Robinhood has spent the last year adding businesses at a pace few brokerages can match. Prediction markets, banking, an AI trading assistant, and a new credit card all launched within months of each other.
Now Wall Street is starting to price in what that expansion means for the bottom line.
Analysts are bullish on Robinhood stock
Robinhood (HOOD) built its name on commission-free trading, but that is a small part of the story now.
Chief Brokerage Officer Steve Quirk told attendees at the Piper Sandler Global Exchange and Fintech Conference on June 4 that the company logged its second-highest month ever for equity and options trading in April, and its best month ever for futures and prediction markets.
He added that June 1 brought Robinhood’s biggest single day of equity trading and its biggest overnight trading session on record.
CEO Vlad Tenev struck a similar tone at Robinhood’s annual shareholder meeting on June 2, telling investors the company now has 11 business lines generating more than $100 million a year, up from a business once built almost entirely on trading commissions.
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He pointed to prediction markets, which passed $400 million in annualized revenue after launching just 18 months earlier, and to Agentic Trading.
This new tool lets customers hand trading decisions over to an AI assistant within a separate, walled-off account.
“We continue to grow,” Tenev stated. “We continue to win market share across several verticals. The core business continues to be strong.”
That backdrop is why Goldman Sachs and BTIG have grown more bullish in recent days.
- Goldman analyst James Yaro raised his price target to $121 from $108 while keeping a “buy” rating, citing preliminary June data showing record volumes in event contracts, options, equities, and crypto.
- The move came days after BTIG initiated coverage with a “buy” rating and a $125 target, with analyst Andrew Harte calling Robinhood “born to disrupt, built to compound” and predicting the company could grow its assets by more than 20% per year over the next decade.
- Robinhood’s June volume, roughly $343 billion in equities, 274 million options contracts, and $14 billion in crypto activity, was fueled in part by the 2026 FIFA World Cup, which drove prediction-market bets through Rothera, the company’s own exchange and clearinghouse.
Source: Stocktwits
Is Robinhood stock fundamentally strong?
Robinhood’s balance sheet, as of the quarter ending March 2026, shows total assets of $45.5 billion, up from $27.5 billion a year earlier.
Shareholders’ equity climbed to $9.7 billion from $8 billion, and cash on hand grew to just over $5 billion.
Retained earnings remain negative at about $1.8 billion. Still, that gap has narrowed sharply from -$3.7 billion a year ago, indicating the company is steadily working off past losses.
Total revenue hit $1.07 billion for the March quarter, up more than 15% from a year earlier, with a gross margin near 94%.
Related: Robinhood stock falls as company unveils $2 billion debt plan
Operating profit came in at $411 million, indicating a margin of over 38%. Net income landed at $346 million, translating to diluted earnings of $0.38 per share.
Cash flow is where the turnaround shows up most clearly.
Operating cash flow swung to a positive $2 billion in the March quarter after two straight negative quarters, and free cash flow followed suit, reaching about $2 billion.
Capital spending remains minimal, under $10 million, which is normal for a software-driven brokerage with little physical infrastructure to maintain.
Taken together, the picture points to a fundamentally strong company right now.
Margins are high, revenue is growing at a double-digit pace, and cash generation has turned firmly positive after a rocky stretch tied to swings in trading-related working capital, a common pattern for brokerages during volatile markets.
Robinhood still depends heavily on trading volume, which can cool off fast once markets calm down.
But for now, the fundamentals and the Wall Street mood are pointing in the same direction.
Is Robinhood stock undervalued?
Analysts tracking Robinhood stock forecast revenue to increase from $4.47 billion in 2025 to $8 billion in 2029. In this period, adjusted earnings per share is estimated to expand to $4.67 from $2.34.
If HOOD stock is priced at 30x forward earnings, which is reasonable given its growth rates, it could return 25% within the next three years. If the forward earnings multiple expands to 40x, HOOD stock could surge 67%.
Out of the 19 analysts covering Robinhood stock, 16 recommend “buy” and three recommend “hold.”
The average HOOD stock price target is $105, which is 7% lower than the current trading price.
Related: Robinhood CEO launches bold agentic AI trading feature
