Robinhood Markets, Inc. (HOOD)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Robinhood as a financial intermediary, not an industrial. At the $92.84 close on 2026-10-26, FairStock shows a P/E of 41.08, P/B of 8.81, ROE of 23.62%, ROCE of 4.53%, and debt/equity of 2.40. The earnings record is real: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.3B, net income $561.0M, and diluted EPS $0.62, versus $989.0M, $386.0M, and $0.42 in fiscal Q2 2025. FY2025 revenue was $4.5B and net income $1.9B, while FY2023 had a $541.0M net loss, so the supplied Lynch category of TURNAROUND—returned to profit after a loss within three years—fits the data. A Piotroski score of 7/9 and PEG of 0.93 suggest improving fundamentals and growth not wildly out of line with earnings, but the 54/100 FairStock Score and P/B of 8.81 leave little margin of safety. Beta of 2.34 signals a business tied to trading activity and market sentiment; revenue can be cyclical. ROE is strong, but ROCE of 4.53% and leverage of 2.40 need watching for a broker. I cannot assess CET1, NIM, or combined ratio because they are not in the data. Quality is improving, but the price already reflects much of the turnaround.

In plain English: Robinhood runs an app that lets people invest and trade stocks, exchange-traded funds and related products. The business is profitable and has grown quickly, with strong recent profits and high returns on shareholders' money, but the shares trade at a rich price compared with both its profits and its accounting value. On the supplied numbers, the price looks expensive to fair rather than cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K/A (period ended 2025-12-31) · FY2024 10-K/A (period ended 2024-12-31) · FY2023 10-K/A (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer