Robinhood’s Crypto Drop Sends Shares Down

The trading app saw its first quarterly profit in a year slip to $346 million, or 38 cents per share, just shy of analysts’ forecast. Revenue hit $1. 07 billion, down from the expected $1. 14 billion, thanks mainly to gains in stocks and options while crypto fees fell sharply. Crypto trading revenue plunged 34 % to $134 million from the previous quarter’s $221 million. Bitcoin prices also slid 22 % in March, mirroring the broader market slump. This decline hit Robinhood hard because a large part of its income comes from retail traders who are trading less in digital assets. Despite the drop, the platform recorded record volumes on its new prediction markets and futures. Users still flock to these features, and the company keeps a small fee on each bet. The firm also rolled out “custom combos” that let traders mimic sportsbook parlays, adding another revenue stream.

Total assets on the platform fell to $307 billion from last year’s $324 billion, though they grew 39 % compared to a year ago. The rise is driven by more deposits and higher stock values, showing that the company still attracts money even as crypto loses traction. Robinhood is pushing into blockchain with its Robinhood Chain testnet, an Ethereum layer‑two solution. The move is part of a broader strategy to build a worldwide ecosystem for tokenized assets, including digital shares of companies like OpenAI and SpaceX. Those token sales have already handled over 100 million transactions. The stock price reacted in after‑hours trading, falling about 6 % to $82. Last year, the company’s share price peaked at nearly $154 as Bitcoin hit an all‑time high. Now, with crypto earnings weaker and retail interest cooling, investors are taking a closer look at Robinhood’s future growth.

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