Robinhood has seen its share price cut by more than a third this year.
Shares of Robinhood Markets (HOOD 8.80%) sank after the trading platform’s Q4 revenue fell short of expectations. The stock has now lost more than a third of its value in 2026, as of this writing.
Let’s take a closer look at the company’s earnings report and prospects to see if investors should buy the dip.
Today’s Change
(-8.80%) $-6.86
Current Price
$71.11
Key Data Points
Market Cap
$64B
Day’s Range
$70.44 – $78.91
52wk Range
$29.66 – $153.86
Volume
2.5K
Avg Vol
29M
Gross Margin
89.70%
Crypto woes
Robinhood continues to grow quickly as it increases its platform assets. For Q4, revenue jumped 27% to $1.28 billion, but that fell short of the $1.35 billion average analyst estimate, as compiled by FactSet.
Transaction revenue rose by 15% to $776 million. The company is a leader in options trading, and options revenue soared 41% to $314 million. Equity revenue climbed 54% to $94 million, while other transaction revenue surged more than 300% to $147 million. However, cryptocurrency revenue was a big weak spot, tumbling 38% to $221 million,
Net interest revenue jumped 39% to $411 million, while other revenue more than doubled to $96 million, led by a 56% jump in Robinhood Gold subscription revenue to $50 million. Robinhood Gold subscribers rose by 58% to 4.2 million, while Gold Card customers skyrocketed fivefold to 600,000 customers. Meanwhile, total platform assets soared 68% to $324 billion.
Looking ahead, Robinhood expects its asset base to increase significantly in the coming years. It is shooting for another year of net deposit growth of at least 20% in 2026 and said its goal is to reach $1 trillion in assets during the next several years. As such, it is investing in several newer areas, including banking, prediction markets, and international expansion.
After recently launching its banking product, Robinhood already has more than $400 million in assets on the platform with 25,000 funded customers. It said that half have enrolled in direct deposit, which adds to the stickiness. One of the big selling points is that it pays 3.5% interest on deposits for both savings and checking. As an aside, that is something to definitely look into. However, banking customers must be Robinhood Gold members to qualify.
Robinhood is also looking to go big on the predictions market, which is akin to gambling. Volumes doubled in Q4, and it’s now at a $300 million annual run rate. The company said this is mostly sports wagering right now, but it thinks it can grow far beyond that.
Image source: Getty Images
Is the stock a buy on the dip?
Robinhood has been disrupting the brokerage industry, and its expansion into banking and the prediction markets are strong growth opportunities. Although the company has been facing weak crypto transaction revenue, this is largely due to falling crypto prices and is likely temporary in nature.
Meanwhile, the stock is attractively valued given its growth, trading at a forward price-to-earnings (P/E) ratio of about 29 times based on analyst 2026 estimates. Given that, I’d be a buyer of the stock on this dip.
