Robinhood Q4 Highlights: Record Revenue, 8.5 Billion Prediction Market Contracts - Robinhood Markets (NASDAQ:HOOD)

Core Insights - Robinhood reported record fourth-quarter revenue of $1.28 billion, a 27% increase year-over-year, although it fell short of the Street estimate of $1.34 billion [2] - The company achieved fourth-quarter earnings per share of 66 cents, surpassing the consensus estimate of 62 cents per share [2] Revenue Breakdown - Transaction-based revenues for the fourth quarter were $776 million [2] - Net interest revenue reached $411 million, up 39% year-over-year, while other revenue was $96 million, up 109% year-over-year, driven by Robinhood Gold subscription revenue of approximately $50 million [2] Customer Metrics - Robinhood had 4.2 million Gold subscribers at the end of the fourth quarter and 27.0 million funded customers, an increase of 1.8 million in the quarter [3] - The average revenue per user was $191 in the fourth quarter, reflecting a 16% year-over-year increase [3] Annual Performance - For the full year, Robinhood reported a record revenue of $4.5 billion, a 52% increase year-over-year, with diluted earnings per share of $2.05 [3] - The company recorded $68 billion in net deposits for the full year, with total platform assets rising 68% year-over-year to $324 billion [4] Future Outlook - The company provided guidance for 2026 operating expenses and SBC of $2.6 billion to $2.725 billion, aimed at accelerating product development and driving net deposit growth [6] - Preliminary January 2026 data showed net deposits of $4.5 billion, a 17% year-over-year increase [6] Trading Activity - In January, Robinhood reported 200 million options contracts traded, a 20% year-over-year increase, and equity notional trading volumes of $227 billion, up 57% year-over-year [7] - Event contracts traded in January reached a new monthly record of 3.4 billion [7] Revenue by Segment - Other transaction revenue was $147 million, up over 300%, while options revenue was $314 million, a 41% year-over-year increase [8] - Equities revenue was $94 million, up 54% year-over-year, but cryptocurrencies revenue decreased by 38% to $221 million [8] Market Reaction - Following the earnings report, Robinhood shares fell 7.6% to $79.10 in after-hours trading, within a 52-week trading range of $29.66 to $153.86 [10]