Robinhood shares jumped over 6% after the trading platform announced a $1.5 billion stock buyback programme on Tuesday.
The $65 billion Menlo Park-headquartered juggernaut announced the scheme after revealing record revenues of $4.5 billion in 2025, despite being dragged down by the crypto market downturn in the final quarter of the year.
“This authorisation reflects the confidence of our management team and board in our ability to continue delivering innovative products for customers and creating value for shareholders while returning capital over time,” Robinhood’s Chief Financial Officer, Shiv Verma, said in a statement.
The programme comes as Robinhood, along with other crypto company stocks, has taken a hit this year.
Since the beginning of 2026, Nasdaq-listed Robinhood is down over 36%. Even so, it is still up almost 53% over the past 12 months.
A share buyback programme allows a company to buy its own stock, with the hope of increasing its price by reducing its supply.
Crypto slump
Over the past few years, Robinhood has rolled out crypto trading for both retail and institutional investors, expanded digital asset-trading services to Europe, and launched its own stablecoin network together with Kraken, and Galaxy Digital.
Robinhood’s latest quarterly earnings showed that the company’s crypto-side of business took a hit along with the price of Bitcoin.
Crypto trading revenue for the company slid in the final quarter of 2025, but was saved as its new prediction markets feature gained traction.
“We’re not getting distracted by short term [price] fluctuations,” Robinhood CEO Vlad Tenev said in the company’s earnings call.
Crypto markets got battered in October when more than $19 billion in leveraged bets were wiped out. Bitcoin is now over 40% below its all-time high; Ethereum has slumped by more than 56%.
The selloff hurt crypto companies which have cut staff and introduced buyback schemes to increase stock prices.
Ripple, the issuer of the XRP cryptocurrency, is one of the companies buying back stocks, according to reports. The company is said to be buying back $750 million worth of stocks at a company valuation of $50 billion.
