Robinhood (HOOD) stock took a hit, dropping more than 12% in early trading on Wednesday after the trading platform reported revenue that fell short of expectations. The company posted record revenue of $4.5 billion in 2025, with a record $1.28 billion in the fourth quarter. However, the fourth quarter revenue came in lower than the $1.35 billion expected by analysts.
Crypto revenue for the fourth quarter was $221 million, below the estimated $248.2 million. Options revenue also fell short of expectations, coming in at $314 million versus the estimated $331 million. Analyst Christian Bolou from Autonomous Research commented on the top-line miss, stating that “A top-line miss is not helpful at all.” He also noted that net deposit growth decelerated in the fourth quarter and continued to slow in January.
Heading into the print, the stock was down approximately 40% from its all-time high. Despite this, analysts remain optimistic about Robinhood’s future, citing the company’s diversified businesses, app offerings, and prediction markets as potential offsets to a crypto winter. Bolou, whose firm has a Buy rating on the stock with a $128 price target, stated that the company is well-positioned for a crypto winter.
Currently, the stock has 24 Buy recommendations, four Holds, and one Sell. Ines Ferre, a senior business reporter for Yahoo Finance, provided this information and can be followed on Twitter at @ines_ferre for further updates.
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