Quality score · HOOD · Financials

Is Robinhood Markets Inc. Class A Common Stock a quality business?

Robinhood Markets Inc. Class A Common Stock (HOOD) scored on five pillars from its reported financial statements, and ranked against 261 Financials companies.

5.2/ 10
Mixed quality
as of October 16, 2026
Profitability
7.6 Strong
Solvency
—
Growth
—
Efficiency
6.4 Average
Predictability
1.3 Weak
Strongest pillar: Profitability · Weakest: Predictability

Robinhood Markets Inc. Class A Common Stock (HOOD) scores 5.2 out of 10 as of , computed from its reported financial statements. That reads as mixed quality. The reading rests on profitability, and predictability is what holds it back.

2 pillars, solvency and growth, are unscored because the filings behind them carry too little to judge. Each is shown as a dash rather than a zero, and the overall score is the weighted average of what could be scored.

Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.

Does Robinhood Markets Inc. Class A Common Stock have an economic moat?

No moat

Robinhood Markets Inc. Class A Common Stock’s filings do not show enough of the signs a moat leaves: 0 of 3 indicators passed.

Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →

How Robinhood Markets Inc. Class A Common Stock scores

Robinhood Markets Inc. Class A Common Stock (HOOD) has a Lemma Quality Score of 5.2 out of 10 as of October 16, 2026, which reads as mixed quality. A mixed reading means the strengths and weaknesses roughly cancel out, and the case for the business depends on which pillars you care about most. Five pillars feed it, and every one of them is computed from what the company reported rather than from its share price.

Ranked with the 261 Financials companies Lemma publishes, the score sits at the 33rd percentile, in the weaker half of its peers. The median across the group is 5.9, and the top quarter begins at 6.8, so Robinhood Markets Inc. Class A Common Stock is below the typical company here.

Pillar by pillar

Profitability

On profitability, Robinhood Markets Inc. Class A Common Stock scores 7.6, a strong reading. Its peers have a median of 6.8 across 255 Financials companies, which places it above them, at the 68th percentile. A reading this strong says the business earns well on what it sells and on the capital it uses, the kind of margin profile competitors find hard to copy.

Solvency

There is no solvency score for Robinhood Markets Inc. Class A Common Stock: too little of the pillar could be measured from the filings to give an honest reading. The overall is therefore the weighted average of the other pillars. Across 140 Financials companies the median for this pillar is 8.5. Without it the overall says nothing about how comfortably the company carries its debt.

Growth

There is no growth score for Robinhood Markets Inc. Class A Common Stock: too little of the pillar could be measured from the filings to give an honest reading. The overall is therefore the weighted average of the other pillars. Across 241 Financials companies the median for this pillar is 4.6. Growth needs at least three years of comparable annual statements, so a short or interrupted history leaves it blank.

Efficiency

On efficiency, Robinhood Markets Inc. Class A Common Stock scores 6.4, an average reading. Its peers have a median of 5.8 across 211 Financials companies, which places it above them, at the 63rd percentile. Efficiency near the median says the operation is neither unusually lean nor unusually capital hungry.

Predictability

Robinhood Markets Inc. Class A Common Stock’s predictability score is 1.3 out of 10 (weak). Against a median of 4.9 among 256 Financials companies, that is well below the group and the 6th percentile. A low predictability score often belongs to cyclical businesses, where good and bad years alternate with the economy or with commodity prices.

Strongest and weakest pillar

This is a lopsided profile. Profitability scores 7.6 but predictability only 1.3, a gap of 6.3 points, so the overall hides a business that is excellent in one respect and weak in another. Leading with profitability is the most valuable kind of strength, because margins and returns are what the other pillars ultimately feed. A predictability shortfall means the record is volatile, so the averages behind the other pillars move more than they appear to.

What would move the score

Closing the gap on predictability would do the most for the overall. At the median of Financials companies, 4.9, Robinhood Markets Inc. Class A Common Stock would score about 6.4 instead of 5.2. Only three of the five pillars could be scored. Together they carry 60 of the 100 weight points (the full set is profitability 25, solvency 20, growth 20, efficiency 15, predictability 20), and the overall is the weighted average of those alone.

Robinhood Markets Inc. Class A Common Stock and similar companies

These are the Financials companies closest to Robinhood Markets Inc. Class A Common Stock in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.

What each pillar measures

Profitability

7.6 / 10

How much profit the company generates from its capital and sales.

Solvency

—

The company’s ability to service debt and meet its obligations.

Growth

—

How fast revenue, earnings and cash flow are compounding.

Efficiency

6.4 / 10

How well assets and earnings convert into cash and output.

Predictability

1.3 / 10

How stable and consistent results have been over time.

How this score is calculated

Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.

Limitations

This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.

Educational only. Not investment advice.

FAQ

Is Robinhood Markets Inc. Class A Common Stock a quality business?

On this reading Robinhood Markets Inc. Class A Common Stock scores 5.2 out of 10, which reads as mixed quality. Its strongest pillar is profitability, its weakest is predictability. Quality is not the same as a good investment: the score says nothing about the price you would pay.

How does Robinhood Markets Inc. Class A Common Stock compare with other Financials companies?

Robinhood Markets Inc. Class A Common Stock ranks at the 33rd percentile of the 261 Financials companies Lemma publishes a score for. The median there is 5.9 and the top quarter starts at 6.8, against Robinhood Markets Inc. Class A Common Stock’s 5.2.

What does the HOOD quality score measure?

Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.

How current is this score?

This page last changed on October 16, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for HOOD are in the app.

Does a high score mean the stock is cheap?

No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.

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Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.

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