Research memoRobinhood Markets, Inc. (HOOD) · NASDAQMemo of October 16, 2026

Robinhood stock forecast

Robinhood's probability-weighted forecast reaches $89.10 in October 2027 and $93.60 in October 2029. It hinges on trading revenue per unit of activity and net interest spreads.

103.99
Share price today, USD
93.60 (-10 %)
Weighted scenario, October 2029
1.4%
Real free cash flow yield
34.3x
P/E, next 12 months
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Every number traced to Robinhood's filings8 chapters · 17,563 words295 sources cited

Where could Robinhood's shares go?

The weighted case is $89.10 in October 2027, a -14% return. It is $93.60 in October 2029, a -10% return. The bear case has 30% probability. The base case has 50%; the bull case has 20%.

Share price in October 2029: our three scenarios (USD)Today 103.9932.17Bear · 30 % · -69%92.95Base · 50 % · -11%187.35Bull · 20 % · +80%
What the shares could be worthUSD per share at each date; in brackets the return since today's 103.99, dividends included
CaseProbabilityOctober 2027October 2028October 2029
Bear30 %43.27 (-58 %)33.61 (-68 %)32.17 (-69 %)
Base50 %98.04 (-6 %)96.00 (-8 %)92.95 (-11 %)
Bull20 %135.53 (+30 %)164.32 (+58 %)187.35 (+80 %)
Weighted100 %89.10 (-14 %)90.95 (-13 %)93.60 (-10 %)

What has to go right, and what could go wrong for Robinhood?

The bear story is a down-cycle followed by a valuation reset. Quieter trading, weaker monetization, legal limits on event contracts and lower interest spreads reduce profit. The bear price is $43.27 in October 2027 and $32.17 in October 2029. Its probability is 30% because HOOD has three loss-making years in the supplied history and trading revenue remains volume-sensitive.

The bull story requires new products, acquisitions and crypto activity to create durable revenue. Gold, Banking, advisory products and event contracts must deepen customer relationships while legal access holds. The bull price is $135.53 in October 2027 and $187.35 in October 2029. Its probability is 20% because product adoption, integration, monetization and operating leverage must all work together.

How much cash does Robinhood really make?

In 2025, operating cash flow exceeded capital spending, and deducting stock pay produced a lower analytical measure of free cash flow. That measure treats shares issued as compensation as an economic cost to owners, even though no equivalent cash left the company immediately.

Follow the money: real free cash flowUS$ millions
20252024202320222021
Cash from operations1,638-1571,181-852-885
− Capital spending5450215783
= Free cash flow1,584-2071,160-909-968
− Stock pay3053048716541,572
= Real free cash flow1,279-511289-1,563-2,540

What this means. Stock pay is subtracted even though no cash was paid because giving employees shares reduces the shareholders’ ownership of the company.

What does an investor pay for Robinhood today?

At US$103.99, investors value Robinhood’s common equity at US$93,495.57 million. Its 45.8x trailing P/E means paying US$45.80 for each dollar earned over the past year; its 34.3x forward P/E uses expected earnings for the next year. Those figures imply earnings growth of roughly 34% if the share price does not change. It is like paying US$46 for a shop that earned US$1 while expecting it to earn substantially more soon.

What an investor pays todayUS$ millions
Today (Oct 15, 2026)
Share price103.99
Market value (calculated)93,495.57
Enterprise value (calculated)91,289.57
P/E, last 12 months (calculated)45.8x
P/E, next 12 months (calculated)34.3x
Free cash flow yield (calculated)1.7%

What this means. The business value is lower than the stock-market value because the company has more cash than debt, so we subtract the extra cash.

From the full memo · 1. The business

Robinhood Markets, Inc. is a financial-services platform for investing, trading, borrowing and managing money. Its business is easier to understand as a flow: customers bring orders, cash and balances, while counterparties and customers pay for access, financing and services.

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Where these numbers come from

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