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Solid Equity, Options Trading to Aid HOOD Q4 Earnings Amid Crypto Slump
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Key Takeaways
Robinhood's transaction-based revenue estimate is $809.9M, up 20.5% year over year.
HOOD's options transaction revenue is expected at $315.3M, implying 42% growth in Q4.
Robinhood's crypto transaction revenue is estimated to fall 19.8%, while expenses stay elevated.
Robinhood Markets’ (HOOD - Free Report) transaction-based revenues (comprising more than 60% of total net revenues) are expected to have been decent in the fourth quarter of 2025. The company is scheduled to announce quarterly and full-year 2025 numbers on Feb. 10, after market close.
During the fourth quarter, trading volumes and client activity remained robust, supported by an overall risk-on sentiment in global markets. Investor confidence was buoyed by the Federal Reserve’s easing monetary policy stance, while the longest U.S. government shutdown and lingering geopolitical matters weighed on it. As such, the broader equity markets' returns were positive yet contained compared with some other quarters in 2025.
Unlike prior quarters, equities and fixed income saw steady trading momentum in the fourth quarter. Crypto, by contrast, stayed muted: volumes were weighed down by event-driven volatility, including a forced deleveraging shock in October, followed by choppy price action and fading risk appetite through November and December.
These are likely to have resulted in decent performance of Robinhood’s transaction-based revenues in the to-be-reported quarter. The Zacks Consensus Estimate for HOOD’s transaction-based revenues is pegged at $809.9 million, indicating a 20.5% increase from the prior-year quarter.
The consensus estimate for options transaction revenues is $315.3 million, suggesting 42% growth. Further, the Zacks Consensus Estimate for equity and cryptocurrencies transaction revenues is pegged at $86.8 million and $287.1 million, respectively. Equity transaction revenues are projected to surge 42.3%, while cryptocurrencies transaction revenues are estimated to decline 19.8% year over year.
HOOD’s Q4 Earnings & Revenue Growth Expectations
The Zacks Consensus Estimate for earnings is pegged at 62 cents, which has remained unchanged over the past seven days. The figure suggests a rise of 14.8% from the year-ago reported number.
The consensus estimate for sales of $1.32 billion indicates a 30.5% year-over-year rise.
Click here to know about the other factors that are likely to have influenced HOOD’s overall performance.
How Robinhood’s Peers Fared in Q4
Two of Robinhood’s close peers – Interactive Brokers (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) – announced results on Jan. 20 and Jan. 21, respectively.
Interactive Brokers’ fourth-quarter 2025 adjusted earnings per share of 65 cents surpassed the Zacks Consensus Estimate of 52 cents. The bottom line reflected a rise of 27.5% from the prior-year quarter. Results were primarily aided by an increase in revenues and a decline in expenses. Growth in customer accounts and a rise in daily average revenue trades acted as other tailwinds. As such, Interactive Brokers recorded a 20.5% increase in commissions.
Similarly, Schwab’s fourth-quarter 2025 adjusted earnings of $1.39 per share beat the Zacks Consensus Estimate of $1.37. The bottom line soared 38% year over year. Quarterly results benefited from the robust performance of the asset management business, an increase in net interest revenues and solid brokerage account numbers. Also, trading revenues, which grew 20.5% year over year, drove Schwab’s quarterly performance.
Our Viewpoint on Robinhood’s Q4 Performance
Apart from decent transaction-based revenues, Robinhood is expected to have witnessed higher interest revenues on the back of a higher interest-earning assets balance and a rise in securities lending activity despite interest rate cuts. Hence, this will support this Zacks Rank #3 (Hold) company’s fourth-quarter results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On the other hand, HOOD’s operating expenses are likely to have stayed elevated due to ongoing investments in platform upgrades, product innovation, customer support and regulatory compliance. Further, the company’s global expansion efforts are expected to have led to some additional charges.
Robinhood’s shares have had a remarkable run on the bourses last year, with the stock soaring a whopping 203.6%. It has outperformed the industry’s growth of 37%. Also, it fared better than Schwab and Interactive Brokers.
2025 Price Performance
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Solid Equity, Options Trading to Aid HOOD Q4 Earnings Amid Crypto Slump
Key Takeaways
Robinhood Markets’ (HOOD - Free Report) transaction-based revenues (comprising more than 60% of total net revenues) are expected to have been decent in the fourth quarter of 2025. The company is scheduled to announce quarterly and full-year 2025 numbers on Feb. 10, after market close.
During the fourth quarter, trading volumes and client activity remained robust, supported by an overall risk-on sentiment in global markets. Investor confidence was buoyed by the Federal Reserve’s easing monetary policy stance, while the longest U.S. government shutdown and lingering geopolitical matters weighed on it. As such, the broader equity markets' returns were positive yet contained compared with some other quarters in 2025.
Unlike prior quarters, equities and fixed income saw steady trading momentum in the fourth quarter. Crypto, by contrast, stayed muted: volumes were weighed down by event-driven volatility, including a forced deleveraging shock in October, followed by choppy price action and fading risk appetite through November and December.
These are likely to have resulted in decent performance of Robinhood’s transaction-based revenues in the to-be-reported quarter. The Zacks Consensus Estimate for HOOD’s transaction-based revenues is pegged at $809.9 million, indicating a 20.5% increase from the prior-year quarter.
The consensus estimate for options transaction revenues is $315.3 million, suggesting 42% growth. Further, the Zacks Consensus Estimate for equity and cryptocurrencies transaction revenues is pegged at $86.8 million and $287.1 million, respectively. Equity transaction revenues are projected to surge 42.3%, while cryptocurrencies transaction revenues are estimated to decline 19.8% year over year.
HOOD’s Q4 Earnings & Revenue Growth Expectations
The Zacks Consensus Estimate for earnings is pegged at 62 cents, which has remained unchanged over the past seven days. The figure suggests a rise of 14.8% from the year-ago reported number.
The consensus estimate for sales of $1.32 billion indicates a 30.5% year-over-year rise.
Robinhood Markets, Inc. Price and EPS Surprise
Robinhood Markets, Inc. price-eps-surprise | Robinhood Markets, Inc. Quote
Click here to know about the other factors that are likely to have influenced HOOD’s overall performance.
How Robinhood’s Peers Fared in Q4
Two of Robinhood’s close peers – Interactive Brokers (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) – announced results on Jan. 20 and Jan. 21, respectively.
Interactive Brokers’ fourth-quarter 2025 adjusted earnings per share of 65 cents surpassed the Zacks Consensus Estimate of 52 cents. The bottom line reflected a rise of 27.5% from the prior-year quarter. Results were primarily aided by an increase in revenues and a decline in expenses. Growth in customer accounts and a rise in daily average revenue trades acted as other tailwinds. As such, Interactive Brokers recorded a 20.5% increase in commissions.
Similarly, Schwab’s fourth-quarter 2025 adjusted earnings of $1.39 per share beat the Zacks Consensus Estimate of $1.37. The bottom line soared 38% year over year. Quarterly results benefited from the robust performance of the asset management business, an increase in net interest revenues and solid brokerage account numbers. Also, trading revenues, which grew 20.5% year over year, drove Schwab’s quarterly performance.
Our Viewpoint on Robinhood’s Q4 Performance
Apart from decent transaction-based revenues, Robinhood is expected to have witnessed higher interest revenues on the back of a higher interest-earning assets balance and a rise in securities lending activity despite interest rate cuts. Hence, this will support this Zacks Rank #3 (Hold) company’s fourth-quarter results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On the other hand, HOOD’s operating expenses are likely to have stayed elevated due to ongoing investments in platform upgrades, product innovation, customer support and regulatory compliance. Further, the company’s global expansion efforts are expected to have led to some additional charges.
Robinhood’s shares have had a remarkable run on the bourses last year, with the stock soaring a whopping 203.6%. It has outperformed the industry’s growth of 37%. Also, it fared better than Schwab and Interactive Brokers.
2025 Price Performance
Image Source: Zacks Investment Research