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

▲ Robinhood's Official X ©

While it recorded earnings, its core revenue source collapsed—Robinhood's after-hours stock price plummeted 9.4% due to the shock of a sharp decline in cryptocurrency transactions.

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 transaction volume decreased by nearly half compared to the previous year, serving as a direct cause of the stock price decline.

In fact, Robinhood's cryptocurrency transaction revenue decreased by 47% from $252 million to $134 million, and transaction volume also fell 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, both 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, Robinhood CEO, attributed the decline in cryptocurrency revenue to market price volatility, while emphasizing a long-term strategy to focus on tokenization and blockchain infrastructure development. He stated, “Cryptocurrency has great potential as a 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. The platform recorded 8.8 billion event contract trades during the first quarter, an increase of 780% compared to Q2 2025, and revenue in the related segment surged by 320% to $147 million, partially offsetting the cryptocurrency downturn.

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