HOOD falls another 7% on Q4 revenue miss

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Robinhood (HOOD) said revenue from crypto-related transactions fell 38% year over year in the fourth quarter, highlighting how lower digital asset prices continue to curb trading activity even as platforms push deeper into the sector.

The trading app reported $221 million in revenue from crypto trades, down from $358 million a year earlier, according to its latest earnings report. The decline came despite Robinhood’s efforts to make crypto a bigger part of its business.

Over the past year, the company has rolled out new crypto features and expanded its offerings. Robinhood launched crypto transfers across more regions, allowing users to move assets on and off the platform. It also added a large slate of new trading tokens, expanding beyond the small set of major coins it once limited customers to. The company has pitched these moves as steps toward becoming a broader gateway into digital assets rather than a simple trading app.

That strategy has yet to shield crypto revenue from market swings. Lower prices tend to dampen trading, especially among retail investors who drive much of Robinhood’s volume.

The crypto slowdown stood in contrast to Robinhood’s broader business. Overall transaction-based revenue reached $776 million, a 15% increase from the year prior. Gains in equity and options trading helped offset the drop in crypto, pointing to a more balanced revenue mix than in past cycles.

The company reported EPS of $0.66 in the fourth quarter, topping Wall Street estimates for $0.63, but revenue of $1.28 billion fell short of forecasts for $1.33 billion.

Shares are lower by 7.7% in after-hours trading, continuing a plunge that began around the time crypto topped in early October 2025. Trading at $79, the stock’s now down nearly 50% from that record high.

Competitor Coinbase (COIN) is set to report earnings on Thursday. Analysts expect it to post lower trading volume and weaker revenue, reflecting the same market conditions that hit Robinhood’s crypto business. COIN is lower by 1.6% after hours on the HOOD results.

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