Robinhood Q4 earnings top estimates but crypto revenue decline weighs on stock

Robinhood Markets Inc (NASDAQ:HOOD) reported fourth quarter earnings that showed solid revenue growth and improving profitability, but a sharp decline in cryptocurrency trading revenue weighed on investor sentiment, sending the stock down more than 6% in after-hours trading.

For the fourth quarter, Robinhood reported total revenue of $1.28 billion, up 27% year over year, compared with Wall Street’s consensus estimate of $1.34 billion.

Earnings per share were $0.66, slightly above the consensus estimate of $0.63.

Transaction-based revenue rose 15% to $776 million, led by strength in options and equities trading, as well as a sharp increase in other transaction revenue.

Cryptocurrency revenue declined 38% to $221 million.

Net interest revenue increased 39% to $411 million, supported by growth in interest-earning assets and securities lending, while other revenue more than doubled to $96 million, driven in part by growth in Robinhood Gold subscriptions.

Net income for the quarter was $605 million, down from $916 million a year earlier, when results benefited from a one-time tax and regulatory accrual reversal.

Operating expenses increased 38% to $633 million, reflecting higher marketing and growth investments and acquisition-related costs. Adjusted EBITDA rose 24% to $761 million.

User metrics continued to expand, with funded customers rising 7% year over year to 27 million and investment accounts increasing 8% to 28.4 million.

Total platform assets climbed 68% to $324 billion, supported by net deposits, acquired assets, and higher equity valuations. Robinhood Gold subscribers increased 58% to 4.2 million, and average revenue per user rose 16% to $191.

For the full year, Robinhood reported total net revenue of $4.5 billion, up 52% year over year and roughly in line with the consensus estimate of $4.53 billion.

Diluted EPS was $2.05, modestly above the consensus estimate of $2.03.

“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,” Robinhood’s chief financial officer Shiv Verma said in a statement.

“2026 is off to a strong start, and we are incredibly excited about our plan and momentum for the year ahead as we focus on shipping great products for customers and driving profitable growth for shareholders.”