Robinhood's Crypto Revenue Just Crashed 38% — And 27 Million Users Might Not Realise How It Affects Their Returns

Robinhood Markets posted a record-breaking year. Then its stock dropped 7% to 8%.

The trading app reported $4.5 billion (£3.3 billion) in total revenue for 2025, up 52% year-over-year, with net income hitting $1.9 billion (£1.4 billion), according to the company's fourth-quarter earnings release.

But the fourth-quarter results released on 10 February told a different story. Revenue came in at $1.28 billion (£937 million), missing the analyst consensus of $1.34 billion (£981 million) estimate and snapping a three-quarter streak of beats. Earnings per share of $0.66 (£0.48) edged past the $0.63 (£0.46) consensus. That small win didn't stop the sell-off.

For 27 million funded customers, the real concern isn't one missed quarter. It's the pattern forming underneath.

Record Profits, but Fewer People at the Table

Buried in the earnings data is a detail that deserves more attention.

According to Investing.com, monthly active users fell by 1.9 million year-over-year to 13 million in Q4. That's happening while total platform assets jumped 68% to $324 billion (£237 billion).

Fewer people are using the app. More money is sitting on it. Average revenue per user climbed to $191 (£140), and Gold subscribers grew 58% to 4.2 million, the earnings release showed. Robinhood is squeezing more from its most loyal users while the casual investors who once drove its growth drift away.

If you opened an account during the GameStop frenzy and haven't logged in since, this shift is about you. The platform's focus is moving toward premium subscribers and power traders, not the first-time investor it built its brand around.

The Crypto Engine Stalls

Crypto trading revenue dropped 38% year-over-year to $221 million (£162 million), down from $358 million (£262 million) in Q4 2024, Robinhood reported. That's a big deal. Crypto generates higher per-transaction revenue than stock trades on the platform, so every lost crypto trade hits the bottom line harder than an equivalent equity order.

Bitcoin's fall from above $126,000 (£92,200) in early October to around $69,000 (£50,490) million) has crushed the speculative momentum that fuelled Robinhood's growth. Coinbase faces similar pressure and reports later this week.

But Robinhood's user base skews younger and more crypto-heavy, which makes the exposure sharper.

A Stock That Keeps Falling on Good News

Here's the part that should give retail investors pause. Four of the last five Robinhood earnings releases produced negative stock-price reactions, despite consistently strong reported results, according to historical trading data compiled by StockTitan. Shares dropped roughly 7% to 8% in after-hours trading following the release. The stock is now down 27% year-to-date, falling from an all-time high of $153.86 (£112.59) reached in October.

The market is saying something plain: record profits built on volatile crypto revenue and a shrinking active user base don't add up to lasting confidence.

'Our vision hasn't changed: we are building the Financial SuperApp,' chief executive Vlad Tenev said on the earnings call. He pointed to prediction markets, international expansion, and an Ethereum layer-2 blockchain network in development. Chief financial officer Shiv Verma added that '2026 is off to a strong start.'

What This Means for Your Money

Analysts aren't panicking. Truist Securities cut its Robinhood price target to $130 (£95.13) from $155 (£113.42) but kept a buy rating, calling the sell-off 'overdone,' while KeyBanc dropped its target from $160 (£117.08) to $130 (£95.13) with a similar buy recommendation. Both argue that crypto is only a slice of total revenue.

That may reassure Wall Street. But for the millions of everyday investors who signed up believing Robinhood was built for them, the question is harder to shake: is the platform still working in your interest, or are you funding its next reinvention?

Robinhood posted a record-breaking year. Its stock still dropped around 7% to 8%. That gap tells you everything.