Robinhood Markets reported its fourth-quarter and full-year 2025 financial results, revealing a mixed performance with a significant revenue miss but an earnings beat. The company posted total net revenues of $1.28 billion for Q4, falling short of the Wall Street consensus estimate of $1.35 billion. This represented a 27% increase year-over-year but failed to meet high investor expectations.
Despite the revenue shortfall, Robinhood's diluted earnings per share (EPS) came in at $0.66, surpassing analyst expectations of $0.63-$0.64. For the full year 2025, net revenues surged 52% to $4.5 billion, with net income rising 33% to $1.9 billion, translating to an EPS of $2.05.
A major point of concern was the sharp decline in cryptocurrency-related revenues. In Q4, crypto revenues dropped 38% year-over-year to $221 million, reflecting broader market volatility and a slowdown in digital asset trading activity. This contrasted with strong performance in other transaction-based segments: options trading revenue grew 41% to $314 million, while equities revenue jumped 54% to $94 million.
The market reacted negatively to the report, with Robinhood's stock (HOOD) tumbling approximately 8-9% in after-hours trading. The stock had already declined 24% year-to-date prior to the announcement and was down 53% from its 52-week high.
Analysts displayed a generally bullish but cautious stance. Multiple firms adjusted their price targets downward while maintaining positive ratings. Goldman Sachs lowered its 12-month target from $152 to $130, Deutsche Bank reduced its target from $155 to $130, and Barclays cut from $159 to $124. Bernstein maintained one of the most aggressive targets at $160, citing optimism about Robinhood's prediction markets business, which generated $435 million in annual revenue and is projected to become a $1 billion business.
Company executives remained optimistic about future prospects. Chairman and CEO Vlad Tenev reiterated the vision of creating a comprehensive "Financial SuperApp," while CFO Shiv Verma noted strong momentum heading into 2026. The company highlighted record user metrics, including 27 million funded customers (up 7% year-over-year) and 4.2 million Robinhood Gold subscribers (a 58% increase). Assets under custody grew 68% to $324 billion.
Analysts pointed to several growth areas beyond crypto, including prediction markets, retirement accounts (assets doubling to $26.5 billion), banking services, and international expansion like the UK stocks and shares ISA rollout. However, concerns persist about decelerating growth rates, a dip in monthly active users, and ongoing regulatory risks.
