How Robinhood (HOOD) Makes Money: A Visual Guide
Robinhood (HOOD) generated $4.47B in revenue (TTM through Q4 2025), earning $1.88B in net profit (42.1% margin). Its largest revenue source is Transaction-Based Revenues (88.8% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.
Robinhood (HOOD) Income Statement Flow
Frequently asked questions
How does Robinhood (HOOD) make money?
- Robinhood (HOOD) primarily makes money through Transaction-Based Revenues, which accounts for 88.8% of total revenue. For TTM through Q4 2025, Robinhood generated $4.47B in total revenue with a net profit margin of 42.1%.
What is Robinhood (HOOD) gross profit margin?
- Robinhood (HOOD) reported a gross profit margin of 81.8% for TTM through Q4 2025, equivalent to $3.66B in gross profit. This means Robinhood retains 81.8% of each revenue unit after direct costs of production.
What is Robinhood (HOOD) operating profit margin?
- Robinhood (HOOD) reported an operating profit margin of 46.9% for TTM through Q4 2025, equivalent to $2.10B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Robinhood (HOOD) net profit margin?
- Robinhood (HOOD) reported a net profit margin of 42.1% for TTM through Q4 2025, equivalent to $1.88B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Robinhood (HOOD) invest in R&D?
- Robinhood (HOOD) invested $665.00M in research and development in TTM through Q4 2025 (14.9% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Robinhood (HOOD) spend on capital expenditures?
- Robinhood (HOOD) spent $43.00M on capital expenditures in TTM through Q4 2025 (1.0% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Robinhood (HOOD) free cash flow?
- Robinhood (HOOD) generated $1.59B in free cash flow for TTM through Q4 2025 (35.7% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Robinhood (HOOD) effective tax rate?
- Robinhood (HOOD) had an effective tax rate of 10.7% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.
About this data
- What is a Sankey diagram?
- A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
- How is the data calculated?
- We use the income statement from company filings. For TTM (Trailing Twelve Months), we sum the last four quarters. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
- When was this data last updated?
- Based on company filings through TTM through Q4 2025.