Robinhood has reported a fourth-quarter revenue of $1.28 billion, marking a notable 27% increase from the same period last year, though this figure fell short of analysts’ expectations of $1.35 billion. The company’s net income decreased by 33% year-over-year to $605 million, translating to earnings of 66 cents per share, slightly below the anticipated 67 cents.
Following the earnings release, Robinhood’s stock price fell by 6.5% to $80 in after-hours trading. The company’s shares, which previously reached an all-time high of $154, have been declining since October alongside the overall downturn in cryptocurrency prices. Nevertheless, Robinhood’s stock still reflects a roughly 50% increase over the past year.
Notably, revenue generated from cryptocurrency transactions decreased to $221 million in the fourth quarter from $268 million in the third quarter, largely attributed to a significant decline in crypto prices. This represents a stark 38% year-over-year drop in crypto revenue, influenced by a 23% decline in Bitcoin’s price during the three months leading up to December. Bitcoin, which was trading at approximately $69,000 recently, is projected to experience further declines, suggesting continued challenges in the market.
In response to this decline in crypto activity, Robinhood is focusing on the development of its own Ethereum layer-2 scaling network, known as Robinhood Chain. This initiative currently supports “stock tokens” that provide synthetic exposure to U.S. stocks, including those of private companies.
Despite the slowdown in crypto trading, Robinhood experienced a sequential increase in transaction-based income, which accounted for the majority of its revenue. This figure rose to $776 million, up from $730 million the previous quarter. Interestingly, while crypto trading volumes were down, Robinhood reported that traders exchanged an impressive 12 billion event contracts on its platform in 2025, highlighting a shift towards prediction markets as a new revenue stream.
Since the launch of its prediction markets powered by Kalshi in March, these markets have been identified as a bright spot for Robinhood. CEO Vlad Tenev noted that prediction markets are the firm’s fastest-growing product line by revenue. The company has recently expanded its offering to allow customers to place parlay-style bets, taking advantage of the surge in gambling interest, especially during the NFL postseason. While the prediction market products are accessible throughout much of the U.S., they face restrictions in Maryland and Nevada.
Analysts from investment bank Compass Point have recognized the potential for professional sports betting as a growing opportunity for Robinhood, projecting that the company could generate up to $50 million in fourth-quarter revenue thanks to the full NFL season.
