Robinhood vs Interactive Brokers
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KIRAβs take AI analyst
I put Robinhood and Interactive Brokers side by side, using each oneβs latest annual report. Here is what stands out:
- Interactive Brokers is the larger business, with $6.2B of revenue in fiscal 2025 against $4.5B for Robinhood.
- Robinhood grew revenue faster (51.6%, against 19.7%).
- Interactive Brokers turned more of its sales into free cash flow (253.7% FCF margin, against 36.3%).
- Investors pay more for each dollar of Robinhoodβs earnings: a P/E of 40.9x against 32.1x for Interactive Brokers.
Who comes out ahead
Of the 5 measures where higher (or lower) is clearly better, how many each company leads.
Robinhood
HOOD
4/5
Revenue growth5-year growthNet marginShare count change
Interactive Brokers
IBKR
1/5
FCF margin
Side by side
Best in the row
| Latest fiscal year | HOOD FY25 | IBKR FY25 |
|---|---|---|
| Size | ||
| Market cap | $84.7B | $36.3B |
| Revenue | $4.5B | $6.2B |
| Free cash flow | $1.6B | $15.7B |
| Net income | $1.9B | $984M |
| Growth | ||
| Revenue growth | 51.6% | 19.7% |
| 5-year growth | 36.1% | 22.8% |
| Share count change | 1.4% | 1.8% |
| Profitability | ||
| Gross margin | β | β |
| Operating margin | β | β |
| Net margin | 42.1% | 15.9% |
| FCF margin | 36.3% | 253.7% |
| Return on capital | β | β |
| Return on equity | 22.0% | β |
| Balance sheet | ||
| Net debt | β | β$4.9B |
| Net debt / EBITDA | β | β0.6x |
| Dividends and buybacks | $653M | $134M |
| Valuation & quality | ||
| P/E | 40.9x | 32.1x |
| Piotroski F-score | β | β |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
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.