Robinhood Reports Q4 2025 Revenue Decline Amid Crypto Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy HOOD?
Source: seekingalpha
Robinhood Markets Inc's stock is down 5.90% in pre-market trading, crossing below its 5-day SMA.
The company's Q4 2025 revenue has declined due to a downturn in the cryptocurrency market, raising concerns about its financial stability. Despite these challenges, Robinhood has ambitious goals, including reaching $1 trillion in platform assets and enhancing product innovation to attract more customers. The current market conditions, however, pose significant growth pressures for the company.
This decline in stock price reflects the broader market sentiment, as Robinhood navigates through a volatile environment while attempting to diversify its revenue streams and strengthen its competitive position.
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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: 75.970
Low
130.00
Averages
156.24
High
181.00
Current: 75.970
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.
Robinhood's Q4 Earnings Report Triggers Stock Sell-Off
- Earnings Performance: Robinhood reported a 27% year-over-year revenue increase in Q4, slightly missing estimates, which led to a sharp stock sell-off, reflecting market sensitivity to high growth expectations and potentially impacting investor confidence in the short term.
- Net Deposit Growth: Net deposits totaled nearly $16 billion in Q4, representing a 19% annualized growth rate relative to total platform assets from the previous quarter, indicating sustained customer trust and inflow of assets, enhancing future revenue potential.
- Deepening Customer Relationships: The report highlighted a 57% year-over-year increase in retirement accounts opened, demonstrating significant progress in building long-term customer relationships, which will lay the groundwork for future revenue growth.
- Investment Opportunity: Despite the revenue miss, the ongoing growth in customer assets and the rollout of new banking services provide strong support for Robinhood's future development, suggesting that the current stock dip may present a buying opportunity for investors.
See More
ROBINHOOD VENTURES FUND I (RVI) DECLARES THE START OF ITS INITIAL PUBLIC OFFERING
Announcement of IPO: Robinhood Ventures Fund I (RVI) has announced the launch of its initial public offering (IPO).
Investment Opportunity: The IPO aims to provide investors with an opportunity to participate in the fund's growth and investment strategy.
See More
Robinhood's Stock Surges Over 600% in Three Years
- Significant Revenue Growth: Robinhood's revenue surged from $1.4 billion in 2022 to $4.5 billion in 2025, achieving a compound annual growth rate of 66%, indicating substantial success in attracting retail investors and solidifying its market position.
- Profitability Improvement: Robinhood turned profitable in 2024, with net income rising 33% to $1.9 billion in 2025, demonstrating the sustainability and profitability potential of its business model, which is expected to continue attracting investor interest.
- Gold Subscription Platform Expansion: By the end of 2025, Robinhood's Gold subscription platform served 4.2 million customers, driving user base growth and laying the groundwork for future revenue increases, with expectations of enhanced customer loyalty.
- HODU ETF Risks and Rewards: Direxion's HODU ETF aims to double Robinhood's daily returns; however, its structure is better suited for short-term traders due to high fees and volatility, prompting long-term investors to exercise caution, especially in unstable market conditions.
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Coinbase Reports Q4 Loss Amid Analyst Downgrades
- Earnings Loss: Coinbase reported a Q4 earnings per share of $0.66, falling short of Wall Street's $1.05 estimate, indicating significant pressure on profitability amid the ongoing 'crypto winter', which has diminished market confidence in its future performance.
- Revenue Decline: The company's revenue fell 22% year-over-year to $1.78 billion, although it was largely in line with Wall Street expectations, this decline reflects the adverse impact of a weak crypto market on Coinbase's business, potentially affecting its market share.
- Analyst Downgrade: Monness Crespi analyst Gus Gala downgraded Coinbase from 'Buy' to 'Sell' with a price target of $120, signaling a pessimistic outlook on its future growth and exacerbating investor concerns about the company's trajectory.
- ARK Investment Increase: Despite the losses, ARK Invest purchased 92,854 shares of Coinbase across three ETFs on Friday, demonstrating confidence in a potential recovery in the crypto market, which may position them favorably for future market rebounds.
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Analysis of Robinhood's Volatility Trading Strategy
- Volatility Trading Strategy: Robinhood's short strangle strategy, which involves selling out-of-the-money puts and calls, aims to capitalize on the stock remaining within a wide range before expiration, potentially benefiting from time decay amid elevated market volatility.
- Operational Leverage Impact: Despite a significant cooling in crypto trading activity in early October 2025, Robinhood's Q4 results revealed a meaningful year-over-year increase in operating expenses, rising from $458 million in Q4 2024 to $633 million in Q4 2025, indicating the company's choice to continue investing to maintain its position as a 'financial super app' during market fluctuations.
- Market Share and Growth Potential: Although Robinhood holds a relatively small share of the U.S. retail investable assets market, it possesses strong growth potential, particularly by transitioning younger users to more products, which could lead to steady compound growth as their assets increase.
- Investor Sentiment and Expectations: HOOD's stock has declined approximately 52% since early October 2025, reflecting investor disappointment regarding the company's future performance; however, Robinhood reported record net deposits for 2025 and preliminary January 2026 net deposits that were up year-over-year, albeit slightly below expectations.
See More
CFTC Chairman Responds to State Litigation Challenges
- Regulatory Challenges: CFTC Chairman Mike Selig stated that American prediction markets have faced an 'onslaught of state-led litigation' over the past year, posing a threat to industry stability and potentially undermining market confidence.
- Legal Support Action: The CFTC has filed a friend-of-the-court brief in the Ninth U.S. Circuit Court of Appeals supporting Crypto.com, aiming to defend its exclusive jurisdiction over prediction markets, indicating a strong legal stance.
- Industry Function Defense: Selig emphasized that prediction markets provide useful functions in society, helping everyday Americans hedge against commercial risks such as temperature fluctuations and energy price spikes, highlighting their significance in the economy.
- Market Growth Potential: Despite legal challenges, prediction markets are booming, with Kalshi experiencing a 2,700% year-over-year surge in Super Bowl trading volume, exceeding $1 billion in wagers, showcasing the market's immense potential and appeal.
See More
Robinhood's Q4 Earnings Report Triggers Stock Sell-Off
- Earnings Performance: Robinhood reported a 27% year-over-year revenue increase in Q4, slightly missing estimates, which led to a sharp stock sell-off, reflecting market sensitivity to high growth expectations and potentially impacting investor confidence in the short term.
- Net Deposit Growth: Net deposits totaled nearly $16 billion in Q4, representing a 19% annualized growth rate relative to total platform assets from the previous quarter, indicating sustained customer trust and inflow of assets, enhancing future revenue potential.
- Deepening Customer Relationships: The report highlighted a 57% year-over-year increase in retirement accounts opened, demonstrating significant progress in building long-term customer relationships, which will lay the groundwork for future revenue growth.
- Investment Opportunity: Despite the revenue miss, the ongoing growth in customer assets and the rollout of new banking services provide strong support for Robinhood's future development, suggesting that the current stock dip may present a buying opportunity for investors.
See More
ROBINHOOD VENTURES FUND I (RVI) DECLARES THE START OF ITS INITIAL PUBLIC OFFERING
Announcement of IPO: Robinhood Ventures Fund I (RVI) has announced the launch of its initial public offering (IPO).
Investment Opportunity: The IPO aims to provide investors with an opportunity to participate in the fund's growth and investment strategy.
See More
Robinhood's Stock Surges Over 600% in Three Years
- Significant Revenue Growth: Robinhood's revenue surged from $1.4 billion in 2022 to $4.5 billion in 2025, achieving a compound annual growth rate of 66%, indicating substantial success in attracting retail investors and solidifying its market position.
- Profitability Improvement: Robinhood turned profitable in 2024, with net income rising 33% to $1.9 billion in 2025, demonstrating the sustainability and profitability potential of its business model, which is expected to continue attracting investor interest.
- Gold Subscription Platform Expansion: By the end of 2025, Robinhood's Gold subscription platform served 4.2 million customers, driving user base growth and laying the groundwork for future revenue increases, with expectations of enhanced customer loyalty.
- HODU ETF Risks and Rewards: Direxion's HODU ETF aims to double Robinhood's daily returns; however, its structure is better suited for short-term traders due to high fees and volatility, prompting long-term investors to exercise caution, especially in unstable market conditions.
See More
Coinbase Reports Q4 Loss Amid Analyst Downgrades
- Earnings Loss: Coinbase reported a Q4 earnings per share of $0.66, falling short of Wall Street's $1.05 estimate, indicating significant pressure on profitability amid the ongoing 'crypto winter', which has diminished market confidence in its future performance.
- Revenue Decline: The company's revenue fell 22% year-over-year to $1.78 billion, although it was largely in line with Wall Street expectations, this decline reflects the adverse impact of a weak crypto market on Coinbase's business, potentially affecting its market share.
- Analyst Downgrade: Monness Crespi analyst Gus Gala downgraded Coinbase from 'Buy' to 'Sell' with a price target of $120, signaling a pessimistic outlook on its future growth and exacerbating investor concerns about the company's trajectory.
- ARK Investment Increase: Despite the losses, ARK Invest purchased 92,854 shares of Coinbase across three ETFs on Friday, demonstrating confidence in a potential recovery in the crypto market, which may position them favorably for future market rebounds.
See More
Analysis of Robinhood's Volatility Trading Strategy
- Volatility Trading Strategy: Robinhood's short strangle strategy, which involves selling out-of-the-money puts and calls, aims to capitalize on the stock remaining within a wide range before expiration, potentially benefiting from time decay amid elevated market volatility.
- Operational Leverage Impact: Despite a significant cooling in crypto trading activity in early October 2025, Robinhood's Q4 results revealed a meaningful year-over-year increase in operating expenses, rising from $458 million in Q4 2024 to $633 million in Q4 2025, indicating the company's choice to continue investing to maintain its position as a 'financial super app' during market fluctuations.
- Market Share and Growth Potential: Although Robinhood holds a relatively small share of the U.S. retail investable assets market, it possesses strong growth potential, particularly by transitioning younger users to more products, which could lead to steady compound growth as their assets increase.
- Investor Sentiment and Expectations: HOOD's stock has declined approximately 52% since early October 2025, reflecting investor disappointment regarding the company's future performance; however, Robinhood reported record net deposits for 2025 and preliminary January 2026 net deposits that were up year-over-year, albeit slightly below expectations.
See More
CFTC Chairman Responds to State Litigation Challenges
- Regulatory Challenges: CFTC Chairman Mike Selig stated that American prediction markets have faced an 'onslaught of state-led litigation' over the past year, posing a threat to industry stability and potentially undermining market confidence.
- Legal Support Action: The CFTC has filed a friend-of-the-court brief in the Ninth U.S. Circuit Court of Appeals supporting Crypto.com, aiming to defend its exclusive jurisdiction over prediction markets, indicating a strong legal stance.
- Industry Function Defense: Selig emphasized that prediction markets provide useful functions in society, helping everyday Americans hedge against commercial risks such as temperature fluctuations and energy price spikes, highlighting their significance in the economy.
- Market Growth Potential: Despite legal challenges, prediction markets are booming, with Kalshi experiencing a 2,700% year-over-year surge in Super Bowl trading volume, exceeding $1 billion in wagers, showcasing the market's immense potential and appeal.
See More
