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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy HOOD?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 91.275
Low
130.00
Averages
156.24
High
181.00
Current: 91.275
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.
The Future of Finance: Convenience and Competition
- User Growth and Revenue Sources: Robinhood reported 27 million funded accounts in Q4 2025, an increase of 1.8 million from the previous year, while its prediction market annualized revenue surpassed $100 million, indicating significant potential for diversified revenue streams in the future.
- Attraction of Gold Service: Robinhood's Gold service attracted 4.2 million subscribers in Q4 2025, up 1.5 million year-over-year, demonstrating its ability to continuously attract users and generate stable revenue through fees, thereby enhancing its competitive position in the market.
- SoFi's Diversification Strategy: SoFi boasts 13.7 million members, with fee-based revenue accounting for 43% of total revenue in 2025, showcasing its diversified growth in financial services, which reduces reliance on any single business segment and enhances resilience against risks.
- Future Outlook and Challenges: SoFi anticipates $4.6 billion in net revenue and $825 million in net income for 2026, despite facing challenges such as AI disruption concerns and allegations of $312 million in unrecorded debt from Muddy Waters Research, its long-term investment value remains promising.
See More
Fintech Companies Face Challenges and Opportunities
- Significant User Growth: Robinhood reported 27 million funded accounts in Q4 2025, an increase of 1.8 million from the previous year, demonstrating strong performance in user acquisition despite market volatility and regulatory scrutiny.
- Diversified Revenue Sources: SoFi has reached 13.7 million members, with fee-based revenue rising from 26% of total revenue in 2021 to 43% in 2025, indicating its growing capability in providing comprehensive financial services.
- Prediction Market Potential: Robinhood's prediction market annualized revenue surpassed $100 million in Q3 2025, becoming a significant driver for future income, expected to attract more users and enhance platform stickiness.
- Optimistic Financial Outlook: SoFi anticipates $4.6 billion in net revenue and $825 million in net income for 2026, reflecting strong potential in diversified revenue and user growth, despite facing market uncertainties.
See More
Crypto Exchanges Race for Perpetual Futures Market
- Intensifying Market Competition: Kraken's parent company announced its acquisition of crypto derivatives platform Bitnomial for up to $550 million, aiming to access its perpetual futures offerings and strengthen its position in the U.S. market amid pressure from competitors like Coinbase and Robinhood.
- Surge in Perpetual Futures Trading Volume: According to CryptoQuant, perpetual futures trading volume reached $61.7 trillion in 2025, a 29% increase from 2024, significantly outpacing spot trading at $18.6 trillion, indicating strong investor demand for high leverage and no-expiration contracts.
- Regulatory Gray Area Challenges: Currently, the CFTC allows self-certification for new products, with Bitnomial being the only U.S. platform offering perpetual futures this way, while Coinbase has launched similar five-year contracts, highlighting the growing demand for compliant products in the market.
- Rising Calls for Risk Management: Investor advocacy group Better Markets urges the CFTC to impose strict leverage caps and require transparent risk disclosures to protect retail investors from high-risk contracts, reflecting an urgent need for regulatory oversight in the evolving crypto landscape.
See More
Polymarket Expands into Perpetual Futures Trading
- Market Expansion: Polymarket announced its expansion into perpetual futures trading, following news that its main competitor Kalshi plans to offer crypto trading, demonstrating a keen response to market demand.
- Increased Competition: This move may position Polymarket and Kalshi in direct competition with platforms like Robinhood, Coinbase, and Kraken, which have integrated prediction markets into their offerings over the past year, highlighting the value of young speculators.
- Volume Growth: According to CoinGecko, the top centralized crypto exchanges recorded an annual perpetuals trading volume of $86.2 trillion last year, reflecting a 47% increase, showcasing the activity and potential of this market.
- Market Activity: By entering the perpetuals market, Polymarket and Kalshi can maintain ecosystem activity amid stalled cryptocurrency prices and slowed trading activity, fostering more consistent trading volume and speculative engagement.
See More
Analysts Adjust Price Targets for Robinhood and Bitcoin Miners
- Robinhood Price Target Cut: KeyBanc reduced Robinhood's price target from $120 to $110 while maintaining an 'Overweight' rating, indicating a cautious outlook on the near-term environment for digital assets and potential negative impacts on revenue models from cryptocurrency activities.
- Bitcoin Miners Price Target Increases: Piper Sandler raised price targets for Hut 8 from $74 to $93 and Riot Platforms from $21 to $23, reflecting increased investor confidence as Bitcoin prices rebound, despite a volatile market.
- Industry Transformation Trend: Analysts noted that miners are leveraging existing infrastructure and power capacity to explore new growth avenues in artificial intelligence and high-performance computing, highlighting a thematic shift within the industry.
- Galaxy Digital Price Target Adjustment: Piper Sandler lowered Galaxy Digital's price target from $42 to $36 while keeping an 'Overweight' rating, reflecting short-term challenges due to market volatility and execution concerns, despite long-term benefits from diversified exposure to digital assets.
See More
Midday Market Moves: Notable Stock Fluctuations
- Stanley Black & Decker Surge: Stanley Black & Decker's stock rose over 4% after the company stated that recent changes to Section 232 tariffs would not materially impact its full-year forecast, indicating strong confidence in its financial outlook.
- Fermi Stock Plunge: Shares of energy infrastructure developer Fermi fell more than 22% following the resignation of CFO Miles Everson and the recent departure of CEO Toby Neugebauer, raising concerns about the company's leadership stability and future direction.
- Biogen's Strategic Move: Biogen's stock increased nearly 3% after agreeing to pay $850 million for exclusive rights to sell felzartamab in China, which underscores its strategic expansion in the immune-related disease treatment market.
- Fertilizer Stocks Fluctuate: Fertilizer stocks experienced volatility as CF Industries rose nearly 2% due to ongoing shipping disruptions in the Strait of Hormuz, while Dow and LyondellBasell Industries also saw gains of about 4% and 2%, respectively, reflecting market reactions to supply chain challenges.
See More
The Future of Finance: Convenience and Competition
- User Growth and Revenue Sources: Robinhood reported 27 million funded accounts in Q4 2025, an increase of 1.8 million from the previous year, while its prediction market annualized revenue surpassed $100 million, indicating significant potential for diversified revenue streams in the future.
- Attraction of Gold Service: Robinhood's Gold service attracted 4.2 million subscribers in Q4 2025, up 1.5 million year-over-year, demonstrating its ability to continuously attract users and generate stable revenue through fees, thereby enhancing its competitive position in the market.
- SoFi's Diversification Strategy: SoFi boasts 13.7 million members, with fee-based revenue accounting for 43% of total revenue in 2025, showcasing its diversified growth in financial services, which reduces reliance on any single business segment and enhances resilience against risks.
- Future Outlook and Challenges: SoFi anticipates $4.6 billion in net revenue and $825 million in net income for 2026, despite facing challenges such as AI disruption concerns and allegations of $312 million in unrecorded debt from Muddy Waters Research, its long-term investment value remains promising.
See More
Fintech Companies Face Challenges and Opportunities
- Significant User Growth: Robinhood reported 27 million funded accounts in Q4 2025, an increase of 1.8 million from the previous year, demonstrating strong performance in user acquisition despite market volatility and regulatory scrutiny.
- Diversified Revenue Sources: SoFi has reached 13.7 million members, with fee-based revenue rising from 26% of total revenue in 2021 to 43% in 2025, indicating its growing capability in providing comprehensive financial services.
- Prediction Market Potential: Robinhood's prediction market annualized revenue surpassed $100 million in Q3 2025, becoming a significant driver for future income, expected to attract more users and enhance platform stickiness.
- Optimistic Financial Outlook: SoFi anticipates $4.6 billion in net revenue and $825 million in net income for 2026, reflecting strong potential in diversified revenue and user growth, despite facing market uncertainties.
See More
Crypto Exchanges Race for Perpetual Futures Market
- Intensifying Market Competition: Kraken's parent company announced its acquisition of crypto derivatives platform Bitnomial for up to $550 million, aiming to access its perpetual futures offerings and strengthen its position in the U.S. market amid pressure from competitors like Coinbase and Robinhood.
- Surge in Perpetual Futures Trading Volume: According to CryptoQuant, perpetual futures trading volume reached $61.7 trillion in 2025, a 29% increase from 2024, significantly outpacing spot trading at $18.6 trillion, indicating strong investor demand for high leverage and no-expiration contracts.
- Regulatory Gray Area Challenges: Currently, the CFTC allows self-certification for new products, with Bitnomial being the only U.S. platform offering perpetual futures this way, while Coinbase has launched similar five-year contracts, highlighting the growing demand for compliant products in the market.
- Rising Calls for Risk Management: Investor advocacy group Better Markets urges the CFTC to impose strict leverage caps and require transparent risk disclosures to protect retail investors from high-risk contracts, reflecting an urgent need for regulatory oversight in the evolving crypto landscape.
See More
Polymarket Expands into Perpetual Futures Trading
- Market Expansion: Polymarket announced its expansion into perpetual futures trading, following news that its main competitor Kalshi plans to offer crypto trading, demonstrating a keen response to market demand.
- Increased Competition: This move may position Polymarket and Kalshi in direct competition with platforms like Robinhood, Coinbase, and Kraken, which have integrated prediction markets into their offerings over the past year, highlighting the value of young speculators.
- Volume Growth: According to CoinGecko, the top centralized crypto exchanges recorded an annual perpetuals trading volume of $86.2 trillion last year, reflecting a 47% increase, showcasing the activity and potential of this market.
- Market Activity: By entering the perpetuals market, Polymarket and Kalshi can maintain ecosystem activity amid stalled cryptocurrency prices and slowed trading activity, fostering more consistent trading volume and speculative engagement.
See More
Analysts Adjust Price Targets for Robinhood and Bitcoin Miners
- Robinhood Price Target Cut: KeyBanc reduced Robinhood's price target from $120 to $110 while maintaining an 'Overweight' rating, indicating a cautious outlook on the near-term environment for digital assets and potential negative impacts on revenue models from cryptocurrency activities.
- Bitcoin Miners Price Target Increases: Piper Sandler raised price targets for Hut 8 from $74 to $93 and Riot Platforms from $21 to $23, reflecting increased investor confidence as Bitcoin prices rebound, despite a volatile market.
- Industry Transformation Trend: Analysts noted that miners are leveraging existing infrastructure and power capacity to explore new growth avenues in artificial intelligence and high-performance computing, highlighting a thematic shift within the industry.
- Galaxy Digital Price Target Adjustment: Piper Sandler lowered Galaxy Digital's price target from $42 to $36 while keeping an 'Overweight' rating, reflecting short-term challenges due to market volatility and execution concerns, despite long-term benefits from diversified exposure to digital assets.
See More
Midday Market Moves: Notable Stock Fluctuations
- Stanley Black & Decker Surge: Stanley Black & Decker's stock rose over 4% after the company stated that recent changes to Section 232 tariffs would not materially impact its full-year forecast, indicating strong confidence in its financial outlook.
- Fermi Stock Plunge: Shares of energy infrastructure developer Fermi fell more than 22% following the resignation of CFO Miles Everson and the recent departure of CEO Toby Neugebauer, raising concerns about the company's leadership stability and future direction.
- Biogen's Strategic Move: Biogen's stock increased nearly 3% after agreeing to pay $850 million for exclusive rights to sell felzartamab in China, which underscores its strategic expansion in the immune-related disease treatment market.
- Fertilizer Stocks Fluctuate: Fertilizer stocks experienced volatility as CF Industries rose nearly 2% due to ongoing shipping disruptions in the Strait of Hormuz, while Dow and LyondellBasell Industries also saw gains of about 4% and 2%, respectively, reflecting market reactions to supply chain challenges.
See More
