Robinhood Crypto Revenue Plunges 55% to $120M

Robinhood's crypto transaction revenue dropped 55% year over year to $120 million in the third quarter, down from about $267 million. The figure still topped Wall Street's $114.1 million forecast, but crypto accounted for just 8.4% of the company's $1.424 billion in quarterly revenue, versus roughly 21% a year earlier. Shares fell about 5% in after-hours trading as total revenue and earnings missed estimates.

Total crypto trading volume declined 38% to $50 billion. Activity through the Robinhood app fell 48% to $21 billion, while volume through Bitstamp dropped 28% to $29 billion. The figures show that weaker customer trading, rather than a miss against expectations, drove the crypto revenue contraction.

Why it matters

Robinhood's broader business is becoming less dependent on crypto. Options revenue rose 31% to $399 million, equities revenue climbed 41% to $121 million, and prediction markets generated $173 million, more than six times the year-earlier figure. Overall revenue increased 12% year over year, although the $1.424 billion result fell slightly short of the $1.43 billion consensus estimate.

The company is also building a different digital-asset growth engine through Robinhood Chain. The network processed more than $80 billion in decentralized exchange volume and generated over $50 million in chain fees during its first quarter on mainnet. Those fees reflect blockchain activity and should not be confused with reported crypto transaction revenue, and Robinhood did not disclose how much it recognized as revenue.

Market impact

The earnings report points to a split crypto strategy. Retail trading activity is weakening, but infrastructure and on-chain activity are expanding. That distinction matters as crypto funding yields compress toward roughly 4%, while diversified real-world-asset stablecoins are described as sustaining 5% to 7% yields from real credit.

Robinhood's next test is whether Robinhood Chain can turn volume and fees into recognized revenue while options, equities, prediction markets and other businesses carry more of the company's earnings base. Third-quarter EPS was $0.51, below the $0.55 consensus forecast.