Robinhood Achieves Over 200% Stock Growth in 2025, User Base Expands

Written by Emily J. Thompson, Senior Investment Analyst

HOOD-2.04%

Source: Fool

Updated: 1h ago

0mins

Source: Fool

Significant User Growth: Robinhood's funded customer base increased by 10% year-over-year to 26.8 million, demonstrating the platform's growing appeal and solidifying its market position within the financial services ecosystem.
Substantial Revenue Increase: The company reported a 100% year-over-year revenue increase to $1.3 billion in Q3, with net income soaring 271% to $556 million, indicating remarkable success in diversifying revenue streams and enhancing user engagement.
Rapid Product Rollouts: Robinhood is launching new offerings such as Prediction Markets and Robinhood Social to enhance user retention and attract more active traders, which is expected to drive future revenue growth.
Cryptocurrency Trading Surge: Cryptocurrency revenue surged 300% year-over-year to $268 million, accounting for over a third of total transaction revenue, showcasing the company's strong performance in emerging asset classes despite market volatility risks.

HOOD

$113.1+Infinity%1D

Analyst Views on HOOD

Wall Street analysts forecast HOOD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HOOD is 151.63 USD with a low forecast of 68.00 USD and a high forecast of 181.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

21 Analyst Rating

14 Buy

6 Hold

1 Sell

Moderate Buy

Current: 115.450

Low

68.00

Averages

151.63

High

181.00

Current: 115.450

Low

68.00

Averages

151.63

High

181.00

Barclays

Benjamin Budish

Overweight

maintain

$171

2025-12-31

New

Reason

Barclays

Benjamin Budish

Price Target

$171

2025-12-31

New

maintain

Overweight

Reason

Barclays analyst Benjamin Budish says Robinhood's preliminary December metrics indicate its transaction revenue could slightly miss estimates in Q4. Robinhood's December share picked back up in options and Bitstamp, but declined slightly in equities and more so in crypto app volumes, the analyst tells investors in a research note. The firm believes a larger miss relative to Q4 consensus estimates in crypto sales should be nearly offset by stronger other revenue, driven primarily by the prediction markets. It keeps an Overweight rating on Robinhood with a $171 price target.

Needham

Buy

downgrade

$145 -> $135

2025-12-29

New

Reason

Needham

Price Target

$145 -> $135

2025-12-29

New

downgrade

Buy

Reason

Needham lowered the firm's price target on Robinhood to $135 from $145 and keeps a Buy rating on the shares. The firm lowered its estimates and price targets across the cryptoasset sector as it sees continued weakness in crypto volumes for the next couple quarters. Even if crypto prices are near a bottom, retail volumes typically remain muted until momentum returns, the analyst tells investors.

Morgan Stanley

Equal Weight

maintain

$146 -> $147

2025-12-22

Reason

Morgan Stanley

Price Target

$146 -> $147

2025-12-22

maintain

Equal Weight

Reason

Morgan Stanley raised the firm's price target on Robinhood to $147 from $146 and keeps an Equal Weight rating on the shares. Healthy transactional activity across brokers and exchanges in Q4 drives modest positive revision risk, notes the analyst in a preview. The analyst is raising Q4 EPS estimates by 5% on average, leaving the firm in-line with consensus, the analyst noted.

Deutsche Bank

Buy

maintain

$160

2025-12-17

Reason

Deutsche Bank

Price Target

$160

2025-12-17

maintain

Buy

Reason

Deutsche Bank keeps a Buy rating on Robinhood with a $160 price target following the company's yes/no keynote event. The company showcased its latest prediction market features and management said they believe the prediction markets are in the early stages of a "supercycle," the analyst tells investors in a research note. With increasing adoption and volume growth, these contracts could eventually reach trillions in volumes traded each year, according to Robinhood, the analyst adds. Deutsche estimates prediction markets in the U.S. could potentially reach at least 1 trillion contracts in 2027 and well over 5 trillion in 2029. Robinhood's developments in prediction markets include making the contracts available on both the mobile app and Legend desktop, with real-time data and limit orders, the firm points out.

About HOOD

Robinhood Markets, Inc. is creating a financial services platform for everyone, regardless of their wealth, income, or background. It uses technology to provide access to the financial system. Its offerings include Brokerage, Robinhood Crypto, Custody, Robinhood Wallet, Robinhood Gold, and Robinhood Gold Card. Its Brokerage services include investing, options trading, fractional trading, recurring investment, access to investing on margin, fully paid securities lending, cash sweep, instant withdrawals, Robinhood retirement, 24-hour market, joint investing accounts, and event contracts. It also offers a variety of ways for its customers to grow their financial knowledge, including Robinhood Learn, In-App Education, Newsfeeds, Sherwood Snacks, and Crypto Learn and Earn. Its self-clearing system, order routing system, data platform, and other back-end infrastructure deliver the capabilities that allow its customers to focus on investing, saving and spending.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.