Strong annual growth overshadowed by softer crypto and options trading in the fourth quarter
Robinhood Markets shares fell sharply in after-hours trading, sliding about 7% after the company reported fourth-quarter revenue that came in below Wall Street expectations. The pullback followed what was otherwise a record-setting year for the trading platform, highlighting investor sensitivity to near-term growth momentum amid elevated expectations.
Robinhood reported full-year 2025 revenue of $4.5 billion, its highest on record, capped by fourth-quarter revenue of $1.28 billion. While the quarterly figure marked a new high, it fell short of the $1.35 billion analysts had projected. The shortfall was driven largely by weaker-than-expected performance in two of Robinhood’s most closely watched businesses: cryptocurrency and options trading.
Crypto revenue totaled $221 million in the fourth quarter, missing estimates of roughly $248 million, as digital asset trading activity slowed amid a sharp pullback in bitcoin prices. Options revenue also disappointed, coming in at $314 million versus expectations of $331 million. Analysts noted that the revenue miss was compounded by signs of decelerating net deposit growth toward the end of the quarter and into January.
“A top-line miss is not helpful at all,” said Christian Bolou of Autonomous Research, adding that the stock’s reaction was understandable given its premium valuation. Heading into earnings, Robinhood shares were already down about 40% from their all-time highs, reflecting increased volatility across risk assets and the ongoing “crypto winter.”
Despite the near-term setback, sentiment on Wall Street remains broadly constructive. Analysts point to Robinhood’s increasingly diversified business model, which now extends well beyond crypto trading to include options, interest income, app-based features, and emerging offerings such as prediction markets. That diversification, they argue, positions the company to weather periods of reduced trading activity more effectively than in past cycles.
Bolou, whose firm maintains a Buy rating and a $128 price target, said the company is “better managed” and structurally stronger than in prior downturns. Overall, Robinhood carries 24 Buy ratings, four Holds, and just one Sell, suggesting many investors still see the earnings miss as a pause rather than a break in the company’s longer-term growth story.
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