Robinhood’s Earnings Surpass Estimates Thanks to Crypto Trading Boom, Analysts Lift Their Price Targets.

Robinhood Stock Surges 13% After Q4 Earnings Beat, Crypto Revenue Skyrockets

Robinhood (HOOD) shares experienced a 13% rise in pre-market trading on Thursday following the release of its fourth-quarter earnings, which exceeded analysts’ expectations, largely driven by a substantial increase in cryptocurrency transaction revenue.

For the quarter, Robinhood reported $358 million in crypto transaction revenue, the highest contribution from digital assets in the company’s history, according to a report from JPMorgan (JPM) on Wednesday. Following the strong earnings, JPMorgan raised its price target for the stock to $45 from $39 while maintaining a neutral rating. Citi (C) increased its target to $60 from $45 and also kept a neutral outlook. Bernstein more than doubled its price target, raising it from $51 to $105 and reiterated its outperform rating on Robinhood.

Shares jumped to $63.20 in early trading on Thursday, following the release of the results, which came out after the market closed on Wednesday. Robinhood’s total revenue for Q4 reached $1.01 billion, marking a 115% increase from the same period last year and surpassing Wall Street’s consensus estimate of $945.8 million, based on FactSet data. Transaction-based revenue saw a 200% increase year-over-year, mainly due to the impressive 700% growth in cryptocurrency revenue.

Typically, crypto revenue makes up 10%-20% of Robinhood’s total revenue. However, JPMorgan pointed out that the 46% increase in the overall cryptocurrency market capitalization during the quarter, combined with Robinhood’s 393% growth in crypto trading volume quarter-on-quarter, was a major factor behind the revenue beat.

Looking ahead, Robinhood has big plans for its crypto business. The company aims to expand its range of tokens, enhance its wallet features, and integrate an order book with exchange routing functionality, along with a long-term focus on tokenization.

Citi noted that Robinhood has been benefiting from strong trends in the crypto market and robust retail activity in early 2025. However, the bank advised investors to wait for a better entry point due to potential volatility, despite being more positive about the company’s outlook.

Bernstein, however, remains extremely bullish on Robinhood, calling it the top pick within the firm’s global digital asset coverage. Bernstein expects continued momentum in Q1 driven by crypto market volatility and sustained price cycles.