Robinhood Markets Inc. (HOOD) experienced a sharp 7.52% decline in after-hours trading following the release of its fourth-quarter financial results, which fell short of analyst expectations.

The online trading platform reported quarterly revenue of $1.28 billion, missing the consensus estimate of $1.34 billion. While earnings per share of $0.66 beat expectations, key transaction-based revenues disappointed. Crypto trading revenue declined 38% year-over-year to $221 million, below the $259.2 million estimate, and options revenue of $314 million also missed the $332.1 million forecast. Adjusted EBITDA of $761 million was below the expected $833.7 million.

The revenue shortfall was primarily attributed to a significant downturn in the cryptocurrency market, which has weighed on trading activity. The company's results highlight its continued reliance on volatile transaction-based revenue, with the crypto segment's weakness offsetting growth in other areas like equities and options trading.