HOOD US S&P 500Russell 1000 Earnings call · transcribed from the recording
Robinhood Markets (HOOD) · Q3 2026 results and valuation
Share price: $84.58 · 2026-11-11
Robinhood Markets provides a mobile and desktop platform for trading stocks, ETFs, options, and other assets. The company offers financial services such as fractional trading, recurring investments, and retirement accounts to individual investors in the United States and United Kingdom. Source: 10-K annual report (2026-02-18)
Results Q3 2026 vs Q2 2026 · previous quarter · published 27 Oct 2026 and 29 Jul 2026
Net income down 16.6% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
−16.6%
Net income vs Q2 2026
Outlook given
Net income 468.0M vs 561.0M
Revenue +8.9%
Against the same quarter last year (Q3 2025) it is −15.8%, so it is not just seasonal.
2 · How management spoke
Typical
More upbeat than 59% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Robinhood expects the investment for the Trump account to remain in the range of approximately $100 million for the full year.
Valuation
Is Robinhood Markets undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 20.0% growth a year (3-year revenue growth), the model's fair value is $92.87 a share — the stock trades 9% below it. Today's price assumes 18.6% growth a year.
Current price
$84.58
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+18.6% for 10 yrs
Fair value / share
$92.87
Buy below
$69.65
Price vs fair value
Undervalued 9%
Price vs buy-below price
Overvalued 21%
Management expects
Growth +20% · from the Q3 2026 report: “Current performance reached a new annual record and exceeded the 20% growth target with several months remaining in the year.”
A guidance figure for growth, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Figure
The company achieved its highest quarter ever for both revenue and adjusted EBITDA while platform assets reached nearly $400 billion.
Source quote
“This led to our highest quarter ever for both revenue and adjusted EBITDA, and really great to see platform assets were nearly $400 billion.”
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Guidance
The company updated its full-year adjusted OpEx and SBC guidance to be between 2.675 and 2.75 billion.
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Guidance
Current performance reached a new annual record and exceeded the 20% growth target with several months remaining in the year.
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Guidance
The company expects the investment for the Trump account to remain in the range of approximately $100 million for the full year.
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Figure
Customers now have over 250 million in agentic accounts.
Source quote
“So customers have over 250 million in agentic accounts.”
4 more
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Figure
Robinhood launched 17 new products and services for its customers in Q3 2026.
Source quote
“And we launched not one, not two, but 17 new products and new services to our customers.”
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Figure
The actual math is for every 25 basis point hike or decline, it's about a 1.5% change to revenue.
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Key theme
Robinhood will shift the vast majority of its flow to Ruffera as its primary exchange and crypto.com/OG.com as its secondary exchange while moving away from most other competitors.
Source quote
“What you should expect is, Ruffera will be our primary exchange and crypto.com slash OG.com will now be our main second exchange and we'll be getting off most of our competitors. By the end of the year and to early next year, you should expect the vast majority of our flow goes through both of those.”
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Key theme
Management expects banking services to provide growth to the brokerage business rather than just the reverse.
Source quote
“But we do believe that banking will actually give growth to brokerage and not just the other way around.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“And then on NIM, or net interest revenues really strong growth in margin, credit card book, and Robinhood banking, and these grew to new record balances.”
“So you put them together, really strong top-line growth, expense discipline, and this led to a strong quarter of profitability.”
“And then finally, we drove another quarter of strong growth, profitability, and scale.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.42B | 1.31B | +8.9% | 1.27B | +11.8% |
| Operating income | 625.0M | 709.0M | −11.8% | 634.0M | −1.4% |
| Net income | 468.0M | 561.0M | −16.6% | 556.0M | −15.8% |
| EPS | 0.51 | 0.62 | −17.7% | 0.61 | −16.4% |
| P/E today 37.3 | 51.8 | 44.4 | +7.4 | 59.7 | −7.9 |
Topics
Most discussed now
- Vlad and Shiv will offer opening remarks and then open the call to Q &A.
- As Robinhood Markets ships new products, it is gaining share of wallet, and they're starting to trust us more.
- Text okay if you want to show so there it is he just taps on it and you can accept...
Faded since Q2 2026
- Dropped On the on the Cboe financial KPI contract, So my understanding is those are under the securities based regime.
- Fading Robinhood Markets thinks clarity helps take us 1 step further.
- Fading Robinhood Markets does not want the floor to be shifting out from under us every 4, 8 years and new rules...
- Fading Really strong macro market backdrop that definitely helped.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
Robinhood reported revenue of $1.42 billion, up 12% year-over-year, while diluted EPS fell 16% year-over-year to $0.51.
- Results of operations · SEC 8-K
Robinhood Markets, Inc. issued a press release on July 29, 2026, regarding its financial results for the second quarter ended June 30, 2026.
- Director or officer change · SEC 8-K
Robinhood Markets, Inc. appointed Dara Bazzano as principal accounting officer on June 25, 2026, while Shiv Verma remains the Chief Financial Officer and principal financial officer.
- Material agreement; New financial obligation; Unregistered share sale; Regulation FD disclosure; Other events · SEC 8-K
Robinhood Markets, Inc. completed a private offering of $2.2 billion in 0.00% convertible senior notes due 2029.
- Other events · SEC 8-K
Robinhood Markets, Inc. announced the pricing and commencement of a private offering of $2.0 billion aggregate principal amount of 0.00% convertible senior notes due 2029.
- Restructuring costs · SEC 8-K
Robinhood Markets, Inc. announced a reduction in force affecting 10% of full-time employees, with estimated restructuring costs of $20 million for severance and $8 million for share-based compensation in the second quarter of 2026.
- Shareholder vote results · SEC 8-K · routine
- Director or officer change · SEC 8-K
Robinhood Markets, Inc. announced that Chief Technology Officer Jeffrey Pinner separated from his position effective May 7, 2026.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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later this year
24-7 equity trading
Source quote
“And, of course, something I've been very excited about for quite some time, we announced 24-7 equity trading. That will be coming to Robinhood later this year.”
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July 1st
launch of the Robinhood chain mainnet
Source quote
“So on July 1st, just a few months ago, we launched the Robinhood chain mainnet.”
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Q4
discussion of Q4 results by Shiv
Source quote
“And with a strong start to Q4, which Shiv will talk more about, we have already exceeded our annual goal of 20% net deposit growth.”
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full-year
expected adjusted OpEx and SBC
Source quote
“And we now expect full-year adjusted OpEx and SBC to be between 2.675 and 2.75 billion.”
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the full year
investment for Trump account
Source quote
“For Trump account specifically that you asked about, for the full year I shared earlier that we expect it to be about $100 million investment, it's still roughly going to be in that range for the full year.”