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: 65.160
Low
130.00
Averages
156.24
High
181.00
Current: 65.160
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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- Competitor Dynamics: Although Robinhood and SoFi are also vying for a small retail role, SpaceX is considering excluding them, indicating Morgan Stanley's advantageous position in this deal.
- Joint Sales Negotiations: Robinhood and SoFi remain in talks with SpaceX to potentially handle some sales, reflecting ongoing interest in small investor participation in the IPO.
- Fidelity's Involvement: Mutual fund Fidelity is also exploring whether it can distribute some SpaceX shares on its trading platform, further enhancing opportunities for small investors in the IPO.
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- Brokerage Platform Competition: While Robinhood and SoFi sought a role in the share distribution, E*TRADE will lead the retail allocation of SpaceX shares, potentially disappointing retail investors and conflicting with Musk's pro-retail image.
- Musk's Response: Musk denied rumors of excluding Robinhood and SoFi on social media, indicating that at least some shares will be allocated to these platforms, demonstrating his commitment to retail investors.
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- Market Share Expansion: Micron's Q3 guidance indicates a 40% sequential growth, suggesting that its market share in memory storage solutions is still on the rise, particularly against the backdrop of rapid AI technology development, further solidifying its industry position.
- Robinhood's Market Dynamics: Despite a 50% drop in Robinhood's stock due to the cryptocurrency market crash, the company achieved a 27% year-over-year revenue increase, with options and equities revenue rising 41% and 54% respectively, showcasing its diversified growth potential in the fintech sector.
- Investor Confidence Rebounds: BlackRock and Barclays increased their holdings in Micron and Robinhood in Q4 2025, reflecting institutional investors' confidence in the long-term growth prospects of both companies, especially during turbulent market conditions, presenting potential investment opportunities.
See More
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- Micron's Strong Earnings: Micron Technology reported a 57% year-over-year revenue increase in Q1 FY2026 and unexpectedly delivered $23.9 billion in Q2, showcasing robust growth driven by AI demand, while its P/E ratio below 20 indicates it is undervalued compared to peers.
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- Impact of Income Disparity: The National Women's Law Center reports that women earn only 81 cents for every dollar earned by men, with this pay gap widening with age, which contributes to a more cautious investment approach among women and limits their market participation.
- Risk Aversion and Investment Performance: Although women's participation in the stock market is lower, they tend to outperform men on a risk-adjusted basis due to their tendency to avoid high-volatility investments, suggesting that their cautious approach may yield better long-term returns.
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