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Robin Hood shares are under pressure. A key earnings metric adjusted EBITDA missed analyst expectations. Joining us now, Devin Ryan, Citizens Director of Financial Technology Research. Uh Devin, thanks for being here. I want to zero in on that EBITDA number and what looks like a miss here. Uh what do you make of it because the other numbers look relatively strong?

Hey Julie, um, I I wouldn't really call this a miss. I mean, this was an inline quarter, but the thing is we get monthly metrics from Robin Hood. So it's hard for there to be too much of a surprise in either direction. So results are effectively in line, but the reality is there there's so much good here. I think beneath the surface. So they grew revenues by, you know, 50%, they grew net income by 100% year over year. Um, the EBITDA margins were over 50%. So they're incredibly profitable even as they're growing here. And then, you know, more of the key metrics I look at is uh the uh net deposits. That's essentially their net new assets and they had $18 billion in the quarter, which is up 60% over last year. So you can go on and on, but just a lot of really um, kind of powerful growth metrics. And what's exciting is, you know, a lot of the um, opportunity I think is still in the come here in terms of where growth is going. So they're executing right now that closing acquisition trade PMR in the quarter. And they also bought back a lot of stock and they increased their authorization. So um, you know, I think a little bit of noise here after the close, but um, I think people should be pretty happy with um, with the company just delivered.

Uh Devin, I'm curious. You know, we may be dipping a bit here in the after hours, but this stock has had just a tremendous run, Devin. I'm curious how you think about valuation for this name.

Yeah, so Josh, I remember coming on and talking about can Robin Hood be profitable? And I think that was a question and then uh, they got to profitability and how profitable can they be? Um, you know, the company's operating at 50% EBITDA margins right now. It's trading at north of 10 times our 2026 EBITDA estimates. So for business growing 50%, you know, year of year in revenues, uh, they shouldn't be trading at south of 10 times our estimates. So um, you know, the way I I look at it, Robin Hood's talking about 10Xing the company over the next 10 years. And that sounds like a bold uh ambition. But if they can do that, we think the stock could be up um, you know, in the ballpark of that much. So you think about how well it's already done. We still think uh the best is yet to come and they're just getting into these areas like credit cards, digital banking, uh that just again, closed a deal trade PMR, which is a digital, which is a full service advice offering, custody offering and they're getting into digital advice as well. So they're kind of checking all those boxes and a lot of these are you still very early days.