Insights into Robinhood Markets's Upcoming Earnings
Robinhood Markets (NASDAQ:HOOD) is preparing to release its quarterly earnings on Wednesday, 2025-07-30. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Robinhood Markets to report an earnings per share (EPS) of $0.34.
The announcement from Robinhood Markets is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Earnings History Snapshot
During the last quarter, the company reported an EPS beat by $0.04, leading to a 5.07% drop in the share price on the subsequent day.
Here's a look at Robinhood Markets's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.33 | 0.43 | 0.18 | 0.15 |
| EPS Actual | 0.37 | 0.54 | 0.17 | 0.21 |
| Price Change % | -5.0% | 14.000000000000002% | -17.0% | 4.0% |
Market Performance of Robinhood Markets's Stock
Shares of Robinhood Markets were trading at $106.77 as of July 28. Over the last 52-week period, shares are up 417.79%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Views on Robinhood Markets
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Robinhood Markets.
Robinhood Markets has received a total of 25 ratings from analysts, with the consensus rating as Buy. With an average one-year price target of $81.72, the consensus suggests a potential 23.46% downside.
Analyzing Ratings Among Peers
The analysis below examines the analyst ratings and average 1-year price targets of LPL Finl Hldgs and Interactive Brokers Group, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for LPL Finl Hldgs, with an average 1-year price target of $437.3, suggesting a potential 309.57% upside.
- Analysts currently favor an Outperform trajectory for Interactive Brokers Group, with an average 1-year price target of $112.29, suggesting a potential 5.17% upside.
Peer Analysis Summary
The peer analysis summary offers a detailed examination of key metrics for LPL Finl Hldgs and Interactive Brokers Group, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Robinhood Markets | Buy | 50.00% | $793M | 4.22% |
| LPL Finl Hldgs | Outperform | 29.56% | $966.40M | 10.52% |
| Interactive Brokers Group | Outperform | 6.88% | $2.04B | 4.80% |
Key Takeaway:
Robinhood Markets ranks highest in revenue growth among its peers. It is at the bottom in terms of gross profit. The company's return on equity is the lowest compared to its peers. Overall, Robinhood Markets shows strong revenue growth potential but needs improvement in gross profit and return on equity metrics.
All You Need to Know About Robinhood Markets
Robinhood Markets Inc is creating a modern financial services platform. It designs its own products and services and delivers them through a single, app-based cloud platform supported by proprietary technology. Its vertically integrated platform has enabled the introduction of new products and services such as cryptocurrency trading, dividend reinvestment, fraud detection, derivatives, fractional shares, recurring investments, and others.
Breaking Down Robinhood Markets's Financial Performance
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Positive Revenue Trend: Examining Robinhood Markets's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 50.0% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Robinhood Markets's net margin is impressive, surpassing industry averages. With a net margin of 36.25%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Robinhood Markets's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 4.22%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Robinhood Markets's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.25%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.14.
To track all earnings releases for Robinhood Markets visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
