Shares of Robinhood slid 10% in early Wednesday trading after the company delivered fourth-quarter revenue that missed Wall Street expectations, as softer crypto activity continued to weigh on results.

The trading platform posted earnings per share of $0.66, beating the $0.63 consensus estimate. Revenue, however, came in at $1.28 billion, below analysts’ forecasts of $1.33 billion.

A sharp drop in digital asset trading was the main headwind. Crypto revenue fell 38% year over year to $221 million, dragging total transaction revenue down to $776 million and missing estimates. The decline followed a late-year downturn in crypto markets that curbed customer activity.

Net interest revenue also came in light at $411 million, pressured by weaker securities lending and lower yields.

Following the results, analysts adjusted their outlooks. JPMorgan reduced its price target on Robinhood to $113 from $130 while maintaining a Neutral rating. The bank cited the softer quarter and tougher year-over-year comparisons in 2025 that could raise the bar for growth heading into 2026. Even at the revised level, the target implies more than 50% upside from the recent share price around $76.50.

JPMorgan analysts, led by Kenneth Worthington, said that while January trading volumes improved compared with a year earlier, growth across key operating metrics appears to be moderating. As a result, the firm trimmed its revenue projections.

Compass Point struck a more constructive tone despite lowering its price target to $127 from $170 and reiterating a Buy rating. Analyst Ed Engel noted that January key performance indicators showed solid momentum across business lines, including crypto volumes that were better than feared after the weak fourth quarter.

Still, Engel pointed to a 9% EBITDA miss, driven by lower securities lending revenue and declining take rates in crypto and options trading. He highlighted management’s guidance for 18% operating expense growth in 2026, which he expects will fund expansion into crypto offerings, decentralized finance initiatives, and prediction markets.

While those investments could start to generate returns in the second half of 2026, Engel cautioned that near-term EBITDA expectations may come down. He also identified potential longer-term catalysts, including the internalization of prediction markets and possible major IPOs from companies such as SpaceX, Anthropic, and OpenAI.

Engel added that Robinhood’s crypto take rate declined three basis points quarter over quarter in the fourth quarter and has fallen an additional five basis points so far in 2026, as higher-volume traders make up a larger share of platform activity.