Robinhood, Why Did It Collapse? ...The Shock of Halved Crypto Revenue

▲ Robinhood Official X ©

Despite reporting earnings, a key revenue source collapsed—Robinhood's after-hours stock price plummeted by 9.4% due to the shock of a sharp decline in cryptocurrency trading.

According to investment media FXStreet on April 29 (local time), online trading platform Robinhood's first-quarter revenue fell below market expectations, leading to a sharp contraction in investor sentiment. In particular, cryptocurrency-related revenue and trading volume decreased by nearly half compared to the previous year, acting as a direct cause of the stock price decline.

In fact, Robinhood's cryptocurrency trading revenue decreased by 47% from $252 million to $134 million, and trading volume also decreased by 48% from $48 billion to $24 billion. This marks a third consecutive quarter of decline, indicating a clear slowdown in the growth of its cryptocurrency business.

Overall performance also fell short of expectations. Earnings per share (EPS) were $0.38, and revenue was $1.07 billion, falling short of market forecasts by 11.6% and 6.1%, respectively. However, net income increased by 3% year-over-year to $346 million, maintaining profitability.

Vladimir Tenev, CEO of Robinhood, attributed the decline in cryptocurrency revenue to market price volatility but emphasized a long-term strategy to focus on tokenization and blockchain infrastructure development. He stated, “Cryptocurrencies have great potential as technological infrastructure, and we are currently in the early stages of a tokenization supercycle.”

Meanwhile, Robinhood is seeking a breakthrough through 'Robinhood Predictions', a prediction market platform linked with Kalshi. This platform recorded 8.8 billion event contract trades during the first quarter, an increase of 780% compared to Q2 2025, and related sector revenue also surged by 320% to $147 million, partially offsetting the cryptocurrency slump.

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