Robinhood crypto revenue falls 38% despite record second-quarter results

Robinhood crypto revenue fell sharply in the second quarter, even as the brokerage reported record revenue and earnings. For everyday investors tracking HOOD, the takeaway is mixed: Robinhood’s broader trading platform kept growing, while one of its highest-profile crypto lines cooled.

In its earnings report released Wednesday, Robinhood said cryptocurrency transaction revenue dropped 38% from a year earlier to $100 million, compared with about $160 million in the prior-year period. Total revenue rose 32% year over year to $1.31 billion, and net income increased 48% to $573 million, according to the company.

Transaction-based revenue, meaning money tied to customer trading activity, rose 44% to $776 million. Crypto was the outlier among Robinhood’s main transaction categories, according to the company’s results.

Why did Robinhood crypto revenue fall?

Robinhood’s figures point to weaker crypto activity in its core app, while the company did not assign the decline to one single cause in the reported results. The company reported $40 billion in crypto notional trading volume for the quarter, a measure of the total dollar value of trades, with $18 billion coming from the Robinhood app, down 35% from a year earlier.

The rest of the crypto trading volume came from Bitstamp. Robinhood said Bitstamp accounted for $22 billion in crypto notional volume during the quarter, after Robinhood acquired the crypto exchange in June 2025.

Robinhood shares were down 3.15% on Wednesday before the earnings release, according to Yahoo Finance data.

Other trading lines carried the quarter

Robinhood’s results show the company is less dependent on crypto trading than it was during earlier periods of retail crypto enthusiasm. Event contract revenue rose more than tenfold to $156 million, according to the company. Event contracts are trades tied to the outcome of specific events, rather than the price of a stock or crypto token.

Options revenue rose 29% to $342 million, while equities revenue increased 95% to $129 million, Robinhood said. The company also reported record net deposits of $21.7 billion, total platform assets of $369 billion, up 32% year over year, and 28.4 million funded customers, up 7%.

Adjusted EBITDA rose 35% to $741 million, according to Robinhood. Adjusted EBITDA is a profit measure that excludes interest, taxes, depreciation, amortization and certain adjustments. Total operating expenses increased 33% to $734 million.

Robinhood also lowered and narrowed its 2026 outlook for adjusted operating expenses and share-based compensation. The company now expects that figure to land between $2.675 billion and $2.775 billion, compared with its previous range of $2.7 billion to $2.825 billion.

Robinhood keeps building beyond crypto trading

The drop in crypto transaction revenue did not stop Robinhood from expanding its digital asset business. During the quarter, the company completed its acquisition of WonderFi, a Canadian crypto platform, as it added more crypto-related products and infrastructure.

After the quarter ended, Robinhood introduced the public mainnet of Robinhood Chain, offered tokenized U.S. stocks to eligible users in more than 120 countries and launched Robinhood Earn, its first decentralized lending product. A layer-2 network is a blockchain system built on top of a larger blockchain, often used to process activity more efficiently.

DefiLlama data showed Robinhood’s Ethereum layer-2 network had $348 million in total value locked on Thursday, along with more than $500 million in stablecoins and more than $1 billion in bridged assets. Total value locked refers to the dollar value of assets deposited into a blockchain network or decentralized finance protocol.

This story draws on original reporting from Cointelegraph.