The Federal Reserve's rate-cut cycle presents both challenges and opportunities for Robinhood Markets ( HOOD - Free Report ). While lower interest rates will weigh on net interest revenues (NIR), rising retail trading activity and new revenue streams are expected to provide important offsets. Robinhood's interest-sensitive earnings have surged recently. The company reported a record $647 million (a 20% increase year over year) in NIR for the first half of 2025, driven by high client cash balances and margin loans. However, every 25-basis-point (bp) cut could trim roughly $40 million in quarterly revenue, as sweep yields and margin rates fall. With the Fed poised to continue easing into 2026, this headwind could intensify, limiting growth from interest income.