Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We'll say it plainly, because the numbers this quarter are genuinely impressive and we don't want our conclusion mistaken for inattention: Robinhood just reported record revenue of $1.31 billion (up 32%), net income of $573 million (up 48%), a 54% pre-tax margin, 28.4 million funded customers, and $21.7 billion of quarterly net deposits. The execution is real. The growth is real. And yet we arrive at two stars. One of us famously called this company "a gambling parlor masquerading as a respectable business." Five years later, the parlor is bigger, better run, more profitable, and more diversified — but the fundamental character of the earnings stream has not changed.
Recent filings analysed: 10-Q (2026-07-30), 8-K (2026-07-29), 8-K (2026-06-26), 8-K (2026-06-25).
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