View All Stock Evaluations | Evaluation Date: 2026-01-06
Robinhood makes money through three primary streams: transaction-based revenues from payment for order flow (PFOF) when routing stock, options, and cryptocurrency trades to market makers (58% of revenue); net interest income earned on customer cash balances, margin lending, and securities lending (35% of revenue); and subscription fees from Robinhood Gold memberships plus other services (7% of revenue). The company has successfully diversified from near-total PFOF dependence to a more balanced revenue mix.