Robinhood 2025 Q4 Earnings: Revenue Miss,Profit Falls 34% as Crypto Weakness Takes Center Stage

1. Core Views:

Robinhood's overall performance in Q4 2025 was steady but faced challenges. Total revenue reached $1.28 billion, up 27% year-over-year, but fell short of Wall Street expectations of $1.351 billion. Net profit was $605 million, down 34% year-over-year, with earnings per share at $0.66, slightly above the expected $0.65. Full-year revenue was $4.5 billion, up 52% year-over-year, with net profit at $1.9 billion. Assets under custody reached $324 billion, up 68% year-over-year. Gold subscription users reached 4.2 million, up 58% year-over-year. The stock price fell more than 7% after hours, mainly dragged down by revenue missing expectations and a decline in cryptocurrency revenue. The market is concerned about the impact of the cryptocurrency market downturn on the future.

2. Detailed Breakdown:

1. Overall Revenue and Profit Performance:

Quarterly total net revenue: $1.28 billion, up 27% year-over-year, below analyst expectations of $1.351 billion. Earnings per share (diluted EPS): $0.66, down 35% year-over-year, above analyst expectations of $0.65. Net income: $605 million, down 34% year-over-year (Q4 2024 was $916 million, influenced by one-time tax and regulatory adjustment gains). Adjusted EBITDA (non-GAAP): $761 million, up 24% year-over-year. Total operating expenses: $633 million, up 38% year-over-year (mainly driven by marketing, growth investments, and acquisition-related expenses). Compared to expectations: Revenue missed expectations, mainly due to a decline in cryptocurrency trading revenue; EPS slightly exceeded expectations.

1. Trading Business Performance:

Total trading revenue: $776 million, up 15% year-over-year.

Key drivers: Increased activity in options and stock trading partially offset the cryptocurrency decline; strong growth in other trading revenue.

Specific data:

1. Other Business Segment Performance

• Net interest revenue: $411 million, up 39% year-over-year, driven by growth in interest-bearing assets and securities lending activities, partially offset by declines in short-term interest rates;
• Other revenue: $96 million, up 109% year-over-year, mainly driven by Robinhood Gold subscription revenue of $50 million, up 56% year-over-year;
• User metrics: Gold subscription users at 4.20 million, up 58% year-over-year; Active customers at 2.70 million, up 7% year-over-year; Investment accounts at 2.84 million, up 8% year-over-year; Assets under custody (AUC) at $324 billion, up 68% year-over-year; Net deposits at $15.9 billion, with an annualized growth rate of 19%;
• Monthly active users (MAUs) declined, with Q4 MAUs at 13.0 million (13.0M), down 1.9 million (1.9M) year-over-year, below expectations of 14.2 million (14.2M);

1. Capital Expenditure Plan:

• Q4 2025 capital expenditure: Property, software, and equipment purchases at $20 million, down 50% year-over-year; Capitalized internal development software at $110 million (flat).
• Full-year 2025 capital expenditure: Property, software, and equipment purchases at $150 million, up 15% year-over-year; Capitalized internal development software at $390 million (up 5% year-over-year).
• Key investment areas: Acquisition activities, including the completion of TradePMR and Bitstamp acquisitions (full-year 2025 acquisition consideration of $399 million); Announced acquisition of an Indonesian brokerage and cryptocurrency company; Formed a joint venture company Rothera with Susquehanna International Group, with acquisition of MIAXdx in January 2026.
   
  Project Q4 2025 Amount (in billions USD) Full-Year 2025 Amount (in billions USD) Compared to 2024

  Property/Software/Equipment Purchases	0.02	0.15	+15%
  Internal Software Capitalization	0.11	0.39	+5%
  Acquisition Consideration	Not broken down	3.99	+198%

   

1. Facing Uncertainties in 2026

• CEO Vlad Tenev stated the goal is to build a "financial super app" that meets all customer needs, but no specific quantitative guidance was provided.

1. Market Background and Investor Concerns:

• Core contradiction: Although overall trading revenue grew +15%, the cryptocurrency market downturn led to a 38% decline in revenue, becoming the biggest drag; Bitcoin fell over 50% from its peak.
• Market challenges: The ongoing cryptocurrency winter continues to impact trading volume; Potential Federal Reserve rate cuts erode interest revenue; Regulatory uncertainty in prediction markets.
• Investor reaction: Stock price fell over 7% after hours to $79.201; Closed down 1.11% on the day; Stock price has fallen 24% year-to-date in 2026 (after tripling the previous year).
• (Currently, Bitget supports Robinhood 20x leverage contract trading, allowing investors to capture post-earnings volatility opportunities.)
• Disclaimer: The content of this article is for reference only and does not constitute any investment advice.