Robinhood, founded in 2013 and listed on NASDAQ as HOOD, has rapidly become a major player in the finance industry. The company's early success in attracting younger traders interested in stocks led to its growth from $102 billion in custody in its first earnings release in 2021 to $307 billion in total platform assets by the first quarter of 2026.
The broker's product lineup has expanded beyond stocks to include cryptocurrencies and prediction markets. However, this expansion comes with a premium valuation, with a price-to-earnings ratio of 45x compared to 39x for Interactive Brokers (IBKR) and 18x for Charles Schwab (SCHW).
The company's focus on new investors may be taking on more risk than its long-established peers. Robinhood's solid first-quarter 2026 results highlighted a decline in cryptocurrency-related revenue by 47%, but an increase in other revenue, driven largely by prediction markets.