Robinhood Markets Inc. reported fourth-quarter net income of $605 million, down about 34% from $916 million a year earlier. The drop shows how quickly crypto market drawdowns can translate into weaker brokerage profitability.
The Menlo Park, California-based firm reported 66 cents a share, 2 cents above the Bloomberg-compiled analyst average. Total revenue was $1.28 billion, and revenue from crypto trading fell 38% to $221 million. Robinhood shares, down 24% this year, fell more than 7% in extended trading.
Robinhood profit: can prediction markets offset crypto cycles?
The pressure built as the digital-asset complex sold off through the quarter. Bitcoin (BTC) ended the year about 30% below its Oct. 6 peak and has declined roughly 20% more since then. That pattern tends to compress retail turnover when volatility rises.
Robinhood is pushing harder into event-based contracts as spot volumes soften. The company said more than 12 billion event contracts traded on its platform in 2025, while fourth-quarter event contracts reached a record 8.5 billion. “We’re just at the beginning with our prediction markets business,” Chief Executive Officer Vlad Tenev said on the earnings call.
The shift has also pulled Robinhood deeper into market infrastructure. The company said it was collaborating with Susquehanna International Group to buy a majority stake in derivatives exchange LedgerX. It comes as the Commodity Futures Trading Commission (CFTC) moves toward writing new rules for the multibillion-dollar prediction markets industry.
Robinhood Markets, Inc.Tenev said Robinhood aims to expand into “several new markets” later this year. Next catalyst is the first public draft of the CFTC framework and any clarity it provides on which event contracts can list and how they must be supervised.
