Robinhood Reports 30% Drop in Crypto Revenue, CEO Plans to Diversify Business

Robinhood has reported a significant 30% decline in its cryptocurrency revenue due to falling market prices and trading activity. Total notional trading volume reached $252 million, while shares rose slightly in after-hours trading. CEO Vlad Tenev expressed intentions to diversify the business in order to reduce reliance on crypto transactions, despite maintaining a healthy market share.

Robinhood Markets Inc. has reported a significant drop in its crypto revenue during the first quarter of this year, as slumping prices negatively impacted trading volumes. After the market closed on Wednesday, the commission-free trading platform made its quarterly financial results public, revealing a cryptocurrency trading volume of $252 million. This figure marks a 100% increase year-over-year but reflects a 30% decline from the previous quarter’s all-time high.

In the same report, Robinhood disclosed a broader crypto trading volume of $46 billion for the period, which shows a 28% improvement compared to the same quarter last year. However, this figure is also a stark 35% decrease from the fourth quarter of 2024. Notably, the cryptocurrency revenues accounted for over 43% of Robinhood’s total transaction-based revenue during this quarter.

The downturn in revenue and trading activity coincided with a broader contraction in the cryptocurrency market during the same timeframe, which saw total market capitalisation drop by more than 18%. Major cryptocurrencies experienced substantial losses, with Bitcoin and Ethereum falling 11.82% and 45.41% respectively.

During the earnings call, Robinhood CEO Vlad Tenev addressed the fluctuations in trading volumes, assuring stakeholders that it’s a common occurrence. He did express delight that the company’s market share remained strong despite these challenges. More notably, Tenev emphasized plans to diversify Robinhood’s operations beyond crypto. “We’re diversifying the business outside of the crypto business, which will make us less reliant on crypto transaction volumes,” he stated.

In terms of market reaction, Robinhood’s shares rose by 1.45% post-market after a modest drop of 0.53% to $49.11 during Wednesday’s trading. Year-to-date, stocks have seen a hefty gain of 31.80%. As noted, the company currently enjoys a strong momentum score, suggesting it remains a competitive player among its peers in the crypto sector.