Robinhood stock plunges 12% as company's Q4 revenue misses Wall Street estimates

Core Viewpoint - Robinhood's stock fell over 12% after reporting fourth quarter revenue that missed expectations, despite achieving record annual revenue of $4.5 billion in 2025 [1][6]. Revenue Performance - Fourth quarter revenue was reported at $1.28 billion, falling short of the expected $1.35 billion [1]. - Crypto revenue for the fourth quarter was $221 million, below the estimated $248.2 million [2]. - Options revenue also missed expectations, coming in at $314 million versus the forecast of $331 million [2]. Market Reaction - Analysts noted that the top-line miss was detrimental, with one stating that the stock's reaction was justified given high expectations and its expensive valuation [2][3]. - The stock was down approximately 40% from its all-time high prior to the earnings report [5]. Analyst Sentiment - Despite the recent revenue miss, analysts remain optimistic about Robinhood's diversified business model, which includes app offerings and prediction markets, potentially mitigating the impact of a downturn in the crypto market [6]. - The stock has received 24 Buy recommendations, four Holds, and one Sell, indicating a generally positive outlook among analysts [6].