Robinhood Shares Plunge After Company Reports Fourth Quarter Earnings Missing Analyst Expectations in United States

Robinhood’s stock dropped sharply in after-hours trading on Tuesday, as the popular trading platform revealed earnings that fell short of Wall Street forecasts.

The company’s latest results highlighted a tough quarter for its crypto business, even as other segments showed growth.

After the market closed, Robinhood shares slid 7.66% to $79.04, adding to a 1.1% drop during the regular trading day.

The stock has now lost more than 42% of its value since hitting a peak of $148.67 in early October.

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Q4 Revenues Grow but Miss Expectations

For the fourth quarter, Robinhood reported net revenues of $1.28 billion, a 27% increase compared with the same period last year.

However, the figure fell short of the $1.34 billion analysts were expecting.

The decline was largely driven by the crypto segment, which saw revenues tumble 38% year-on-year to $221 million.

The downturn mirrors a rough stretch for the cryptocurrency market, which experienced extended drawdowns in October 2025.

Despite missing revenue expectations, Robinhood’s net income for the quarter came in at $605 million, down 34% from the prior year, with earnings per share of 66 cents slightly beating analyst projections of 63 cents.

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Growth Outside of Crypto

Robinhood’s equities and options trading continued to perform strongly.

Quarterly equity trade volumes rose 10% to $710 billion, while options contracts climbed 8% to 659 million.

Notably, the company’s “other” transaction-based revenues—covering products such as prediction markets and futures—hit a record $147 million in Q4.

That represents a 375% jump from the previous year and marks the first time these revenues exceeded those from equity trades.

Prediction markets, introduced in March 2025 in partnership with Kalshi, contributed significantly to this surge, reflecting a growing appetite among users for event-based trading contracts.

Meanwhile, crypto trading volumes saw only modest growth, with notional volumes across Robinhood’s app and Bitstamp exchange up 3% quarter-on-quarter to a record $82.4 billion.

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Annual Performance Shows Record Growth

For the full year 2025, Robinhood recorded net revenues of $4.5 billion, a 52% increase from 2024, while net income grew 35% to $1.9 billion.

This shows that while crypto volatility hurt Q4 results, the company continues to expand its overall business.

CEO and Chair Vlad Tenev emphasized Robinhood’s long-term vision, stating, “Our vision hasn’t changed: we are building the Financial SuperApp.”

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What’s Next?

Investors will be closely watching Robinhood’s performance in Q1 2026, particularly the trajectory of crypto revenues and the adoption of newer products like prediction markets and futures trading.

Analysts will also monitor user growth, retention, and engagement across Robinhood’s expanding suite of financial services.

The company’s ability to diversify beyond equities and crypto will be key in maintaining growth and investor confidence, especially in an environment of ongoing market volatility.

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Summary

• Company: Robinhood

• Q4 2025 Revenue: $1.28 billion (missed $1.34B estimate)

• Crypto Revenue: $221 million, down 38% year-on-year

• Net Income: $605 million, down 34% year-on-year

• Earnings per Share: 66 cents (beat estimate of 63 cents)

• Stock Movement: Down 7.66% after-hours to $79.04, down 42% since October peak

• Other Highlights: Prediction markets and futures generated $147 million in Q4, up 375% from last year

• Annual 2025 Performance: Revenue $4.5B (+52%), Net Income $1.9B (+35%)

Robinhood faces a critical period as it seeks to strengthen non-crypto segments, expand its Financial SuperApp offerings, and regain momentum in a fluctuating market.