Robinhood Markets Inc. (HOOD) experienced a significant pre-market plunge, with its stock falling 7.90% during Wednesday's pre-market trading session.
The sharp decline follows the company's release of its fourth-quarter 2025 financial results, which showed revenue of $1.28 billion. This figure missed Wall Street expectations, with the shortfall largely attributed to a significant downturn in the cryptocurrency market. Revenue from crypto-related transactions fell 38% year-over-year to $221 million, weighing heavily on the overall results.
While the company reported earnings per share that slightly exceeded analyst forecasts, the revenue miss and the notable weakness in its crypto trading business prompted a negative reaction from investors. The results highlight Robinhood's continued exposure to volatile digital asset markets, even as it grows in other areas like equities and options trading.