Robinhood stock slides crypto revenue, expense guide disappoint; CFO exit announced

[Robinhood Markets Acquires Cryptocurrency Exchange Bitstamp For $200 Million]
Scott Olson

Robinhood Markets (HOOD [https://seekingalpha.com/symbol/HOOD]) stock sank 7.5% in Thursday afternoon trading after the fintech's October crypto revenue, full-year operating expense guidance, and the impending departure of its chief financial officer disappointed investors.

The company tucked into its Q3 earnings report its announcement that Jason Warnick will step down as CFO [https://seekingalpha.com/pr/20295313-robinhood-reports-third-quarter-2025-results] in Q1 2026, but will continue to advise the company through Sept. 1, 2026. Robinhood finance veteran Shiv Verma will succeed him as CFO. Still, many analysts remain bullish on the stock.

The stock weakness comes after the company delivered Q3 earnings and revenue on Tuesday that topped the Wall Street consensus estimates. One analyst lowered his Q4 estimates for crypto trading due to the recent drop in asset prices. Bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) slid further on Thursday, down 2.6% over the past 24 hours, to $101.3K.

During the company's earnings call, Warnick said Robinhood (HOOD [https://seekingalpha.com/symbol/HOOD]) is tracking to full-year adjusted operating expenses plus share-based compensation of ~$2.8B, "but it could be higher or lower depending on how the rest of the year plays out."

"We think that we can invest for growth while delivering profitable growth, meaning margin expansion," he added.

KeyBanc analyst Alex Markgraff, who rates Robinhood (HOOD [https://seekingalpha.com/symbol/HOOD]) at Overweight, said the higher operating expense guidance and the CFO transition "may drive some post-print scrutiny," but that Key is comfortable with the transition.

The October updates on crypto, options, equities volume and margin book "were generally better than we had modeled, leaving us constructive on core/new product momentum in 4Q," Markgraff wrote in a note to clients.

Deutsche Bank analyst Brian Bedell, with a Buy rating on HOOD, reduced assumptions on crypto trading revenue due to crypto price performance so far in Q4, but "we continue to believe 3Q results and early October metrics indicate solid operational strength, a well-diversified business profile, and strong execution of HOOD’s product roadmap," he wrote.

Mizuho analyst Dan Dolev, said 2025 is a stellar year for Robinhood (HOOD [https://seekingalpha.com/symbol/HOOD]) and "3Q was no less impressive. Prediction Markets surpassed $100M in annualized revenue, reaching that milestone in less than a year, and tracking toward a $300M run rate based on October volumes." In addition, October metrics are strong, with equities "a particular strength at $320B vs. $647B in 3Q and margin book at $16B in October vs. $11.8B average book in 3Q."

"We believe HOOD continues to fire on all cylinders, and we are very upbeat about management's aspiration to expand globally as well as deeper into institutional areas," Dolev wrote in a note to clients. He has an Outperform rating on HOOD.

The SA Quant system and the average SA Analyst [https://seekingalpha.com/symbol/HOOD/ratings/author-ratings]rate Robinhood (HOOD [https://seekingalpha.com/symbol/HOOD]) at Hold, while the average Wall Street rating [https://seekingalpha.com/symbol/HOOD/ratings/sell-side-ratings]is Buy.

SA Analyst Kenio Fontes says uncertainties and a compressed margin of safety justify his Hold rating [https://seekingalpha.com/article/4838856-robinhood-q3-strength-confirms-the-story-but-not-the-upside]on Robinhood.

MORE ON ROBINHOOD MARKETS

* Robinhood Markets, Inc. (HOOD) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4838752-robinhood-markets-inc-hood-q3-2025-earnings-call-transcript]
* Robinhood: Valuation And Late-Cycle Excess Make This An Unattractive Stock [https://seekingalpha.com/article/4833757-robinhood-valuation-and-late-cycle-excess-make-this-an-unattractive-stock]
* Robinhood targets over 50% of revenue outside U.S. in 10 years as product innovation accelerates [https://seekingalpha.com/news/4516776-robinhood-targets-over-50-percent-of-revenue-outside-u-s-in-10-years-as-product-innovation]