Robinhood Crypto Revenue Falls 55% as Trading Shifts

Robinhood Markets reported a 55% year-over-year decline in cryptocurrency transaction revenue for the third quarter of 2026, as weaker crypto trading offset growth in other parts of its business.

Crypto transaction revenue fell to $120 million for the quarter ended September 30, down from $268 million a year earlier, according to Robinhood’s third-quarter earnings release on October 27. The results came as the trading platform reported record quarterly net revenue of $1.42 billion, up 12% year over year.

The decline in crypto revenue contributed to a weaker-than-expected profit result. Robinhood reported diluted earnings per share of $0.51, below the $0.55 analysts had expected, according to estimates compiled by LSEG and cited by Reuters.

Shares fell 7% in after-hours trading following the results, Reuters reported.

Crypto Trading Volumes Fall as Revenue Mix Changes

Robinhood’s crypto business faced lower trading activity compared with the same period in 2025, when cryptocurrency markets were approaching previous highs.

The company’s crypto notional trading volume declined 38% year over year to approximately $50 billion. Volume on the Robinhood app fell 48% to $21 billion, while Bitstamp, the cryptocurrency exchange acquired by Robinhood in 2025, recorded $29 billion in volume, down 28%.

The figures, detailed in Robinhood’s Q3 2026 earnings presentation, show that trading activity remained below year-earlier levels despite a quarterly recovery.

Reuters cited heightened market volatility, persistent outflows, inflationary pressures and higher interest rates as factors weighing on speculative assets and cryptocurrency trading.

Despite the annual decline, crypto transaction revenue increased 20% from the second quarter to $120 million. The company’s expanding blockchain business contributed to the quarterly improvement.

Robinhood Chain Adds $26 Million in Revenue

Robinhood Chain generated $26 million in crypto transaction revenue during its first quarter on mainnet, according to the company’s earnings presentation. The network launched on July 1, 2026.

The blockchain, built on Arbitrum, recorded more than $80 billion in decentralized exchange volume and generated over $50 million in chain fees during the quarter, according to Robinhood.

Excluding Robinhood Chain, crypto transaction revenue was $94 million, down 6% from the second quarter. The distinction shows how the company’s expanding blockchain business is contributing to crypto-related revenue even as its traditional trading activity remains under pressure.

The network’s early figures provide an additional measure of Robinhood’s crypto business beyond transaction revenue generated through its brokerage and exchange operations. However, the company has not established that this new revenue stream will offset lower trading activity over the longer term.

Options and Prediction Markets Offset Crypto Weakness

While cryptocurrency revenue declined, other transaction-based businesses recorded growth.

Robinhood’s total transaction-based revenue rose 19% year over year to $867 million. Options revenue increased 31% to $399 million, while equities revenue climbed 41% to $121 million.

Revenue from event contracts, which include prediction-market products, reached $173 million, more than six times the year-earlier figure.

These gains helped Robinhood achieve record total net revenue despite the contraction in crypto trading. However, net income declined 14% year over year to $476 million, while operating expenses increased 16% to $739 million.

Reuters reported that the combination of slower crypto activity and higher costs contributed to the company’s earnings shortfall.

The results illustrate a shift in Robinhood’s revenue mix, with options and event contracts accounting for a growing share of transaction-based revenue as cryptocurrency trading contributes less than it did a year earlier.

Robinhood Expands Beyond Traditional Crypto Trading

The revenue decline comes as Robinhood continues to expand its digital-asset services and blockchain infrastructure.

The company has also received authorization from the Dubai Financial Services Authority to launch a range of products in the region, with a rollout planned for 2027. As covered in Unlock Blockchain’s report, Robinhood plans a Dubai launch in 2027 after receiving DFSA authorization.

The expansion adds another potential source of growth as Robinhood develops businesses beyond its core retail brokerage. However, the third-quarter results show that its crypto transaction revenue remains sensitive to trading activity, even as the company diversifies its products and invests in blockchain infrastructure.