Robinhood upended the brokerage industry by making stock, ETF and crypto trades free and friction-less. A decade later the company has morphed into a broad financial-services platform offering IRAs, high-yield cash accounts, a 3 %-back Gold credit card and even private-bank-style perks for premium members. Those product launches are translating into explosive fundamentals:

• Q1 2025 revenue jumped 50 % year-over-year to $927 million, while net income soared 114 % to $336 million.
• Average revenue per user (ARPU) rose 39 % YoY to $145, powered by 3.2 million Gold subscribers—up 90 % in a year.
• Funded customers climbed to 25.9 million (April 2025), and platform assets hit $232 billion—an 88 % YoY increase.

New Growth Engines

These initiatives diversify revenue beyond trading and create a ladder of services that can grow with customers—important as the median user age rises from 31 to 35.

Why the Stock Looks Compelling for Long-Term Investors

• Robinhood Markets Inc is a equity in the USA market.
• The price is 72.43 USD currently with a change of 0.71 USD (0.01%) from the previous close.
• The latest open price was 72.54 USD and the intraday volume is 13199114.
• The intraday high is 74.49 USD and the intraday low is 71.15 USD.
• The latest trade time is Wednesday, June 4, 10:20:19 EDT.

1. Durable Profitability & Cash
   • GAAP EPS of $0.37 in Q1 marks the third consecutive profitable quarter.
   • $4.4 billion in cash gives ample firepower for buybacks (already $322 million repurchased) or further M&A.
2. Flywheel Effect of Gold Each incremental Gold subscriber pays $5 / month, gets better rates, and is more likely to adopt the credit card or advisory products—boosting lifetime value while lowering acquisition cost.
3. Massive Addressable Market Management targets the $84 trillion wealth transfer to Millennials and Gen Z. Capturing even a low-single-digit share translates into hundreds of billions in new assets.
4. Reasonable Valuation vs. Growth At ~23 × forward earnings, HOOD trades at a discount to many fintech peers despite higher revenue growth and a clear path to >25 % long-term operating margins.
5. Strategic Moat Gen-Z friendly design, real-time fractional trading, and community features create stickiness that incumbent brokers struggle to replicate. The platform’s habit-forming interface remains a competitive edge noted even by academic critics.

Key Risks (and Why They Appear Manageable)

• Regulation. Payment-for-order-flow and crypto oversight remain headline risks, but Robinhood’s growing share-based revenues (interest, subscription, interchange) dilute that exposure over time.
• User-growth volatility. MAU dipped sequentially, yet funded-account growth and higher ARPU offset softer traders. Diversified products lower dependency on trading volume.
• Competition. Schwab, Fidelity & Cash App are formidable, but Robinhood’s “everything-on-one-phone” approach and lower fee structure are tough to match at scale.

Bottom Line

Robinhood isn’t just a trading app anymore—it’s evolving into a vertically integrated consumer bank, asset manager and crypto gateway. That expansion is already showing up in revenue, earnings and cash flow. With multiple new monetization levers, strong brand recognition among younger investors, and a still-modest valuation, HOOD offers an attractive long-term compounder profile for patient shareholders.

Ready to experience Robinhood yourself? Click here to join Robinhood and claim your spot

Disclosure: This article reflects opinion, not personalized investment advice. Always do your own research or consult a professional before investing.