Robinhood falls short of Q4 revenue expectations as crypto downturn weighs on quarterly results.

Robinhood’s crypto business took a significant hit in the fourth quarter, as weaker digital asset prices weighed on trading activity despite the company’s push to expand its crypto offerings.

The online brokerage reported $221 million in revenue from crypto transactions, marking a 38% decline from the $358 million recorded a year earlier. The drop underscores how sensitive retail-driven crypto trading remains to market conditions.

Over the past year, Robinhood has doubled down on digital assets in an effort to diversify and strengthen its platform. The company expanded crypto transfers to additional regions, allowing users to move assets on and off the app more freely. It also broadened its token selection, moving beyond a limited list of major cryptocurrencies to include a wider array of tradable assets. Management has positioned these initiatives as part of a broader strategy to evolve into a more comprehensive digital asset gateway.

Even so, lower prices across the crypto market dampened customer engagement. Retail participation, which represents a significant portion of Robinhood’s crypto volume, tends to fall when volatility subsides or asset values decline.

Outside of crypto, the company’s performance was more resilient. Total transaction-based revenue rose 15% year over year to $776 million, supported by stronger equities and options trading. The results suggest Robinhood’s revenue mix is becoming less dependent on crypto cycles than in previous years.

For the quarter, Robinhood reported earnings per share of $0.66, exceeding analyst expectations of $0.63. However, total revenue came in at $1.28 billion, missing Wall Street forecasts of $1.33 billion.

Shares dropped 7.7% in after-hours trading following the earnings release, extending a broader decline that began after crypto markets peaked in October 2025. At roughly $79, the stock is now down nearly 50% from its all-time high.

Attention now shifts to Coinbase, which is scheduled to report earnings Thursday. Analysts anticipate softer trading volumes and revenue there as well, reflecting the same challenging market backdrop that pressured Robinhood’s crypto segment. Coinbase shares were modestly lower in after-hours trading following Robinhood’s results.

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