Revenue surged to $535M in 2026Q2, but NII collapsed to -$10M and the efficiency ratio spiked to 138.1%, indicating a fundamental shift toward fee income (94.2% of revenue) and away from interest-based earnings.
Robinhood Markets, Inc. (HOOD) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Net Interest Income | 1.12B | 1.51B | 1.08B | 920M | 424M | 256.96M | 177.44M | 70.64M |
| NII Growth % | -0.03% | 39.54% | 17.93% | 116.98% | 65% | 44.82% | 151.19% | - |
| Net Interest Margin % | 1.99% | 3.97% | 4.14% | 5.22% | 1.82% | 1.3% | 1.61% | 1.79% |
| Interest Income | 1.18B | 1.51B | 1.11B | 943M | 448M | 277.18M | 177.44M | 70.64M |
| Interest Expense | 55M | 0 | 24M | 23M | 24M | 20.22M | 0 | 0 |
| Loan Loss Provision | 829M | 745M | 583M | 123M | 564M | 488.78M | 237M | 93.2M |
| Non-Interest Income | 2.98B | 2.96B | 1.84B | 922M | 910M | 1.54B | 780.56M | 206.89M |
| Non-Interest Income % | 72.61% | 66.15% | 62.93% | 50.05% | 68.22% | 85.68% | 81.48% | 74.55% |
| Total Net Revenue | 4.1B | 4.47B | 2.93B | 1.84B | 1.33B | 1.79B | 958M | 277.53M |
| Revenue Growth % | 15.7% | 52.82% | 58.9% | 38.08% | -25.67% | 87.35% | 245.18% | - |
| Non-Interest Expense | 1.99B | 1.63B | 1.29B | 2.25B | 1.74B | 2.95B | 708M | 291.26M |
| Efficiency Ratio | 48.49% | 36.53% | 44.07% | 122.42% | 130.13% | 164.2% | 73.9% | 104.95% |
| Operating Income | 1.28B | 2.09B | 1.05B | -536M | -966M | -1.64B | 13M | -106.93M |
| Operating Margin % | 31.31% | 46.81% | 36.01% | -29.1% | -72.41% | -91.43% | 1.36% | -38.53% |
| Operating Income Growth % | - | 98.67% | 296.64% | 44.51% | 41.13% | -12723.08% | 112.16% | - |
| Pretax Income | 2.42B | 2.11B | 1.06B | -533M | -1.03B | -3.69B | 13M | -107.59M |
| Pretax Margin % | 58.85% | 47.13% | 36.35% | -28.94% | -76.99% | -205.32% | 1.36% | -38.77% |
| Income Tax | 335M | 225M | -347M | 8M | 1M | 2M | 6M | -1.02M |
| Effective Tax Rate % | 13.87% | 10.67% | -32.61% | -1.5% | -0.1% | -0.05% | 46.15% | 0.95% |
| Net Income | 2.07B | 1.88B | 1.41B | -541M | -1.03B | -3.69B | 7M | -106.57M |
| Net Margin % | 50.49% | 42.1% | 48.21% | -29.37% | -77.06% | -205.43% | 0.73% | -38.4% |
| Net Income Growth % | 15.88% | 33.45% | 360.81% | 47.37% | 72.12% | -52771.43% | 106.57% | - |
| Net Income (Continuing) | 2.08B | 1.88B | 1.41B | -541M | -1.03B | -3.69B | 7M | -106.57M |
| EPS (Diluted) | 2.27 | 2.05 | 1.56 | -0.61 | -1.17 | -4.27 | 0.00 | -0.13 |
| EPS Growth % | 15.54% | 31.41% | 356.87% | 48.09% | 72.58% | - | 102.71% | - |
| EPS (Basic) | - | 2.12 | 1.60 | -0.61 | -1.17 | -4.27 | 0.00 | -0.13 |
| Diluted Shares Outstanding | 913M | 918.78M | 906.17M | 890.86M | 878.63M | 863.91M | 850.18M | 850.18M |
Quick answers to the most common questions about buying HOOD stock.
For fiscal year 2025, Robinhood Markets, Inc. (HOOD) reported total revenue of $4.47B. This represents a 1511.7% increase compared to $277.5M in 2019.
Robinhood Markets, Inc. (HOOD) is profitable, generating $1.88B in net income for the fiscal year ending 2025 with a net profit margin of 42.1%.
Robinhood Markets, Inc. (HOOD) reported an operating income of $2.09B, resulting in an operating profit margin of 46.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Robinhood Markets, Inc. (HOOD) generated $3.73B in gross profit for the year, representing a gross profit margin of 83.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
NII collapse and provision volatility
Metrics are mathematically derived from official filings.
NII Collapse in 2026Q2
Net interest income swung to -$10M in 2026Q2 from $284M in 2026Q1, a 102.9% decline, according to reported quarterly data, signaling a dramatic shift in interest-earning asset dynamics.
The negative NII suggests that funding costs exceeded interest income on the bank's interest-earning assets, possibly due to a rapid repricing of liabilities or a strategic shift away from interest-bearing products. This is a stark reversal from the positive NII trajectory seen throughout 2024 and 2025, where NII grew from $248M in 2024Q1 to $439M in 2025Q3. Investors should monitor whether this is a one-time event or the beginning of a structural change in the bank's balance sheet composition.
NIM Turns Negative
Net interest margin fell to -0.0% in 2026Q2 from 0.6% in 2026Q1, as reported in financial statements, indicating that interest expense now exceeds interest income on the bank's earning assets.
The negative NIM is unprecedented in the provided data, as prior quarters showed NIM ranging from 0.5% to 1.1%. This suggests that the bank's funding costs have surged or that its interest-earning asset base has contracted significantly. The sharp decline in NIM may indicate a strategic pivot away from traditional banking activities, but it also raises concerns about the sustainability of the bank's interest income stream. Peer comparison shows Schwab and Interactive Brokers maintain positive NIMs, so this deviation warrants further investigation.
Efficiency Ratio Spikes
Efficiency ratio jumped to 138.1% in 2026Q2 from 42.1% in 2026Q1, based on reported figures, implying that non-interest expenses now exceed total revenue, a stark reversal from prior quarters.
The efficiency ratio above 100% indicates that the bank is spending more on operating expenses than it generates in revenue, which is unsustainable in the long term. This spike is driven by a combination of declining revenue (total revenue fell from $1.1B to $535M) and relatively stable or increased expenses. The prior quarters showed a healthy efficiency ratio, averaging around 40%, so this deterioration suggests a significant operational disruption or a one-time expense. Investors should monitor whether this is a temporary blip or a new trend.
Provision Expense Surges
Provision for loan losses rose to $166M in 2026Q2 from $201M in 2026Q1, but as a percentage of revenue it spiked to 31.0% from 18.8%, according to quarterly data, signaling heightened credit risk.
While the absolute provision amount decreased slightly, the provision-to-revenue ratio more than doubled, indicating that credit costs are consuming a larger share of the bank's revenue. This could reflect a deteriorating credit quality in the loan portfolio or a more conservative provisioning stance. The increase in provision expense in 2025Q4 ($301M) and 2026Q1 ($201M) compared to earlier quarters suggests a rising trend in credit losses. This warrants close monitoring as elevated provisioning could pressure future earnings.
Fee Income Dominates Revenue
Non-interest income accounted for 94.2% of total revenue in 2026Q2, up from 72.8% in 2026Q1, as per financial statements, underscoring the bank's heavy reliance on fee-based revenue.
The fee income percentage has been steadily increasing from around 58% in early 2024 to over 90% in 2026Q2, indicating a strategic shift towards transaction-based and other non-interest income. This diversification reduces dependence on net interest income, but it also exposes the bank to market volatility and trading volumes. The sharp increase in fee income in 2026Q2 ($504M) despite a drop in total revenue suggests that fee income is becoming the primary revenue driver, which may be more volatile and less predictable than interest income.
2026Q2 Marks Turning Point
The 2026Q2 quarter represents a critical inflection point, with net income swinging to $561M despite negative NII and a 138.1% efficiency ratio, based on reported data, signaling a fundamental shift in earnings composition.
Despite the collapse in NII and spike in efficiency ratio, the bank reported a net income of $561M, the highest in the provided quarters, driven by a $166M provision and a $504M non-interest income. This suggests that the bank's earnings are now almost entirely dependent on fee income and possibly one-time gains, as operating income was -$411M. The divergence between operating income and net income indicates significant non-operating items, such as tax benefits or investment gains, which may not be recurring. This inflection point warrants a closer look at the sustainability of earnings.
Earnings Quality Under Scrutiny
The 2026Q2 net income of $561M appears heavily reliant on non-operating items, given a -$411M operating loss, based on reported figures, raising questions about earnings sustainability.
The stark contrast between operating income and net income in 2026Q2 suggests that a significant portion of earnings may come from one-time gains, tax benefits, or other non-recurring items. This is further supported by the negative NII and efficiency ratio above 100%, which indicate core operations are not generating profits. Investors should scrutinize the sustainability of these earnings, as they may not be repeatable. Additionally, the sharp decline in NII and NIM could signal structural challenges in the bank's interest-earning model, which may not be offset by fee income in the long term.