Robinhood Shares Drop Nearly 10% After Weak Q4 2025 Revenue, Crypto Sales Slump
Robinhood’s Q4 2025 results reveal a sharp crypto revenue decline and a missed top-line forecast, alongside the launch of its Arbitrum-based Ethereum Layer-2 Robinhood Chain testnet.
Robinhood reported Q4 2025 revenue of $1.28 billion, up 27% year-over-year but below the $1.33 billion Wall Street expectation, triggering a nearly 10% share drop. Crypto trading revenue fell 38% to $221 million, pressuring transaction-based revenue to $776 million. Earnings per share reached $0.66, surpassing estimates, but adjusted EBITDA missed by 9%. JPMorgan cut its price target to $113 and Compass Point to $127 while retaining a Buy rating, citing better early 2026 crypto volumes. The company also launched the public testnet of Robinhood Chain, its Arbitrum-based Ethereum Layer-2 network. Management expects 18% higher operating expenses in 2026 to expand in crypto, DeFi, and prediction markets. Separately, BlackRock announced plans to list its $2.2 billion tokenized Treasury fund BUIDL on Uniswap, sending UNI up 25%.
- Crypto Revenue: Income generated from cryptocurrency trading activities, which can fluctuate significantly with market conditions.
- Transaction-Based Revenue: Income derived from customer trading activity, including equities, options, and cryptocurrencies.
- Layer-2: A secondary framework or protocol built atop an existing blockchain to improve scalability and reduce transaction costs.