Robinhood Q4 FY2025 Earnings: From Meme-Stock Punchline to $1.9B Profit — So Why Did the Stock Drop 9%?
Two years ago, Robinhood was bleeding half a billion dollars a year and Wall Street had written its obituary. On February 10, 2026, that same company reported $4.5 billion in revenue -- up 52% year-over-year -- and $1.9 billion in net income, making it one of the most profitable fintechs on the planet. It now runs 11 separate businesses each generating over $100 million in annualized revenue. The reward for this transformation? A 9% post-earnings selloff because crypto revenue came in a hair below whisper numbers. The market is giving you a gift. Here is why.
The Headline Numbers
Q4 2025 delivered $1,283 million in revenue, up 27% year-over-year and essentially flat sequentially from Q3's $1,274 million. Net income of $605 million looks like a decline from Q4 2024's $916 million, but the prior year quarter included a one-time $358 million tax benefit from deferred tax asset recognition. Strip that out, and Q4 2024's adjusted net income was roughly $558 million -- making Q4 2025's $605 million a solid 8% improvement on an apples-to-apples basis.
| Metric | Q4 2025 | Q4 2024 | YoY Change |
|---|---|---|---|
| Total Revenue | $1,283M | $1,014M | +26.5% |
| Transaction-Based Revenue | $776M | $672M | +15.5% |
| Net Interest Revenue | $411M | $296M | +38.9% |
| Other Revenue | $96M | $46M | +108.7% |
| Operating Expenses | $633M | $458M | +38.2% |
| Net Income | $605M | $916M | -33.9%* |
* Q4 2024 included $358M one-time tax benefit
The full-year picture is where the real story lives:
| Metric | FY2025 | FY2024 | YoY Change |
|---|---|---|---|
| Total Revenue | $4,473M | $2,951M | +51.6% |
| Transaction-Based Revenue | $2,628M | $1,647M | +59.6% |
| Net Interest Revenue | $1,514M | $1,109M | +36.5% |
| Other Revenue | $331M | $195M | +69.7% |
| Operating Expenses | $2,379M | $1,897M | +25.4% |
| Net Income | $1,883M | $1,411M | +33.5% |
Revenue growth of 52% on a $3 billion base is exceptional for any financial services company, let alone one that was losing half a billion dollars just two years ago.
Revenue Deep Dive: Three Engines Firing
Robinhood's revenue breaks into three segments, and the diversification story is the most important structural development in the company's history. We tracked every dollar through double-entry accounting in Beancount. Here is the FY2025 quarterly trajectory:
| Segment | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | FY2025 | FY2024 | YoY |
|---|---|---|---|---|---|---|---|
| Transaction-Based | $583M | $539M | $730M | $776M | $2,628M | $1,647M | +59.6% |
| Net Interest | $290M | $357M | $456M | $411M | $1,514M | $1,109M | +36.5% |
| Other Revenue | $54M | $93M | $88M | $96M | $331M | $195M | +69.7% |
| Total | $927M | $989M | $1,274M | $1,283M | $4,473M | $2,951M | +51.6% |
Several things stand out.
Transaction-Based Revenue ($2.6B, +60% YoY): This is where crypto, options, and equities trading revenue lands. The Q1-to-Q4 ramp from $583M to $776M tells the story of a platform riding both crypto enthusiasm and expanding product offerings like prediction markets and index options. Q4's $776M was the best quarter ever, driven by crypto volumes that surged alongside bitcoin's rally past all-time highs. Options trading continues to be a consistent engine -- Robinhood's options market share continues to expand as the platform democratizes derivatives access.
Net Interest Revenue ($1.5B, +37% YoY): The quiet compounder. This segment -- driven by securities lending, margin lending, and Robinhood Gold's cash sweep deposits -- grew from $290M in Q1 to $456M in Q3 before moderating to $411M in Q4. The Q3 peak reflected optimal positioning ahead of Fed rate cuts. Robinhood Gold, now at 4.2 million subscribers, generates substantial float income while simultaneously driving customer engagement. This revenue stream provides crucial stability when transaction volumes ebb.
Other Revenue ($331M, +70% YoY): The smallest segment but the fastest growing, fueled by Robinhood Gold subscription fees and proxy revenue. The jump from $54M in Q1 to $96M in Q4 reflects both subscriber growth and the expansion of ancillary services.
The Crypto Question
The post-earnings selloff was almost entirely about crypto. Q4 revenue of $1,283M missed consensus estimates of approximately $1,340M, and the culprit was crypto transaction revenue coming in below whisper numbers despite bitcoin trading near all-time highs.
The market's anxiety deepened when management noted that January 2026 crypto volumes declined approximately 57% compared to January 2025, when post-election euphoria had driven extraordinary trading activity.
But this reaction misses the forest for the trees. Crypto transaction revenue is inherently volatile -- it surges during bull markets and contracts during quieter periods. What matters structurally is that crypto is now one of a dozen revenue engines, not the only one. In FY2023, a weak crypto environment contributed to $785M in total transaction-based revenue. In FY2025, even with crypto volatility, that number hit $2,628M. The base has diversified dramatically.
Expense Discipline and the Margin Story
Robinhood's operating expense trajectory tells the story of a company that has learned financial discipline without sacrificing growth:
| Category | FY2023 | FY2024 | FY2025 | FY'25 vs FY'24 |
|---|---|---|---|---|
| Brokerage & Transaction | $146M | $164M | $211M | +28.7% |
| Technology & Development | $805M | $818M | $897M | +9.7% |
| Operations | $159M | $188M | $130M | -30.9% |
| Credit Losses | — | — | $114M | — |
| Marketing | $122M | $272M | $399M | +46.7% |
| General & Administrative | $1,169M | $455M | $628M | +38.0% |
| Total OpEx | $2,401M | $1,897M | $2,379M | +25.4% |
FY2023's inflated $2.4B OpEx included a $485M founders' stock-based compensation charge in Q1 and a $104M regulatory accrual in Q3. Normalize for those items, and the underlying cost trajectory has been remarkably controlled. FY2025's $2.4B in OpEx supported $4.5B in revenue -- an implied operating margin of approximately 47%, compared to roughly 36% in FY2024 (adjusting for the Q4 2024 tax benefit).
The most notable line is Technology & Development, which grew just 9.7% while revenue grew 52%. That is operating leverage. Marketing spending increased 47% -- an intentional investment in customer acquisition that drove net funded accounts higher -- but as a percentage of revenue, marketing actually declined from 9.2% to 8.9%.
Three-Year Transformation: From $541M Loss to $1.9B Profit
The full magnitude of Robinhood's turnaround only becomes clear across a multi-year view. Using our complete ledger data:
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Revenue | $1,865M | $2,951M | $4,473M |
| Revenue Growth | — | +58.2% | +51.6% |
| Operating Expenses | $2,401M | $1,897M | $2,379M |
| Net Income | ($541M) | $1,411M | $1,883M |
| Total Assets (Year-End) | $32,332M | $26,187M | $38,137M |
Revenue has grown 2.4x in two years. The company swung from a $541 million net loss in FY2023 -- a year marred by one-time charges -- to $1.9 billion in profit by FY2025. Total assets expanded from $26.2B at end of 2024 to $38.1B at end of 2025, reflecting the Bitstamp acquisition (closed June 2025), growing customer deposits, and a larger securities lending book.
The asset growth story is also remarkable when viewed from the $23.3B starting point at end of 2022. In three years, Robinhood's balance sheet has grown 64% while the business model has been completely transformed from a money-losing trading app to a profitable, diversified financial platform.
Tracking a $4.5B Fintech in Plain Text
To truly internalize the financial architecture of Robinhood's transformation, we built the entire FY2023-FY2025 income statement in Beancount, the open-source double-entry accounting system, using plain-text files that anyone can audit and verify.
Here is what Q4 FY2025 revenue recognition looks like in the ledger:
2025-12-30 * "Q4 Revenue" "Transaction-based revenues"
Assets:TotalAssets 776 USD
Income:TransactionBased
2025-12-30 * "Q4 Revenue" "Net interest revenues"
Assets:TotalAssets 411 USD
Income:NetInterest
2025-12-30 * "Q4 Revenue" "Other revenues"
Assets:TotalAssets 96 USD
Income:OtherRevenue
Every revenue line, every expense category, every tax provision -- modeled as double-entry transactions that balance to the dollar across twelve quarters. Year-end closing entries zero all income and expense accounts into retained earnings, providing a complete audit trail from quarterly press releases to annual financial statements. Explore the full Robinhood ledger interactively below:
The entire three-year history -- FY2023 through FY2025 -- captures the company's journey from a $541M loss to $1.9B in profit, all in roughly 800 lines of plain text. When the numbers in this analysis cite "$4.5 billion in revenue" or "$1.9 billion in net income," those figures are pulled directly from the ledger's transactions and closing entries, cross-referenced against SEC filings and earnings press releases.
The Verdict: Bull vs. Bear
The Bull Case:
- FY2025 revenue of $4.5B (+52% YoY) with 11 distinct businesses generating $100M+ annualized revenue demonstrates genuine platform diversification beyond crypto
- Net income swung from ($541M) in FY2023 to $1.9B in FY2025 -- a $2.4B turnaround in two years
- Robinhood Gold at 4.2M subscribers creates a high-margin, recurring revenue base that provides stability through market cycles
- Prediction markets grew 322% and represent a new high-growth category with significant TAM
- Bitstamp acquisition positions Robinhood for international expansion and institutional crypto services
- Analyst price targets cluster around $120-130, implying 50%+ upside from post-earnings levels near $78
The Bear Case:
- Q4 revenue of $1,283M missed consensus (~$1,340M), with crypto revenue the primary shortfall
- January 2026 crypto volumes down 57% YoY raises questions about sustainability of transaction revenue
- FY2025 OpEx grew 25% to $2.4B, with marketing spend up 47% -- customer acquisition costs are rising
- Regulatory overhang persists: SEC scrutiny of payment-for-order-flow, crypto regulatory uncertainty
- Net interest revenue ($1.5B, 34% of total) is rate-sensitive and will compress as the Fed continues cutting
- Competition from established brokerages (Schwab, Fidelity) and crypto-native platforms (Coinbase) intensifies
Our Take: The post-earnings selloff is overdone. A company that grew revenue 52% to $4.5 billion, delivered $1.9 billion in net income, and demonstrated genuine business diversification does not deserve a 9% haircut because one quarter's crypto revenue came in light. The multi-year trajectory -- from a $541 million loss to nearly $2 billion in profit in just two years -- is one of the most impressive turnarounds in fintech history. Robinhood is no longer a single-product company subject to the whims of retail trading sentiment. It is a financial platform with growing moats in options trading, securities lending, subscription services, and international expansion. At approximately $78 per share with analyst consensus above $120, the risk-reward tilts decisively toward the bulls for investors willing to look past a single quarter's crypto noise and focus on the structural transformation underway.
