Revenue Misses Expectations, Robinhood Drops 7% Pre-Market
Special Topic: Focus on Q4 2025 US Stock Earnings Reports
Trading platform Robinhood (HOOD) reported revenue below expectations, with its stock price plummeting 7% in pre-market trading on Wednesday.
Robinhood announced a record-high revenue of $4.5 billion for 2025, with Q4 revenue also hitting a quarterly record at $1.28 billion, but still falling short of the market expectation of $1.35 billion.
Q4 crypto business revenue was $221 million, below the expected $248.2 million; options business revenue was $314 million, also missing the expected $331 million.
Independent research firm analyst Christian Bolu told Yahoo Finance:
"There is no benefit when revenue figures fall short of expectations."
He added: "Net deposit growth slowed in Q4, and January also appears to be slowing. Given the high market expectations and the stock’s expensive valuation, the price reaction is reasonable."
However, analysts remain optimistic about Robinhood, hoping the company’s diversified businesses—including app services and prediction markets—can offset the impact of the crypto winter, with bitcoin now down more than 45% from its all-time high in October.
Bolu stated: "The company's business is more diversified than ever, and management is more outstanding from a business perspective. All of this enables the company to handle the crypto winter very well." His firm gives the stock a buy rating with a target price of $128.
Currently, the stock has a total of 24 buy ratings, 4 hold ratings, and 1 sell rating.
Editor: Guo Mingyu
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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