Core Insights - The article discusses three lesser-known financial stocks that outperformed popular names like Robinhood, Dave, and SoFi in the past year, specifically highlighting Better Home and Finance and Forge Global as notable performers [1][2]. Group 1: Better Home & Finance - Better Home & Finance was the best-performing U.S.-listed financial stock in 2025, gaining 265% [3]. - The company's stock surge was attributed to its significant move into AI, which was expected to pave the way toward profitability, and bullish endorsements from fund manager Eric Jackson [5]. - However, the stock has since pulled back, and its future performance is uncertain unless the housing market improves rapidly [6]. Group 2: Forge Global - Forge Global, a private markets broker, saw its shares increase by nearly 219% last year, but its future prospects are limited due to an acquisition by Charles Schwab for $45 per share, valued at $660 million [6][8]. - The acquisition is expected to close with few hurdles, and while the opportunity for significant gains may have passed, there is a potential for merger arbitrage [8]. - The acquisition could inspire similar transactions in the brokerage industry, particularly between larger firms and niche companies [9]. Group 3: Robinhood Markets - Robinhood Markets experienced a significant increase in share price, rising from $40 to $153.86 between January and October 2025, driven by its expansion into crypto and financial services [10]. - However, investor enthusiasm has waned due to lower-than-expected trading volumes reported in November, raising concerns about future growth [11]. - The stock is currently trading at 51 times forward earnings, indicating high growth expectations that may lead to a correction if confidence declines [12].