Robinhood released its Q4 2025 earnings report, and amid a significant drop in cryptocurrency revenue, the company’s stock plummeted. The company reported record annual revenue of $4.5 billion, but cryptocurrency revenue fell 38% year-over-year.
Robinhood released its Q4 2025 earnings report, showing better-than-expected earnings per share (EPS) and progress in areas such as options trading, interest income, and Gold subscriptions. However, these positives were overshadowed by weakness in the crypto business: revenue in this segment fell 38% year-over-year to $221 million.
Despite very encouraging figures, such as record annual revenue of $4.5 billion, the company fell short of Wall Street estimates on a quarterly basis, and this was immediately reflected in its stock price.
Following the results release, the stock experienced an intraday drop of nearly 12% and has fallen approximately 40% from its recent high. In other words, the market seemed to focus more on future performance than on past performance.
What is the new target price for Robinhood shares?
With the quarterly report now available, Wall Street analysts have set a price target of $135 for Robinhood shares, while others foresee a much more pessimistic scenario where the price could reach $100.
Strategically, the results reaffirm that Robinhood’s valuation remains closely tied to cryptocurrency activity. Therefore, as long as crypto volumes remain volatile, quarterly earnings are likely to follow suit. The challenge for the company lies in consolidating and scaling its non-crypto business lines to the point where they can more consistently offset the fluctuations in digital trading.
Looking ahead to the next few quarters, investors will be watching key metrics such as monthly active users (MAU), interest income growth, and subscription growth rate. If crypto volumes stabilize or alternative segments accelerate more strongly, the outlook could improve.
