What’s ahead for Robinhood? | Credit: Spencer Platt/Getty Images
Key Takeaways
Robinhood’s latest earnings beat expectations across the board, with strong growth in revenue and crypto trading.
At the same time, user growth came in below forecasts, raising questions about the platform’s long-term momentum.
As the company rolls out new features like advisory tools, AI support, and banking services, investors are starting to look ahead. What might Robinhood’s stock look like five years from now?
Robinhood beat Wall Street expectations in Q1 , delivering stronger-than-expected revenue and profit, but missed the mark on user growth.
For the quarter ending March 31, the company reported diluted earnings of 37 cents per share, more than double the 18 cents from a year ago and ahead of analyst forecasts of 33 cents.
Revenue was $927 million, a 50% year-over-year jump that crushed the $558 million estimate.
Transaction-based revenue surged 77% to $583 million, well above projections. Crypto trading was a major contributor, with revenue doubling to $252 million and topping expectations.
Options trading brought in $240 million (vs. $239 million expected), while equities revenue rose 44% to $56 million, just shy of the $60 million estimate.
Despite the strong financials, Robinhood’s user metrics disappointed. Monthly active users climbed to 14.4 million from 13.7 million a year earlier, but that was down from 14.9 million last quarter and fell short of the 15.1 million analysts had hoped for.
On the product side, Robinhood launched several major initiatives in Q1.
That includes Robinhood Strategies, an automated advisory tool already managing over $100 million in assets, Robinhood Banking, and Robinhood Cortex, an AI-powered assistant.
It also rolled out new features for its Legend trading platform, including index options, crypto trading, and advanced charting tools.
In March, the company debuted a dedicated hub for its prediction markets, which have seen more than 1 billion contracts traded.
Robinhood didn’t issue formal guidance for the next quarter, pointing to ongoing volatility in the crypto market.
Still, the company says user engagement remains strong and plans to keep investing in new products and expanding internationally.
While crypto trading continues to be a significant part of its business, Robinhood is clearly trying to broaden its focus. “It will go up and down in terms of trading volumes,” CEO Vlad Tenev said on the earnings call.
“We’re diversifying the business outside of the crypto business, making us less reliant on crypto transaction volumes.”
Since launching crypto trading in 2018, Robinhood has relied heavily on it for revenue, especially through routing trades to market makers.
That approach helped drive major gains during peaks like the Dogecoin (DOGE) rally in 2021, but also made the company vulnerable to market swings.
Robinhood is looking to build more stable revenue sources as it grows beyond its trading roots.
Robinhood Markets, Inc. (HOOD) shows a mixed forecast , with short-term caution and long-term optimism.
For 2025, HOOD is expected to trade between $28.80 and $30.89, averaging $29.63. This is down by 40% from today’s price but offers a potential return of 37% if the stock aligns with predictions.
Forecasts place HOOD between $26.04 and $31.86 in 2026, with an average of $28.17. January could be the weakest month, with the stock trading 35% below current levels.
The 2027 forecast remains modest, with a low of $26.79, a high of $30.60, and an average of $28.34.
In 2028, HOOD may trend upward, with a price range from $28.74 in January to $51.75 in December and an average of $37.77—still a 23% decrease from today’s price, potentially yielding a 5.4% return.
Projections for 2029 are more volatile, ranging from $16.71 in December to $103.12 in May, with an average price of $49.06.
In 2030, HOOD is expected to fluctuate between $10.93 and $23.36, offering a potential ROI of 52% despite a bearish outlook.
A more bullish long-term model projects HOOD, reaching $50 by the end of 2025, $55 by mid-2026, $75 in 2027, $85 in 2028, $100 in 2029, and $110 in 2030. That path would deliver gains of up to 129% by the start of the next decade.
