Robinhood posted Q4 revenue of $1.28 billion, up 27% year‑over‑year but shy of Wall Street’s $1.34 billion forecast. Net income fell 34% to $605 million, largely due to a tax provision versus last year’s tax credit.
Mixed Results in Q4 Despite Robust Revenue GrowthThe year-over-year dip in quarterly profit was primarily tied to a significant shift in tax accounting. In the fourth quarter of 2024, Robinhood benefited from a $358 million income tax credit. In contrast, the company recorded a tax provision of $56 million for the final quarter of 2025.
Operational expenses also weighed on the quarter, surging 38% as the firm ramped up investments. Management noted that the increased spending was largely driven by aggressive marketing, growth-oriented initiatives, and costs associated with recent acquisitions. Despite these pressures, the company saw growth across all its primary revenue streams, supported by a massive influx of new capital. Net deposits for the quarter reached $15.9 billion, representing a 19% annualized growth rate relative to assets at the end of the previous quarter.
“We are incredibly excited about our plan and momentum for the year ahead as we focus on shipping great products for customers and driving profitable growth for shareholders,” Verma said.
Chief Executive Officer Vlad Tenev emphasized that the company remains committed to its long-term vision of becoming a “financial superapp.” This strategy appears to be gaining traction with users; over the past twelve months, Robinhood attracted $68.1 billion in net deposits, a 35% growth rate relative to the platform’s total assets at the end of 2024.
The company also continued its capital return program, repurchasing $653 million worth of Class A common stock during the year. This translated to 12 million shares at an average price of $54.30. Since the buyback program was initiated in mid-2024, Robinhood has repurchased approximately 22 million shares for a total value of $910 million.
FAQ What was Robinhood’s Q4 2025 revenue? Robinhood reported $1.28B in revenue, up 27% year‑over‑year but below Wall Street’s $1.34B target. Why did net income decline despite higher revenue? Net income fell 34% to $605M due to a tax provision versus last year’s $358M tax credit. What drove higher expenses in the quarter? Operating costs surged 38% from marketing, acquisitions, and growth initiatives. How did Robinhood perform for the full year? Annual revenue rose 52% to $4.47B, with net income climbing to $1.88B and record net deposits.
