The Motley Fool on $HOOD (Oct 28, 2026)

one of the big earnings reports last night was Robin Hood. This is one of the ones that we've talked about a fair amount here and on YouTube, but Matt, the market didn't seem particularly happy with Robin Hood's results early in trading. The stock was down about 6%.

Yeah, I mean, well, their member growth is slow. That's the one of the key things. But it it's really it's something that's worth watching, not worth panicking for. Robin Hood's business model has really shifted from grow the user base at all costs to get more of your users money.

And on the second half of that, they're actually doing a very good job.

Lou, this seems like one of those challenging companies to look at right now because we've exited the hyper growth mode where they were not only adding a lot of users, but also those users were adding a ton of assets to the platform.

They're trading cryptocurrencies, brought in prediction markets now, which are doing extremely well. You're seeing weakness in some of these markets. They're not adding customers at the same rate that a company like SoFi is and yet the stock is really expensive.

I love that Robin Hood is growing their IRA business at an extremely rapid rate, but you're not going to make a ton of money off of IRA customers the way that you are off of crypto traders.

That's it exactly. To their credit, they've come a long way. They are not this little like startup now. Um, if user growth is slowing because Robin Hood has kind of captured so much of its target demographic that it's hard to go higher. uh but they are capturing more of the share of those uh customers.

That's a great thing. That's a sign that this business like you say is maturing.

I can name one thing just off the top of my head that they're doing a lot better than companies like SoFi, just to kind of, you know, to your point of maturity. And and you're right, they're not going to make a ton of money.

Even if the average IRA has $100,000, you're charging no commissions on anything. You know, if that's not a a very profitable model, but Robin Hood Gold, their subscription product, that's something they're executing better than most other fintech that have subscriptions.

Up 34% year-over-year. impressively there. You know, about 20% of Robin Hood members, give or take, are Robin Hood Gold members. 40% of their new customers are signing up for it. That's a a a very impressive figure.

And how about prediction markets, too? I mean, look, I I don't know, guys, event contracts were up 230% year-over-year.