Robinhood Markets Inc (HOOD)’s Earnings Surge: Gold Subscriptions Shine, Crypto Lags

Core Insights - Robinhood Markets Inc (NASDAQ:HOOD) is identified as one of the best S&P 500 stocks with significant upside potential following its earnings report on February 10, which revealed record revenue for both Q4 and the full year of 2025 [1] Financial Performance - Revenue for Q4 increased by 27% year-over-year (YoY) to $1.28 billion, driven by a remarkable 109% YoY growth in the Other Revenues segment, which includes the Robinhood Gold subscription service that reached 4.18 million subscribers, an increase of 1.5 million YoY [2] - The Transaction-Based Revenues segment experienced a decline due to a 38% YoY drop in crypto revenues, while diluted earnings per share (EPS) were reported at $0.66, down from $1.01 in the same period the previous year, with the prior year's EPS benefiting from tax advantages [3] Cash Position and Shareholder Returns - At the end of the quarter, Robinhood held $4.3 billion in cash and cash equivalents after executing $100 million in share repurchases, totaling $910 million returned to shareholders since the initiation of the buyback program in Q3 2024, which involved repurchasing 22 million shares [4] Analyst Outlook - Bernstein SocGen Group maintained an Outperform rating on Robinhood stock with a price target of $160, citing optimism about the future of the crypto and prediction markets businesses, predicting a recovery in the crypto sector by Q2 2026 and potential for the prediction markets to become a billion-dollar annual business this year [5] Company Overview - Robinhood Markets Inc operates a financial services platform that allows millions to trade stocks, options, crypto, and various investment products, in addition to offering banking services, credit cards, and wealth management, with its headquarters located in Menlo Park, California [6]