HOOD's Platform Assets Rise in Early 2026: Revenue Tailwinds Ahead?

Robinhood Markets, Inc.’s HOOD platform assets have become the company’s primary financial growth engine, driving both resilience and operating leverage. In January 2026, total platform assets climbed to $324.4 billion, marking a 59% year-over-year jump, supported by continued strong net deposits. In January alone, Robinhood reported $4.5 billion in net deposits, contributing meaningfully to the expansion of assets under management.

This expanding asset base is expected to strengthen net interest income, and help increase securities lending and transaction-driven revenues, even as trading activity remains volatile. As rising platform assets enhance recurring income streams, asset growth is considered a core driver of Robinhood’s net revenue expansion.

A larger pool of customer assets enhances interest-earning balances, creating a growing stream of interest income. HOOD’s cash sweep balances touched $31.5 billion in January, up 20% year over year, while margin balances surged 122% to $18.4 billion. Securities lending revenues rose 36% year over year in January 2026, underscoring the operating leverage created by higher platform assets.

Platform assets growth also amplifies notional trading and derivatives activity over time. In January, equity notional trading volumes were $227.3 billion, up 57% year over year. Options contracts traded increased 20% to 200 million. While Robinhood App crypto notional trading volumes declined 57% from the prior-year month to $8.7 billion, crypto notional trading volumes were $22.9 billion, up 12% year over year.

While net interest revenues remain rate-sensitive, the expanding base of platform assets provides a durable offset, cushioning against margin compression. Sustained net deposits, expanding sweep balances and rising margin lending together reinforce Robinhood’s ability to compound top-line growth. This positions the company to scale revenues, alongside its growing customer and asset footprint.

Revenue Growth Expectation

Other Details From HOOD’s January Operating Data

In January 2026, Robinhood reported a year-over-year increase in equity and options Daily Average Revenue Trades (DARTs). Equity DARTs were 2.8 million in the reported month, up 8% from January 2025. Options DARTs rose 18% year over year to 1.3 million. However, crypto DARTs declined 44% from the prior-year month to 0.5 million.

Funded customers totaled 27.2 million in January, up 7% year over year.

How Have HOOD’s Peers Been Performing

Robinhood’s close brokerage peers are Interactive Brokers IBKR and Charles Schwab SCHW.

Similar to HOOD, Interactive Brokers and Schwab are witnessing a steady rise in total customer assets. In January 2026, Interactive Brokers’ client equity, client credits and customer margin loan balance were all up on a year-over-year basis. IBKR’s total customer accounts increased 32% year over year in January. Also, net new accounts in January rose 25% year over year.

Likewise, Schwab’s total client assets equaled $12.15 trillion in January 2026, up 18% from January 2025. Core net new assets brought to the company totaled $27.8 billion in the reported month.

HOOD’s Price Performance, Valuation & Estimate Analysis

In the past six months, Robinhood shares have declined 28.8% against the industry’s 10.9% growth.

HOOD shares are currently trading at a premium to the industry. The company has a 12-month trailing price-to-tangible book of 8.08X compared with the industry average of 3.13X.

The Zacks Consensus Estimate for Robinhood’s 2026 and 2027 earnings implies year-over-year growth of 17.1% and 17.7%, respectively. In the past 60 days, earnings estimates for both years have been revised upward.

Currently, HOOD carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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