Shares in trading platform Robinhood (HOOD) are down on Wednesday after its Q4 earnings were below Wall Street estimates. Robinhood’s recent Q4 earnings report led to a 12% drop in its stock, primarily due to revenue that missed Wall Street estimates. 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 the $1.35 billion expected by the Street.
“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.” As of today, HOOD stock is down about 40% from its all-time high.
In addition, Robinhood’s Options revenue surged 41% to $314 million, while analysts expected about 50% growth. Equities revenue grew 54% to $94 million, slightly below views for $96 million. Meanwhile, cryptocurrency transaction revenue tumbled 38% to $221 million, as bitcoin has unraveled to pre-election levels since the start of the year. Analysts expected crypto revenue to fall 28% to $259 million.
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Robinhood (HOOD) stock is trading in the middle of its 52-week range and below its 200-day simple moving average. Despite the dip, analysts still have mixed views on Robinhood’s outlook; some cut price targets while others see potential upside, citing a promising future in prediction markets. Current analyst price targets range from $140 to $172, indicating a potential increase from the current market price of $75.