Robinhood Slides After Revenue Miss Despite EPS Beat

SelfRugger · 2026-02-11T16:47:32+00:00

Robinhood's shares dropped 7.16% after its Q4 earnings report showed an EPS beat of $0.66 but revenue fell short at $1.28 billion. A significant decline in crypto transaction revenue and strong growth in retirement accounts were highlighted.

SelfRugger

2026-02-11 16:47:32

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Robinhood Slides After Revenue Miss Despite EPS Beat

Renato Neves, CFA

Thu, February 12, 2026 at 1:28 AM GMT+9 1 min read

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This article first appeared on GuruFocus.

Robinhood Markets (NASDAQ:HOOD) shares fell 7.16% to $79.47 in pre-market trading after the company reported fourth-quarter results. While Robinhood delivered diluted EPS of $0.66, beating the $0.63 consensus, its quarterly revenue of $1.28 billion fell short of the $1.36 billion Wall Street had anticipated.

The crypto slowdown was evident in the numbers. Cryptocurrency transaction revenue declined 38% year over year to $221 million, driven by a 52% drop in notional trading volumes on the Robinhood app.

Despite the top-line miss, the report highlighted strength in Robinhood’s Financial SuperApp pivot. The company added 1.8 million funded customers in 2025, bringing the total to 27 million, while Gold subscribers increased 58% to a record 4.2 million.

Options revenue climbed 41% to $314 million. Robinhood also reported continued growth in retirement accounts, with Retirement assets under custody rising 102% year over year to $26.5 billion. Management pointed to broader product expansion and tighter cost control during the quarter.

While Robinhood is successfully diversifying into retirement accounts, credit cards and others, the stock remains highly sensitive to the volatility of the crypto market. On the earnings call, CEO Vlad Tenev said Robinhood is entering what he described as a prediction market super cycle, adding that more than 12 billion event contracts were traded in 2025, making it the fastest-growing segment in the company’s history.

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