Robinhood Markets, Inc. — Earnings Quality Grade F
HOOD · Financial Services
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 426 days (1077 → 1503)
AR outpaced revenue for 2 consecutive years
Revenue 51.6%, CFFO 1143.3%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 8.0% vs revenue 51.6%. Normal
SG&A/Gross Profit = 15.5%, excellent (<30%)
Gross margin 83.3%, change +3.9pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF $1.6B, FCF/NI = 0.84
Accruals ratio = 0.6%. Low accruals
Cash $10.5B covers 90% of debt $11.6B
Balance Sheet Health
Goodwill+Intangibles $0.6B = 6% of equity. Manageable
Debt/EBITDA = 5.3x (>4x). Financial stress
Other assets 32.9% vs revenue 51.6%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 155% YoY
Manipulation Score
M-Score = -1.60 (> -1.78). LIKELY MANIPULATOR
Beneish M-Score
Altman Z-Score — Not Applicable
Robinhood Markets, Inc. is a financial company. Z-Score is designed for non-financial companies.
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09