Financial and Business News

Can Event Contracts Demand Pull Robinhood Out of the Q4 Crypto Revenue Slump?

Wednesday, 11/02/2026 | 07:48 GMT by Arnab Shome
  • The broker’s crypto revenue dropped by 38 per cent year over year as trading volume declined.
  • On the other hand, a record 8.5 billion event contracts changed hands.
Vlad Tenev, CEO and Co-Founder of Robinhood; Photo: Wikimedia Commons
Vlad Tenev, CEO and Co-Founder of Robinhood; Photo: Wikimedia Commons

Robinhood (Nasdaq: HOOD), which once benefited from crypto trading, is now feeling the market’s pinch as its cryptocurrency revenue in the fourth quarter of 2025 dropped 38 per cent year over year to $221 million.

However, the brokerage platform's total net revenue increased by 27 per cent to $1.28 billion. Its transaction-based revenue also increased by 15 per cent to $776 million.

Crypto Trading Volume Went Down

The notional trading volume in crypto was $82 billion in the quarter, including $48 billion on Bitstamp. Crypto trading demand on the Robinhood app declined by 52 per cent.

While crypto demand was weak, HOOD revealed that prediction markets are gaining momentum among active traders, with 8.5 billion event contracts traded in the quarter. In comparison, only 2.3 billion event contracts were traded in Q3, while the figure rose to 2.5 billion in October.

Although the broker did not reveal its prediction market revenue, it labelled $147 million as “other transaction revenue”, which may have come from event contracts.

“Our vision hasn’t changed,” highlighted Vlad Tenev, Chairman and CEO of Robinhood. “We are building the Financial SuperApp.”

Hit and Miss

The net income of the brokerage industry disruptor for the three months came in at $605 million. Its diluted earnings per share were $0.66 compared to $1.01 a year earlier, which was inflated due to a tax benefit.

The EPS edged past analysts’ consensus estimate of $0.63, but revenue fell short of the estimated $1.34 billion.

HOOD shares also dropped by 7.66 per cent in after-market hours as traders took cues from the quarterly earnings.

Movement of HOOD shares in the last 24 hours
Movement of HOOD shares in the last 24 hours (Source: Google Finance)

“2026 is off to a strong start,” said Shiv Verma, Chief Financial Officer of Robinhood. “We are incredibly excited about our plan and momentum for the year ahead as we focus on delivering great products for customers and driving profitable growth for shareholders.”

Robinhood (Nasdaq: HOOD), which once benefited from crypto trading, is now feeling the market’s pinch as its cryptocurrency revenue in the fourth quarter of 2025 dropped 38 per cent year over year to $221 million.

However, the brokerage platform's total net revenue increased by 27 per cent to $1.28 billion. Its transaction-based revenue also increased by 15 per cent to $776 million.

Crypto Trading Volume Went Down

The notional trading volume in crypto was $82 billion in the quarter, including $48 billion on Bitstamp. Crypto trading demand on the Robinhood app declined by 52 per cent.

While crypto demand was weak, HOOD revealed that prediction markets are gaining momentum among active traders, with 8.5 billion event contracts traded in the quarter. In comparison, only 2.3 billion event contracts were traded in Q3, while the figure rose to 2.5 billion in October.

Although the broker did not reveal its prediction market revenue, it labelled $147 million as “other transaction revenue”, which may have come from event contracts.

“Our vision hasn’t changed,” highlighted Vlad Tenev, Chairman and CEO of Robinhood. “We are building the Financial SuperApp.”

Hit and Miss

The net income of the brokerage industry disruptor for the three months came in at $605 million. Its diluted earnings per share were $0.66 compared to $1.01 a year earlier, which was inflated due to a tax benefit.

The EPS edged past analysts’ consensus estimate of $0.63, but revenue fell short of the estimated $1.34 billion.

HOOD shares also dropped by 7.66 per cent in after-market hours as traders took cues from the quarterly earnings.

Movement of HOOD shares in the last 24 hours
Movement of HOOD shares in the last 24 hours (Source: Google Finance)

“2026 is off to a strong start,” said Shiv Verma, Chief Financial Officer of Robinhood. “We are incredibly excited about our plan and momentum for the year ahead as we focus on delivering great products for customers and driving profitable growth for shareholders.”

Topics
robinhood
About the Author: Arnab Shome
Arnab Shome
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Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.

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