Robinhood vs LPL Financial
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KIRA’s take AI analyst
I put Robinhood and LPL Financial side by side, using each one’s latest annual report. Here is what stands out:
- LPL Financial is the larger business, with $17.0B of revenue in fiscal 2025 against $4.5B for Robinhood, about 3.8 times as much.
- Robinhood grew revenue faster (51.6%, against 37.2%).
- Robinhood turned more of its sales into free cash flow (36.3% FCF margin, against −5.8%).
- Investors pay more for each dollar of Robinhood’s earnings: a P/E of 40.9x against 25.2x for LPL Financial.
Who comes out ahead
Of the 6 measures where higher (or lower) is clearly better, how many each company leads.
Robinhood
HOOD
6/6
Revenue growth5-year growthNet marginFCF marginReturn on equityShare count change
LPL Financial
LPLA
0/6
Side by side
Best in the row
| Latest fiscal year | HOOD FY25 | LPLA FY25 |
|---|---|---|
| Size | ||
| Market cap | $84.7B | $25.4B |
| Revenue | $4.5B | $17.0B |
| Free cash flow | $1.6B | −$982M |
| Net income | $1.9B | $863M |
| Growth | ||
| Revenue growth | 51.6% | 37.2% |
| 5-year growth | 36.1% | 23.7% |
| Share count change | 1.4% | 4.8% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | 42.1% | 5.1% |
| FCF margin | 36.3% | −5.8% |
| Return on capital | — | 12.3% |
| Return on equity | 22.0% | 20.9% |
| Balance sheet | ||
| Net debt | — | $6.1B |
| Net debt / EBITDA | — | 3.2x |
| Dividends and buybacks | $653M | $194M |
| Valuation & quality | ||
| P/E | 40.9x | 25.2x |
| Piotroski F-score | — | — |
Ten years
Revenue
FY16
HOOD —
LPLA $4.0B
FY17
HOOD —
LPLA $4.3B
FY18
HOOD —
LPLA $5.2B
FY19
HOOD $278M
LPLA $5.6B
FY20
HOOD $958M
LPLA $5.9B
FY21
HOOD $1.8B
LPLA $7.7B
FY22
HOOD $1.4B
LPLA $8.6B
FY23
HOOD $1.9B
LPLA $10.1B
FY24
HOOD $3.0B
LPLA $12.4B
FY25
HOOD $4.5B
LPLA $17.0B
HOOD
LPLA
Operating margin
FY16
HOOD —
LPLA —
FY17
HOOD —
LPLA —
FY18
HOOD —
LPLA —
FY19
HOOD —
LPLA —
FY20
HOOD —
LPLA —
FY21
HOOD —
LPLA —
FY22
HOOD —
LPLA —
FY23
HOOD —
LPLA —
FY24
HOOD —
LPLA —
FY25
HOOD —
LPLA —
HOOD
LPLA
Free cash flow
FY16
HOOD —
LPLA $261M
FY17
HOOD —
LPLA $341M
FY18
HOOD —
LPLA $449M
FY19
HOOD $1.3B
LPLA $467M
FY20
HOOD $1.9B
LPLA $634M
FY21
HOOD −$948M
LPLA $237M
FY22
HOOD −$880M
LPLA $1.6B
FY23
HOOD $1.2B
LPLA $109M
FY24
HOOD −$170M
LPLA −$285M
FY25
HOOD $1.6B
LPLA −$982M
HOOD
LPLA
Return on capital
FY16
HOOD —
LPLA 11.4%
FY17
HOOD —
LPLA 12.5%
FY18
HOOD —
LPLA 19.8%
FY19
HOOD —
LPLA 22.8%
FY20
HOOD —
LPLA 18.9%
FY21
HOOD —
LPLA 15.5%
FY22
HOOD —
LPLA 23.2%
FY23
HOOD —
LPLA 25.5%
FY24
HOOD —
LPLA 19.7%
FY25
HOOD —
LPLA 12.3%
HOOD
LPLA
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.