Robinhood”s stock is facing severe pressure today following the release of its latest earnings report, which disclosed a significant downturn in cryptocurrency revenue. The trading platform reported just $221 million in crypto sales for the fourth quarter, marking a staggering 38 percent decline year-over-year and falling short of analyst predictions by approximately $27 million.
Currently, Robinhood shares are trading at $71.12, nearly half of their peak value from October 2025. This sharp decline has left investors pondering whether this situation presents a buying opportunity or signals deeper issues within the company.
The company”s overall revenue for the fourth quarter reached $1.28 billion, which is a year-over-year increase of 27 percent, yet it still fell short of the expected $1.32 billion. The disappointing crypto revenue has been a major factor in this shortfall, particularly as Bitcoin has seen a 23 percent drop in value year-to-date for 2026, which has adversely affected the platform”s earnings.
Shiv Verma, the Chief Financial Officer of Robinhood, expressed optimism despite the crypto revenue miss, stating, “2025 was a record year where we set new highs for net deposits, Gold Subscribers, trading volumes, revenues, and profits.” He highlighted that the company closed the year strong and is focused on delivering value for shareholders in 2026.
Despite the dismal crypto figures, Robinhood managed to exceed earnings expectations, reporting 66 cents per share compared to the anticipated 63 cents. However, this figure represents a 35 percent decrease from the previous year, influenced by a tax benefit that inflated last year”s results.
Today”s trading has seen Robinhood stock drop by 8.79 percent, with a selloff that has accelerated since the beginning of 2026. Investors are increasingly concerned about the company”s reliance on the volatile cryptocurrency and equity markets, as transaction-based revenue from options, equities, and crypto constituted 52 percent of total revenue in 2025.
The stock has plummeted nearly 50 percent from its all-time high, raising questions about whether current prices offer an attractive entry point. Analysts are divided on the stock”s future, with a consensus price target hovering around $127, suggesting a potential upside of approximately 64 percent from current levels.
While several analysts have adjusted their price targets downward by 10 to 20 percent following the earnings report, the average target stands at about $134, which indicates potential gains for investors willing to navigate the volatility. The company experienced a remarkable 52 percent increase in full-year 2025 revenue, while adjusted operating expenses rose by only 22 percent.
Looking ahead, Robinhood”s management has set ambitious targets, aiming for over 20 percent growth in net deposits for 2026. The CFO reiterated the company”s strategic priorities, emphasizing a desire to win with active traders, expand wallet share, and broaden global reach.
As investors weigh the implications of this earnings report, many are left questioning whether Robinhood stock represents a viable investment opportunity or a risk-laden venture. The company has noted that trading volumes in prediction markets doubled in Q4, and they view options trading revenue, which has increased for nine consecutive quarters, as a primary growth focus going forward.
However, the looming risks are significant. Prolonged weakness in the cryptocurrency market and potential Federal Reserve rate cuts could further pressure net interest revenue. With Robinhood”s heavy exposure to transaction-based revenue, ongoing downturns in both crypto and equity markets could hinder overall performance.
CEO Vlad Tenev emphasized the company”s competitive positioning, asserting that they aim to make active traders feel they have the best experience trading with Robinhood. For those contemplating a purchase of Robinhood stock, analysts suggest that the price range of $60 to $75 may serve as a favorable zone for long-term accumulation, given the solid fundamentals reflected in the recent earnings report.
