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New Products, Diversification & Crypto to Drive HOOD Stock in 2026
Robinhood Markets HOOD has had an eventful 2025, marked by its addition to the S&P 500, a wave of new product launches, a strong crypto cycle and unusually volatile markets. These led to solid performance and resulted in bullish investor sentiments for the stock.As such, over the past year, shares of HOOD have skyrocketed 208.6% compared with 40% rally for the industry. In the same time frame, its close peers, Charles Schwab SCHW and Interactive Brokers IBKR have gained 37.8% and 47.9%, respectively.
As we enter 2026, let’s take a look at the factors that are likely to keep driving Robinhood stock.
Product Launches & Global Expansion: Robinhood is boosting its growth through aggressive product innovation and global expansion, positioning itself as a next-generation fintech ecosystem.Major 2025 launches include Robinhood Cortex, an AI assistant that allows users to build custom indicators, analyze markets and access real-time AI-driven news insights. The Legend platform enhances advanced trading with futures access, short selling, simulated options returns and nearly 24/5 index options trading. Robinhood Social introduces a verified trading community for sharing strategies and tracking expert portfolios, with copy trading coming soon. Further, banking services and a Gold credit card extend Robinhood’s reach into personal finance, aiming to become a digital banking alternative. AI integration and rapid product rollouts are driving engagement and monetization through premium tiers. Social and community features aim to boost retention and virality, while expanded trading tools attract both retail and professional users.Globally, Robinhood is pioneering tokenized U.S. stocks and ETFs across 31 EU and EEA countries, offering 24/5 commission-free trading and plans to tokenize private companies. Broader crypto services, a proprietary blockchain and future global banking products are underway. With new offices in Toronto and plans for Asia-Pacific growth via acquisitions of Indonesia-based PT Buana Capital Sekuritas and PT Pedagang Aset Kripto, Robinhood seeks to diversify revenues and establish itself as a global fintech leader in 2026 by blending traditional finance and digital innovation.Business Diversification Initiatives: Robinhood has evolved from a brokerage firm primarily trading in digital assets to a more mature and diversified entity, striving to expand its market reach. Looking at the numbers, in 2021, it mainly relied on transaction-based revenues (almost 75% of total revenues) to generate income. In the first nine months of 2025, this came down to nearly 55%.HOOD is betting big on the lucrative prediction markets and, in a partnership with Susquehanna International Group, is acquiring a 90% stake in MIAX Derivatives Exchange (a CFTC-licensed derivatives exchange). Through this, the company intends to launch a dedicated futures and derivatives exchange and clearinghouse by 2026. Robinhood’s other initiatives underscore its ambition to evolve into a full-scale financial services platform. In February, it acquired TradePMR, an assets under administration custodian and portfolio management platform for Registered Investment Advisors, strengthening its credibility in wealth management and positioning it to compete directly with incumbents like Schwab.Likewise, Interactive Brokers and Schwab have been expanding their product suites aggressively. IBKR has added daily options on European indices and broadened crypto trading capabilities, including stablecoin funding and staking. Interactive Brokers also launched "Connections," a proprietary feature integrating global markets to provide clients access to stocks, options, futures, currencies and bonds across more than 160 markets worldwide. Meanwhile, Schwab announced a deal to acquire Forge Global Holdings, Inc. for roughly $660 million in cash. This aligns with its strategy to offer private market capabilities to retail and advisor clients, leveraging its comprehensive suite of wealth, advisory and investment management solutions, to address the complex needs of investors.Focus on Crypto: Robinhood’s focus on the cryptocurrency space, through increased tokenization, enhanced platform capabilities and expansion into EU markets, is expected to drive greater cost efficiency and revenue growth in 2026. The company is actively pursuing Markets in Crypto-Assets Regulation (MiCA) licenses, which would enable it to offer crypto services across the European Economic Area, expanding its reach to 27 countries.The acquisition of Bitstamp (closed in June) and the impending WonderFi deal (now expected to close in the first half of 2026) align with this broader strategy. Bitstamp’s core spot exchange, offering more than 85 tradable assets, will significantly strengthen Robinhood’s crypto product suite. Further, WonderFi brings two of Canada’s leading regulated crypto platforms, Bitbuy and Coinsquare, with more than C$2.1 billion in assets under custody. These will enable Robinhood to provide trading, staking and custody services.As the platform diversifies and enhances its offerings, Robinhood’s cryptocurrency revenues are well-positioned for growth, supported by increasing investor interest in crypto as both a return-generating and diversification tool. Currently, the company supports several major cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, Litecoin, Solana and Toncoin. In the first nine months of 2025, crypto transaction revenues soared 154% year over year to $680 million, driven by impressive trading volume.With mainstream adoption of cryptos, Robinhood is expected to witness another year of robust revenue growth from it. Also, through this, the company is expected to better cross-sell into subscriptions, cash and other services, which will further drive top line. Further, favorable regulatory changes and product updates, including support for tokens, wallet features, staking/earn programs (where permitted) and international availability, are expected to augment transaction-based revenues and user engagement in 2026.
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Should You Buy Robinhood (HOOD) Stock Before February?
Robinhood's (HOOD 0.55%) stock nearly tripled over the past 12 months. The online brokerage dazzled investors with its robust revenue growth, rising margins, and soaring profits.
Does Robinhood's stock still have more room to run before its next earnings report in February? Let's review its business model, growth rates, and valuations to determine the answer.
Robinhood, which was founded in 2013, disrupted traditional online brokerages with its commission-free trades and gamified trading app. It subsidizes its free trades by bundling together its smaller orders and selling them to high-frequency trading (HFT) firms.
Those "payment for order flow" (PFOF) payments — along with its crypto trading revenues (from rebates and spreads), net interest income (from uninvested cash, margin loans, and securities lending), and subscription revenues from its premium Gold tier — generate most of its revenue.
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