Robinhood’s stock has seen a significant increase over the past year, driven by robust revenue growth, rising margins, and soaring profits. The company, founded in 2013, disrupted traditional online brokerages with its commission-free trades and gamified trading app. It generates revenue from various sources, including payment for order flow, crypto trading, net interest income, and subscriptions.

During the trading boom of 2020-2021, Robinhood attracted many new investors with meme stocks, growth stocks, and cryptocurrencies. Its growth slowed in 2022 but recovered in the following years, with revenue more than tripling from 2020 to 2024. In the first nine months of 2025, revenue rose by 65% year over year, and net income jumped over 15 times.

By the end of the third quarter of 2025, Robinhood had 26.8 million funded customers and 3.9 million Gold subscribers. Analysts expect strong revenue and adjusted EBITDA growth for the company from 2025 to 2027, driven by the expansion of its fintech ecosystem and tokenization of assets. Robinhood’s enterprise value is $115.6 billion, and it looks pricey at 35 times next year’s adjusted EBITDA.

Investors considering Robinhood’s stock should weigh the company’s growth potential against its valuation. Analysts expect continued growth for the company, but it faces competition from traditional brokerages and market volatility. It’s essential to conduct thorough research and consider all factors before investing in Robinhood.

Read more at Yahoo Finance: Should You Buy Robinhood (HOOD) Stock Before February?