Virtu Financial and Partners Invest in New Options Intermediary to Compete for Retail Order Flow
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Should l Buy HOOD?
Source: seekingalpha
- Investment in New Intermediary: Virtu Financial, Akuna Capital, Belvedere Trading, and Optiver have collectively invested in a new options intermediary, Optimal Market Technologies, aiming to acquire order flow from retail brokers and challenge Citadel Securities' market dominance.
- Increased Market Competition: The four firms will lead a larger group of liquidity providers competing for order flow routed from trading apps used by small-scale traders, thereby enhancing market competitiveness and boosting their profitability.
- Regulatory Approval Progress: Optimal has received approval from the Financial Industry Regulatory Authority, but it has yet to secure final approval from the U.S. Securities and Exchange Commission to create an alternative trading system, which will impact its market operations' timing and efficiency.
- Growth in Order Flow Payments: According to Bloomberg Intelligence, order flow payments across U.S. equities and options surged 51% year-over-year to $1.24 billion in Q3 2025, indicating that retail brokers continue to thrive in a low-commission environment.
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Analyst Views on HOOD
Wall Street analysts forecast HOOD stock price to rise
20 Analyst Rating
16 Buy
4 Hold
0 Sell
Strong Buy
Current: 71.120
Low
130.00
Averages
156.24
High
181.00
Current: 71.120
Low
130.00
Averages
156.24
High
181.00
About HOOD
Robinhood Markets, Inc. is creating a financial services platform for everyone, regardless of their wealth, income, or background. It uses technology to provide access to the financial system. Its offerings include Brokerage, Robinhood Crypto, Custody, Robinhood Wallet, Robinhood Gold, and Robinhood Gold Card. Its Brokerage services include investing, options trading, fractional trading, recurring investment, access to investing on margin, fully paid securities lending, cash sweep, instant withdrawals, Robinhood retirement, 24-hour market, joint investing accounts, and event contracts. It also offers a variety of ways for its customers to grow their financial knowledge, including Robinhood Learn, In-App Education, Newsfeeds, Sherwood Snacks, and Crypto Learn and Earn. Its self-clearing system, order routing system, data platform, and other back-end infrastructure deliver the capabilities that allow its customers to focus on investing, saving and spending.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Net Deposit Growth: Net deposits totaled nearly $16 billion in Q4, representing a 19% annualized growth rate relative to total platform assets from the previous quarter, indicating sustained customer trust and inflow of assets, enhancing future revenue potential.
- Deepening Customer Relationships: The report highlighted a 57% year-over-year increase in retirement accounts opened, demonstrating significant progress in building long-term customer relationships, which will lay the groundwork for future revenue growth.
- Investment Opportunity: Despite the revenue miss, the ongoing growth in customer assets and the rollout of new banking services provide strong support for Robinhood's future development, suggesting that the current stock dip may present a buying opportunity for investors.
See More
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- Significant Revenue Growth: Robinhood's revenue surged from $1.4 billion in 2022 to $4.5 billion in 2025, achieving a compound annual growth rate of 66%, indicating substantial success in attracting retail investors and solidifying its market position.
- Profitability Improvement: Robinhood turned profitable in 2024, with net income rising 33% to $1.9 billion in 2025, demonstrating the sustainability and profitability potential of its business model, which is expected to continue attracting investor interest.
- Gold Subscription Platform Expansion: By the end of 2025, Robinhood's Gold subscription platform served 4.2 million customers, driving user base growth and laying the groundwork for future revenue increases, with expectations of enhanced customer loyalty.
- HODU ETF Risks and Rewards: Direxion's HODU ETF aims to double Robinhood's daily returns; however, its structure is better suited for short-term traders due to high fees and volatility, prompting long-term investors to exercise caution, especially in unstable market conditions.
See More
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- Stock Surge: Robinhood's stock has soared over 600% in the past three years, driven by declining interest rates, an AI boom, and a 'fear of missing out' that propelled the market to record highs, attracting a fresh wave of retail investors.
- Significant Revenue Growth: Robinhood's revenue is projected to surge from $1.4 billion in 2022 to $4.5 billion by 2025, with profitability achieved in 2024 and a 33% increase in net income to $1.9 billion in 2025, indicating robust business growth potential.
- Gold Subscription Expansion: By the end of 2025, Robinhood's Gold subscription platform served 4.2 million customers, and future growth will be driven by expanding its fintech ecosystem and new acquisitions, enhancing its competitive position in the market.
- Leveraged ETF Risks: Direxion's Daily Hood Bull 2x ETF aims to double Robinhood's daily returns, but its 60% decline year-to-date highlights its high-risk nature, making it more suitable for short-term traders rather than long-term investors.
See More
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- Revenue Performance: Robinhood's Q4 revenue increased by 27% year-over-year but slightly missed expectations, leading to a sharp decline in stock price, reflecting unmet high growth expectations in the market.
- Net Deposits Growth: Net deposits reached nearly $16 billion in Q4, with an annualized growth rate of 19%, and $7 billion already deposited in early Q1, indicating strong customer trust and long-term investment intentions.
- Significant Retirement Account Growth: The company reported a 57% year-over-year increase in the number of retirement accounts opened, suggesting that more customers are transferring assets to Robinhood, enhancing its future revenue potential.
- Market Opportunities and Risks: Despite the revenue miss, the ongoing growth in customer assets provides Robinhood with opportunities to generate revenue through interest and fee-related products, making buying the stock during the dip potentially rewarding for long-term investors.
See More
Robinhood Achieves Business Maturity and Profit Stability in 2025
- Consistent Profitability Growth: In 2025, Robinhood achieved a 52% year-over-year revenue increase, reflecting significant profitability stability across equities, options, crypto, and interest income, thereby enhancing investor confidence in its long-term earnings potential.
- Significant Revenue Diversification: Robinhood diversified its revenue streams in 2025, with interest income from customer cash balances, margin lending, and securities lending becoming meaningful contributors, as multiple business lines generated over $100 million annually, reducing reliance on any single product category.
- Milestone of S&P 500 Inclusion: Robinhood's addition to the S&P 500 in 2025 not only enhanced its market recognition and liquidity but also introduced automatic demand from passive funds and ETFs, reshaping institutional and analyst perceptions and significantly strengthening its credibility.
- Accelerated Product Development: While profitability and index inclusion were headline news, Robinhood accelerated product development in 2025, including the launch of the Robinhood Gold Card and improvements in crypto infrastructure, indicating a clear strategic intent to expand its financial ecosystem.
See More
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- Consistent Profitability: In 2025, Robinhood achieved a 52% year-over-year revenue increase across transaction, interest, and subscription categories, indicating a shift towards sustainable profitability that no longer relies on market sentiment fluctuations, thus establishing a more stable earnings model.
- Revenue Diversification: The company broadened its revenue streams in 2025, with significant contributions from interest income on customer cash balances, margin lending, and securities lending, alongside multiple business lines generating over $100 million annually, reducing reliance on any single product category.
- S&P 500 Inclusion: Robinhood's addition to the S&P 500 in 2025 marked a significant milestone, enhancing the company's liquidity and institutional acceptance while generating automatic demand from passive funds, thereby reshaping market perceptions and strengthening its credibility.
- Accelerated Product Development: While profitability and index inclusion were highlights, 2025 also saw accelerated product development, including the launch of the Robinhood Gold Card and improvements in crypto infrastructure, signaling the company's strategic intent to enhance user engagement and expand service offerings.
See More
