Robinhood Markets, Inc. reported fourth‑quarter 2025 results on February 10, 2026. Total revenue reached $1.28 billion, falling short of the consensus estimate of $1.34–$1.35 billion. Earnings per share came in at $0.66, beating the consensus of $0.62–$0.63 by $0.03–$0.04.
Revenue was driven by a 38% decline in cryptocurrency trading revenue, which dropped to $221 million as crypto prices and trading volumes weakened. In contrast, transaction‑based revenue grew 15% to $776 million, led by a 41% rise in options trading and a 54% increase in equities trading. Net interest income expanded 39% to $411 million, while revenue from Robinhood Gold more than doubled to $96 million, with subscription revenue at $50 million, up 56%.
The revenue miss reflects the broader weakness in the crypto market, which had been a key growth engine for the company. The decline in crypto trading revenue offset gains in other segments, leaving total revenue below expectations. Management highlighted that the crypto slump was driven by lower asset prices and reduced trading volumes, while competition and regulatory scrutiny also contributed to the downturn.
Despite the revenue shortfall, the company posted a net income of $605 million and an adjusted EBITDA of $761 million, up 24% year‑over‑year. The earnings beat was largely attributed to disciplined cost management and a favorable revenue mix that shifted toward higher‑margin transaction and interest income. The company’s operating leverage and AI‑driven automation helped contain expenses, allowing profitability to rise even as top‑line growth slowed.
Looking ahead, management reaffirmed its confidence in the company’s diversified revenue streams. The CFO noted that 2026 would build on the momentum of the 2025 record year, emphasizing continued investment in prediction markets, AI automation, and the expansion of Robinhood Banking. While the company did not provide specific guidance figures, it signaled a focus on sustaining profitability and expanding recurring revenue from Gold subscriptions and interest income.
Investors reacted to the results with concern over the revenue miss, citing the crypto market’s weakness as the primary driver. The earnings beat was offset by the shortfall in top‑line growth, leading to a cautious market stance. Management’s emphasis on prediction markets and AI automation was viewed as a strategic pivot toward higher‑margin, scalable business lines.
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