Many investors search for growth stocks that can deliver outsize returns, hoping to set themselves up for retirement and/or create more financial flexibility. One way to find these types of stocks is to look at past winners. While past results don't guarantee future outcomes, investors can analyze the fundamentals of 2025's winners and ask whether those companies have what it takes to keep growing in 2026.
Robinhood Markets (HOOD +0.22%) was one of the top fintech stocks last year. The stock's price nearly tripled in 2025, and it looks ready to extend its gains into the new year. Robinhood's underlying business is still growing, including a relatively new segment that's gaining a lot of momentum.
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Strong trading volume trends set the tone for future gains
Trading volume is a decisive factor that influences Robinhood's financials. If people trade stocks, crypto, and other assets more often, Robinhood earns more. Younger generations have embraced stock investing to compound their wealth faster. The accessibility of stock trading through mobile apps has made it easier for younger people to get started early and put more of their money into financial markets.
Robinhood's third-quarter 2025 results showed how rising enthusiasm from young investors can result in higher trading volume and significant revenue growth. Total sales doubled year over year, while net income more than tripled year over year. Robinhood also closed the quarter with a 43.6% net profit margin, which indicates the company keeps a large portion of its revenue.
Crypto was a major catalyst for this growth, with transaction revenue from that asset class up by more than 300% year over year. Elsewhere, investors are borrowing a lot of money to get more exposure to equities. That's based on Robinhood's net interest revenue increasing by 66% year over year. Robinhood earns interest when people take out margin loans against their portfolios. Traders and investors who use margin against their portfolios are more likely to be active and trade more often, which boosts Robinhood's transaction-based revenue.
NASDAQ: HOOD
Key Data Points
Prediction markets can become a major growth segment
Robinhood closed the quarter with 27.9 million users, and it's realistic for the fintech company to cross 30 million users in Q4. That user base has traded stocks, crypto, and other assets, but a new segment in Robinhood's business is quickly gaining momentum.
Prediction markets are the latest addition to the Robinhood experience, and engagement for this industry has been massive. Robinhood set up prediction markets before Q3, but that was the first quarter of pro and college football contracts. Those two additions were enough to more than double the amount of contracts traded sequentially.
Robinhood reported 2.3 billion contracts traded in Q3 and processed 2.5 billion trades in October 2025. Q4 looks to be an even better quarter for the company's prediction markets, and that could set the stage for new users and additional stock gains.
Prediction markets are very similar to sports betting sites. However, prediction markets involve users betting against each other, while sports betting sites involve people betting against the house.
These industries have attracted plenty of speculators, and more of them may come to Robinhood. People who come to Robinhood for its prediction markets may also buy stocks and crypto. Furthermore, some of Robinhood's 27.9 million customers may opt to put some of their money into prediction markets instead of just trading stocks and crypto.
