Robinhood increased its fourth-quarter revenue but fell short of market expectations due to a sharp decline in cryptocurrency trading, sending its stock down 7% in after-hours trading.
According to investment-focused media outlet FXStreet on February 11 (local time), retail investor-oriented platform Robinhood reported fourth-quarter revenue of $1.28 billion. This marked a 27% increase from a year earlier but missed Wall Street estimates of $1.35 billion. The key factor behind the earnings shortfall was a slowdown in cryptocurrency trading.
Transaction-based revenue rose 15% to $776 million, but cryptocurrency revenue plunged 38% to $221 million. Notional cryptocurrency trading volume on the Robinhood app fell 52% to $34 billion. This decline was analyzed as being in line with an overall contraction in digital asset trading volumes after Bitcoin (BTC) hit an all-time high of $126,000 in October and subsequently underwent a roughly 50% correction.
However, other segments performed solidly. Options trading revenue increased 41% to $314 million, while equities trading revenue rose 54% to $94 million. Net interest revenue climbed 39% to $411 million, supported by growth in interest-earning assets and securities lending income. Other revenue more than doubled to $96 million, of which $50 million came from Robinhood Gold subscription revenue.
Earnings per share came in at $0.66, surpassing market expectations of $0.63. However, net income declined to $605 million from $916 million a year earlier. The prior year’s results had been elevated by a $424 million tax benefit and the reversal of regulatory reserves, creating a high comparison base.
On an annual basis, revenue reached a record $4.5 billion, up 52%, while net income totaled $1.9 billion and diluted earnings per share stood at $2.05. Total platform assets increased 68% to $324 billion, and net deposits reached $68.1 billion. Robinhood Gold subscribers grew 58% to 4.2 million. However, with cryptocurrency trading volume in January 2026 declining 57% year-over-year to $8.7 billion, concerns are rising that crypto revenue pressure could persist into the first quarter.
*Disclaimer: This article is for investment reference purposes only and the publisher is not responsible for any investment losses incurred based on it. The content should be interpreted solely as information provision.*
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