HOOD Stock Tanks 8% After Market Hours on Robinhood Q4 Revenue Miss

HOOD stock tumbles more than 8% on Tuesday, as it falls another 7% after market hours. The after-market decline comes as commission-free trading platform Robinhood Markets misses Q4 revenue estimates. Trading at $79, the stock’s now down nearly 50% from that record high.

Robinhood Q4 Results: Record $1.28 Billion Revenue Falls Short

Robinhood Markets Inc today announced financial results for the fourth quarter and full year of 2025. The company’s net revenue increased 27% year-over-year to $1.28 billion in Q4 2025. However, it missed analysts’ estimates by 4.36% at $1.34 billion.

Earnings per share (EPS) of $0.66 beat analysts’ estimates of $0.63 per share. Net income reached $605 million, and platform assets grew 68% YoY to $324 billion.

Robinhood reported full-year revenue of $4.5 billion, up 52% YoY. However, the Q4 revenue miss disappointed investors. “A top-line miss is not helpful at all,” Christian Bolou, an analyst at Autonomous Research, told Yahoo Finance. “The stock reaction might be warranted here given high expectations and a very expensive stock.”

Hood Stock Tumbles as Bear Market Hits Crypto Revenues

The October crypto market crash and profit booking during the early phase of the bear market hit crypto revenues. Robinhood’s crypto revenue falls 38% YoY to $221 million, despite expanding new token listings and crypto features. Options revenue also came in short of expectations, at $314 million versus estimates for $331 million.

In October, HOOD stock price began sliding from its all-time high of $153.86 alongside crypto prices. The weakness in crypto trading, leverage, and fading sentiment weighed on crypto trading on the Robinhood platform. The transaction-based revenues come in at $776 million, missing estimates of $791.6 million.

Despite Robinhood highlighting growth in prediction markets and options trading, HOOD stock price fell another 7.66% after market hours to $79.04. The stock price is down almost 25% YTD and 52% since October last year.

Wolfe Research and KeyBanc analysts gave a buy rating for HOOD stock. However, they set a price target of $125-$130 for the coming months.

“Our vision hasn’t changed: we are building the Financial SuperApp,” said Vlad Tenev, Chairman and CEO of Robinhood. CFO Shiv Verma also claimed that 2025 was a record year, with new highs for net deposits, Gold subscribers, trading volumes, revenues, and profits.

Robinhood to Launch its Blockchain in 2026

The company expects to launch its Robinhood Chain, a layer-2 blockchain network built on Arbitrum technology and compatible with Ethereum. It is designed specifically for financial services and tokenized real-world assets (RWA).

Robinhood revealed that its testnet is now live for developers to test and validate financial applications. CEO Vlad Tenev called it a milestone for onchain finance, while the company commits $1 million to developer programs ahead of a mainnet launch later this year.

Chainlink reveals it as the oracle platform for the Robinhood Chain. The platform said, “Builders can leverage Chainlink’s data, interoperability, and compliance standards to power advanced tokenization use cases.”