You don’t have to put much into the stock market to start building wealth. A single $500 investment in a stock that has promising long-term growth prospects is capable of growing into a much larger sum over time, thanks to the power of compounding.
Fintech stock Robinhood Markets (HOOD 1.71%) is one potential example of a company that, with consistent growth, strong fundamentals, and time in the market, could turn a modest initial investment into substantial long-term gains.
The brokerage firm’s shares are in the middle of a prolonged correction, but its fundamentals are solid. Revenue continues to climb, and Robinhood’s prediction market segment can become a major catalyst over the next few years.
Robinhood hit multiple records in 2025
Last year was another banner year for the fintech company. Revenue reached $4.5 billion in 2025, even amid crypto headwinds. The fourth quarter featured 27% year-over-year revenue growth, with stock and options transactions playing big roles.
Today’s Change
(-1.71%) $-1.20
Current Price
$68.91
Key Data Points
Market Cap
$62B
Day’s Range
$65.57 – $70.14
52wk Range
$29.66 – $153.86
Volume
761K
Avg Vol
29M
Gross Margin
94.96%
Robinhood’s customers are also getting more active. The company reported $16 billion in net deposits in Q4, resulting in a new record of $68 billion in net deposits throughout 2025. That activity came as the average revenue per user increased by 16% year over year to $191.
This type of record signals that Robinhood is still gaining market share. It’s also growing at a fast pace. While mature financial companies often have single-digit revenue growth rates, Robinhood’s growth is much higher. Options and equity revenue were up by 41% and 54% year over year, respectively.
Image source: Getty Images.
Prediction markets continue to surge
Robinhood launched its prediction market in October 2024, but the recent introduction of pro and college football contracts was a major catalyst that manifested in the second half of 2025.
Its “other transaction revenue” segment surged by more than 300% year over year. Prediction markets were a major reason why, with Robinhood facilitating more than 12 billion event contract trades last year. More than 8 billion of those trades took place in Q4.
Robinhood customers have quickly embraced prediction markets, and it may be enough to attract more users. In the earnings call, management stated that prediction markets act as both an engagement enhancer for existing investors and a new customer acquisition funnel, with strong cross-sell potential into traditional investing products.Â
The prediction industry is in its very early innings. Grandview Research projects a 66.7% CAGR for the industry from now until 2033. The “other transaction revenue” segment made up more than 10% of Robinhood’s business. If the industrywide CAGR holds, it would not be shocking to see prediction markets become a substantial share of Robinhood’s total revenue.
Crypto won’t stay down forever
Notably, a sluggish crypto market weighed on Robinhood’s results, with the company reporting a 38% year-over-year dip in crypto revenue in the fourth quarter.
Bitcoin is down by roughly 50% from its all-time high, but it has stabilized over the past month and a half. While crypto is a very volatile asset, those price movements can translate into more trading volume when the asset class regains momentum. A quick look at Bitcoin’s five-year chart shows that it can move in a hurry once it gets hot.
Robinhood isn’t depending on Bitcoin’s recovery to deliver revenue growth for investors. However, it will be a welcome development once crypto breaks out of its funk.
