Robinhood Drops 4% Despite Earnings Beat as Crypto Revenue Slumps 38%

Robinhood’s stock fell 4% on Wednesday after the brokerage posted second-quarter results that beat expectations but revealed a sharp pullback in crypto trading revenue.

The firm generated $100 million from crypto transactions during the period, a 38% decline year-over-year, according to the original report.

Even as overall earnings topped analyst forecasts, the market punished the shares because gains in options and prediction markets could not fully replace the shrinking crypto segment. The crypto revenue line has become a key sentiment indicator for retail brokerages.

A year ago, platforms like Robinhood benefited from a wave of meme-coin speculation and optimism around spot Bitcoin ETFs. That activity has since cooled dramatically, with trading volumes across retail exchanges thinning noticeably.