Robinhood Shares Plunge 8% Despite Record Revenue—Is Bitcoin to Blame?
Robinhood Shares Plunge 8% Despite Record Revenue—Is Bitcoin to Blame?
The severe downturn in the cryptocurrency market, led by Bitcoin (BTC), hampered Robinhood’s fourth-quarter earnings growth, resulting in missed revenue expectations and a sharp drop in its stock price.
According to crypto media outlet Cointelegraph on February 11 (local time), trading platform Robinhood reported fourth-quarter 2025 revenue that fell short of market forecasts, sending its stock down nearly 8% in after-hours trading. The company posted $1.28 billion in revenue for the quarter, below analysts’ expectations of $1.34 billion. However, earnings per share came in at $0.66, surpassing the projected $0.60, while full-year 2025 revenue reached a record high of $4.5 billion.
The primary reason for the earnings miss was a sharp decline in cryptocurrency trading revenue. Robinhood’s fourth-quarter crypto trading revenue totaled $221 million, a 38% drop from $358 million in the same period last year. The decline reflects the broader market slump, with Bitcoin falling more than 50% from its October peak last year. Cryptocurrency trading volumes also contracted significantly year over year, weighing on overall transaction-based revenue growth.
Despite weakness in the crypto segment, options, equities trading, and subscription services showed solid growth. Options trading revenue rose 41% year over year to $314 million, while equities trading revenue increased 54% to $94 million. Notably, Robinhood Gold subscription revenue grew more than 50%, establishing itself as a stable source of income. Robinhood Chairman Vlad Tenev stated that although volatility persists in the crypto market, the company continues to make strategic investments to expand market share.
Chief Financial Officer Shiv Verma described 2025 as a record year in terms of net deposits and profitability, adding that the start of 2026 has also been positive. Through its recent acquisition of Bitstamp, Robinhood is seeking to expand globally, including into European markets, while also focusing on improving operational efficiency through the use of artificial intelligence. However, the pace of recovery in the cryptocurrency market is expected to be a key variable in determining the company’s future revenue growth trajectory.
Amid a harsh correction in the cryptocurrency market, Robinhood remains in a phase of strengthening its fundamentals by diversifying its revenue structure. While full-year 2025 earnings per share reached a record $2.05, the slowdown in cryptocurrency trading activity continues to weigh on overall performance. Investors are closely watching whether Robinhood can achieve a rebound in its crypto segment in the first quarter of 2026, cautiously assessing the potential for a recovery in the company’s recently declined stock price.
Disclaimer: This article is for investment reference purposes only, and no responsibility is taken for investment losses resulting from decisions based on this information. The content should be interpreted solely for informational purposes.
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