Why Is Robinhood Markets (HOOD) Up 0.9% Since Last Earnings Report?

A month has gone by since the last earnings report for Robinhood Markets, Inc. (HOOD). Shares have added about 0.9% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Robinhood Markets due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.Robinhood Q4 Earnings Beat Estimates as Revenues Rise Y/YRobinhood’s fourth-quarter 2025 earnings per share of 66 cents surpassed the Zacks Consensus Estimate of 63 cents. The bottom line compared favorably with adjusted earnings of 54 cents in the prior-year quarter.The results benefited primarily from solid trading activity across all asset classes except cryptocurrencies amid heightened volatility, which led to a jump in transaction-based revenues. Further, higher net interest revenues (NIR) and a surge in Gold subscribers were tailwinds. However, a decline in Monthly Active Users (MAU) and higher expenses were the undermining factors.After considering the one-time benefit of the prior-year period, net income was $605 million, down 34%.For 2025, earnings were $2.05 per share, which outpaced the Zacks Consensus Estimate of $2.03. The figure represented a rise of 88.1% from the previous year’s adjusted earnings. Net income was $1.88 billion, up 33.5% year over year.Revenues Rise, Expenses UpQuarterly total net revenues rose 26.5% year over year to $1.28 billion. However, the top line missed the Zacks Consensus Estimate of $1.34 billion.For 2025, total net revenues were $4.47 billion, up 51.6% year over year. However, the top line missed the Zacks Consensus Estimate of $4.53 billion.During the quarter, average revenue per user (ARPU) increased 16% year over year to $191.Transaction-based revenues of $776 million grew 15.5% from the prior-year quarter. This was primarily driven by an improvement in other transaction revenues, options revenues and equities revenues, which jumped 300%, 41% and 54% respectively.  These were partially offset by lower cryptocurrency revenues.NIR rose 39% to $411 million. This was mainly attributable to a higher interest-earning assets balance and securities lending activity, partly offset by lower short-term interest rates.Other revenues jumped significantly to $96 million, primarily due to a rise in Robinhood Gold subscription revenues. During the reported quarter, Robinhood Gold subscribers surged 58% year over year to 4.2 million.Total operating expenses were $633 million, up 38.2%. The increase was primarily due to a rise in all the components. Adjusted operating expenses increased 20.9% to $521 million.During the reported quarter, adjusted EBITDA was $761 million, up 24.1% on a year-over-year basis.Other Business ActivitiesAs of Dec. 31, 2025, total platform assets increased 68% year over year to $324 billion. The rise was driven by continued net deposits, acquired assets and higher equity valuations.During the reported quarter, Equity Notional Trading Volumes were up 68% year over year to a record $710 billion. Options Contracts Traded rose 38% to 659 million, while Crypto Notional Trading Volumes (which includes Robinhood App and Bitstamp Exchange) were $82 billion, up 16% year over year.In this quarter, the company reported MAU of 13 million, down 12.8% year over year.Share Repurchase UpdateIn the reported quarter, the company repurchased nearly 0.8 million shares for $100 million.2026 OutlookRobinhood anticipates combined adjusted operating expenses and SBC to be $2.6-$2.725 billion, including Bitstamp-related costs.How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.The consensus estimate has shifted -10.85% due to these changes.VGM ScoresCurrently, Robinhood Markets has a poor Growth Score of F, a score with the same score on the momentum front. Following the exact same course, the stock has a grade of F on the value side, putting it in the bottom 20% quintile for value investors.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Robinhood Markets has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerRobinhood Markets belongs to the Zacks Financial - Investment Bank industry. Another stock from the same industry, MarketAxess (MKTX), has gained 0.1% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.MarketAxess reported revenues of $209.41 million in the last reported quarter, representing a year-over-year change of +3.5%. EPS of $1.68 for the same period compares with $1.73 a year ago.MarketAxess is expected to post earnings of $2.06 per share for the current quarter, representing a year-over-year change of +10.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.4%.MarketAxess has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report MarketAxess Holdings Inc. (MKTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks