Robinhood (HOOD) is beloved by many retail investors thanks to its commission-free trading model spanning stocks, options, and crypto. When HOOD went public in 2021, its shares were quickly embraced by the same crowd. However, the glow dimmed in 2022 when rising interest rates rattled the crypto market and curbed enthusiasm for growth-oriented stocks. 

As the tide has turned and rates have begun to ease, Robinhood found its second wind. It broadened its ecosystem with features like the Cash Card, digital payments, and a premium Gold tier, signaling its shift from a trading platform to a more integrated financial service. That momentum has not gone unnoticed. 

Shares rose after Bank of America analysts flagged Robinhood as a strong contender for inclusion in the S&P 500 Index ($SPX), ahead of the anticipated announcement on Friday, June 6. Emma Huang of BofA has noted it as a “prime candidate for the S&P 500 with the next rebalancing.” 

Such a move could open the floodgates of institutional capital, with index funds piling in. For Robinhood, this would be a watershed moment, anchoring long-term investor confidence.

About Robinhood Stock

Robinhood (HOOD), headquartered in Menlo Park, California, is redefining modern finance with a tech-first approach. With a market cap of $63.99 billion, it offers a full suite of services including brokerage, Robinhood Crypto, custody, Robinhood Wallet, Robinhood Gold, and the recently introduced Robinhood Gold Card. 

At a time when markets are dancing to an unpredictable tune stirred by President Donald Trump’s tariffs, HOOD finds itself right in its element. Volatility, for most, spells trouble, but for HOOD, it is a revenue-generating engine. 

As market swings widen, users flock to its platform to trade stocks, options, futures, and cryptocurrencies, pushing volumes and commissions higher. That explains the stock being up 98% year-to-date and climbing another 54% over the past three months. 

Robinhood Surpasses Q1 Earnings

Robinhood laid its Q1 2025 cards on the table on April 30 and what followed was a performance that left Wall Street impressed. The company posted revenue of $927 million, marking a 50% increase from the same period last year and surpassing analyst expectations of $915.7 million. It reflected growing engagement, with average revenue per user rising to $145, up 39% from a year ago.

At the core of this strong performance stood transaction-based revenues, which climbed to $583 million, up 77.2% compared to last year. Cryptocurrency activity proved the real engine, generating $252 million and doubling in size. Options trading brought in $240 million, registering a 56% rise, while equities contributed $56 million, reflecting a 44% boost. 

Net interest revenues added another layer of growth, increasing to $290 million with a 14.2% uptick. Other revenues jumped to $54 million, a 54.3% rise fueled by more users opting for Robinhood Gold. 

Profitability also told a strong story. Adjusted EBITDA climbed to $470 million, showing a 90.3% year-over-year gain. Net income stood at $336 million, recording a 114% jump. EPS came in at $0.37, up 105.6% year over year and well above the $0.33 which analysts had penciled in. It ended the quarter with $4.4 billion in cash and cash equivalents.

The outlook remains bright. Analysts expect Q2 2025 EPS to rise 38.1% year over year to $0.29. For the full year, they project EPS to grow 11.9% to $1.22, followed by another 20.5% climb in 2026, pushing it to $1.47.

What Do Analysts Expect for Robinhood Stock?

Wall Street’s conviction for HOOD is reflected in the overall rating of “Moderate Buy” among analysts. Out of 21 analysts monitoring HOOD, a solid 12 endorse a “Strong Buy,” reinforcing enthusiasm, while two opt for a “Moderate Buy” and seven recommend holding, signaling measured caution.

The Street-high target of $105 represents potential upside of 45.3% from the current price level.