Robinhood MarketsLIM:HOOD 69 Gross Margin % is 80.60% as of Mar. 2026, which is 7% above its 10-year median of 75.26. GuruFocus rates LIM:HOOD with a GF Score™ of 69/100 and a GF Value™ of $68.01 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 617 Capital Markets companies, Robinhood Markets ranks better than 82.33% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Robinhood Markets had a gross margin of 80.60% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Robinhood Markets Gross Margin % Related Terms
Robinhood Markets Gross Margin % Historical Data
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The historical data trend for Robinhood Markets's Gross Margin % 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.
LIM:HOOD vs IBKR, CRCL, IREN: Gross Margin % Comparison
For the Capital Markets subindustry, Robinhood Markets's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Robinhood Markets's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Robinhood Markets's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Robinhood Markets (LIM:HOOD) has a Gross Margin % of 80.60% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Robinhood Markets and its competitors. This is near median its historical median of 75.26. Over the past decade, Robinhood Markets' Gross Margin % has ranged from 56.70 to 92.17. According to the industry distribution chart, Robinhood Markets ranks #109 out of 617 companies in the Capital Markets industry, placing it in the top 17.7%.
Is Robinhood Markets' Gross Margin % too high?
Robinhood Markets' current Gross Margin % of 80.60% is near median its 10-year median of 75.26. Over the past 10 years, this metric has ranged from a low of 56.70 to a high of 92.17. The Capital Markets industry median Gross Margin % is 48.30. Robinhood Markets' value of 80.60% is 66.9% above this industry median. Based on the distribution chart, Robinhood Markets ranks #109 out of 617 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, Robinhood Markets has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Robinhood Markets' Gross Margin % compare to IBKR and CRCL?
According to the Capital Markets industry distribution chart, Robinhood Markets ranks #109 out of 617 companies for Gross Margin %. This places Robinhood Markets in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.30. Robinhood Markets' value of 80.60% is 66.9% above this benchmark. Historically, Robinhood Markets' own Gross Margin % has ranged from 56.70 to 92.17 over the past decade. While the company's 10-year median is 75.26 vs. the industry median of 48.30, Robinhood Markets has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Capital Markets company?
The median Gross Margin % among Capital Markets companies is 48.30, based on 617 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Robinhood Markets's current Gross Margin % of 80.60% is 66.9% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Robinhood Markets and its competitors. For the Capital Markets industry, the median Gross Margin % is 48.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Robinhood Markets's current Gross Margin % is 80.60%, which is near median its own 10-year median of 75.26. 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?
Based on GuruFocus' analysis, Robinhood Markets (LIM:HOOD) is currently considered Significantly Overvalued. The stock's GF Value™ is $68.01, compared to a current price of $107.93 — trading 58.7% above its estimated fair value. The current Gross Margin % is 80.60%, which is near median its 10-year median of 75.26 and 66.9% above the Capital Markets industry median of 48.30. Robinhood Markets' overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Robinhood Markets (LIM:HOOD), the current Gross Margin % is 80.60% as of Mar. 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 (LIM:HOOD) Overvalued in 2026?
Based on GuruFocus' analysis, Robinhood Markets stock appears to be overvalued.
The current stock price of $107.93 is trading 58.7% above its estimated GF Value™ of $68.01.
GuruFocus considers Robinhood Markets to be Significantly Overvalued.
Key valuation signals for LIM:HOOD:
Gross Margin %: 80.60% (near median its 10-year median of 75.26)
GF Value™: $68.01 vs. price of $107.93 (58.7% above fair value)
Industry Position: 66.9% above the Capital Markets median (#109 of 617)
No single metric tells the full story. See the LIM: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.
69GF Score
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