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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Robinhood Markets's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 1.30. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Robinhood Markets's Degree of Operating Leverage or its related term are showing as below:
XSWX:HOOD's Degree of Operating Leverage is ranked worse than 59.01% of 644
companies
in the Capital Markets industry
Industry Median: 0.92
vs XSWX:HOOD: 1.30
Robinhood Markets (XSWX:HOOD) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Robinhood Markets Degree of Operating Leverage Related Terms
Robinhood Markets Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Robinhood Markets's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Robinhood Markets Degree of Operating Leverage Chart
XSWX:HOOD vs IBKR, LPLA, TW: Degree of Operating Leverage Comparison
For the Capital Markets subindustry, Robinhood Markets's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Robinhood Markets Degree of Operating Leverage vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Robinhood Markets's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Robinhood Markets's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 1.30 mean?
Robinhood Markets (XSWX:HOOD) has a Degree of Operating Leverage of 1.30 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Robinhood Markets and its competitors. According to the industry distribution chart, Robinhood Markets ranks #380 out of 644 companies in the Capital Markets industry, placing it in the top 59%.
Is Robinhood Markets' Degree of Operating Leverage too high?
Robinhood Markets' current Degree of Operating Leverage is 1.30. The Capital Markets industry median Degree of Operating Leverage is 0.92. Robinhood Markets' value of 1.30 is 41.3% above this industry median. Based on the distribution chart, Robinhood Markets ranks #380 out of 644 companies in the Capital Markets industry, which is below the industry midpoint. Overall, Robinhood Markets has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does Robinhood Markets' Degree of Operating Leverage compare to IBKR and LPLA?
According to the Capital Markets industry distribution chart, Robinhood Markets ranks #380 out of 644 companies for Degree of Operating Leverage. This places Robinhood Markets in the lower half of its industry. The industry median Degree of Operating Leverage is 0.92. Robinhood Markets' value of 1.30 is 41.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Capital Markets company?
The median Degree of Operating Leverage among Capital Markets companies is 0.92, based on 644 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Robinhood Markets's current Degree of Operating Leverage of 1.30 is 41.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Robinhood Markets and its competitors. For the Capital Markets industry, the median Degree of Operating Leverage is 0.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Robinhood Markets's current Degree of Operating Leverage is 1.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Robinhood Markets stock overvalued right now?
Robinhood Markets (XSWX:HOOD) has a current Degree of Operating Leverage of 1.30. The stock's GF Value™ is CHF61.07, compared to a current price of CHF84.78 — trading 38.8% above its estimated fair value. The current Degree of Operating Leverage is 1.30 and 41.3% above the Capital Markets industry median of 0.92. Robinhood Markets' overall GF Score™ is 76/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Robinhood Markets (XSWX:HOOD), the current Degree of Operating Leverage is 1.30 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Robinhood Markets (XSWX:HOOD) Overvalued in 2026?
Based on GuruFocus' analysis, Robinhood Markets stock appears to be overvalued.
The current stock price of CHF84.78 is trading 38.8% above its estimated GF Value™ of CHF61.07.
Key valuation signals for XSWX:HOOD:
Degree of Operating Leverage: 1.30
GF Value™: CHF61.07 vs. price of CHF84.78 (38.8% above fair value)
Industry Position: 41.3% above the Capital Markets median (#380 of 644)
No single metric tells the full story. See the XSWX:HOOD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Robinhood is a diversified financial services provider best known for its retail brokerage platform, which historically caters to a young, risk-seeking clientele that trades heavily on margin and in higher-risk asset classes like options, futures, cryptocurrencies, and more recently, in prediction markets. As those customers' financial needs have begun to mature, Robinhood has rolled out a suite of more conventional products, from retirement accounts to high-yield cash sweep accounts to nascent advisory services (Robinhood Strategies). With $322 billion in customer assets and 27 million active accounts at year-end 2025, the firm has emerged as a significant player in the large, quickly growing US brokerage market.
76GF Score
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