Robinhood (HOOD) Stock Falls 8% After Q4 Earnings Miss Analyst Expectations

TLDR

• Robinhood reported record Q4 revenues of $1.28 billion but missed analyst expectations of $1.34 billion, sending shares down nearly 8% in after-hours trading
• Crypto revenues dropped 38% year-over-year to $221 million as the crypto market entered an extended drawdown starting in October
• Equity trade volumes jumped 10% quarter-over-quarter to $710 billion while options contracts traded rose 8% to 659 million
• Prediction markets revenue reached $147 million in Q4, up 375% year-over-year and surpassing equity-trading revenue for the first time
• Robinhood stock has fallen over 42% from its October peak of $148.67, trading at $79.04 in after-hours

Robinhood shares tumbled nearly 8% in after-hours trading Tuesday after the trading platform reported fourth-quarter earnings that missed Wall Street expectations. The company posted record revenues but couldn’t overcome a sharp decline in crypto-related income.

The platform reported net revenues of $1.28 billion for Q4. That marked a 27% increase from the prior year but fell short of analyst estimates of $1.34 billion.

Robinhood’s earnings per share came in at 66 cents. That beat the consensus estimate of 63 cents.

Robinhood Markets, Inc., HOOD

Shares dropped 7.66% to $79.04 in extended trading. The stock closed the regular session down 1.1% at $85.60.

The company’s stock has now fallen over 42% from its October 3 peak of $148.67.

Crypto Revenue Takes a Hit

Crypto-based revenues fell 38% year-over-year to $221 million. The decline came as the crypto market entered an extended drawdown beginning in October.

The drop occurred despite Robinhood’s push to expand its crypto offerings. The company rolled out crypto transfers across more regions over the past year. It also added numerous new trading tokens beyond its original limited selection.

Net income for the quarter fell 34% year-over-year to $605 million. Lower crypto prices dampened trading activity among retail investors who drive much of the platform’s volume.

Notional crypto volumes across Robinhood’s app and wholly-owned exchange Bitstamp rose just 3% quarter-over-quarter. The figure reached a record $82.4 billion but lagged behind other product categories.

Traditional Trading Picks Up Slack

Equity trade volumes saw stronger growth with a 10% quarterly jump to $710 billion. Options contracts traded climbed 8% over the quarter to 659 million.

The more balanced revenue mix helped offset some of the crypto weakness. Overall transaction-based revenue reached $776 million, up 15% from the year prior.

Prediction markets emerged as a surprise winner for the quarter. The company launched these markets in March through a partnership with Kalshi.

Revenue from “other” transaction-based products hit a record $147 million in Q4. That represented a 375% jump from the same period last year. The category surpassed equity-trading revenue for the first time.

For the full year 2025, Robinhood posted net revenues of $4.5 billion. That marked a 52% increase from 2024. Annual net income jumped 35% to $1.9 billion.

CEO Vlad Tenev said the company remains focused on building what he calls the “Financial SuperApp.”

Competitor Coinbase is scheduled to report earnings Thursday. Analysts expect similar headwinds from lower trading volumes and weaker crypto market conditions. Coinbase shares fell 1.6% in after-hours trading following Robinhood’s results.

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