HOOD Stock Down 8% After Q4 Net Profit Falls 34% to $605 Million on $1.28 Billion in Revenue
Share:
Robinhood’s quarterly report surprised investors as the trading platform missed revenue expectations despite posting record figures. Shares fell 7.66% in after-hours, following the release of its fourth-quarter 2025 results.
The platform reported net revenue of $1.28 billion for the quarter, slightly below analysts’ expectations of $1.34 billion, but still reflecting 27% year-over-year growth. Net profit totaled $605 million, down 34% from the same period last year with diluted EPS at 66 cents, beating the 63-cent consensus estimate despite a prior-year tax benefit inflating results. Transaction-based revenue rose 15% to $776 million.
Cryptocurrency Revenues and Trading Volumes
Cryptocurrency trading revenue fell 38% year-over-year to $221 million, reflecting a prolonged market correction that began in October 2025. Despite the decline, overall cryptocurrency trading volumes through Robinhood’s app and its wholly-owned Bitstamp exchange grew 3% quarter-over-quarter, reaching a record $82.4 billion with Bitstamp contributing $48 billion. App-based crypto demand dropped 52% year-over-year, highlighting the exchange's growing role.
In comparison, equity trading volumes rose 10% to $710 billion, and the number of options contracts traded increased 8% to 659 million.
Prediction Markets Drive Growth
Robinhood’s newly launched prediction markets, developed in partnership with Kalshi in March 2025, contributed significantly to revenue growth: traders executed 8.5 billion event contracts in Q4, up from 2.3 billion in Q3. “Other” transaction revenue, which includes prediction markets and futures, reached a record $147 million in Q4– a 375% increase year-over-year, surpassing equity trading revenue for the first time.
CEO Vlad Tenev said, “Our vision has not changed: we are creating a financial super app.” CFO Shiv Verma added, “2026 is off to a strong start,” citing momentum in products and profitable growth.
Annual Figures and Platform Momentum
Annual figures show continued growth: for full-year 2025, net revenue rose 52% to $4.5 billion, and net income increased 35% to $1.9 billion. Total platform assets surged nearly 70% year-over-year to $324 billion, fueled by record net deposits of $68 billion (35% growth) and Gold subscribers hitting 4.2 million (up nearly 60%). Bitstamp volumes have doubled since its June 2025 acquisition.
The Bigger Picture
Robinhood’s evolution mirrors patterns seen in fintech history, where platforms expand from niche services to broader financial ecosystems. The company is diversifying revenue streams to hedge volatility, now with 750,000 international customers and U.K. ISA launches, and its focus on prediction markets, futures, AI tools like Cortex, and private markets could become a major growth driver.
This shift demonstrates how a platform that began by democratizing stock trading is now building its own comprehensive financial ecosystem, targeting 20%+ net deposit growth and over 1 million Gold Card users by end-2026.
In This News
Share:
In This News
Share:
Read More
CBA Stock Soars 8.4%, Biggest Gain Since 2020 on Strong Earnings
Elon Musk’s Daring xAI Moon Factory: Lunar Ambitions Amid Leadership Exodus and Historic IPO
HOOD Stock Down 8% After Q4 Net Profit Falls 34% to $605 Million on $1.28 Billion in Revenue
Share:
Robinhood’s quarterly report surprised investors as the trading platform missed revenue expectations despite posting record figures. Shares fell 7.66% in after-hours, following the release of its fourth-quarter 2025 results.
The platform reported net revenue of $1.28 billion for the quarter, slightly below analysts’ expectations of $1.34 billion, but still reflecting 27% year-over-year growth. Net profit totaled $605 million, down 34% from the same period last year with diluted EPS at 66 cents, beating the 63-cent consensus estimate despite a prior-year tax benefit inflating results. Transaction-based revenue rose 15% to $776 million.
Cryptocurrency Revenues and Trading Volumes
Cryptocurrency trading revenue fell 38% year-over-year to $221 million, reflecting a prolonged market correction that began in October 2025. Despite the decline, overall cryptocurrency trading volumes through Robinhood’s app and its wholly-owned Bitstamp exchange grew 3% quarter-over-quarter, reaching a record $82.4 billion with Bitstamp contributing $48 billion. App-based crypto demand dropped 52% year-over-year, highlighting the exchange's growing role.
In comparison, equity trading volumes rose 10% to $710 billion, and the number of options contracts traded increased 8% to 659 million.
Prediction Markets Drive Growth
Robinhood’s newly launched prediction markets, developed in partnership with Kalshi in March 2025, contributed significantly to revenue growth: traders executed 8.5 billion event contracts in Q4, up from 2.3 billion in Q3. “Other” transaction revenue, which includes prediction markets and futures, reached a record $147 million in Q4– a 375% increase year-over-year, surpassing equity trading revenue for the first time.
CEO Vlad Tenev said, “Our vision has not changed: we are creating a financial super app.” CFO Shiv Verma added, “2026 is off to a strong start,” citing momentum in products and profitable growth.
Annual Figures and Platform Momentum
Annual figures show continued growth: for full-year 2025, net revenue rose 52% to $4.5 billion, and net income increased 35% to $1.9 billion. Total platform assets surged nearly 70% year-over-year to $324 billion, fueled by record net deposits of $68 billion (35% growth) and Gold subscribers hitting 4.2 million (up nearly 60%). Bitstamp volumes have doubled since its June 2025 acquisition.
The Bigger Picture
Robinhood’s evolution mirrors patterns seen in fintech history, where platforms expand from niche services to broader financial ecosystems. The company is diversifying revenue streams to hedge volatility, now with 750,000 international customers and U.K. ISA launches, and its focus on prediction markets, futures, AI tools like Cortex, and private markets could become a major growth driver.
This shift demonstrates how a platform that began by democratizing stock trading is now building its own comprehensive financial ecosystem, targeting 20%+ net deposit growth and over 1 million Gold Card users by end-2026.
In This News
Share:
In This News
Share:
Read More
CBA Stock Soars 8.4%, Biggest Gain Since 2020 on Strong Earnings