Robinhood reported Q4 revenue of $1.28 billion which shows a 27% year-over-year growth. The company failed to meet revenue expectations of $1.33 billion-$1.35 billion. The shortfall was mainly due to a sharp decline in cryptocurrency prices.
According to its latest earnings report, revenue from crypto transactions declined 38% year-over-year to $221 million, down from $358 million in the same period last year.
Crypto notional trading volumes on the platform dropped 52% annually to $34 billion. It reflects a decline in retail investor interest after Bitcoin experienced a major price drop from its October 2025 peak above $126,000.
Robinhood shares saw a decline of around 7% during after-hours trading and continued a downward trend. It has left the stock value at nearly 50% below its peak price of $79.
Total revenue generated from transactions increased by 15% to reach $776 million as equity and options trading experienced substantial growth despite the crypto decline.
The options revenue surged to $314 million, a 41% increase, while the equities market generated $94 million in revenue which is a 54%, reflecting renewed interest in traditional market instruments and prediction markets.
Net interest revenue grew by 39% to reach $411 million amid the company's growth in its interest-earning assets and securities lending operations.
Other revenue more than doubled year-over-year to $96 million as subscription income from Robinhood Gold continued to grow.
The company reported a net income of $605 million for the fourth quarter which produced earnings per share of $0.66 that goes more than analyst predictions of $0.63.
The current net income decreased compared to last year that included temporary tax benefits together with regulatory changes.
Chief Executive Vlad Tenev has stressed on Robinhood’s long-term strategy to evolve beyond a trading-focused platform into a broader financial super-app, incorporating banking, wealth management and expanded crypto services.
Over the past year the company introduced additional tokens, expanded crypto transfer capabilities and accelerated product diversification.
For 2025, Robinhood posted record revenue of $4.5 billion, up 52% with total platform assets growing to $324 billion.
However, early 2026 data suggests crypto headwinds may still stay as January crypto trading volumes fell 57% year over year to $8.7 billion.
Investors will now watch results from competitor Coinbase which is expected to report similar pressure from subdued digital asset trading activity.
Robinhood’s diversified revenue streams have softened the blow from crypto volatility. But the company is still exposed to fluctuations in digital asset markets. This could influence performance in the near term as well.
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