Robinhood Q4 2025: Profit Beat, Revenue Miss
Robinhood reported record results for the full year, but the market’s reaction to the Q4 specifics was a bit more cautious:
- Earnings: They delivered a solid beat with an EPS of $0.66, surpassing the analyst estimate of $0.60.
- Revenue: Total revenue came in at $1.28 billion. While this is a record for the company, it slightly missed the $1.34 billion Wall Street was looking for.
- The Crypto Factor: The revenue miss was largely driven by a 38% year over year decline in crypto trading revenue, showing that high volatility in digital assets continues to be a double edged sword for brokerage platforms.
- Gold Growth: On a positive note, Robinhood Gold subscribers hit a record 4.2 million, up 58% from last year. This suggests that users are moving toward more "sticky" subscription models rather than just speculative trading.
The stock took a hit of roughly 8% in after hours trading following the announcement. It is a reminder that even when a company is highly profitable, the market is currently very sensitive to any growth slowdown in specific sectors like crypto.
Overall, I think Robinhood is still doing well and growing their AUM and customers nicely. I am definitely looking to invest in it now as the valuation is quite attractive now.
