Stock

Robinhood Markets

HOOD
63
Financial - Capital Markets · Financial Services
Price
$98.87
-5.12 (-4.92%)
Market Cap
$88.89B
Exchange
NASDAQ
Winston Score
63
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Oct 18, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Strong
25/30
Growth
Good
12/20
Cash Flow
Weak
0/10
Stability
Strong
7/10
Valuation
Good
6/10
Ownership
Good
10/15
Dividends
Not counted
n/a

60 of 95 counted points = Winston Score 63. Pillars marked n/a do not apply to this company and are left out of the total.

Share count rising — dilution

+6.4% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 863.9M (2021) → 918.8M (2025)

§Winston Score History

The full picture

Robinhood is an online brokerage app that lets everyday people buy and sell stocks, options, cryptocurrencies, and other investments from their phones. Its main customers are younger, retail investors — people trading on their own rather than through a traditional bank or financial advisor. Robinhood is known for popularizing commission-free stock trading, which eventually pushed the entire brokerage industry to drop trading fees.

Robinhood makes money primarily through a practice called payment for order flow, where market makers pay Robinhood to execute customer trades, plus interest on uninvested cash, margin lending fees, and its Robinhood Gold subscription service. It operates mainly in the United States, though it has been expanding into the UK and EU. With a roughly $76 billion market cap and nearly 79% gross margins, its biggest growth driver is expanding its product lineup — including retirement accounts and credit cards — but its heaviest risk is regulatory scrutiny over payment for order flow, which some lawmakers want to ban.

Politician Trades

31 trades / 12mo

17 Congressional buys and 14 sells on HOOD in the last 12 months.

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Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
269.6%
Premium pricing power — 269.6% gross margin
Profit after running costs
Operating Margin
128.8%
Excellent — 128.8% operating margin
Return on the money invested
ROCE
13.5%
Good — 13.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-7.3%
Shrinking sales (-7.3% YoY)
Profit growth
EPS YoY
+14.0%
Earnings growing (+14.0% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is
EPS Consistency
7/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
-28%
Weak — only -28% of profit becomes cash
Spare cash per sale
FCF Margin
-19.2%
Burning cash (-19.2%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
1.44
Elevated debt (1.44)
Covers its interest
Interest Cover
160.63x
Comfortably covers interest (160.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
42.8x
Pricey — P/E 42.8

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+11.9
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (42.8 → 30.9)

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Dividends

Not applicable for this business.
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