Robinhood Shares Drop On This fall Income Miss

Robinhood dropped in after-hours buying and selling on Tuesday after the buying and selling platform’s newest earnings missed analyst expectations whereas crypto revenues tanked within the fourth quarter.

Robinhood reported document web revenues of $1.28 billion in This fall, lacking Wall Avenue expectations of $1.34 billion regardless of rising 27% year-on-year. 

Its crypto-based revenues fell 38% from final 12 months to $221 million after the crypto market entered an prolonged interval of drawdowns in October.

The corporate’s web earnings for the quarter fell 34% year-on-year to $605 million, with its earnings per share reaching 66 cents, barely beating analyst estimates of 63 cents.

Shares in Robinhood (HOOD) fell by 7.66% in after-hours buying and selling to $79.04 after ending the buying and selling day down 1.1% at $85.60. Its inventory is down over 42% since its peak of $148.67 on Oct. 3.

Over the complete 12 months, Robinhood mentioned its web revenues for 2025 elevated 52% from 2024 to a document $4.5 billion, whereas its web earnings for the 12 months jumped 35% to $1.9 billion.

Crypto quantity development lags different merchandise

Robinhood reported that notional crypto volumes throughout its app and its wholly-owned alternate, Bitstamp, have been up 3% quarter-on-quarter in This fall to a document $82.4 billion.

By comparability, fairness commerce volumes noticed a bigger quarterly bounce, up 10% to $710 billion, whereas choices contracts traded rose 8% over the quarter to 659 million.

Prediction markets, which the corporate launched on its platform in March in partnership with Kalshi, have additionally helped bolster Robinhood’s revenues in This fall, because the urge for food for occasion contracts skyrocketed final 12 months.

Associated: Solana treasuries sitting on over $1.5B in paper SOL losses

Robinhood’s “different” transaction-based revenues, which embody its merchandise akin to prediction markets and futures, hit a document $147 million in This fall, a 375% bounce from the identical time final 12 months, overtaking its revenues from fairness trades for the primary time.