Robinhood shares fall after earnings as crypto revenue slides 38% in Q4

Robinhood shares fell approximately 8% in post-market trading following the release of its fourth-quarter earnings report, which highlighted a significant decline in cryptocurrency trading activity. Despite this, total net revenue reached a record $1.28 billion, marking a 27% year-over-year increase. The primary weakness was in crypto transaction revenue, which plummeted 38% year-over-year to $221 million, contrasting sharply with strong growth in options (up 41%) and equities (up 54%) revenue. Total crypto notional volume was heavily influenced by the acquired Bitstamp exchange, while volumes on the core Robinhood app declined 52%, signaling cooler retail participation. The results underscore a strategic shift away from crypto spikes toward subscription services, net interest revenue, and future products like prediction markets and tokenized equities.

(Source：The Block)