Why Is Robinhood Stock Falling After-Hours Despite Record Q4 Revenue?

The company posted a record Q4 revenue of $1.28 billion, a 27% jump from the year-ago quarter. But it still missed analysts’ estimates of $1.32 billion, as per data from fiscal.ai.

Robinhood (HOOD) shares fell more than 5% in extended hours of trading on Tuesday as its fourth-quarter (Q4) revenue came below analysts’ expectations. 

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The company posted a record Q4 revenue of $1.28 billion, a 27% jump from the year-ago quarter. However, it missed analysts’ estimates of $1.32 billion, as per data from Fiscal.ai. 

The company reported diluted earnings per share of $0.66, down from $1.01 per share it reported in the year-ago quarter. The company said that in Q4 2024, the profit included a $0.47 benefit from the Q4 2024 Tax Benefit and Regulatory Accrual Reversal.

“2025 was a record year where we set new highs for net deposits, gold subscribers, trading volumes, revenues, and profits, and we closed the year with a strong Q4,” said Shiv Verma, Chief Financial Officer of Robinhood.

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