Robinhood Stock Tumbles 7% as Crypto Revenue Weakens in Q4

Robinhood Markets, Inc. (HOOD) shares experienced a significant decline in premarket trading on Wednesday, February 11, 2026, dropping 7.82% to $78.91 as of 7:03 AM EST. The sell-off came after the digital brokerage reported fourth-quarter 2025 revenue of $1.28 billion, missing Wall Street’s expectations of $1.34 billion.

Despite beating earnings estimates with diluted EPS of $0.66 versus the $0.60 consensus, investors focused on the revenue shortfall driven primarily by a 38% year-over-year decline in cryptocurrency-related income to $221 million. The disappointing top-line results overshadowed the company’s record annual achievements in net deposits, platform assets, and subscription growth.

Crypto Revenue Decline Weighs on Results

Robinhood’s Q4 transaction-based revenue totaled $776 million, falling short of the Visible Alpha estimate of $792 million. The primary culprit was the sharp 38% year-over-year decline in cryptocurrency revenue to $221 million, which reflected cooling activity in digital asset markets.

While options trading revenue surged 41% to $314 million and equities revenue jumped 54% to $94 million, these gains couldn’t fully offset the crypto weakness. Average revenue per user remained flat at $191 compared to Q3 2025, though it showed 16% growth year-over-year.

The company’s net interest revenue provided a bright spot, climbing 39% to $411 million as Robinhood capitalized on securities lending and higher interest-earning assets. However, total operating expenses rose 38% to $633 million as the firm invested heavily in marketing and integrated recent acquisitions like Bitstamp.

Q4 adjusted EBITDA of $761 million missed the Visible Alpha estimate of $810 million, though it increased from $742 million in Q3 and $613 million in the prior year’s quarter.

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Strong User Growth Despite Revenue Headwinds

Despite the revenue miss, Robinhood achieved several significant milestones in 2025. Total platform assets surged 68% year-over-year to $324 billion, fueled by record net deposits of $68 billion for the full year.

The company’s premium subscription tier, Robinhood Gold, expanded to 4.2 million members as the firm pushes to evolve from a pure-play trading app into a comprehensive “Financial SuperApp.” Q4 net deposits of $15.9 billion represented a 19% annualized growth rate relative to total platform assets at the end of Q3 2025.

Looking ahead to 2026, management issued guidance for combined adjusted operating expenses and share-based compensation between $2.6 billion and $2.725 billion, representing an 18% increase at the midpoint. This reflects the full-year costs of international expansion and the newly formed prediction markets joint venture, Rothera.

Analysts remain divided on the stock’s prospects, with Morgan Stanley’s Michael Cyprys noting that Robinhood “enters ’26 with strong product velocity that can support growth,” while Wolfe Research’s Steven Chubak maintained that “the long-term bull case remains intact” despite near-term headwinds. The stock closed at $86.56 on February 10, 2026, before the premarket decline.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.