Robinhood’s Crypto Revenue Falls, Overall Growth Remains Strong

Robinhood’s crypto revenue drops 36% in Q2, but strong options trading and user growth drive overall revenue above expectations.

Robinhood’s (Nasdaq: HOOD) once-surging crypto momentum is continuing to fizzle. The retail trading platform reported a steep 36.5% drop in cryptocurrency-related revenue for Q2 2025, totaling $160 million, down from $252 million in Q1. That marks a second consecutive quarterly decline after peaking at $358 million in Q4 2024.

Despite this setback, Robinhood outpaced Wall Street expectations in broader performance, signaling that its diversification strategy may be working. The company posted total revenue of $989 million, up 45% year-over-year and 6.6% from the prior quarter, handily beating analyst forecasts of $928.8 million.

The sharp drop in crypto revenue reflects waning retail enthusiasm for digital assets, at least on Robinhood’s platform. CEO Vlad Tenev has previously warned about the cyclical nature of crypto trading, pointing to its volatility and unpredictability.

Still, Robinhood noted that crypto revenue nearly doubled compared to the same quarter last year, suggesting long-term interest may remain intact even if short-term activity slows.

Options trading emerged as a bright spot, bringing in $265 million and driving transaction-based revenue to $539 million, a 65% rise year-over-year, though 7.5% lower than Q1. Meanwhile, equities and other asset classes contributed to the overall mix, as the platform continues to push beyond its crypto-heavy image.

Robinhood’s Crypto Revenue Falls, Overall Growth Remains Strong

Robinhood’s recent launch of tokenised stocks, particularly in European markets, was highlighted as a major innovation. “We delivered strong business results in Q2 driven by relentless product velocity, and we launched tokenisation, which I believe is the biggest innovation our industry has seen in the past decade,” Tenev said.

The company’s acquisition of crypto exchange Bitstamp also marks a significant move toward expanding its global footprint and digital asset offerings.

Beyond trading activity, Robinhood’s user metrics tell a strong growth story. Funded accounts increased by 10% year-over-year to 27.4 million, while total platform assets doubled to $279 billion. Average revenue per user (ARPU) hit $151—up 34% annually, though slightly below the Q4 2024 peak of $164.

Net income came in at $386 million with earnings per share of $0.42, significantly outperforming analyst expectations of $0.31.

“And Q3 is off to a great start in July, as customers accelerated their net deposits to around $6 billion and leaned in with strong trading across categories,” noted CFO Jason Warnick.

As Robinhood adapts to changing market dynamics, competition is intensifying. Rival eToro, which recently went public, is ramping up its push into tokenised assets and extended-hours trading, still leaning heavily on crypto for revenue but quickly diversifying.

Robinhood’s Q2 report highlights both the fragility and resilience of its business model. Crypto may no longer be the growth engine it once was, but strong fundamentals, diversified revenue streams, and strategic innovation like tokenised stocks position the company for continued momentum.

Still, with retail investor behavior shifting and competitors catching up, Robinhood’s next chapters will depend on its ability to innovate without over-relying on any one asset class.

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