Robinhood Markets posted a record-breaking year. Then its stock dropped 7% to 8%.
The trading app reported $4.5 billion (£3.3 billion) in total revenue for 2025, up 52% year-over-year, with net income hitting $1.9 billion (£1.4 billion), according to the company'sfourth-quarter earnings release.
But the fourth-quarter results released on 10 February told a different story. Revenue came in at $1.28 billion (£937 million), missing the analyst consensus of $1.34 billion (£981 million) estimate and snapping a three-quarter streak of beats. Earnings per share of $0.66 (£0.48) edged past the $0.63 (£0.46) consensus. That small win didn't stop the sell-off.
For 27 million funded customers, the real concern isn't one missed quarter. It's the pattern forming underneath.
Buried in the earnings data is a detail that deserves more attention.
According to Investing.com, monthly active users fell by 1.9 million year-over-year to 13 million in Q4. That's happening while total platform assets jumped 68% to $324 billion (£237 billion).
Cryptotrading revenue dropped 38% year-over-year to $221 million (£162 million), down from $358 million (£262 million) in Q4 2024, Robinhood reported. That's a big deal. Crypto generates higher per-transaction revenue than stock trades on the platform, so every lost crypto trade hits the bottom line harder than an equivalent equity order.
Bitcoin's fall from above $126,000 (£92,200) in early October to around $69,000 (£50,490) million) has crushed the speculative momentum that fuelled Robinhood's growth. Coinbase faces similar pressure and reports later this week.
But Robinhood's user base skews younger and more crypto-heavy, which makes the exposure sharper.
Here's the part that should give retail investors pause. Four of the last five Robinhood earnings releases produced negative stock-price reactions, despite consistently strong reported results, according to historical trading data compiled by StockTitan. Shares dropped roughly 7% to 8% in after-hours trading following the release. The stock is now down 27% year-to-date, falling from an all-time high of $153.86 (£112.59) reached in October.
Source: International Business Times UK
