Robinhood Crypto Revenue Tops Estimates Despite 38% Drop, How Will Stock React?

Robinhood reported $100 million in second quarter cryptocurrency transaction revenue, topping the $86.6 million analyst consensus even as the line fell 38% from a year earlier.

The beat landed inside a record quarter. Total net revenues rose 32% to $1.31 billion, while diluted earnings per share climbed 48% to $0.62.

Robinhood Crypto Revenue Cleared a Bar That Had Already Dropped

Expectations were modest going into Wednesday’s release. Crypto revenue had already fallen 47% in the first quarter to $134 million.

The second quarter figure slipped another 25% from that level. Trading activity accounts for most of the decline.

Robinhood App crypto notional volumes fell 35% year over year to $18 billion. Bitstamp contributed $22 billion, taking the combined total to $40 billion.

The wider market has not recovered. Bitcoin trading near $63,559 sits roughly 46% below its level a year ago.

Robinhood opened a crypto stock earnings week that also brings Coinbase and Strategy results on Thursday.

Prediction Markets Carried the Record Print

Transaction based revenues rose 44% to $776 million. Event contracts delivered $156 million, more than 10 times the year ago figure.

Options revenue climbed 29% to $342 million. Equities revenue nearly doubled to $129 million.

Crypto now supplies under 8% of total net revenues. Two years ago it was one of the company’s headline growth stories.

The customer base kept widening behind those numbers. Funded customers reached 28.4 million and Robinhood Gold subscribers hit a record 4.8 million.

“The business is firing on all cylinders. We delivered record revenues and drove new highs across equity, option, and event contract volumes, as we continue to win market share,” Shiv Verma, Chief Financial Officer of Robinhood, in the earnings release.

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HOOD Slipped Even as the Numbers Beat

Robinhood shares closed Wednesday at $89.84, down 3.15% on the day. The stock eased further to $87.00 in after hours trading.

Earnings quality may explain some of the hesitation. The $0.62 diluted EPS included $0.14 of gains tied to the deconsolidation of Robinhood Ventures Fund I.

Management is still funding crypto regardless. The quarter brought the public mainnet launch of Robinhood Chain, an Ethereum Layer 2 built for tokenized real world assets.

That network has already climbed the fee tables, with Robinhood Chain application fees reaching $25 million in a single week this month.

Robinhood also debuted Robinhood Earn, its first onchain lending product, rolled out stock tokens across more than 120 countries, and closed the WonderFi acquisition in Canada.

Perpetual futures went live in the European Union during the quarter. The company flagged plans for a crypto offering in the United Kingdom.

The company lowered its 2026 adjusted operating expense and share based compensation outlook to a range of $2.675 billion to $2.775 billion.

Whether the crypto line stabilizes may matter less to the share price than whether event contract volumes keep compounding at this pace.