Revenue and Earnings Overview
Robinhood reported a 27% year‑over‑year increase in total revenue, reaching $1.35 billion, but the figure fell short of analysts’ expectations. Net income dropped 33% to $605 million, or 66 cents per share, compared with the consensus estimate of 67 cents.
Crypto Segment Performance
Crypto transaction revenue slipped to $221 million, down from $268 million in the prior quarter and 38% lower than a year ago, reflecting weaker Bitcoin prices and reduced trading activity.
- Bitcoin price fell 23% in Q4 and is on track for a 21% decline this quarter.
- Despite the slowdown, Robinhood processed 12 billion event contracts in 2025.
Prediction Markets – Fastest‑Growing Line
Prediction markets, powered by Kalshi, emerged as Robinhood’s “fastest‑growing product line by revenue ever.” The offering expanded to parlay‑style bets tied to the NFL postseason, generating new revenue streams despite regulatory limits in Maryland and Nevada.
- One‑cent fee per prediction‑market transaction.
- Projected $50 million Q4 revenue from professional‑sports‑related betting.
Strategic Initiatives and Outlook
CEO Vlad Tenev reaffirmed the company’s vision of building a “financial superapp.” Ongoing projects include the Robinhood Chain, an Ethereum layer‑2 network supporting synthetic “stock tokens” for European customers, and continued investment in prediction‑market products.
Analysts see professional sports betting as a tailwind, while crypto volatility remains a risk.