HOOD: ARK Buys $9.1M After Shares Slide 23%
The purchase reverses October selling, but Robinhood’s crypto revenue fell 55% as prediction markets emerged as a larger revenue engine.
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The purchase reverses October selling, but Robinhood’s crypto revenue fell 55% as prediction markets emerged as a larger revenue engine.
The shift brings a growing revenue stream into focus as state enforcement threats put access to some event contracts at risk.
Analysts see prediction markets and Robinhood Chain helping shift the company from retail trading toward a broader financial infrastructure business.
Prediction markets overtook crypto as Robinhood’s second-largest transaction-based revenue category, while Robinhood Chain softened the decline in its digital-asset business.
The headline number buries the real story: a record quarter was saved by an options-trading surge while the $20B Bitstamp acquisition turned into the drag Wall Street had been bracing for.
Event contracts pulled $156M versus $100M from crypto trading, a 38% YoY slide in token revenue, while overall net income climbed 48% to $573M.
Earnings beat and a record $1.31B quarter were not enough to offset a 38% year-over-year drop in crypto trading revenue, setting a cautious tone for Coinbase's report Thursday.
Crypto revenue fell to $134M from $252M year-over-year — and the COO exit signals the structural challenge: a retail platform trying to decouple its earnings from the trading cycle that built it.
The 38% year-on-year drop isn't a eToro-specific story — Robinhood and Coinbase posted similar Q1 drawdowns, signalling a sector-wide cooldown in retail crypto trading revenue.
The topline beat comes with a split underneath: transaction revenue grew on options and equities, while crypto trading revenue fell 47% to $134M as $BTC volumes normalized off the 2025 cycle peak.