Robinhood’s stock fell 7% in after‑hours trading when the trading platform announced that its 2025 revenue fell short of expectations. While the company posted a record $4.5 billion in total revenue for the year and a record $1.28 billion in the fourth quarter, analysts had been looking for at least $1.35 billion in Q4 alone.
Crypto sales for the final quarter totaled $221 million, missing the $248.2 million that Wall Street had projected. Options trading also underperformed, bringing in $314 million versus the expected $331 million.
Analysts noted that the shortfall is not just a numbers issue; it signals a slowdown in net deposit growth, which slowed in the fourth quarter and appears to have decelerated further in January. Given the high expectations and the stock’s premium valuation, a reaction in the shares seems justified.
Despite the dip, many investors remain optimistic about the platform’s diversified business mix. The company’s newer app features and prediction markets are seen as potential buffers against the broader crypto downturn, which has seen Bitcoin drop more than 45% from its October peak.
At present, the stock sits roughly 40% below its all‑time high and is supported by 24 buy recommendations, 4 hold ratings, and a single sell. The consensus price target hovers around $128, reflecting confidence that the platform’s broader strategy can weather the current market volatility.
