Robinhood and Nu Holdings Show Strong Financial Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Robinhood Customer Growth: In 2025, Robinhood's customer base grew by 7% year-over-year to over 27 million, while average revenue per user surged by 16%, indicating the company's ability to attract new clients while enhancing customer value, thereby strengthening its market competitiveness.
- Revenue and Profit Growth: Robinhood's revenue increased by 27% year-over-year, and despite a 38% drop in cryptocurrency revenue due to Bitcoin's slump, the trading volume in its prediction markets reached 8.5 billion in Q4, showcasing the company's growth potential in new business areas.
- Nu Holdings Market Leadership: As the largest online bank in Latin America, Nu Holdings serves over 60% of adults in Brazil, achieving a 39% year-over-year revenue growth in Q3 2025, with customer numbers rising to 127 million, reflecting its strong performance in a rapidly growing market.
- Margin Improvement: Nu Holdings' net income surged by 41% year-over-year, securing a net profit margin of 41%, while customer balances in credit cards and loans rose by 45% and 58%, respectively, indicating a promising outlook for the company in terms of high-growth product lines and rising margins.
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Analyst Views on HOOD
Wall Street analysts forecast HOOD stock price to rise
20 Analyst Rating
16 Buy
4 Hold
0 Sell
Strong Buy
Current: 75.440
Low
130.00
Averages
156.24
High
181.00
Current: 75.440
Low
130.00
Averages
156.24
High
181.00
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.
Robinhood's Q4 Earnings Report Triggers Stock Sell-Off
- Earnings Performance: Robinhood reported a 27% year-over-year revenue increase in Q4, slightly missing estimates, which led to a sharp stock sell-off, reflecting market sensitivity to high growth expectations and potentially impacting investor confidence in the short term.
- Net Deposit Growth: Net deposits totaled nearly $16 billion in Q4, representing a 19% annualized growth rate relative to total platform assets from the previous quarter, indicating sustained customer trust and inflow of assets, enhancing future revenue potential.
- Deepening Customer Relationships: The report highlighted a 57% year-over-year increase in retirement accounts opened, demonstrating significant progress in building long-term customer relationships, which will lay the groundwork for future revenue growth.
- Investment Opportunity: Despite the revenue miss, the ongoing growth in customer assets and the rollout of new banking services provide strong support for Robinhood's future development, suggesting that the current stock dip may present a buying opportunity for investors.
See More
ROBINHOOD VENTURES FUND I (RVI) DECLARES THE START OF ITS INITIAL PUBLIC OFFERING
Announcement of IPO: Robinhood Ventures Fund I (RVI) has announced the launch of its initial public offering (IPO).
Investment Opportunity: The IPO aims to provide investors with an opportunity to participate in the fund's growth and investment strategy.
See More
Robinhood's Stock Surges Over 600% in Three Years
- Significant Revenue Growth: Robinhood's revenue surged from $1.4 billion in 2022 to $4.5 billion in 2025, achieving a compound annual growth rate of 66%, indicating substantial success in attracting retail investors and solidifying its market position.
- Profitability Improvement: Robinhood turned profitable in 2024, with net income rising 33% to $1.9 billion in 2025, demonstrating the sustainability and profitability potential of its business model, which is expected to continue attracting investor interest.
- Gold Subscription Platform Expansion: By the end of 2025, Robinhood's Gold subscription platform served 4.2 million customers, driving user base growth and laying the groundwork for future revenue increases, with expectations of enhanced customer loyalty.
- HODU ETF Risks and Rewards: Direxion's HODU ETF aims to double Robinhood's daily returns; however, its structure is better suited for short-term traders due to high fees and volatility, prompting long-term investors to exercise caution, especially in unstable market conditions.
See More
Robinhood and Nu Holdings Show Strong Financial Performance
- Robinhood Customer Growth: In 2025, Robinhood's customer base grew by 7% year-over-year to over 27 million, while average revenue per user surged by 16%, indicating the company's ability to attract new clients while enhancing customer value, thereby strengthening its market competitiveness.
- Revenue and Profit Growth: Robinhood's revenue increased by 27% year-over-year, and despite a 38% drop in cryptocurrency revenue due to Bitcoin's slump, the trading volume in its prediction markets reached 8.5 billion in Q4, showcasing the company's growth potential in new business areas.
- Nu Holdings Market Leadership: As the largest online bank in Latin America, Nu Holdings serves over 60% of adults in Brazil, achieving a 39% year-over-year revenue growth in Q3 2025, with customer numbers rising to 127 million, reflecting its strong performance in a rapidly growing market.
- Margin Improvement: Nu Holdings' net income surged by 41% year-over-year, securing a net profit margin of 41%, while customer balances in credit cards and loans rose by 45% and 58%, respectively, indicating a promising outlook for the company in terms of high-growth product lines and rising margins.
See More
Analysis of Market Prospects for Robinhood and Circle
- Market Valuation Recovery: Robinhood and Circle have seen their stock prices drop 50% and 75% from record highs, respectively, yet analysts believe both are undervalued, with Robinhood's target price set at $160 per share, indicating a potential 113% upside from its current price of $75.
- Young Investor Advantage: Robinhood boasts nearly twice the number of millennial and Gen Z accounts compared to its closest competitor, Vanguard, positioning the company for growth as this demographic matures and accumulates wealth, thereby expanding its market share across cryptocurrencies and equities.
- Stablecoin Market Expansion: Circle's USDC is the second-largest stablecoin, with projections suggesting the market could grow from $315 billion to $2 trillion by 2030, representing an annual growth rate of 45%, which provides robust support for Circle's revenue growth.
- Payment Network Innovation: The Circle Payments Network aims to offer faster and cheaper services than traditional cross-border payment systems, particularly benefiting multinational companies for payroll and supplier payments, and is expected to drive revenue growth at a rate exceeding 30% in the coming years.
See More
Robinhood Chain Testnet Achieves 4 Million Transactions in First Week – CEO Declares ‘On-Chain is the Future of Finance’
Test Phase Launch: Developers can access testnet-only assets, including 'Stock Tokens' tied to major companies like Tesla and Amazon, during the initial launch phase of the Robinhood Chain, which processed four million transactions in its first week.
Market Sentiment: Despite a higher overnight trade for HOOD's stock, retail sentiment has turned bearish, indicating a decline in confidence among investors over the past day.
Real-World Asset Interest: There is a growing interest in tokenized real-world assets (RWAs), with firms like Grayscale Investments highlighting it as a primary sector to watch in 2026, as total value locked in decentralized finance platforms approaches $96.5 billion.
Investment Commitment: Robinhood has committed $1 million to the 2026 Arbitrum Open House program, integrating with various infrastructure providers to enhance its network capabilities.
See More
Robinhood's Q4 Earnings Report Triggers Stock Sell-Off
- Earnings Performance: Robinhood reported a 27% year-over-year revenue increase in Q4, slightly missing estimates, which led to a sharp stock sell-off, reflecting market sensitivity to high growth expectations and potentially impacting investor confidence in the short term.
- Net Deposit Growth: Net deposits totaled nearly $16 billion in Q4, representing a 19% annualized growth rate relative to total platform assets from the previous quarter, indicating sustained customer trust and inflow of assets, enhancing future revenue potential.
- Deepening Customer Relationships: The report highlighted a 57% year-over-year increase in retirement accounts opened, demonstrating significant progress in building long-term customer relationships, which will lay the groundwork for future revenue growth.
- Investment Opportunity: Despite the revenue miss, the ongoing growth in customer assets and the rollout of new banking services provide strong support for Robinhood's future development, suggesting that the current stock dip may present a buying opportunity for investors.
See More
ROBINHOOD VENTURES FUND I (RVI) DECLARES THE START OF ITS INITIAL PUBLIC OFFERING
Announcement of IPO: Robinhood Ventures Fund I (RVI) has announced the launch of its initial public offering (IPO).
Investment Opportunity: The IPO aims to provide investors with an opportunity to participate in the fund's growth and investment strategy.
See More
Robinhood's Stock Surges Over 600% in Three Years
- Significant Revenue Growth: Robinhood's revenue surged from $1.4 billion in 2022 to $4.5 billion in 2025, achieving a compound annual growth rate of 66%, indicating substantial success in attracting retail investors and solidifying its market position.
- Profitability Improvement: Robinhood turned profitable in 2024, with net income rising 33% to $1.9 billion in 2025, demonstrating the sustainability and profitability potential of its business model, which is expected to continue attracting investor interest.
- Gold Subscription Platform Expansion: By the end of 2025, Robinhood's Gold subscription platform served 4.2 million customers, driving user base growth and laying the groundwork for future revenue increases, with expectations of enhanced customer loyalty.
- HODU ETF Risks and Rewards: Direxion's HODU ETF aims to double Robinhood's daily returns; however, its structure is better suited for short-term traders due to high fees and volatility, prompting long-term investors to exercise caution, especially in unstable market conditions.
See More
Robinhood and Nu Holdings Show Strong Financial Performance
- Robinhood Customer Growth: In 2025, Robinhood's customer base grew by 7% year-over-year to over 27 million, while average revenue per user surged by 16%, indicating the company's ability to attract new clients while enhancing customer value, thereby strengthening its market competitiveness.
- Revenue and Profit Growth: Robinhood's revenue increased by 27% year-over-year, and despite a 38% drop in cryptocurrency revenue due to Bitcoin's slump, the trading volume in its prediction markets reached 8.5 billion in Q4, showcasing the company's growth potential in new business areas.
- Nu Holdings Market Leadership: As the largest online bank in Latin America, Nu Holdings serves over 60% of adults in Brazil, achieving a 39% year-over-year revenue growth in Q3 2025, with customer numbers rising to 127 million, reflecting its strong performance in a rapidly growing market.
- Margin Improvement: Nu Holdings' net income surged by 41% year-over-year, securing a net profit margin of 41%, while customer balances in credit cards and loans rose by 45% and 58%, respectively, indicating a promising outlook for the company in terms of high-growth product lines and rising margins.
See More
Analysis of Market Prospects for Robinhood and Circle
- Market Valuation Recovery: Robinhood and Circle have seen their stock prices drop 50% and 75% from record highs, respectively, yet analysts believe both are undervalued, with Robinhood's target price set at $160 per share, indicating a potential 113% upside from its current price of $75.
- Young Investor Advantage: Robinhood boasts nearly twice the number of millennial and Gen Z accounts compared to its closest competitor, Vanguard, positioning the company for growth as this demographic matures and accumulates wealth, thereby expanding its market share across cryptocurrencies and equities.
- Stablecoin Market Expansion: Circle's USDC is the second-largest stablecoin, with projections suggesting the market could grow from $315 billion to $2 trillion by 2030, representing an annual growth rate of 45%, which provides robust support for Circle's revenue growth.
- Payment Network Innovation: The Circle Payments Network aims to offer faster and cheaper services than traditional cross-border payment systems, particularly benefiting multinational companies for payroll and supplier payments, and is expected to drive revenue growth at a rate exceeding 30% in the coming years.
See More
Robinhood Chain Testnet Achieves 4 Million Transactions in First Week – CEO Declares ‘On-Chain is the Future of Finance’
Test Phase Launch: Developers can access testnet-only assets, including 'Stock Tokens' tied to major companies like Tesla and Amazon, during the initial launch phase of the Robinhood Chain, which processed four million transactions in its first week.
Market Sentiment: Despite a higher overnight trade for HOOD's stock, retail sentiment has turned bearish, indicating a decline in confidence among investors over the past day.
Real-World Asset Interest: There is a growing interest in tokenized real-world assets (RWAs), with firms like Grayscale Investments highlighting it as a primary sector to watch in 2026, as total value locked in decentralized finance platforms approaches $96.5 billion.
Investment Commitment: Robinhood has committed $1 million to the 2026 Arbitrum Open House program, integrating with various infrastructure providers to enhance its network capabilities.
See More
