Robinhood Shares Slide on Q4 Miss Amid Bitcoin, Crypto Weakness

Robinhood disclosed $1.28 billion in fourth-quarter revenue on Thursday, snapping a streak of earnings beats amid a recent downturn in crypto markets.

The company posted a 27% increase in revenue compared to the same period a year ago, but below analysts’ expectations of $1.35 billion. 

Net income fell 33% year-over-year to $605 million, or 66 cents per share. Wall Street analysts expected the retail brokerage to report an earnings per share of 67 cents.

“Our vision hasn’t changed: we are building the financial superapp,” Robinhood CEO Vlad Tenev said in a statement.

In after-hours trading, Robinhood’s stock price dropped 6.5% to $80, according to Yahoo Finance. In October, the company’s stock price began sliding from an all-time high of $154 alongside crypto prices. Shares have still jumped around 50% over the past year.

The company disclosed $221 million in fourth-quarter revenue from crypto transactions, marking a slowdown from $268 million the previous quarter. The cooldown came amid plunging crypto prices, marking a 38% decrease compared to the same period last year.

Surging crypto trading volumes on Robinhood’s platform had powered recent earnings beats, but Bitcoin’s price fell 23% in the three months through December. Changing hands around $69,000 on Tuesday, the digital asset was on track for a 21% decline in the current quarter, according to CoinGecko, indicating that tepid market conditions could persist.

That shift comes as Robinhood continues to develop its own Ethereum layer-2 scaling network called Robinhood Chain. The network currently supports “stock tokens” for customers in Europe, which provide synthetic exposure to U.S. stocks, including private companies.

Robinhood said that transaction-based income, which makes up a bulk of its sales, came in at $776 million for the quarter, representing a sequential increase from $730 million.

Although crypto traders pulled back on Robinhood’s platform, the company said traders exchanged 12 billion event contracts on its platform in 2025, with continued momentum.

Prediction markets have emerged as a bright spot for Robinhood since it unveiled Kalshi-powered prediction markets last March. At an event in December, Tenev described prediction markets as the firm’s “fastest-growing product line by revenue ever.”

As gambling in the U.S. surged alongside the NFL postseason, Robinhood expanded its prediction-market offering to allow customers to make parlay-like bets. The product is widely available throughout the U.S., despite facing restrictions in Maryland and Nevada.

Robinhood popularized a commission-free model for trading stocks and crypto, but it charges customers a one-cent fee on transactions involving prediction markets.

Analysts at investment bank Compass Point underscored professional sports as an emerging tailwind for Robinhood in October, predicting that the company would generate $50 million in fourth-quarter revenue “alongside a full quarter of NFL season.”