Why Is Robinhood Stock Falling After-Hours Despite Record Q4 Revenue?

• The company reported diluted earnings per share of $0.66, down from $1.01 per share it reported in the year-ago quarter. 
• Robinhood’s cryptocurrencies revenue of $221 million was down 38% from a year-ago.
• Robinhood announced it will be launching and scaling Robinhood Chain.

Robinhood (HOOD) shares fell more than 6% in extended hours of trading on Tuesday as its fourth-quarter (Q4) revenue came below analysts’ expectations. 

The company posted a record Q4 revenue of $1.28 billion, a 27% jump from the year-ago quarter. However, it missed analysts’ estimates of $1.32 billion, as per data from Fiscal.ai. 

Q4 Details

The company reported diluted earnings per share of $0.66, down from $1.01 per share it reported in the year-ago quarter. The company said that in Q4 2024, the profit included a $0.47 benefit from the Q4 2024 tax benefit and regulatory accrual reversal.

Transaction-based revenues increased 15% year-over-year to $776 million, primarily driven by growth in options and equities revenue. However, the growth was partially offset by cryptocurrencies revenue of $221 million, which was down 38% from a year-ago.

“2025 was a record year where we set new highs for net deposits, gold subscribers, trading volumes, revenues, and profits, and we closed the year with a strong Q4,” said Shiv Verma, Chief Financial Officer of Robinhood.

“This year we reached nearly a third of 1 trillion in assets across the platform, and we're well on our way to exceeding a trillion of assets in the coming years with our rapid product velocity and the $100 trillion plus generational wealth transfer already underway,” Robinhood executive told analysts during an earnings call. 

New Launches

Robinhood has been expanding its offering from trading, tokenization to prediction markets. The company has also been expanding its footprint outside of the U.S. to tap more customers for its platform. 

“We'll be launching and scaling Robinhood Chain, which is our layer two, making it the best chain to trade real world assets,” Robinhood executive said during its earnings call. 

“Our referral program for advisors is also going live this year, which will connect our customers to high quality Registered Investment Advisors, which are powered by Tradepmr to help them with their comprehensive financial needs. And we believe we can be the major beneficiary of the 100 trillion plus wealth transfer,” the executive added. 

Outlook

The company did not provide an outlook for its revenue or its profit for the full-year 2026.

However, it did provide an outlook for its expenses. It said the outlook for 2026 adjusted operating expenses and Share-Based Compensation (SBC) is $2.6 billion to $2.725 billion, which represents 18% year-over-year growth at the midpoint relative to 2025 Adjusted Operating Expenses and SBC.

How Did Stocktwits Users React?

Retail sentiment around HOOD trended in ‘extremely bullish’ amid ‘extremely high’ message volume. 

Shares in the company have risen nearly 40% over the past year.

Read More: Upstart Stock Rallies 7% After-Hours Today — Who Is The New CEO?

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