Robinhood's fourth-quarter earnings miss estimates as crypto revenue falls

• Robinhood reported Q4 revenue of $1.28 billion, a 27% increase from last year but below estimates of $1.35 billion.
• Revenue from its crypto unit dropped 38% YoY to $221 million.
• The firm's earnings per share came in at $0.66, above the market expectation of $0.63.

Retail investment platform Robinhood (HOOD) posted fourth-quarter revenue of $1.28 billion, a 27% year-over-year increase that nonetheless fell short of Wall Street's estimate of $1.35 billion, as a slump in crypto trading activity weighed on results.

Transaction-based revenues rose 15% year over year to $776 million, but a steep decline in crypto activity dragged down the segment. Cryptocurrency revenue dropped 38% to $221 million, reflecting the broader pullback in digital asset trading volumes that followed Bitcoin's 50% correction from its October all-time high above $126,000. Crypto notional trading volumes on the Robinhood app fell 52% year over year to $34 billion.

The shortfall was partly cushioned by strength elsewhere. Options revenue surged 41% to $314 million while equities revenue jumped 54% to $94 million. Net interest revenues climbed 39% to $411 million, supported by growth in interest-earning assets and securities lending, while other revenues more than doubled year-over-year to $96 million, driven by Robinhood Gold subscription revenue of $50 million.

Diluted earnings per share came in at $0.66, topping the consensus estimate of $0.63. However, net income declined to $605 million from $916 million in Q4 2024, a comparison made less flattering by a $424 million tax benefit and a regulatory accrual reversal that inflated the year-ago figure.

"2025 was a record year where we set new highs for net deposits, Gold Subscribers, trading volumes, revenues, and profits, and we closed the year with a strong Q4," said Shiv Verma, Robinhood's Chief Financial Officer.

For the full year, Robinhood posted record revenue of $4.5 billion, up 52% year over year, with net income of $1.9 billion and diluted EPS of $2.05. Total platform assets expanded 68% to $324 billion, supported by record net deposits of $68.1 billion. Robinhood Gold subscribers reached 4.2 million, up 58% year-over-year.

Despite the earnings beat, early 2026 data signals continued crypto headwinds. January crypto notional volumes on the Robinhood app fell 57% year over year to $8.7 billion, suggesting the crypto revenue drag could extend into the first quarter.

Robinhood shares declined 7% in after-hours trading following the results.