Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) dropped more than 6% in premarket trading on Wednesday after the online brokerage reported fourth-quarter revenue that came in below Wall Street expectations.
Although the company delivered record annual performance and topped earnings estimates, the revenue shortfall appeared to dampen investor enthusiasm, even as margin balances and subscription growth accelerated.
Robinhood posted diluted earnings per share of $0.66, ahead of the $0.60 consensus forecast. However, quarterly revenue totaled $1.28 billion, missing analyst projections of $1.34 billion for the final quarter of 2025.
Morgan Stanley analyst Michael Cyprys said the company nevertheless “enters ’26 with strong product velocity that can support growth.”
Platform assets surged 68% year over year to $324 billion, driven by a record $68 billion in net deposits during 2025. Robinhood Gold, the company’s premium subscription service, expanded to 4.2 million members as the firm continues its transition from a trading-focused app to a broader financial services platform.
Transaction-based revenue was mixed. Options and equities trading revenue rose 41% and 54%, respectively, while cryptocurrency revenue declined 38% to $221 million. “Our vision hasn’t changed: we are building the Financial SuperApp,” said Chairman and CEO Vlad Tenev.
Net interest revenue stood out as a key growth driver, climbing 39% to $411 million, supported by securities lending and higher interest-earning assets. That increase helped counterbalance a 38% rise in total operating expenses, which reached $633 million as the company stepped up marketing efforts and absorbed costs tied to recent acquisitions, including Bitstamp.
Robinhood also continued returning capital to shareholders, repurchasing $100 million worth of stock in the fourth quarter at an average price of $119.86 per share. Chief Financial Officer Shiv Verma said that “2025 was a record year where we set new highs for net deposits, Gold Subscribers, trading volumes, revenues, and profits.”
For 2026, the company expects adjusted operating expenses and share-based compensation to range between $2.6 billion and $2.725 billion — an 18% increase at the midpoint — reflecting the full-year impact of international expansion and the launch of its prediction markets joint venture, Rothera.
“2026 is off to a strong start, and we are incredibly excited about our plan and momentum for the year ahead,” Verma added.
While shares weakened after the earnings release, Wolfe Research analyst Steven Chubak said the “long-term bull case remains intact (attractive valuation given strong rev/EPS CAGR).”
“We also believe HOOD is more insulated from AI disruption risk (poised to be a net beneficiary as Self-Direct is less susceptible to disintermediation) and should outperform if market jitters around AI continue to weigh on Retail Brokers,” he added.