Crypto winter hits Robinhood’s sales and stock, but CEO sees prediction-market ‘super cycle’

Robinhood’s stock plunged in after-hours trading Tuesday after reporting weaker-than-expected fourth-quarter sales, primarily due to declining crypto trading activity amid prolonged market caution. The company warned of a significant spending surge in 2026, citing investments in product expansion and regulatory compliance as key drivers, which further pressured investor sentiment. CEO Vlad Tenev remained optimistic, predicting a long-term "super cycle" for prediction markets and crypto, despite current downturns, framing the slump as a temporary setback. Fourth-quarter results reflected broader industry struggles, with crypto transaction revenues dropping sharply compared to 2025, underscoring the platform’s exposure to volatile digital-asset markets. Analysts note Robinhood’s pivot toward diversified revenue streams, including options and stock trading, as it seeks to reduce reliance on crypto amid uncertain regulatory and economic conditions.