Robinhood Shares Slide Despite Earnings Beat as Crypto Revenue Loses Momentum

Robinhood generated $100 million in cryptocurrency trading revenue during the quarter, down 38% from the previous year. The decline was offset by stronger performance in options, stock trading, and prediction market activity.

Shares of Robinhood (HOOD) slipped around 4% in after-hours trading despite the brokerage surpassing Wall Street’s second-quarter expectations. The drop followed a 3.1% decline during Wednesday’s regular session.

The company reported adjusted earnings of $0.62 per share, significantly above analysts’ forecast of $0.43. Revenue increased 32% year over year to a record $1.31 billion, slightly exceeding the $1.29 billion consensus estimate.

The results highlighted continued growth across Robinhood’s expanding range of products, although cryptocurrency activity weakened. Crypto-related revenue declined to $100 million from $160 million a year earlier, while transaction-based revenue benefited from increased activity in options, equities, and prediction markets.

“Whether it’s Robinhood Chain, Robinhood Ventures, or Trump Accounts, our product momentum is centered around one mission: helping everyone become an owner,” CEO and Chairman Vlad Tenev said in a statement.

The second quarter represented one of Robinhood’s most aggressive product expansion periods in recent years. The company introduced Robinhood Chain, a blockchain platform designed to support tokenized U.S. stocks as part of its broader effort to bring traditional financial assets onto blockchain networks.

Since its launch, activity on the network has accelerated, with daily decentralized exchange volumes reaching hundreds of millions of dollars. Tokenized assets including GameStop, Nvidia, and SpaceX have become some of the most actively traded real-world assets on the platform. Although memecoins and stablecoins continue to account for a significant share of activity, tokenized stock trading has continued to gain traction.

Robinhood also launched Agentic Trading, a suite of artificial intelligence tools that allows customers to link external AI assistants with their brokerage accounts. The tools can monitor markets and execute trades based on user instructions. The company said the system is designed to automate investing while maintaining user oversight through separate accounts, spending limits, and approval controls.

Robinhood’s earnings provide an early indication of potential trends ahead of Coinbase’s (COIN) second-quarter results. While the two firms operate different businesses, both depend heavily on retail trading activity and cryptocurrency market conditions. Robinhood’s transaction revenue trends could offer clues about whether stronger crypto prices and trading volumes during the quarter helped boost Coinbase’s performance.

Robinhood is scheduled to host its investor call at 5 p.m. ET.