Robinhood stock plunges as company's Q4 revenue misses Wall Street estimates

Robinhood (HOOD) banal tumbled much than 12% successful aboriginal trading connected Wednesday aft the trading platform's gross came successful beneath expectations the erstwhile day.

Robinhood posted grounds gross of $4.5 cardinal successful 2025, including a grounds $1.28 cardinal successful the 4th quarter. However, its 4th fourth gross came successful little than $1.35 cardinal expected by the Street.

Crypto gross for the 4th fourth came successful astatine $221 million, beneath estimates of $248.2 million. Options gross besides came successful abbreviated of expectations, astatine $314 cardinal versus estimates for $331 million.

"A top-line miss is not adjuvant astatine all," Christian Bolou, an expert astatine Autonomous Research, told Yahoo Finance.

"Net deposit maturation decelerated successful the 4th fourth and looks similar it decelerated successful January," helium added. "The banal absorption mightiness beryllium warranted present fixed precocious expectations and a precise costly stock."

Heading successful the print, the banal was down astir 40% from its all-time high.

However, analysts were bullish connected Robinhood, hoping the company's assorted businesses including app offerings and prediction markets would offset a crypto wintertime successful which bitcoin has tumbled much than 45% from its October all-time high.

"It's mode much diversified than successful anterior periods and, conscionable from a concern perspective, amended managed," added Bolou, whose steadfast has a Buy standing connected the banal and a $128 terms target. "All of these things acceptable up the institution precise good for a crypto winter."

Robinhood has been aggressively diversifying distant from crypto and banal trading to make gross from different streams specified arsenic its subscription service, banking, and wealthiness management.

Compass Point analysts said they "expect Robinhood's accelerated merchandise roadmap to payment revenue" successful the 2nd fractional of 2026.

On Wednesday morning, the steadfast kept a Buy standing connected the banal but lowered its terms people from $150 to $127.

Ines Ferre is simply a elder concern newsman for Yahoo Finance. Follow her connected X astatine @ines_ferre.

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