Robinhood Markets (NASDAQ: HOOD) recently disclosed its financial outcomes for the fourth quarter and the entire year of 2025, highlighting substantial growth in several areas despite facing headwinds in cryptocurrency trading. The company achieved record-breaking figures in revenue, user engagement, and asset management, underscoring its evolution into a broader financial services provider.
For the fourth quarter, Robinhood reported total net revenues of $1.28 billion, marking a 27% increase from the same period in 2024.
This growth was fueled by a 15% rise in transaction-based revenues to $776 million, with notable gains in options trading (up 41% to $314 million) and equities (up 54% to $94 million).
However, cryptocurrency revenues declined 38% to $221 million, reflecting broader market volatility in digital assets.
Net interest revenues climbed 39% to $411 million, benefiting from expanded interest-earning assets.
Net income stood at $605 million, with diluted earnings per share (EPS) at $0.66, down from the prior year’s $1.01 but still surpassing analyst expectations of $0.64.
On a full-year basis, net revenues surged 52% to $4.5 billion, while net income rose 33% to $1.9 billion, translating to an EPS of $2.05.
User metrics showed robust expansion, with funded customers reaching 27 million (up 7% year-over-year) and Robinhood Gold subscribers hitting 4.2 million (a 58% increase).
Assets under custody ballooned 68% to $324 billion, driven by $68.1 billion in net deposits over the past 12 months—a record high.
The firm also emphasized product innovations, including the launch of prediction markets where 12 billion event contracts were traded in 2025, alongside expansions in retirement accounts (assets doubling to $26.5 billion), banking services, and international offerings like a UK stocks and shares ISA.
Company executives expressed optimism for the future.
Chairman and CEO Vlad Tenev has now reiterated the vision of creating a comprehensive “Financial SuperApp,” while CFO Shiv Verma noted strong momentum into 2026, with adjusted operating expenses projected between $2.6 billion and $2.725 billion to support further investments in products and global reach.
Despite these achievements, the market response was tepid.
Robinhood’s stock (HOOD) tumbled around 8% in after-hours trading following the announcement, as revenues fell short of Wall Street’s $1.34 billion consensus.
Investors appeared concerned about decelerating growth rates—down from triple-digit surges earlier in the year—and a dip in monthly active users amid a crypto market slowdown.
Shares, which had soared over 200% in 2025 before recent pullbacks, closed at approximately $86, reflecting a 53% decline from their 52-week high.
Analysts attributed the sell-off to high expectations not being met, particularly in transaction volumes affected by weaker crypto performance.
Analysts remain largely bullish on Robinhood‘s prospects.
The consensus price target hovers around $123 to $146, implying potential upside of 50% to 70% from current levels.
Recent updates include Cantor Fitzgerald and KeyBanc both setting $130 targets, while Wolfe Research upgraded to Outperform with a $125 goal.
Higher-end forecasts reach $180 from Citizens, citing opportunities in prediction markets and international expansion.
Most ratings lean toward “Buy,” with analysts highlighting the company’s diversification beyond trading, such as in retirement and banking, as key drivers for long-term value amid anticipated crypto recovery and wealth transfer trends. However, some caution persists over regulatory risks and market volatility.