Company Overview - Robinhood's fourth quarter revenue missed expectations, leading to an almost 8% decline in after-hours trading [1] - The stock was already down about 40% from its all-time high in October, raising concerns about its performance during the current crypto downturn [4] Financial Performance - Key metrics showed deceleration, particularly in net deposit growth, which continued to decline into January [2] - Despite the topline miss, management's commentary on future business growth and transaction volumes was constructive, indicating a decent outlook [3] Crypto Market Impact - Crypto revenue has decreased from over 20% to an expected near 10% of total business, with a potential 50% haircut to current trading volumes during a crypto winter [6] - This scenario would only result in a manageable 10% hit to Robinhood's EBITDA [6] Business Diversification - Robinhood is better positioned during the current crypto downturn due to its diversified product lineup, including a significant increase in net interest income and new offerings like retirement accounts and banking products [9][10] - The company is evolving into a more comprehensive financial app, which enhances its resilience compared to previous downturns [8] Options Trading Growth - Options trading, which constitutes about 25% of Robinhood's revenue, is expected to see significant growth, potentially up to 40% due to increased penetration and new product offerings [12][14] - The options market is less cyclical, allowing for trading in both up and down markets, which supports long-term growth for Robinhood [13] Prediction Markets - Robinhood's entry into prediction markets is seen as a potential growth area, leveraging its strong distribution capabilities despite increasing competition [15] - The company has announced a partnership that enhances its control over economics and product innovation in this space [16]

Core Insights - Robinhood Markets, Inc. reported a revenue of $1.28 billion for the quarter ended December 2025, reflecting a year-over-year increase of 26.5% [1] - The earnings per share (EPS) for the quarter was $0.66, up from $0.54 in the same quarter last year, with an EPS surprise of +4.76% compared to the consensus estimate of $0.63 [1] Financial Performance Metrics - The revenue reported was a surprise of -4.02% compared to the Zacks Consensus Estimate of $1.34 billion [1] - Funded customers reached 27 million, slightly below the average estimate of 27.13 million [4] - Robinhood Gold Subscribers totaled 4.2 million, exceeding the three-analyst average estimate of 4.1 million [4] - Transaction-based revenues were $776 million, compared to the average estimate of $806.11 million, representing a year-over-year increase of +15.5% [4] - Other revenues amounted to $96 million, surpassing the average estimate of $82.69 million, with a significant year-over-year increase of +108.7% [4] - Net interest revenues were reported at $411 million, below the average estimate of $453.77 million, showing a year-over-year increase of +38.9% [4] Stock Performance - Over the past month, shares of Robinhood Markets have returned -26.3%, while the Zacks S&P 500 composite remained unchanged [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Robinhood Markets Inc. reported record revenue in Q4, but performance fell short of Wall Street expectations due to a significant decline in cryptocurrency trading revenue, leading to a notable drop in stock price after hours [1][2] Financial Performance - The company achieved revenue of $1.28 billion for the quarter ending December 31, a record high but below analyst expectations of $1.34 billion [2] - Net profit dropped 34% to $605 million, or $0.66 per share, slightly above the Wall Street estimate of $0.63 per share [2] - Trading-related revenue increased by 15% to $776 million, driven primarily by a 54% increase in stock revenue and a 41% increase in options revenue [2] - Cryptocurrency trading revenue was $221 million, down 38% year-over-year and below the expected $248 million, reflecting a prolonged downturn in the cryptocurrency market since Bitcoin's significant drop in October [2] Business Highlights - Robinhood's prediction market business emerged as a surprising growth area, allowing users to bet on outcomes of various events, with over 12 billion event contracts traded last year [3] - The CEO stated that the company is at the beginning of a "super cycle" in prediction markets and announced a partnership with Susquehanna International Group to acquire a majority stake in derivatives exchange LedgerX [3] - Plans to expand into "multiple new markets" later this year were also mentioned, indicating a strategic focus on growth in this area [3]

Robin Hood fourth quarter earnings, they are just not crossing the wire. Let's get you those numbers. I see uh Q4 EPS of 66 cents.I don't see a comp for that yet. Q4 net revenue though, let's look at the top line. 1.28% billion. The street was closer to 1.35% billion.Uh transactionbased revenue looks like it also comes in a bit light versus consensus. 776 million. Analysts had been expecting more like 791.6% 6 million.I'm just looking for crypto revenue. There it is. Q4 crypto revenue 221 million.Uh consens ...

Core Insights - Robinhood's Q4 earnings report showed a miss on revenue expectations, with net revenue at $1.28 billion compared to the expected $1.35 billion, leading to an 8% drop in stock price after hours [1][2][5] - The company reported Q4 EPS of 66 cents, with transaction-based revenue at $776 million, below the anticipated $791.6 million [1][2] - Analysts remain bullish on Robinhood, with over 80% recommending it as a buy despite the recent stock decline [4] Financial Performance - Q4 crypto revenue was reported at $221 million, missing the consensus estimate of $248.2 million [2] - Options revenue for the quarter was $314 million, also below the expected $331.2 million [2] - Adjusted operating expenses for 2026 are forecasted to be between $2.66 billion and $2.73 billion [2] Market Context - The stock had previously seen a 50% increase over the past 12 months but was down approximately 40% from its all-time high last October [3][8] - The ongoing "crypto winter" raises concerns about its impact on trading volumes and overall financial performance [3][8] Business Outlook - Despite the current challenges, management's commentary suggests a constructive outlook for 2026, with strong transaction volumes reported in January [6][7] - The company is better positioned than in previous downturns due to diversification in its revenue streams, including net interest income and new product offerings [12][13] - The options trading business, which constitutes about 25% of revenue, is expected to see significant growth due to increased penetration and new product offerings [16][17] Competitive Landscape - Robinhood's distribution capabilities give it a competitive edge in the prediction markets space, despite increasing competition [19][21] - The company has announced a partnership that enhances its control over economics and product innovation, positioning it well for future growth [21][22]

Robinhood disclosed $1.28 billion in fourth-quarter revenue, missing Wall Street expectations amid crypto's latest downturn. https://t.co/HR9c3OElWq ...

Going to be averaging UP on $HOOD here soon.Missed revenue slightlyBeat EPSNumber of funded customer accounts through the roof.They noted that platform assets are up 68% to 324 BILLIONThis is all with only 1 quarter of prediction markets, no mortgage / housing financial growth (yet) and people speculating that a negative economy will lead to less inflow, which is fairMy bet is robinhood is the neobank, and beyond. The do EVERYTHING finance app from investing, to mortgages, to predictions, to crypto, to debi ...

Robinhood Markets, Inc. (HOOD) came out with quarterly earnings of $0.66 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +4.76%. A quarter ago, it was expected that this company would post earnings of $0.51 per share when it actually produced earnings of $0.61, delivering a surprise of +19.61%.Over the last four quarters, the ...

Financial Data and Key Metrics Changes - In 2025, revenues reached a record $4.5 billion, up 52% year-over-year, and over three times the revenue from three years ago [17][12] - Adjusted EBITDA was also a record at $2.5 billion, up 76%, with adjusted EBITDA margins reaching a new high of 56% [17][18] - Total platform assets grew nearly 70% year-over-year to $324 billion, with net deposits at a record $68 billion, reflecting a 35% growth rate [12][18] Business Line Data and Key Metrics Changes - The prediction markets segment saw volumes more than double, with over $12 billion in contracts traded in 2025 [7] - The equities offering expanded with the launch of shorting, resulting in over $11 billion of equity notional volume in the initial months [8] - Robinhood Gold subscribers grew nearly 60% year-over-year to 4.2 million, with annualized spend exceeding $10 billion [12][19] Market Data and Key Metrics Changes - The company reported strong double-digit year-over-year market share gains across equities, options, crypto, and margin [11] - Internationally, Robinhood has 750,000 customers outside the U.S., with ongoing expansion efforts [10] Company Strategy and Development Direction - The company focuses on a three-part strategy: leading in active traders, increasing wallet share, and building a global financial ecosystem [6][7] - Plans for 2026 include ramping up product velocity, achieving over 20% net deposit growth, and maintaining profitable growth while investing in new products [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business inputs, citing record net deposits and a strong pipeline of new products [42][44] - The company remains optimistic about the long-term integration of crypto into traditional financial services, viewing it as a foundational technology [49] Other Important Information - The company has initiated a billion-dollar share repurchase program to support stock price stability during market volatility [44] - AI integration is a key focus, with significant progress in automating customer support and enhancing software engineering processes [36][82] Q&A Session Summary Question: Updates on Robinhood Social - Management confirmed that Robinhood Social is in internal testing and will soon be publicly launched, emphasizing its potential for asset discovery and engagement [41] Question: Reasons for HOOD's share price drop - Management highlighted strong business fundamentals, including record net deposits and market share gains, while focusing on long-term performance over short-term stock price fluctuations [42][44] Question: Navigating the crypto downturn - Management discussed the long-term bullish outlook on crypto and the ongoing diversification of prediction markets beyond sports [49][52] Question: International expansion plans - Management outlined plans for deeper market penetration in the U.K. and E.U., as well as launching in new markets in Southeast Asia [68][72] Question: AI's impact on the company - Management expressed confidence in AI's transformative potential across financial services, with ongoing developments in customer advisory tools and operational efficiencies [81][82]

Financial Data and Key Metrics Changes - Total platform assets grew nearly 70% year-over-year to $324 billion [12] - Revenues increased to a record $4.5 billion in 2025, up 52% year-over-year [17] - Adjusted EBITDA reached a record of $2.5 billion, up 76% with adjusted EBITDA margins at a new high of 56% [17] - Record EPS of $2.05 was achieved, reflecting effective share count management [18] - Q4 revenues grew 27% to a record $1.3 billion, with net deposits over $16 billion [18] Business Line Data and Key Metrics Changes - Active traders saw significant growth, with prediction markets volumes more than doubling to over $12 billion in 2025 [7] - The launch of shorting in equities led to over $11 billion of equity notional volume in the initial months [8] - Robinhood Gold subscribers grew nearly 60% year-over-year to 4.2 million, with annualized spend exceeding $10 billion [12][19] - Robinhood Banking had over 25,000 funded customers bringing in over $400 million in balances [9] Market Data and Key Metrics Changes - The company expanded internationally, now serving 750,000 customers outside the U.S. [10] - Trading volumes across equities, options, futures, and event contracts reached new highs, contributing to market share gains [18] Company Strategy and Development Direction - The company focuses on a three-part strategy: leading in active traders, increasing wallet share, and building a global financial ecosystem [6] - Plans to accelerate product velocity and diversify offerings, with 11 businesses generating over $100 million in annualized revenue [16] - Emphasis on tokenization and private markets as key growth areas, with initiatives like Robinhood Ventures to invest in private assets [32][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's inputs, citing strong customer trust and engagement [42] - The company is optimistic about the long-term potential of crypto and prediction markets, despite short-term fluctuations [50] - Plans for 2026 include continued investment in product development while maintaining profitable growth [20][21] Other Important Information - The company has a billion-dollar share repurchase program to support stock price during volatility [44] - AI integration is a priority, with significant progress in customer support and software engineering [36] Q&A Session Summary Question: Updates on Robinhood Social - Management confirmed that Robinhood Social is in internal testing and will enhance asset discovery and engagement [41] Question: Reasons for the drop in HOOD's share price - Management highlighted strong business performance and market share gains, emphasizing a focus on long-term growth [42] Question: Navigating the crypto downturn and end of football season - Management noted that crypto is becoming foundational technology and prediction markets are diversifying beyond sports [50][52] Question: International expansion plans - Management discussed ongoing efforts in the U.K. and E.U., with plans to introduce market-specific functionalities [69][70] Question: AI's impact on the company - Management believes AI will transform financial services, with ongoing developments in customer advisory tools [82]