Overview
Trading platform's Q4 revenue missed analyst expectations, rising 27% yr/yr to $1.28 bln
Adjusted EBITDA for Q4 missed estimates, despite a 24% yr/yr increase
Robinhood Gold Subscribers reached a record 4.2 mln, up 58% yr/yr
Outlook
Robinhood forecasts 2026 Adjusted Operating Expenses and SBC at $2.6 bln to $2.725 bln
Robinhood aims to drive net deposit growth and revenue in 2026
Result Drivers
TRANSACTION REVENUES - Transaction-based revenues increased 15% yr/yr to $776 mln, driven by options and equities, despite a decline in cryptocurrency revenues
INTEREST REVENUES - Net interest revenues rose 39% yr/yr to $411 mln, driven by growth in interest-earning assets and securities lending
GOLD SUBSCRIPTIONS - Robinhood Gold subscription revenue increased 56% yr/yr to $50 mln, contributing to a 109% rise in other revenues
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Miss | $1.28 bln | $1.34 bln (14 Analysts) |
Q4 EPS | $0.66 | ||
Q4 Net Income | $605 mln | ||
Q4 Adjusted EBITDA | Miss | $761 mln | $833.73 mln (10 Analysts) |
Q4 Operating Expenses | $633 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the financial technology (fintech) peer group is "buy"
Wall Street's median 12-month price target for Robinhood Markets Inc is $147.00, about 69.8% above its February 9 closing price of $86.56
The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 67 three months ago
Press Release: ID:nGNX7YJYPl
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)