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Robinhood Falls 4% After Sharp Drop in Crypto Revenue

The drop followed a 38% decline in crypto revenue, while options, stocks, and prediction markets helped drive Robinhood's record revenue.

By Luc Vesters
• 2 min read
Robinhood Falls 4% After Sharp Drop in Crypto Revenue

Key Takeaways

  • Robinhood beat quarterly expectations with earnings per share of $0.62 and revenue of $1.31 billion.
  • The stock fell about 4% after crypto revenue dropped 38% to $100 million.
  • Strong growth in options, stocks, and prediction markets offset weakness in the crypto business.

Robinhood topped Wall Street estimates in the second quarter, but that was not enough to keep the stock from sliding about 4% in after-hours trading. The market seemed to focus on the steep drop in crypto revenue, even as options, stocks, and prediction markets all delivered solid growth.

Crypto Revenue Drops Sharply

The online broker posted adjusted earnings per share of $0.62 (€0.54), comfortably ahead of analysts’ forecast of $0.43 (€0.38). Revenue reached a record $1.31 billion (€1.2 billion), up 32% from a year earlier and slightly above the $1.29 billion (€1.1 billion) consensus estimate.

Even so, crypto was the clear weak spot in the report. Revenue from the segment fell 38% to $100 million (€87.9 million), down from $160 million (€141 million) a year ago. That suggests Robinhood’s transaction revenue growth this quarter was driven mostly by the rest of the platform.

Broader Product Mix Helped Offset the Drop

Robinhood said the stronger quarter was fueled by gains in options, stocks, and prediction markets. In a statement, CEO Vlad Tenev said the company’s product work is centered on a single idea: making everyone an owner, pointing to Robinhood Chain, Robinhood Ventures, and Trump Accounts.

Robinhood Chain, a blockchain network that lets eligible European customers access tokenized U.S. stocks, is one of the company’s most important new offerings. Since launch, usage has climbed quickly, with decentralized exchanges seeing hundreds of millions of dollars in daily volume and tokenized stocks such as GameStop, Nvidia, and SpaceX ranking among the most actively traded real-world assets.

The network also highlights how Robinhood is moving beyond standard crypto trading. Memecoins and stablecoins still account for a large share of activity, but trading in tokenized equities has picked up even more in recent weeks.

Why This Matters for Europe

For European crypto readers, the main takeaway is that Robinhood is linking its blockchain push to tokenized stocks for customers in Europe. That makes this earnings report more than just a snapshot of a U.S. broker. It also offers an early look at how quickly demand for onchain investment products can scale in a regulated market.

The move also fits a broader trend of brokers and exchanges adding stocks and other traditional assets. Crypto exchanges are also adding stocks and commodities to help keep users and capital on platform as trading volumes face pressure.

Robinhood’s results may also provide an early signal for Coinbase, which reports earnings on Thursday. Both companies are closely tied to retail trading activity and crypto market sentiment, even if their business models differ. Robinhood will hold an investor call later in the day.

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