Robinhood Markets, Inc. delivered its highly anticipated fourth-quarter 2025 earnings report after the market closed on February 10, 2026, and the results sent ripples through the financial world. While the company managed to beat earnings-per-share (EPS) estimates, it fell short on revenue, with the numbers revealing deeper currents swirling beneath the surface of the mobile brokerage’s business model. The release came amid a turbulent start to the year for both Robinhood and the broader cryptocurrency market, and Wall Street’s reaction was swift and unforgiving.
According to 24/7 Wall St, Robinhood posted Q4 EPS of $0.66, surpassing analyst expectations of $0.63. This marks a win on the profitability front, but the story took a different turn when it came to top-line revenue. The company reported $1.283 billion in revenue, missing forecasts that ranged from $1.33 to $1.37 billion. This break in Robinhood’s three-quarter streak of revenue beats left investors uneasy, and the company’s stock promptly dropped about 8% in after-hours trading, as reported by 24/7 Wall St and CoinDesk. Shares have now tumbled nearly 50% from their record high, continuing a four-week skid that began as the crypto market soured.
The culprit behind this revenue miss was clear: a pronounced slump in cryptocurrency trading activity. Robinhood’s Q4 crypto revenue fell 38% year-over-year to $221 million, down from $358 million in the same period a year earlier, as detailed by CoinDesk. This decline came despite the company’s ongoing efforts to expand its crypto offerings, including rolling out crypto transfers in more regions and adding a slew of new tokens beyond the major coins previously available. Robinhood has pitched these moves as part of a broader strategy to become a gateway to the digital asset world, but so far, these initiatives have not insulated the company from the volatility that defines the crypto sector.
Market conditions have not been kind to crypto-exposed companies. Bitcoin, for example, dropped 44% from a high of $126,296 in early October to $70,334 at the time of the earnings report, according to 24/7 Wall St. The price continued to slide, with a 22% decline since the end of January 2026, as noted by Investor’s Business Daily. This sharp correction fueled a broader sell-off, dampening trading enthusiasm among retail investors—Robinhood’s core user base. The company’s Q3 2025 crypto revenue had surged 300% year-over-year to $268 million, but the reversal in Q4 was stark. January 2026 operating data showed crypto volumes on the Robinhood App down 57% year-over-year, a sign that the slowdown was deep and persistent.
Robinhood’s management addressed the situation directly in its financial outlook, emphasizing a focus on expense control and product innovation. "Our 2026 expense plan is designed to accelerate product velocity, drive Net Deposit growth, and grow revenues," the company stated in its outlook, as reported by 24/7 Wall St. The plan forecasts adjusted operating expenses and stock-based compensation between $2.6 billion and $2.725 billion for 2026—an 18% year-over-year increase at the midpoint. Notably, this forecast excludes potential costs related to credit losses, pending acquisitions, and other significant regulatory or business events, which the company said are difficult to predict at this time.
Despite the crypto drag, Robinhood’s broader business showed some resilience. Overall transaction-based revenue reached $776 million in Q4, a 15% increase from the previous year, driven by gains in equity and options trading, according to CoinDesk. Equity notional trading volumes in January 2026 increased 57% year-over-year to $227 billion, and options contracts traded rose 20% to 200 million. These gains helped offset some of the crypto weakness, pointing to a more diversified revenue mix than in previous cycles.
Still, there were signs of deceleration elsewhere. Net deposits in January were $4.5 billion, representing an annualized growth rate of 17%—down from Q3’s 29% annualized rate. Margin book growth, a key revenue driver, slowed as well, increasing at just a 17% annualized rate in January compared to the prior quarter’s pace. Monthly active user numbers also declined, further fueling investor concerns about Robinhood’s ability to sustain its explosive growth trajectory of past years, as highlighted by Investor’s Business Daily.
Robinhood’s leadership transition added another layer of uncertainty. CFO Jason Warnick is set to retire in the first quarter of 2026, with Shiv Verma stepping into the role. Leadership changes during volatile periods often heighten market anxiety, and analysts are watching closely to see how the new team navigates the shifting landscape.
Competition in the brokerage space remains fierce. Charles Schwab, a traditional broker, reported Q4 revenue of $6.34 billion and continues to add over a million new accounts each quarter, as noted by 24/7 Wall St. Schwab’s 46.5 million client accounts dwarf Robinhood’s user base, and the company is winning wealth management flows even as Robinhood chases opportunities in crypto and other new business lines. Meanwhile, competitor Coinbase is also feeling the heat from the crypto downturn, with analysts expecting it to post lower trading volume and weaker revenue when it reports its own earnings.
Robinhood’s product suite remains broad. The company operates a mobile-first platform offering commission-free trading in stocks, ETFs, and options, as well as a cryptocurrency trading platform supporting nine major coins, including Bitcoin, Ethereum, Dogecoin, and Litecoin, according to Zonebourse. Premium subscriptions, margin investing, and cash management round out the company’s offerings. As of the end of 2024, Robinhood managed $192.9 billion in assets for 25.2 million monthly active users, underscoring its sizable footprint in the retail investing world.
The company’s efforts to diversify revenue streams—across equities, options, and interest income from margin lending and securities lending—are ongoing. For the full year, consensus estimates sit at $2.04 EPS on $4.52 billion in revenue, but the recent revenue miss and crypto headwinds have cast doubt on whether Robinhood can achieve these targets without a rebound in digital asset markets.
Insider activity has not inspired confidence, either. Multiple executives sold shares in early February at prices notably lower than previous sales, a move that some investors view as a red flag during periods of heightened volatility.
Robinhood’s journey from disruptor to established player has never been straightforward, and this latest earnings report is a reminder of the challenges inherent in a business model so closely tied to market sentiment and retail investor activity. While the company’s leadership remains optimistic—pointing to innovation, international expansion, and diversification as future growth drivers—the road ahead is likely to remain bumpy as macroeconomic forces and sector-specific volatility continue to shape outcomes.
Robinhood’s Q4 performance underscores both the promise and the peril of democratized finance in a world where fortunes can shift as quickly as the price of Bitcoin. For now, investors and analysts alike are watching closely to see if the company can regain its footing and chart a steadier course through 2026.