Robinhood Q4 Revenue Misses Expectations, Shares Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 10 2026
0mins
Should l Buy HOOD?
Source: stocktwits
- Revenue Growth but Missed Target: Robinhood reported a record Q4 revenue of $1.28 billion, a 27% increase year-over-year, yet it fell short of analysts' expectations of $1.32 billion, resulting in a more than 5% drop in after-hours trading.
- Decline in Earnings Per Share: The company reported diluted earnings per share of $0.66, down from $1.01 in the same quarter last year, indicating a weakening in profitability that could affect investor confidence.
- Tax Benefit Impact: The profit for Q4 2024 included a $0.47 benefit from tax benefits and regulatory accrual reversals, highlighting the complexities in the company's financial management.
- Optimistic Future Outlook: Despite short-term challenges, CFO Shiv Verma noted that 2025 was a record year with new highs in net deposits, gold subscribers, trading volumes, revenues, and profits, showcasing the company's long-term growth potential.
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Analyst Views on HOOD
Wall Street analysts forecast HOOD stock price to rise
20 Analyst Rating
16 Buy
4 Hold
0 Sell
Strong Buy
Current: 86.850
Low
130.00
Averages
156.24
High
181.00
Current: 86.850
Low
130.00
Averages
156.24
High
181.00
About HOOD
Robinhood Markets, Inc. is creating a financial services platform for everyone, regardless of their wealth, income, or background. It uses technology to provide access to the financial system. Its offerings include Brokerage, Robinhood Crypto, Custody, Robinhood Wallet, Robinhood Gold, and Robinhood Gold Card. Its Brokerage services include investing, options trading, fractional trading, recurring investment, access to investing on margin, fully paid securities lending, cash sweep, instant withdrawals, Robinhood retirement, 24-hour market, joint investing accounts, and event contracts. It also offers a variety of ways for its customers to grow their financial knowledge, including Robinhood Learn, In-App Education, Newsfeeds, Sherwood Snacks, and Crypto Learn and Earn. Its self-clearing system, order routing system, data platform, and other back-end infrastructure deliver the capabilities that allow its customers to focus on investing, saving and spending.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Increased Competitive Threat: Charles Schwab's plan to launch a spot crypto trading platform for retail clients poses a significant threat to Robinhood's market share in crypto trading, potentially impacting its trading volumes and transaction-based revenues.
- Regulatory Environment Shift: The SEC's removal of the $25,000 minimum for pattern day traders may encourage greater participation among retail users, potentially increasing trading frequency, although this is countered by rising competition.
- Market Reaction: Robinhood's stock closed at $86.85, down 0.54% on Thursday, reflecting investor concerns over Schwab's new initiative while also monitoring upcoming results for signs of increased retail trading volumes.
See More
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- Surge in Trading Volume: The company's trading volume reached 51.3 million shares, approximately 64% above the three-month average of 31.3 million shares, indicating sustained market interest in Robinhood's platform, though it may be impacted by heightened competition.
- Regulatory Environment Shift: The SEC's removal of the $25,000 minimum for pattern day traders could enhance participation among core retail users, potentially increasing trading frequency, despite the competitive pressures from the crypto market.
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