Robinhood Crypto Revenue Drops 38% as Market Slump Weighs on Trading Activity

Robinhood Markets (HOOD) reported a sharp decline in crypto-related revenue in the fourth quarter, underscoring how prolonged weakness in digital asset prices continues to suppress trading activity, even as platforms expand their crypto offerings. According to the company’s latest earnings report, revenue from cryptocurrency transactions fell 38% year over year to $221 million, down from $358 million in the same period last year.

The drop came despite Robinhood’s aggressive push to make crypto a larger pillar of its business. Over the past year, the trading app rolled out several new crypto features aimed at attracting and retaining users. These included expanding crypto transfer capabilities to more regions, allowing customers to move digital assets on and off the platform, and significantly increasing the number of supported tokens beyond its earlier focus on a limited group of major cryptocurrencies. Robinhood has positioned these moves as part of a broader strategy to become a gateway into the digital asset ecosystem rather than just a retail trading app.

However, the strategy has not insulated crypto revenue from market volatility. Lower cryptocurrency prices typically reduce retail investor participation, which directly impacts trading volumes on platforms like Robinhood that rely heavily on individual traders. The continued slowdown highlights the sensitivity of crypto trading revenue to broader market conditions.

While crypto struggled, Robinhood’s overall business showed more resilience. Total transaction-based revenue reached $776 million, marking a 15% increase from the previous year. Stronger performance in equities and options trading helped offset the decline in crypto revenue, reflecting a more diversified and balanced revenue mix compared with previous market cycles.

Financially, Robinhood reported earnings per share of $0.66 for the fourth quarter, beating Wall Street expectations of $0.63. However, total revenue came in at $1.28 billion, missing analyst forecasts of $1.33 billion. Following the earnings release, HOOD shares fell 7.7% in after-hours trading. The stock is now trading around $79, nearly 50% below its record high reached in early October 2025, when crypto markets peaked.

Investor attention is now turning to competitor Coinbase (COIN), which is set to report earnings later this week. Analysts anticipate weaker trading volumes and revenue, reflecting the same challenging crypto market conditions that impacted Robinhood.