocks, options, and crypto is about 5% lighter than the record Q3.
Costs look controlled. Management lowered the top end of its 2026 expense outlook by $25 million.
For Robinhood stock, the question is whether new products can offset weaker trading income. Investors will likely watch banking, prediction markets, and Robinhood Chain.
Robinhood stock now has to prove that growth can hold.
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So what is Robinhood stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
