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Robinhood Markets, Inc. (NASDAQ:HOOD) Earnings Preview and Financial Health Analysis

  • Analysts expect earnings per share (EPS) of $0.63 and revenue of approximately $1.34 billion for Robinhood's upcoming quarterly earnings.
  • The company's valuation is highlighted by a price-to-earnings (P/E) ratio of 33.57 and a price-to-sales ratio of 17.71, indicating investors' high expectations for growth.
  • Robinhood's financial health is underscored by ratios such as an enterprise value to sales ratio of 20.41 and a debt-to-equity ratio of 1.83, reflecting its market valuation and debt level.

Robinhood Markets, Inc. (NASDAQ:HOOD) is a financial services company known for pioneering commission-free trading through its mobile app. It has gained popularity among retail investors, especially millennials. As Robinhood prepares to release its quarterly earnings on February 10, 2026, analysts expect an earnings per share (EPS) of $0.63 and revenue of approximately $1.34 billion.

Jim Cramer from CNBC highlights the significance of the upcoming week for Wall Street, with Robinhood's earnings being a focal point. The company's financial metrics, such as a price-to-earnings (P/E) ratio of 33.57 and a price-to-sales ratio of 17.71, provide insight into its valuation. These figures suggest that investors are willing to pay a premium for Robinhood's growth potential.

The broader market context is also important, as Cramer notes the impact of labor data on market sentiment. The Labor Department's nonfarm payroll report, scheduled for Wednesday, could influence Federal Reserve decisions on interest rates. A soft report might lead to rate cuts, which could benefit stocks like Robinhood by making borrowing cheaper and encouraging investment.

Robinhood's financial health is further illustrated by its enterprise value to sales ratio of 20.41 and an enterprise value to operating cash flow ratio of 73.03. These ratios indicate how the market values the company's sales and cash flow generation. Additionally, Robinhood's debt-to-equity ratio of 1.83 shows a relatively high level of debt compared to equity, which could be a risk factor.

The company's current ratio of 1.22 suggests it has enough short-term assets to cover its short-term liabilities, indicating a stable liquidity position. As Robinhood releases its earnings, investors will be keen to see how these financial metrics align with the company's performance and future outlook.