We feel now is a pretty good time to analyse Robinhood Markets, Inc.'s (NASDAQ:HOOD) business as it appears the company may be on the cusp of a considerable accomplishment. Robinhood Markets, Inc. operates financial services platform in the United States. On 31 December 2023, the US$10b market-cap company posted a loss of US$541m for its most recent financial year. The most pressing concern for investors is Robinhood Markets' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Robinhood Markets

Robinhood Markets is bordering on breakeven, according to the 11 American Capital Markets analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$195m in 2024. So, the company is predicted to breakeven approximately a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 98% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Robinhood Markets' upcoming projects, but, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Robinhood Markets is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Robinhood Markets' case is 53%. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Robinhood Markets which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Robinhood Markets, take a look at Robinhood Markets' company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:

1. Historical Track Record: What has Robinhood Markets' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Robinhood Markets' board and the CEO’s background.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.