Robinhood (HOOD) shares fell about 12% Wednesday after the trading platform reported fourth-quarter revenue that missed expectations. The company posted record 2025 revenue of $4.5 billion and $1.28 billion in Q4.
That Q4 result trailed the Street’s $1.35 billion forecast (Ed. note: the top-line shortfall pressured the share price).
“A top-line miss is not helpful at all,” said Christian Bolu of Autonomous Research. He said net deposit growth slowed in the fourth quarter and into January, and that the market response may be justified.
Options revenue rose 41% to $314 million, falling short of analysts’ roughly 50% growth expectations. Equities revenue grew 54% to $94 million, slightly under the $96 million forecast, while crypto transaction revenue plunged 38% to $221 million versus a $259 million expectation.
Robinhood shares trade near the middle of their 52-week range and below the 200-day simple moving average. Analysts hold mixed views, with price targets from $140 to $172 versus a current market price near $75, and some note potential upside from prediction-market initiatives.
