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Robinhood and SoFi: Should Investors Still Pay Attention?

Both Robinhood (HOOD) and SoFi (SOFI) have experienced significant declines in their stock prices in recent months, falling far from their previous record highs. Despite this challenging period, do these companies still deserve a spot on your watchlist?

Robinhood Delivers Outstanding Quarterly Performance

Robinhood recently reported a standout quarter, achieving new records in several important areas. The company’s revenue surged 26.5% year-over-year to reach $1.3 billion, while adjusted earnings per share climbed 22% compared to the same period last year.

The number of Robinhood Gold subscribers jumped 58% year-over-year, reaching 4.2 million. Average revenue per user also increased by 16% over the past year. Activity across the platform was robust, with both options and equities trading volumes hitting new quarterly highs.

Since February, expectations for Robinhood’s earnings per share this fiscal year have softened, which likely contributed to the recent share price weakness. However, the projected EPS for fiscal year 2026 is still nearly 40% higher than it was in March of last year, and forecasts for the following year remain optimistic.

Although Robinhood’s valuation remains somewhat elevated, its current forward 12-month price-to-earnings ratio of 32.6 is the lowest since early 2025. With the company’s strong momentum and the recent pullback in share price, Robinhood is worth monitoring closely. Continued positive earnings revisions could help the stock recover from its slump, though it remains well below its all-time high of $155 reached last October.

SoFi Achieves Multiple New Milestones

SoFi also impressed in its latest report, adding a record 1 million new members—a 35% increase from the previous year. Fee-based revenue soared 50% year-over-year to $443 million, and total loan originations hit a record $10.5 billion, up 46% from last year.

Personal loan originations reached an all-time high of $7.5 billion, while home loan originations set a new record at $1.1 billion. These achievements highlight the strong appeal of SoFi’s offerings. Notably, SoFi became the first nationally chartered bank to introduce crypto trading for its customers.

Like Robinhood, SoFi’s stock has dropped sharply from its peak of around $33 per share last November. However, its current forward 12-month earnings multiple of 28.8 is much more reasonable compared to the 70.5 multiple seen in 2026.

Analyst expectations for SoFi’s earnings this year and next remain largely positive and stable.

Summary and Outlook

Although both Robinhood and SoFi have seen their share prices fall from previous highs, both companies continue to demonstrate strong growth and positive earnings outlooks. Valuations have become more attractive, and ongoing positive guidance in upcoming quarters could help reverse recent share price declines. Investors should keep a close watch on these stocks as they navigate their next phases of growth.

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