Robinhood Reports Earnings Above Expectations, Powered by Crypto Trading, as Analysts Raise Stock Targets.

Robinhood Shares Surge 13% Following Record Q4 Earnings, Crypto Revenue Soars

Robinhood (HOOD) saw a 13% jump in pre-market trading on Thursday after the trading platform reported fourth-quarter earnings that significantly outpaced Wall Street’s expectations, propelled by a remarkable increase in crypto-related revenue.

The company revealed $358 million in crypto transaction revenue for the quarter, marking its largest contribution from digital asset trading to date. This surge in crypto revenue was detailed in a Wednesday research note from JPMorgan (JPM), which raised its price target for Robinhood stock to $45 from $39, while maintaining a neutral rating. Citi (C) also increased its target to $60 from $45, but kept a neutral stance. Bernstein, on the other hand, more than doubled its price target to $105 from $51, maintaining an outperform rating.

Following the earnings announcement, Robinhood’s stock rose to $63.20 in early Thursday trading, after the report was released post-market on Wednesday. The company posted $1.01 billion in total revenue for Q4, a 115% year-over-year increase, surpassing analysts’ expectations of $945.8 million, according to FactSet data. Transaction-based revenue surged by 200%, largely driven by an astonishing 700% increase in cryptocurrency revenue.

Typically, crypto revenue contributes about 10%-20% of Robinhood’s overall revenue. However, JPMorgan highlighted that the 46% increase in the total cryptocurrency market capitalization during the quarter, coupled with a 393% quarter-over-quarter rise in Robinhood’s crypto volume, played a key role in the company’s earnings beat.

Robinhood is looking to expand its crypto offerings in 2025, with plans to add new tokens, improve its wallet features, launch an order book with exchange routing functionality, integrate with Bitstamp, and explore the tokenization of assets over the long term.

Citi noted that the company is benefiting from favorable trends in both the crypto market and retail trading activity, which have helped support the stock. However, the bank cautioned investors about potential volatility and suggested waiting for a more reasonable entry point despite becoming more positive about Robinhood’s fundamental outlook.

Bernstein, meanwhile, reiterated its position that Robinhood remains the best idea in its global digital assets coverage, with continued momentum expected in Q1 due to crypto volatility and ongoing price cycles.