Robinhood just dropped the kind of earnings report that makes you forget GameStop ever happened.
Q4 2025 revenue hit $1.28 billion — a record. Full-year revenue hit $4.5 billion — up 52% year-over-year. Net income for 2025 reached $1.9 billion — also a record. Assets under custody crossed $333 billion — up 119% from last year.
This isn't the same company that almost imploded during the 2021 meme stock crisis. This is a profitable, diversified financial platform that's systematically eating market share from the industry's legacy players.
Let's break it down.
The Headline Numbers
| Metric | Q4 2025 | Estimate | Beat/Miss |
|---|---|---|---|
| Revenue | $1.28B | — | ✅ Record |
| EPS | $0.66 | $0.61 | ✅ +8% |
| YoY Revenue Growth | +34% | — | ✅ |
| Full Year 2025 | Result | YoY Change |
|---|---|---|
| Revenue | $4.5B | +52% |
| Net Income | $1.9B | Record |
| AUC | $333B | +119% |
| Net Deposits | $68.1B | +35% vs 2024 |
These aren't "beat by a penny" numbers. This is a company firing on all cylinders.
Where the Money Comes From
Robinhood's revenue mix has shifted dramatically from the PFOF-dependent days:
Transaction Revenue: Options, crypto, and equities trading — plus the fastest-growing segment: prediction markets. Users can now trade event contracts on everything from Fed rate decisions to political outcomes.
Net Interest Income: $18.4 billion margin book plus earnings on uninvested cash. This is the "boring" revenue stream that scales with assets.
Robinhood Gold: 4.2 million subscribers paying for premium features — higher interest on cash, IRA matches, professional research. Sticky, recurring revenue.
Financial Services: The Gold Card (3% cash back) and international stock tokens. The credit card has become a powerful funnel for Gold subscriptions.
The IRA Play: $26B and Counting
Here's the quiet revolution: Robinhood's 3% IRA match has pulled over $26 billion in retirement assets away from legacy institutions in 2025 alone.
Think about that. Fidelity and Schwab have spent decades building retirement franchises. Robinhood matched 3% on IRA contributions and users started moving money.
The IRA strategy does two things:
- Locks in long-term assets — retirement money doesn't churn
- Cross-sells Gold subscriptions — IRA match requires Gold membership
It's expensive customer acquisition, but the LTV math works if users stick around.
The SuperApp Vision Materializes
Robinhood's product velocity over the past two years has been relentless:
| Product | Launch | Impact |
|---|---|---|
| Robinhood Legend | 2024 | Desktop platform for active traders, competing with thinkorswim |
| Gold Card | 2024 | 3% cash back, drives Gold subscriptions |
| Prediction Markets | 2025 | Fastest-growing segment |
| UK ISAs | Early 2026 | International expansion |
| Crypto Perpetual Futures (EU) | 2025 | European market entry |
| Robinhood Chain | Feb 2026 | L2 testnet for tokenized assets |
| 24/7 Trading | 2025 | Nearly 1,000 symbols |
The strategy: capture every financial touchpoint — trading, saving, spending, retirement, credit. One app, one relationship, maximum wallet share.
So Why Did the Stock Dip 7% After Hours?
Investors got spooked by two things:
Crypto cooling: Transaction volumes in crypto have softened from the early 2025 highs. The crypto-driven revenue surge isn't sustainable at peak levels.
Margin compression concerns: The 3% IRA match and Gold Card rewards are expensive. If deposit retention doesn't hold, margins could squeeze.
Classic "sell the news" reaction. Beat estimates, stock drops anyway. Tale as old as markets.
Robinhood Chain: The Next Frontier
A day after earnings, Robinhood launched Robinhood Chain — a custom Ethereum L2 blockchain built on Arbitrum Orbit. The testnet is live now with partnerships across Chainlink, LayerZero, Alchemy, and others.
The vision: tokenized real-world assets (equities, ETFs, private securities) trading 24/7 with DeFi composability. If it works, Robinhood could reduce clearing costs and create entirely new revenue streams.
This isn't a side project. It's the company betting that traditional finance and crypto will merge — and they want to own the rails.
The Competitive Position
Robinhood is winning the war for incremental deposits among Gen Z and Millennials. The incumbents still hold trillions in AUM, but the direction of flow matters more than the stock.
| Competitor | Strength | Robinhood's Edge |
|---|---|---|
| Schwab/Fidelity | Legacy trust, massive AUM | Mobile-first, higher yields, crypto |
| Coinbase | Crypto-native | Broader product suite, equities, retirement |
| PayPal/Block | Payments | Full brokerage capabilities |
| Webull | Price-conscious traders | Gold ecosystem, brand, scale |
The "Great Wealth Transfer" — an estimated $84 trillion passing from Boomers to younger generations — is the macro tailwind. Robinhood's mobile-first, high-yield environment is purpose-built for this moment.
Risks to Monitor
Crypto volatility: Transaction revenue still swings with crypto cycles. A prolonged bear market would hurt.
Regulatory pressure: Prediction markets and 24/7 trading push boundaries. Regulators could tighten.
IRA match sustainability: 3% is expensive. If the economics don't work at scale, it'll need to change.
Stock-based comp: The 2026 guidance includes 18% higher SBC. Dilution is still a factor.
2026 Guidance
Management guided to $2.6–2.725 billion in stock-based compensation for 2026 — an 18% increase at the midpoint. That's the cost of retaining talent in a competitive market, but it pressures EPS growth.
Revenue guidance wasn't explicitly stated, but the underlying message was clear: they're playing offense. International expansion, new products, and the L2 blockchain are all growth vectors.
The Bottom Line
The Robinhood of 2026 is not the Robinhood of 2021.
- $4.5 billion in revenue (record)
- $1.9 billion in profit (record)
- $333 billion in AUC (+119% YoY)
- 4.2 million Gold subscribers
- $26 billion in retirement assets captured
- A blockchain testnet live with real infrastructure partners
The "meme stock app" narrative is dead. This is a profitable fintech platform with a clear path to becoming a financial superapp.
The 7% after-hours dip? That's the market being the market. The numbers speak for themselves.
Robinhood Markets (NASDAQ: HOOD) reported Q4 2025 earnings of $0.66 EPS on $1.28B revenue, both records. Full-year 2025 net income reached $1.9B. The stock is up 85% over the past 12 months.
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