Robinhood Crypto Trading Revenue Plummets: HOOD Dips to ATL Levels
Robinhood (HOOD) is facing headwinds as crypto trading revenue experiences a significant downturn. Recent reports highlight a substantial drop, sending shares dipping and raising concerns about the company\'s performance.
Crypto Trading Volume Decline Fuels Concerns
A "risk-off" environment has significantly impacted market performance, directly contributing to a decline in Robinhood\'s key metrics. Crypto trading volume on Robinhood fell to $46 billion in the first quarter, from $71 billion at the end of 2025. This sharp decrease reflects broader market trends affecting the crypto space.
While Robinhood had a banner closeout last year, momentum appears to have slowed. Robinhood\'s estimated crypto trading volume for Q1 is $52 billion, down from $71 billion in Q4. The decreased trading activity is directly impacting revenue streams.
Robinhood\'s Crypto Revenue Takes a Hit
Lower cryptocurrency volumes weighed heavily on Robinhood\'s earnings, with cryptocurrency trading revenue in Q1 2025 hitting $252 million, a 30% decrease from the previous quarter\'s $360 million. This decline tracked a broader slowdown in crypto market activity.
The downturn is further emphasized by a decrease in crypto transaction revenue. Robinhood’s crypto transaction revenue decreased 24% to $39 million compared with the estimate for $51 million. This shortfall contributed to the stock\'s performance.
Assets Under Custody (AUC) Also Affected
The challenging market conditions are also impacting Robinhood\'s assets under custody (AUC). Robinhood’s assets under custody (AUC) are expected to fall 5% from the prior quarter to $183.3 billion, though still up 41% year-over-year. While the report highlights this year-over-year growth, the quarterly decline signals a potential shift in investor sentiment.
Shares Dip in After-Hours Trading
The company’s shares dipped in after-hours trading due to reported revenues falling short of analyst expectations. The combination of decreased crypto trading volume and subsequent revenue decline has rattled investors, leading to increased selling pressure on HOOD stock. The firm said it wants to buy back most or all of the (missing part - context needed for completion).