Robinhood stock falls after earnings top forecast, company announces CFO transition-awdailynews

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2025-11-06

Robinhood stock falls after earnings top forecast, company announces CFO transition

Robinhood (HOOD) stock fell 7% on Thursday after the trading platform reported earnings and revenue that topped forecasts and announced its CFO would be leaving the company in the first quarter of next year.

Shares fell as much as 8% in early trading as Wall Street analysts pointed to higher than expected operating expenses, and crypto revenue though strong, missed expectations.

In the third quarter, Robinhood reported earnings per share of $0.61, more than the $0.53 expected by Wall Street, according to Bloomberg data. Total net revenue tallied $1.27 billion, a 100% increase from a year ago and ahead of forecasts for $1.2 billion.

A jump in transaction-based revenues was fueled by cryptocurrency revenue, which rose over 300% to $268 million — though that fell short of the $287.2 million expected. Equities revenue increased 132%.

“Our team’s relentless product velocity drove record business results in Q3 and we’re not slowing down— Prediction Markets are growing rapidly, Robinhood Banking is starting to roll out, and Robinhood Ventures is coming,” Robinhood CEO Vlad Tenev said in the earnings release on Wednesday.

Alongside its results for the third quarter, the company said that its CFO, Jason Warnick, would be retiring next year and transitioning out of his role in the first quarter. Insider Shiv Verma will take over as CFO after Warnick steps aside.

Shares of the Menlo Park, Calif.-based company have surged nearly 40% since joining the S&P 500 in September and are up 280% year to date as the company has become the S&P 500’s (^GSPC) top performer this year.

The stock’s rally has been fueled by new product launches this year, ranging from tokenized stocks in Europe to prediction markets and crypto staking, as Robinhood aims to grow customer wallet share.

“I see lots of companies copying from Robinhood,” Paul Brody, EY global blockchain leader, told Yahoo Finance on Wednesday, “offering these additional services, integrating them together in a very nice user experience, and delivering them to their end customers.”

Wall Street points to the explosive growth of the platform’s prediction markets launched last year. The service lets traders wager on the outcome of major events, ranging from football games to Nvidia’s (NVDA) earnings results, the length of the government shutdown, and bitcoin’s year-end price target.

“Prediction markets are really on fire,” Robinhood CEO Vlad Tenev said on Wednesday during the earnings call.