By Hannah Erin Lang

Robinhood Markets finished 2025 on a strong note, with stock and prediction-market trades offsetting a late-year slump in its crypto business.

The company reported fourth-quarter profits of $605 million, or 66 cents a share. That bested analysts' estimates of 63 cents a share, according to FactSet. Revenue jumped 27% to a record $1.28 billion, slightly below expectations. Shares fell around 7% in after-hours trading.

After a blockbuster year that saw Robinhood's stock price triple, analysts are focused on whether the online brokerage with meme-stock origins can keep up the momentum in 2026. A broad downturn in cryptocurrency markets has weighed on shares in recent months, and Robinhood executives have moved to expand its business beyond trading into services like banking and wealth management.

The goal, CEO Vlad Tenev has said, is to build a kind of "financial super-app" that can meet all its customers' needs in one place.

The details

Robinhood's trading revenue increased in the fourth quarter to $776 million, boosted primarily by equity, options and prediction-market trades. Crypto-trading revenue dropped 38% year-over-year to $221 million, below analyst's expectations. Net interest revenue rose 39% from a year prior to $411 million.

The brokerage's prediction-markets business also boomed in the final three months of the year. After launching in late 2024, more than 12 billion event contracts were traded on Robinhood last year, the company said. That included a record 8.5 billion traded in the fourth quarter.

The context

Last year, Robinhood rode a wave of individual-investor dollars and those traders' varied, sometimes-speculative bets straight to the top of the stock market. The company's share price nearly tripled, and Tenev announced a flurry of new products and services, from on-demand cash delivery to tokenized stocks to an in-house social media platform.

The new year is already off to a rockier start, with the stock down around 24% in 2026. Crypto trading volumes at Robinhood have tumbled as the market slumps. The Federal Reserve's rate cuts could also eat into revenue.

Plus, the end of football season might temporarily cool prediction-market trading. Analysts at Piper Sandler estimate that sports account for 80% to 90% of Robinhood's prediction-market volumes.

In an interview with The Wall Street Journal, Robinhood Chief Financial Officer Shiv Verma said the business is built to withstand any ebbs or flows in the market.

"The main thing to do is to just keep diversifying," Verma said. "If you focus on the inputs, the outputs will take care of themselves."

Write to Hannah Erin Lang at hannaherin.lang@wsj.com

(END) Dow Jones Newswires

February 10, 2026 16:34 ET (21:34 GMT)

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