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In short
- Robinhood disclosed $1.28 billion in fourth-quarter income.
- Income from crypto transactions fell sequentially to $221 million.
- Prediction markets continued to function a shiny spot.
Robinhood disclosed $1.28 billion in fourth-quarter income on Thursday, snapping a streak of earnings beats amid a latest downturn in crypto markets.
The corporate posted a 27% enhance in income in comparison with the identical interval a 12 months in the past, however beneath analysts’ expectations of $1.35 billion.
Internet earnings fell 33% year-over-year to $605 million, or 66 cents per share. Wall Avenue analysts anticipated the retail brokerage to report an earnings per share of 67 cents.
“Our imaginative and prescient hasn’t modified: we’re constructing the monetary superapp,” Robinhood CEO Vlad Tenev stated in a press release.
In after-hours buying and selling, Robinhood’s inventory value dropped 6.5% to $80, in keeping with Yahoo Finance. In October, the corporate’s inventory value started sliding from an all-time excessive of $154 alongside crypto costs. Shares have nonetheless jumped round 50% over the previous 12 months.
The corporate disclosed $221 million in fourth-quarter income from crypto transactions, marking a slowdown from $268 million the earlier quarter. The cooldown got here amid plunging crypto costs, marking a 38% lower in comparison with the identical interval final 12 months.
Surging crypto buying and selling volumes on Robinhood’s platform had powered latest earnings beats, however Bitcoin’s value fell 23% within the three months by way of December. Altering arms round $69,000 on Tuesday, the digital asset was on monitor for a 21% decline within the present quarter, in keeping with CoinGecko, indicating that tepid market situations may persist.
That shift comes as Robinhood continues to develop its personal Ethereum layer-2 scaling community known as Robinhood Chain. The community at the moment helps “inventory tokens” for purchasers in Europe, which offer artificial publicity to U.S. shares, together with personal firms.
Robinhood stated that transaction-based earnings, which makes up a bulk of its gross sales, got here in at $776 million for the quarter, representing a sequential enhance from $730 million.
Though crypto merchants pulled again on Robinhood’s platform, the corporate stated merchants exchanged 12 billion occasion contracts on its platform in 2025, with continued momentum.
Prediction markets have emerged as a shiny spot for Robinhood because it unveiled Kalshi-powered prediction markets final March. At an occasion in December, Tenev described prediction markets because the agency’s “fastest-growing product line by income ever.”
As playing within the U.S. surged alongside the NFL postseason, Robinhood expanded its prediction-market providing to permit prospects to make parlay-like bets. The product is broadly accessible all through the U.S., regardless of dealing with restrictions in Maryland and Nevada.
Robinhood popularized a commission-free mannequin for buying and selling shares and crypto, nevertheless it costs prospects a one-cent price on transactions involving prediction markets.
Analysts at funding financial institution Compass Level underscored skilled sports activities as an rising tailwind for Robinhood in October, predicting that the corporate would generate $50 million in fourth-quarter income “alongside a full quarter of NFL season.”
