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Robinhood delivered record quarterly revenue, yet the numbers failed to meet Wall Street expectations as crypto trading income declined sharply.
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Investor reaction turned negative despite headline growth at Robinhood. The company reported $1.28 billion in net revenue for the fourth quarter, up 27 percent from a year earlier. Analysts had projected $1.34 billion.
The shortfall weighed on the stock. Shares under the ticker HOOD fell 7.66 percent in after hours trading to $79.04 after closing the regular session down 1.1 percent at $85.60. The stock remains more than 42 percent below its October 3 peak of $148.67.
Crypto trading drove much of the disappointment. Revenue tied to digital assets declined 38 percent year on year to $221 million as the broader crypto market entered a prolonged downturn beginning in October. Net income for the quarter dropped 34 percent to $605 million. Earnings per share came in at 66 cents, slightly ahead of analyst estimates of 63 cents.
Across the full year, the picture looked stronger. Robinhood reported record 2025 revenue of $4.5 billion, up 52 percent from 2024. Annual net income climbed 35 percent to $1.9 billion.
Trading volumes showed uneven momentum across asset classes. Notional crypto volume across the Robinhood app and its wholly owned exchange Bitstamp rose 3 percent quarter on quarter to $82.4 billion. By contrast, equity trading volume increased 10 percent to $710 billion, while options contracts traded climbed 8 percent to 659 million.
A newer category generated outsized growth. Transaction based revenue classified as “other,” which includes products such as prediction markets and futures, reached a record $147 million in Q4. That figure represents a 375 percent increase from a year earlier and surpassed equity trading revenue for the first time.
Prediction markets, introduced in March through a partnership with Kalshi, contributed to that expansion as interest in event based contracts increased during the year.