HOOD · Q2 FY2026
Robinhood Markets, Inc. Q2 FY2026 earnings analysis
By SageNoodle ResearchNeutral
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $1.31B | $0.99B (yr ago) | Beat |
| EPS | $0.62 | $0.42 (yr ago) | Beat |
| Free Cash Flow | $0.72B | $3.51B (yr ago) | Miss |
| Gross Margin | Not meaningful | Not meaningful (yr ago) | Miss |
| Operating Margin | 54.2% pre-tax margin | 44.7% pre-tax margin (yr ago) | Beat |
What changed
Q2 FY2026 revenue increased 32.3% year over year to $1.31 billion, while EPS rose to $0.62 from $0.42. Pre-tax margin expanded by 9.5 percentage points to 54.2%, but mechanically calculated free cash flow fell to $0.72 billion from $3.51 billion and is not a reliable performance measure for a brokerage.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise; we initiate fair value at $102 per share. The quarter strengthens the earnings-quality case, but the current 49.9x TTM P/E already assumes substantial durability in activity and margins.