Robinhood Markets Inc. saw its shares decline by 6.2% in after-hours trading following the release of its fourth-quarter earnings. The Menlo Park-based brokerage reported revenue that fell short of analyst expectations, despite achieving record annual results and surpassing earnings per share estimates. This revenue miss appears to have negatively impacted investor sentiment, even with strong growth in its margin book and subscription tiers.

While diluted earnings per share came in at $0.66, exceeding the $0.60 consensus, revenue of $1.28 billion missed the projected $1.34 billion. However, the company highlighted a 68% year-over-year increase in total platform assets, reaching $324 billion, and a record $68 billion in net deposits for the full year. Robinhood Gold, its premium subscription, also saw its user base expand to 4.2 million.

Transaction-based revenue saw mixed results, with gains in options and equities trading offset by a 38% drop in cryptocurrency-related income. The firm's net interest revenue did provide a boost, rising 39%. The company also repurchased $100 million in stock during the quarter. management anticipates adjusted operating expenses and share-based compensation between $2.6 billion and $2.725 billion for 2026.

Despite the revenue shortfall, Robinhood is focused on its expansion. The company is investing in marketing and integrating recent acquisitions. Investors are now watching to see how the brokerage navigates cooling crypto volumes and any shifts in the interest rate environment. This focus on profitable growth will be key to sustaining momentum.