Robinhood Markets (NASDAQ:HOOD) reported mixed results for Q4 2025, beating earnings expectations but missing on revenue due to a significant slowdown in the crypto market. Total revenue rose 27% year-over-year to $1.28 billion, which fell short of the $1.33 billion consensus. Despite the revenue miss, the company posted record diluted EPS of $0.66, exceeding the $0.63 analyst estimate. While the expected rate of growth in 2026 expenses is 18%, down from the 25% growth seen in 2025, the projected total of over $2.6 billion weighs on investors. Another area of concern was the 13% year-over-year drop in monthly active users, which fell to 13 million as retail engagement cooled.
The conference call also highlighted a growing tension between Robinhood’s stated goal of being a wealth building super app and its rapid expansion into speculative products. While management touted the massive growth of its prediction markets with over 12 billion event contracts traded in 2025, investors seem to question whether these features lean more toward gambling than long-term investing. With over 40% of platform assets now in ETFs and retirement accounts, the company is attempting to prove it can cater to serious investors, but the heavy reliance on prediction markets and a volatile crypto business continues to fuel skepticism regarding its true identity.
For more details, key highlights, and commentary, check out the high-level earnings summary.
