Robinhood Stock Falls After Q4 Revenue Miss, Despite Record Quarterly Results

Online brokerage Robinhood Markets reported financial results for the fourth quarter of 2025, presenting a mixed picture for investors. The company announced record quarterly revenue, driven by a significant surge in retail trading activity. Key growth drivers included strong revenue from options and cryptocurrency trading, alongside increased interest income earned on customer cash balances.

Despite these positive metrics, the company's stock price fell considerably in after-hours trading. The main reason for the negative market response was that the record revenue still fell short of Wall Street analysts' expectations for the quarter. Furthermore, the company's forward-looking guidance seemed cautious to investors, raising concerns about whether the current momentum in retail trading and crypto markets can be maintained.

This contrast between solid operational performance and a declining stock price emphasises the market's focus on future growth prospects versus past results. Analysts are assessing the strength of current retail investor engagement against potential challenges and the competitive brokerage environment as they reassess their outlook for the company's shares in the near future.