Robinhood Markets stock plummeted 10.68% during Wednesday's pre-market trading session following the release of its fourth-quarter 2025 financial results.
The online brokerage reported revenue of $1.28 billion, which fell short of Wall Street expectations. The miss was largely attributed to a significant decline in cryptocurrency trading revenue, which dropped 38% year-over-year to $221 million as digital assets faced a turbulent quarter. While the company's earnings per share exceeded analyst forecasts, the revenue disappointment and crypto weakness weighed heavily on investor sentiment.
The broader cryptocurrency market downturn, with Bitcoin trading near $67,000 after a substantial decline from its recent highs, further exacerbated concerns about Robinhood's exposure to digital asset trading. The company generates a substantial portion of its revenue from crypto transactions, making it particularly sensitive to market volatility in the digital asset space.