Robinhood Is Fixing Its Biggest Weakness. HOOD Stock Could Keep Rising From Here.
Robinhood (HOOD) just switched on crypto trading for its UK customers. Traders there can now buy and sell more than 50 coins, including Bitcoin (BTCUSD), Ethereum (ETHUSD), and XRP, through the Robinhood app, with no trading fees. This launch seems to be Robinhood’s attempt at fixing its only weak segment during the last quarter. The…
Robinhood (HOOD) just switched on crypto trading for its UK customers. Traders there can now buy and sell more than 50 coins, including Bitcoin (BTCUSD), Ethereum (ETHUSD), and XRP, through the Robinhood app, with no trading fees. This launch seems to be Robinhood’s attempt at fixing its only weak segment during the last quarter. The company, best known for its crypto business, reported $100 million in cryptocurrency revenue, down 38% from a year earlier. What’s interesting is what that decline did to Robinhood overall, which was almost nothing.
Crypto Slumped, and Robinhood Set Records Anyway
Even with crypto revenue falling by more than a third, Robinhood had one of its best quarters ever. Total revenue rose 32% to a record $1.3 billion. Its event contracts revenue increased more than tenfold to $156 million, passing the firm’s crypto revenue for the first time. Its Gold subscription hit a record 4.8 million members. The new Gold Card crossed 1 million holders. Trump Accounts, a new product, also drew 7 million sign-ups.
More News from Barchart
While the UK launch may seem like just an attempt to revive Robinhood’s crypto business, it is also part of a much wider plan. Management wants to build what it calls a global financial ecosystem, offering stocks, options, futures, crypto, banking, and more in a single app around the world. Robinhood already serves over 1 million customers outside the U.S. after expanding into Canada and Singapore.
So the company Wall Street still calls a crypto play just took a hard crypto hit and grew anyway. That, more than the UK launch itself, is worth paying attention to.
About HOOD Stock
Robinhood Markets is a financial services platform that allows users to invest in stocks, ETFs, options, futures, and cryptocurrencies. The company offers features such as fractional trading, recurring investments, access to investing on margin, fully-paid securities lending, retirement accounts, cash management, credit cards, and 24-hour trading. The company also provides various learning and education solutions. Founded in 2013, the company is headquartered in Menlo Park, California.
Over the past year, HOOD stock has declined 17%, underperforming Interactive Brokers Group (IBKR), which gained around 36% during the same period. Similarly, HOOD also underperformed the S&P 500’s ($SPX) gain of approximately 20% over the last 12 months. The underperformance was largely driven by concerns over Robinhood’s reliance on cryptocurrency-related activity, which weakened significantly during 2026. In the first quarter, crypto trading revenue fell 47% year-over-year (YoY), contributing to a revenue and earnings miss that triggered a sharp selloff in the stock. The stock has started to climb back in recent weeks, though, rising from around $86 on July 31 to over $94 as of Aug. 11.
www.barchart.com
Robinhood’s valuation reflects just how much the market now expects from it. The forward price-to-earnings (P/E) of 45.70x seems steep for a brokerage, though there’s no multi-year average to compare it against. The forward price-to-sales (P/S) ratio of 16.50x sits roughly 51% above the company’s 5-year average of 10.95x. And its EPS outlook partially justifies the premium. Analysts expect a growth of 30% in 2027, 14% in 2028, and 18% in 2029. This indicates that the company is now expected to have steady and durable growth through the end of the decade as it adds new revenue lines beyond crypto.
The balance sheet is healthy, with Robinhood being net cash positive by roughly $1 billion. Overall, HOOD stock is trading at a considerable premium to its historical norms. But as long as the company keeps growing with new engines like prediction markets and subscriptions, the valuation seems earned rather than stretched.
Robinhood Lowers 2026 Expense Outlook, Targets Social Platform Launch
Robinhood Markets reported its second-quarter fiscal 2026 earnings on July 29. The company reported stronger-than-expected results with revenue of $1.3 billion, up 32% from a year earlier. The earnings per share came in at $0.62, up 48% YoY and comfortably beating the Wall Street consensus of $0.42. The company’s adjusted EBITDA stood at $741 million, up 35% YoY. CFO Shiv Verma said HOOD repurchased 7.5 million shares for $664 million year-to-date (YTD). Moreover, the financial services company raised capital of $2.2 billion in June at 0% coupon and no net dilution until the share price exceeds $300.
Looking forward, CFO Verma said the company is lowering and tightening its 2026 outlook for adjusted OpEx and SBC to a range of $2.675 billion to $2.775 billion. Management said July trading activity was tracking close to the record levels seen in the second quarter. Average daily volumes for equities, options, and event contracts were running in a similar range, while July net deposits were tracking toward about $4 billion, excluding Trump Accounts deposits. Moreover, the business is still self-funding new initiatives while improving efficiency in the core platform. Management pointed to several product and business lines that could support future growth. These include agentic trading, which has already attracted more than 100,000 customers. Another is Robinhood Social, expected to roll out to the public by the end of Q3 2026.
What Do Analysts Expect for HOOD Stock?
Last week, Bank of America Securities raised the firm’s price target on HOOD stock to $140 from $132 and kept a “Buy” rating. The upward price target revision was followed by the company’s second-quarter results. The firm is raising its 2026, 2027, and 2028 EPS estimates to $2.16, $2.78, and $3.50, as it believes in a strong organic growth trajectory and robust levels of retail activity. In addition to BofA Securities, BTIG also reaffirmed a “Buy” rating with a price target of $125.
Based on 25 Wall Street analysts with coverage, HOOD stock holds a consensus “Moderate Buy” rating. The mean price target of $121.04 reflects an additional 28% upside from current levels. The analysts have a high price target of $160, implying a 70% upside from the current share price.
www.barchart.com
On the date of publication, Jabran Kundi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
