#Robinhood Reports Q4 and Full Year 2025 Results
Robinhood Markets reported fourth-quarter 2025 results ending December 31, 2025, with total net revenue of $1.28 billion, up 27% year over year. The company delivered diluted EPS of $0.66, compared to $1.01 in Q4 2024—the prior year's figure included a $0.47 benefit from tax and regulatory adjustments. Full year 2025 revenues reached a record $4.5 billion (up 52% YoY) with diluted EPS of $2.05. Net deposits hit $15.9 billion in Q4 and $68.1 billion for the full year, while Robinhood Gold subscribers reached 4.2 million, though net deposit growth showed sequential deceleration heading into 2026.
#Financial Performance Breakdown
Transaction-based revenues increased 15% YoY to $776 million in Q4, driven by options revenue ($314 million, up 41%), equities revenue ($94 million, up 54%), and other transaction revenue ($147 million, up over 300%—primarily prediction markets). Cryptocurrency revenue declined 38% to $221 million, missing the $248 million analyst estimate. The disappointment was compounded by sequential momentum loss—Q4's 27% revenue growth marked a deceleration from stronger performance earlier in 2025.
Net interest revenues rose 39% to $411 million, supported by growth in interest-earning assets and securities lending activity, partially offset by lower short-term rates. Other revenues surged 109% to $96 million, with Robinhood Gold subscription revenue reaching $50 million (up 56%).
Net income was $605 million versus $916 million in Q4 2024, though the prior-year quarter included a $424 million one-time tax and regulatory benefit. Total operating expenses increased 38% YoY to $633 million, driven by marketing, growth investments, and acquisition-related costs. Adjusted Operating Expenses and SBC (non-GAAP) rose 18% to $597 million. Adjusted EBITDA (non-GAAP) grew 24% to $761 million. The company held $4.3 billion in cash and cash equivalents.
#Market Reaction
The market delivered a harsh verdict on Robinhood's Q4 2025 earnings, with HOOD stock plunging approximately 8-12% in after-hours trading on February 10, 2026. Robinhood stock is down roughly 38% year-to-date and 54% below its October 2025 peak of $153.
The selloff was triggered primarily by a revenue miss, with Q4 revenue of $1.28 billion falling short of the $1.35 billion analyst consensus, driven largely by crypto revenue of $221 million that significantly missed Wall Street's $248 million estimate and declined 38% year-over-year.
Autonomous Research analyst Christian Bolu highlighted deceleration in key metrics, particularly net deposit growth that slowed in Q4 and appeared to continue decelerating into January, while characterizing HOOD as "an expensive stock" where "a top line miss is not helpful at all" given its elevated valuation multiples.
Despite the immediate negative reaction, the analyst community remains predominantly constructive, with the consensus rating HOOD "Strong Buy" and a mean price target of $133 representing nearly 87% upside from current levels.
Bulls argue that management's commentary was "pretty constructive" regarding the 2026 pipeline, that crypto exposure is declining as a percentage of revenue (even a "crypto winter" would only deliver "about a 10% hit to Robinhood"), and that prediction markets and options trading momentum will drive future growth with record volumes continuing into early 2026.
Institutional investors, including Cathie Wood's ARK Invest, purchased shares following the decline, signaling long-term confidence. With an increase in institutional ownership suggesting the market is re-pricing HOOD based on near-term execution concerns, while the long-term structural growth thesis around generational wealth transfer, platform diversification, and international expansion remains largely intact, according to consensus views.
#Strategic and Operational Highlights
Robinhood accelerated product expansion across three strategic priorities.
Active traders: The company traded over 12 billion event contracts in prediction markets during 2025 and established a joint venture (Rothera, LLC) with Susquehanna International Group to acquire MIAXdx in January 2026, advancing a CFTC-licensed exchange. Short selling rolled out in mid-November, generating billions in notional volume.
Next-generation wallet share: Robinhood Gold subscribers reached 4.2 million (15%+ adoption rate). Retirement AUC more than doubled YoY to $26.5 billion across 1.8 million funded accounts. Robinhood Banking launched to Gold subscribers, capturing $300 million in deposits by January 31, 2026.
Global expansion: The UK received a stocks-and-shares ISA product. Bitstamp institutional volumes doubled post-acquisition, and European Stock Tokens expanded to 2,000 offerings. Robinhood announced pending acquisitions of brokerage and crypto firms in Indonesia.
#Management Commentary and Outlook
CFO Shiv Verma stated, "2026 is off to a strong start, and we are incredibly excited about our plan and momentum for the year ahead as we focus on shipping great products for customers and driving profitable growth for shareholders." The company projects 2026 Adjusted Operating Expenses and SBC (non-GAAP) of $2.6 billion to $2.725 billion—18% growth at the midpoint versus 2025.
This outlook excludes provision for credit losses, pending acquisition costs, the Rothera joint venture, CFO transition-related compensation modifications, and potential significant regulatory expenses.
Management acknowledged actual results may vary based on customer growth rates, marketing efficiency, credit loss management, and hosting cost optimization.
#Investor Takeaway
Robinhood's Q4 results reveal a company in transition: strong user growth and platform diversification (record $68 billion net deposits, 4.2 million Gold subscribers) are offsetting structural crypto revenue headwinds, but the $1.28 billion revenue miss against $1.35 billion consensus expectations exposed execution gaps that the market punished severely.
The 38% year-over-year operating expense increase and net deposit deceleration into January 2026 raise questions about profitability trajectory at scale.
While analyst consensus remains positive, this reflects faith in management's 2026 product roadmap—prediction markets expansion, international growth, and declining crypto dependence—rather than current fundamental momentum. Near-term risk/reward heavily depends on Q1 2026 net deposit trends and crypto market stability.
#What’s Next
Key catalysts investors should monitor:
January/February 2026 monthly metrics (due mid-March) for net deposit trend confirmation or reversal
Q1 2026 earnings (late April) to validate whether crypto weakness was Q4-specific or structural
Regulatory developments around prediction markets and the Rothera/MIAXdx CFTC exchange approval timeline
Robinhood Banking adoption metrics as Gold subscriber conversion accelerates
Indonesia acquisition closure and initial contribution