Robinhood MarketsLIM:HOOD 69 Operating Margin % is 38.52% as of Mar. 2026. GuruFocus rates LIM:HOOD with a GF Score™ of 69/100 and a GF Value™ of $71.81 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 664 Capital Markets companies, Robinhood Markets ranks better than 80.72% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Robinhood Markets Operating Margin % Related Terms
Robinhood Markets Operating Margin % Historical Data
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The historical data trend for Robinhood Markets's Operating 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: Operating Margin % Comparison
For the Capital Markets subindustry, Robinhood Markets's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Robinhood Markets's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Robinhood Markets's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Robinhood Markets's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (LIM:HOOD) has a Operating Margin % of 38.52% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Robinhood Markets and its competitors. According to the industry distribution chart, Robinhood Markets ranks #128 out of 664 companies in the Capital Markets industry, placing it in the top 19.3%.
Is Robinhood Markets' Operating Margin % too high?
Robinhood Markets' current Operating Margin % is 38.52%. The Capital Markets industry median Operating Margin % is 6.96. Robinhood Markets' value of 38.52% is 453.8% above this industry median. Based on the distribution chart, Robinhood Markets ranks #128 out of 664 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' Operating Margin % compare to IBKR and CRCL?
According to the Capital Markets industry distribution chart, Robinhood Markets ranks #128 out of 664 companies for Operating Margin %. This places Robinhood Markets in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.96. Robinhood Markets' value of 38.52% is 453.8% 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 Operating Margin % for a Capital Markets company?
The median Operating Margin % among Capital Markets companies is 6.96, based on 664 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Robinhood Markets's current Operating Margin % of 38.52% is 453.8% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Robinhood Markets and its competitors. For the Capital Markets industry, the median Operating Margin % is 6.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Robinhood Markets's current Operating Margin % is 38.52%. 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 $71.81, compared to a current price of $107.93 — trading 50.3% above its estimated fair value. The current Operating Margin % is 38.52% and 453.8% above the Capital Markets industry median of 6.96. Robinhood Markets' overall GF Score™ is 69/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Robinhood Markets (LIM:HOOD), the current Operating Margin % is 38.52% 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 50.3% above its estimated GF Value™ of $71.81.
GuruFocus considers Robinhood Markets to be Significantly Overvalued.
Key valuation signals for LIM:HOOD:
Operating Margin %: 38.52%
GF Value™: $71.81 vs. price of $107.93 (50.3% above fair value)
Industry Position: 453.8% above the Capital Markets median (#128 of 664)
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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