Robinhood Shares Drop 37% Despite 25% Revenue Growth and Margin Pressure
Between September 2025 and March 2026, Robinhood stock fell 37% as Q4 revenue of $1.28 billion missed estimates and cryptocurrency revenue plunged 38% to $221 million. During the period, trailing 12-month revenue rose 25.4% but net income margin dropped from 50.1% to 42.1% and P/E multiple shrank nearly 40%.
1. Stock Performance Decline
Between September 2025 and March 2026, Robinhood’s share price slid from $124.8 to $78.3, a 37% drop, while its P/E multiple contracted by nearly 40% amid investor concerns over earnings sustainability.
2. Revenue Growth and Margin Compression
Trailing twelve-month revenue increased 25.4% to support top-line growth, but net income margin narrowed from 50.1% to 42.1%, reflecting higher costs and weaker high-margin segments.
3. Cryptocurrency and Trading Activity Weakness
Q4 crypto revenue tumbled 38% to $221 million, and February 2026 platform data showed a 3% month-over-month decline in assets alongside a 14% drop in equity trading volumes.
4. Subscription Pivot and Profitability Debate
Gold subscriptions surged 58% year-over-year and net deposits rose 35%, but expected Fed rate cuts threaten Net Interest Revenue, fueling a debate over the quality of future earnings.