Trading platform Robinhood's Q4 revenue rises

Overview

• Trading platform's Q4 revenue missed analyst expectations, rising 27% yr/yr to $1.28 bln

• Adjusted EBITDA for Q4 missed estimates, despite a 24% yr/yr increase

• Robinhood Gold Subscribers reached a record 4.2 mln, up 58% yr/yr

Outlook

• Robinhood forecasts 2026 Adjusted Operating Expenses and SBC at $2.6 bln to $2.725 bln

• Robinhood aims to drive net deposit growth and revenue in 2026

Result Drivers

• TRANSACTION REVENUES - Transaction-based revenues increased 15% yr/yr to $776 mln, driven by options and equities, despite a decline in cryptocurrency revenues

• INTEREST REVENUES - Net interest revenues rose 39% yr/yr to $411 mln, driven by growth in interest-earning assets and securities lending

• GOLD SUBSCRIPTIONS - Robinhood Gold subscription revenue increased 56% yr/yr to $50 mln, contributing to a 109% rise in other revenues

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the financial technology (fintech) peer group is "buy"

• Wall Street's median 12-month price target for Robinhood Markets Inc is $147.00, about 69.8% above its February 9 closing price of $86.56

• The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 67 three months ago

Press Release: ID:nGNX7YJYPl

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