sandmark.com
Shares of Robinhood Markets (HOOD) dropped sharply on 29 Apr after the retail trading platform reported first-quarter results showing a steep 47% year-over-year decline in crypto revenue.
The US-based company, known for commission-free stock, options and crypto trading that has attracted millions of retail investors, saw its stock fall around 14% to near $71 in intraday trading. The move came after results missed analyst expectations for both revenue and earnings per share, amplifying concerns over softening crypto activity.
Crypto trading weakens
Robinhood posted crypto trading revenue of $134mn in the quarter, down 47% from a year earlier, with notional trading volumes on its app falling 48% to $24bn. This weakness dragged on overall transaction-based revenue, which still managed a 7% increase to $623mn thanks to strong gains in equities, options and prediction markets.
The company reported net income of $346mn, up 3% year-over-year, on total revenue of $1.07bn, also up 15%. However, the results fell short of Wall Street forecasts, contributing to the sharp stock reaction.
The slowdown mirrors industry-wide trends. Spot trading volume on centralized exchanges fell 39% quarter-over-quarter to $2.7tn in Q1 2026, with March marking the weakest month since late 2023 at roughly $0.8tn, according to Coingecko data. Decentralized exchange volumes declined 37% to $566bn but showed slightly better resilience, supported by perpetual futures platforms such as Hyperliquid and Aster.
Bitcoin ($BTC) and Ethereum ($ETH) both posted weak performances in the quarter, with $BTC down around 22% and $ETH falling roughly 29%, contributing to reduced trading enthusiasm across retail platforms.
Outlook, analyst views
Shiv Verma, chief financial officer, pointed to sustained customer engagement. "In Q1, customers remained engaged and rapidly adopted new products, leading to a 20%-plus annualized net deposit growth rate, double-digit growth across equities and options, and record volumes for prediction markets, futures, and index options," he said.
Chairman and CEO Vlad Tenev expressed confidence in the company’s positioning. "Driven by our relentless product velocity and innovation, Robinhood is increasingly positioned at the centre of our customers’ financial lives, just as we enter the early innings of the Great Wealth Transfer," he added.
Several analysts noted the earnings miss but pointed to diversification efforts, including strength in prediction markets and ongoing international expansion, as potential buffers against crypto cyclicality. Firms such as Bernstein maintained positive ratings, with some arguing the stock had bottomed and could rebound on any recovery in digital asset markets or new product momentum, although near-term pressure from crypto weakness may persist.