Robinhood (HOOD) Stock Price Risks 40% Crash as Crypto Drag Outweighs Earnings

The Robinhood stock price has rebounded nearly 23% since its February 5 low near $71. On the surface, this looks like a strong recovery for HOOD. The company also just posted its best financial year on record.

But the bigger picture tells a different story. Weak crypto activity, fading money flows, and rising technical risks suggest this rebound may not last. For now, downside pressure remains the dominant force.

Robinhood delivered a strong financial performance in 2025. Full-year revenue reached about $4.5 billion, up more than 50% year over year. Net income hit nearly $1.9 billion. Q4 revenue rose 27%, and earnings per share beat expectations. Options trading, interest income, and Gold subscriptions all grew sharply.

These numbers show that the core business is improving. Robinhood is no longer dependent only on meme stocks and crypto trading. It is becoming more diversified and more stable.

The company also launched the public testnet for Robinhood Chain. This is an Ethereum Layer 2 network built on Arbitrum. It aims to support tokenized stocks, 24/7 trading, and DeFi tools. This is a long-term growth move, not a short-term price driver. But crypto remains a problem.

Crypto revenue fell 38% year over year to about $221 million. This drop was linked to Bitcoin’s pullback and weaker trading volumes. Because crypto still contributes a large share of activity, the slowdown hurt total revenue. Q4 sales missed analyst estimates by roughly $50 million.

ROBINHOOD Q4’25 EARNINGS HIGHLIGHTS