Robinhood (HOOD) stock tumbled more than 12% in early trading on Wednesday after the trading platform’s revenue came in below expectations the previous day.
Robinhood posted record revenue of $4.5 billion in 2025, including a record $1.28 billion in the fourth quarter. However, its fourth quarter revenue came in lower than $1.35 billion expected by the Street.
Crypto revenue for the fourth quarter came in at $221 million, below estimates of $248.2 million. Options revenue also came in short of expectations, at $314 million versus estimates for $331 million.
“A top-line miss is not helpful at all,” Christian Bolu, an analyst at Autonomous Research, told Yahoo Finance.
“Net deposit growth decelerated in the fourth quarter and looks like it decelerated in January,” he added. “The stock reaction might be warranted here given high expectations and a very expensive stock.”
Read more about Robinhood’s stock moves and today’s market action.
Heading into the print, the stock was down about 40% from its all-time high.
However, analysts were bullish on Robinhood, hoping the company’s various businesses, including app offerings and prediction markets, would offset a crypto winter in which bitcoin has tumbled more than 45% from its October all-time high.
“It’s way more diversified than in prior periods and, just from a business perspective, better managed,” added Bolu, whose firm has a Buy rating on the stock and a $128 price target. “All of these things set up the company very well for a crypto winter.”
Robinhood has been aggressively diversifying away from crypto and stock trading to generate revenue from other streams such as its subscription service, banking, and wealth management.
Compass Point analysts said they “expect Robinhood’s accelerated product roadmap to benefit revenue” in the second half of 2026.
On Wednesday morning, the firm kept a Buy rating on the stock but lowered its price target from $150 to $127.
Correction: A previous version of this article misspelled Christian Bolu’s name. We regret the error.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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