Crypto Revenue Plunge Pushes Robinhood Q4 Results Below Forecasts
The trading platform's stock dropped approximately 8% during extended trading hours despite achieving record fourth-quarter revenue that failed to meet Wall Street expectations.
The popular trading platform Robinhood experienced a decline during Tuesday's after-hours session following the release of quarterly earnings that fell short of analyst projections, while cryptocurrency-related revenues experienced a significant downturn during the final quarter of the year.
The company disclosed record net revenues totaling $1.28 billion for the fourth quarter, falling below the Street's consensus estimate of $1.34 billion, though the figure represented a 27% increase compared to the same period in the previous year.
Cryptocurrency-based revenue streams plummeted 38% from the prior year to $221 million, a decline attributed to the crypto market's entry into a prolonged drawdown phase beginning in October.
The trading platform's net income during the quarter experienced a 34% year-over-year decline, dropping to $605 million, while earnings per share came in at 66 cents, narrowly surpassing the analyst consensus of 63 cents.
Robinhood's stock (HOOD) declined 7.66% to $79.04 during after-hours trading following a regular session that saw shares close 1.1% lower at $85.60. The stock has experienced a decline exceeding 42% from its October 3 peak of $148.67.
For the complete 2025 fiscal year, the company reported that net revenues climbed 52% compared to 2024, reaching a record $4.5 billion, while annual net income surged 35% to $1.9 billion.
Crypto volume growth lags other products
The trading platform disclosed that notional cryptocurrency trading volumes throughout its application and Bitstamp, its fully-owned exchange subsidiary, increased 3% on a quarter-over-quarter basis in Q4, reaching a record $82.4 billion.
In contrast, volumes for equity trading demonstrated stronger quarterly growth, climbing 10% to $710 billion, while the number of options contracts traded increased 8% during the quarter to 659 million.
The company's foray into prediction markets, launched on its platform in March through a collaboration with Kalshi, has contributed to boosting Robinhood's fourth-quarter revenues, as demand for event contracts surged significantly throughout the previous year.
The platform's "other" category of transaction-based revenues, encompassing products including prediction markets and futures, reached a record $147 million during Q4, representing a 375% increase from the comparable period last year, surpassing equity trade revenues for the first time in company history.
In a statement, Robinhood's chair and chief executive officer, Vlad Tenev, remarked, "Our vision hasn't changed: we are building the Financial SuperApp."