Robinhood announced its fourth quarter results on Tuesday, reporting revenue numbers that missed wall street expectations but came in higher compared to last year’s growth.
The U.S.-based online brokerage and trading platform posted Q4 2025 revenue of $1.28 billion, up 27 percent from the same period last year, according to its financial results.
The figure was below the $1.33 billion market forecast attributed to a slump in the year-end crypto market.
Crypto-related revenue came in a full 38 percent lower year-over-year, reaching $221 million. The skid reflects softer trading activity and weaker investor demand for the sector.
While the firm has produced a strong growth result for other sectors, its slowing in digital-asset trading weighed upon its overall performance and showed that crypto market trends continue to buffet Robinhood’s earnings one way or another.
Robinhood’s crypto revenue fall in tandem with market slump
Despite the fall in the crypto revenue numbers, Robinhood reports a 27 percent rise in total revenue year-over-year, with increased trading and subscription activity driving the growth.
The earnings report, however, reflected an increasing hit from a weak cryptocurrency market on its business.
Revenue from crypto-related transactions was down 38 percent YoY, a reflection that lower digital asset prices are still dampening trading activity and investor engagement on the platform.
This decline underlines how volatile crypto markets can directly affect firms dependent on transaction-based revenue, even while Robinhood’s broader revenue stream maintains growth.
The global cryptocurrency market has shed $2 trillion in value since it reached an all-time high of $4.379 trillion in early October 2025, data from CoinGecko showed, with about $800 billion wiped out in the last month alone.
The market reacted quickly to the earnings report disclosed by Robinhood. In after-hours trading, the stock price of Robinhood decreased by over 7 percent, trading closer to $79.48.
Analysts observe that, while the company has moved away from crypto, the downturn is an indication of the company’s continued vulnerability to crypto markets.
Robinhood expects better outlook subject to market conditions
The U.S. based brokerage firm expects its operating expenses and stock-based compensation to rise to between $2.6 billion and $2.725 billion in 2026, an 18 percent increase from 2025.
The company says the rise reflects ongoing investments in technology, platform growth, regulatory compliance and industry growth. Robinhood is essentially going to spend more this year to help its long-term growth and make its services better.
The move can help the brokerage stay competitive, even if it means higher costs in the short term. The move also shows that the company is betting that its users will keep growing and being active, even though the market is going up and down.