Robinhood (HOOD) Stock Falls 8% as Crypto Revenue Collapses 38% in Q4

TLDR

• Robinhood shares dropped 7.66% in after-hours trading to $79.04 after missing Q4 revenue estimates despite posting record quarterly revenues
• The platform’s crypto revenues plunged 38% year-over-year to $221 million as digital asset prices remained weak throughout the quarter
• EPS of 66 cents beat analyst expectations of 63 cents, but revenue of $1.28 billion missed the $1.34 billion consensus estimate
• Prediction markets revenue exploded 375% to $147 million, overtaking equity-trading revenue for the first time in company history
• Robinhood stock has declined more than 42% from its October 3 peak of $148.67 as crypto market weakness persists

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Robinhood shares plunged in after-hours trading Tuesday as weak crypto performance overshadowed otherwise strong quarterly results. The stock fell 7.66% to $79.04 after the company reported earnings that missed Wall Street’s revenue expectations.

The trading platform posted record net revenues of $1.28 billion for the fourth quarter. That represented a 27% year-over-year increase but fell short of the $1.34 billion analysts had forecast.

Earnings per share came in at 66 cents. That topped the consensus estimate of 63 cents.

Robinhood Markets, Inc., HOOD

The stock closed regular trading down 1.1% at $85.60. Shares have now lost over 42% of their value since peaking at $148.67 in early October.

Crypto Weakness Drags Down Results

Crypto-related revenue dropped 38% from the prior year to $221 million. The decline came despite Robinhood’s aggressive expansion into digital assets over the past twelve months.

The company launched crypto transfers in additional regions during the quarter. It also expanded its token offerings beyond the limited selection previously available to customers.

Net income for Q4 fell 34% year-over-year to $605 million. Lower crypto prices reduced trading activity among the retail investors who make up Robinhood’s core user base.

Notional crypto volumes across the platform and its Bitstamp exchange rose just 3% quarter-over-quarter to $82.4 billion. That growth rate lagged far behind other product categories.

Equity volumes jumped 10% to $710 billion. Options contracts traded increased 8% to 659 million.

Prediction Markets Emerge as Growth Driver

Robinhood’s “other” transaction-based revenue category delivered the quarter’s biggest surprise. This segment includes prediction markets and futures products.

Revenue from this category hit $147 million in Q4. That marked a 375% increase from the same period in 2024. The figure exceeded equity-trading revenue for the first time.

The company launched prediction markets in March through a partnership with Kalshi. Demand for event contracts surged throughout 2025.

Overall transaction-based revenue reached $776 million. That represented a 15% increase from the prior year as gains in traditional trading offset crypto weakness.

For full-year 2025, Robinhood reported net revenues of $4.5 billion. That reflected a 52% jump from 2024. Net income for the year rose 35% to $1.9 billion.

Rival platform Coinbase reports earnings Thursday. Analysts expect similar headwinds from reduced crypto trading volumes and market weakness. Coinbase shares fell 1.6% in after-hours trading following Robinhood’s earnings release.

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