Shares of Robinhood Markets, Inc. (HOOD) recovered modestly in premarket trading on Thursday, rising approximately 1.6% to $79.26. This uptick followed a significant decline of 8.9% in the previous session, which closed at $77.97. The rebound comes amid a broader market focus on the performance of cryptocurrency-exposed financial platforms and follows the company's release of its fourth-quarter 2025 earnings report.
Earnings Report Highlights Mixed Results
For the quarter ended December 31, 2025, Robinhood reported a 27% year-over-year increase in total net revenue, reaching $1.28 billion. However, this figure fell short of analyst consensus estimates of $1.36 billion. Net income for the period declined by 34% to $605 million, or $0.66 per diluted share. A key driver was transaction-based revenue, which totaled $776 million, partially offsetting a sharp 38% drop in cryptocurrency-related revenue to $221 million. Despite the quarterly crypto slump, the company achieved record annual net revenue for the full 2025 fiscal year.
User Metrics and Executive Changes
Monthly active users (MAUs) decreased by 13% compared to the prior year, settling at 13 million. This decline suggests that while the platform may be attracting assets, user engagement and trading frequency have not kept pace. In a separate corporate development, Robinhood appointed Shiv Verma as its new Chief Financial Officer, effective February 6, 2026. He succeeds Jason Warnick, who transitioned to an advisory role. Regulatory filings disclosed that Warnick sold 125,000 Class A shares on February 9 under a pre-arranged Rule 10b5-1 trading plan established in August 2025.
Investor attention is currently divided among several key issues: the company's expense management strategy, the volatile valuation of digital assets, and an upcoming product event scheduled for March 4. Management has provided forward guidance, targeting adjusted operating expenses plus share-based compensation in a range of $2.6 billion to $2.725 billion for 2026.
Analyst Sentiment and Market Context
Following the earnings release, several Wall Street firms adjusted their price targets. Analysts at J.P. Morgan reduced their target to $113 from $130, maintaining a Neutral rating and characterizing Robinhood's growth as "impressive but decelerating." Similarly, Piper Sandler lowered its target to $135 from $155 while keeping an Overweight rating, citing a slowdown in crypto trading volumes and net deposits. The stock's performance remains correlated with the broader cryptocurrency market, which saw pressure as Bitcoin (BTC-USD) struggled to maintain the $67,000 level, affecting peers like Coinbase Global, Inc. (COIN).
Looking ahead, CEO Vlad Tenev has emphasized the company's strategic push into prediction markets, suggesting the industry is entering a "supercycle." This initiative, along with other new products, is expected to be a focal point at the "Take Flight" event on March 4. In the meantime, traders are monitoring macroeconomic indicators, such as the latest U.S. consumer price index data, for clues on future interest rate policy and overall risk appetite. The company is also advancing its blockchain infrastructure, testing its proprietary Robinhood Chain built on the Arbitrum layer-2 network to potentially reduce transaction costs and improve speed on the Ethereum blockchain.
