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Robinhood falls short of Q4 revenue projections as fourth-quarter performance impacted by cryptocurrency decline.
Crypto revenue decreased by 38% year-over-year to $221 million, even as the company broadened its token listings and crypto functionalities across its platform.
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Key Points:
- Robinhood’s earnings per share for the fourth quarter were $0.66, exceeding estimates of $0.63, while revenue amounted to $1.28 billion, falling short of projections of $1.33 billion.
- The decline in crypto revenue, which fell 38% year-over-year to $221 million, significantly contributed to this shortfall.
- Robinhood’s performance reflects the broader downturn in the crypto market, which is anticipated to similarly impact competitor Coinbase (COIN). Following the earnings announcement, HOOD shares dropped about 7% in post-market trading.
In the fourth quarter, Robinhood (HOOD) reported a 38% year-over-year decline in revenue from crypto transactions, underscoring how the decrease in digital asset prices continues to affect trading volume, even as platforms invest more in the sector.
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The trading application disclosed $221 million in revenue from crypto trades, a decline from $358 million the previous year, as per its recent earnings report. This drop occurred despite Robinhood’s initiatives to enhance its crypto business.
Throughout the past year, the firm has introduced new crypto functionalities and broadened its offerings. Robinhood has initiated crypto transfers across additional regions, enabling users to move assets onto and off the platform. Additionally, it has added a substantial number of new trading tokens, moving beyond the limited selection of major coins it previously offered. The company has positioned these developments as steps towards becoming a more comprehensive entry point into digital assets rather than merely a trading application.
This strategy has not yet insulated crypto revenue from market fluctuations. Declining prices typically suppress trading activity, particularly among retail investors who account for a significant portion of Robinhood’s volume.
The downturn in crypto revenue contrasts with Robinhood’s overall business performance. Total transaction-based revenue reached $776 million, representing a 15% increase from the previous year. Gains in equity and options trading helped to counterbalance the decrease in crypto, indicating a more diversified revenue structure than in prior cycles.
The company reported an EPS of $0.66 for the fourth quarter, surpassing Wall Street estimates of $0.63, but total revenue of $1.28 billion fell below expectations of $1.33 billion.
Shares have dropped by 7.7% in after-hours trading, continuing a decline that started around the time when crypto reached its peak in early October 2025. Currently priced at $79, the stock is down nearly 50% from its all-time high.
Competitor Coinbase (COIN) is expected to release its earnings on Thursday. Analysts predict it will report lower trading volume and diminished revenue, reflecting the same market conditions that have affected Robinhood’s crypto segment. After the HOOD results, COIN shares fell by 1.6% in after-hours trading.
