Robinhood Stock Slides 8% as Crypto Revenue Misses in Q4

Key Insights:

• Robinhood (NASDAQ: HOOD) dropped 8% in pre-market trading after reporting Q4 revenue of $1.28 billion.
• Robinhood’s prediction market’s activity pumped with 8.5 billion event contracts traded in Q4.
• The company unveiled the public testnet of Robinhood Chain, an Ethereum Layer-2 built on Arbitrum Orbit.

Robinhood Markets (NASDAQ: HOOD) shares slipped sharply in pre-market trading on February 11, 2026, after its quarterly earnings update. The company highlighted growth in subscriptions and newer products, but crypto revenue remained a key concern for investors.

The HOOD stock is trading at $78.96 in the pre-market session. Interestingly, the Financial SuperApp shall be unveiling its own blockchain, aka Robinhood Chain, in partnership with Chainlink.

Robinhood Stock Slides 8% After Q4 Results

Robinhood reported quarterly net revenue of $1.28 billion. This was slightly below analysts’ expectations of $1.34 billion, but up 27% year over year. On the other hand, net profit came in at $605 million, marking a 34% decline compared with the same period last year.

The company’s diluted earnings per share came in at 66 cents, more than the estimated 63 cents. Transaction-based revenue increased 15% to $776 million.

However, Robinhood’s crypto trading revenue fell 38% year over year to $221 million. This comes on the backdrop of a strong crypto market correction, from October 2025.

Despite the revenue decline, Robinhood’s crypto trading volumes rose 3% quarter-over-quarter. Combined with Bitstamp, the platform hit a record $82.4 billion in total crypto trades.

Bitstamp accounted for $48 billion of that total. However, the App-based crypto demand dropped 52% from a year earlier.

Robinhood’s newly launched prediction markets, developed with Kalshi in March 2025, became a major contributor to Q4 revenue growth.

The product added a fresh stream of income alongside trading and subscriptions. Traders executed 8.5 billion event contracts during Q4, up sharply from 2.3 billion in the previous quarter.

“Other” transaction-based revenue, which includes prediction markets and futures trading, climbed to a record $147 million in Q4. That represents a 375% year-over-year increase and exceeds revenue from equity trading for the first time.

Introducing the Robinhood Chain

In another major announcement, the popular trading firm launched the public testnet for Robinhood Chain. This is an Ethereum Layer-2 network, signaling its push to build its own blockchain infrastructure. The firm said that it will soon start building and testing apps on the network.

Robinhood has launched a public testnet for its new blockchain initiative. This allows developers to experiment with tokenized real-world assets (RWAs). This includes equities, private equity, and exchange-traded funds (ETFs).

Robinhood Chain runs on Arbitrum Orbit. It supports customizable blockchains with lower transaction costs, faster performance, and Ethereum-level security guarantees.

As a Layer-2 solution, it processes transactions in batches, increasing efficiency and reducing fees compared with Ethereum’s mainnet. Speaking on the development, Johann Kerbrat, SVP and GM of Crypto and International at Robinhood, said:

Robinhood said compliance features are embedded directly at the protocol level. This makes sure that regulatory requirements are in place for assets such as stocks, private equity instruments, and other RWAs.

The platform will support tokenized stocks and ETFs. Data shows over 1,000 such assets already accessible to users in the European Union through Robinhood’s app.

Riding the RWA Tokenization Wave

2025 has been all about rising the tokenization sector wave, even with players like BlackRock joining the bandwagon. During his earnings presentation on Feb. 10, Robinhood CEO Vlad Tenev said:

The launch of the Robinhood Chain will pitch some competition to Coinbase Base in the L2 space. As of now, Base has a total value locked (TVL) of a massive over $10 billion.

Base has positioned itself around consumer-focused DeFi applications. Robinhood Chain will set itself apart with a finance-focused model. It integrates compliance mechanisms directly into the infrastructure for tokenized real-world assets (RWAs).

The competitive landscape also includes Polygon, which has expanded into enterprise-grade tokenization solutions. Moreover, players like BlackRock and Securitize are specializing on RWA platforms.

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