Robinhood Shares Drop 8% After Q4 Earnings Disappoint Amid Crypto Revenue Decline
Robinhood Markets Inc. saw its shares slide nearly 8% in extended trading after reporting fourth-quarter revenue that fell short of analyst expectations. The trading platform posted record revenues of $1.28 billion, a 27% year-over-year increase, but missed the $1.34 billion consensus estimate. The shortfall was driven by a 38% decline in crypto-related income, which dropped to $221 million as digital asset markets entered a prolonged downturn starting in October.
Equities and options trading provided some offset, with stock volumes rising 10% quarter-over-quarter to $710 billion and options contracts increasing 8% to 659 million. Prediction markets emerged as a surprising bright spot, surging 375% year-over-year to $147 million and surpassing equity-trading revenue for the first time. Robinhood's stock has now retreated more than 42% from its October peak of $148.67.
