Robinhood’s Q2: Here’s what Wall Street thinks
Analysts revised estimates higher following Robinhood’s Q2 results, but there’s still that question of valuation.
Robinhood Markets shares fluctuated in early trading Thursday, a day after the company posted Q2 earnings that, in the aggregate, seemed to please Wall Street. Analysts subsequently revised their expectations for full-year 2025 earnings and sales higher, typically a sign the numbers were well received.
(Robinhood Markets, Inc. is the parent company of Sherwood Media, an independently operated media company.)
Here’s some of the chatter from scribes on the Street...
Barclays (Rating: “Overweight”; Price target: $120):
“While momentum appeared to decelerate in Q2 (softer deposits every month sequentially; worsening churn and slowing new funded accounts), July saw more of a pick up in a number of KPIs including deposits, margin balances, and trading volumes. With the stock trading around all time highs, it is not yet clear if the Q2 beat (some of which, like Securities lending and the options take rate, may not recur) was enough, but we are encouraged by the ongoing momentum in the US brokerage business in particular.”
Mizuho (Rating: “Outperform”; Price target: $120):
“We think Robinhood will aim to leverage its already massive (and growing) user base, simple interface, and ecosystem to cross-sell lending products, which will continue to push the company closer to its 10-year vision of being the #1 global financial ecosystem.”
Citi (Rating: “Neutral/High Risk”; Price target: $120):
“While HOOD continues to see solid momentum across the platform, we believe the stock is pricing in much of the growth potential in our view (currently trading at 59x/48x our 2026/2027 EPS estimates). Although we see a number of long-term growth opportunities and an improving fundamental outlook, we prefer to wait for a more reasonable entry point at present.”
Morgan Stanley (Rating: “Equal-weight”; Price target: $110):
“We remain convicted in HOOD’s long-term growth on the back of strong 2Q earnings where mgmt continues to demonstrate strong account growth and organic asset growth, illustrating that the value prop of the HOOD ecosystem continues to resonate.”
