Robinhood $HOOD ( ▼ 10.01% ) delivered stronger than expected profits in the fourth quarter, but a revenue miss and cooling crypto activity kept investors cautious. Shares moved lower after the report as the brokerage tries to prove it can sustain growth beyond its blockbuster run in recent years.
The results show a business still expanding, but facing more mixed trends under the surface.
Profit Tops Forecasts, Sales Come Up Short
Robinhood $HOOD posted earnings per share of $0.66, ahead of the $0.63 analysts were expecting. Revenue rose to a record $1.28 billion, up 27% from a year earlier, but still below Wall Street’s $1.35 billion estimate.
Transaction based revenue reached $776 million, shy of expectations. A sharp drop in crypto trading weighed on results, with crypto revenue falling 38% year over year to $221 million.
Trading Mix Starts to Shift
Not everything slowed down. Equity, options, and prediction market trading helped offset the crypto slump. Robinhood said more than 12 billion event contracts were traded on its platform last year, with 8.5 billion of those coming in the fourth quarter alone.
Net interest revenue also climbed 39% to $411 million, showing that higher balances and lending activity are becoming a more important piece of the business.
Can the Momentum Continue
After huge stock gains in 2024 and 2025, Robinhood $HOOD shares have pulled back this year as crypto markets cool and investors question how durable trading volumes will be. The company is pushing to diversify into banking style services and wealth management as part of its vision to become a financial super app.
Management says the key is continuing to broaden its product lineup so the business is not overly tied to any single market trend. Whether that strategy can offset slower crypto activity will be one of the big questions for investors in 2026.