Robinhood Markets reported a steep slowdown in its crypto business for the first quarter of 2026. Crypto revenue fell 47% year over year, dropping from $252 million to $134 million. On a sequential basis, it was also down 39% from the record $221 million posted in Q4 2025. Crypto notional trading volume followed the same direction, sliding 48% from a year earlier to $24 billion.
The company tied the weaker numbers to softer retail activity during a broader market decline. The report pointed to rising tensions between the United States and Iran during the quarter, a crude oil supply shock, stronger inflation pressure, and wider economic turbulence. Trading cooled as market conditions worsened.
Bitcoin’s pullback hit retail trading appetite
During the quarter, Bitcoin dropped from its January 1 high of $88,642 to a March 31 low of $68,495, a decline of 22.73%. The biggest 24-hour move came on February 28, when Bitcoin fell about 8.5% from $72,000 to $63,000. That kind of volatility weighed on retail participation, a key driver of Robinhood’s crypto activity.
The report also included a larger cumulative figure for the platform. Robinhood said total crypto notional volume reached $66 billion, with $42 billion supported by its June 2025 Bistamp acquisition. Even with that contribution, the quarter did not match the momentum seen at the end of last year.
Revenue miss sends HOOD lower after hours
Robinhood also missed Wall Street revenue expectations for the quarter. Analysts had been looking for $1.14 billion to $1.18 billion, while the company posted $1.07 billion. After the earnings release, Robinhood shares fell 9.33% in after-hours trading to $74.41.
Not every business line weakened. Equities revenue rose 46% to $82 million, options revenue increased 8% to $260 million, and event contracts delivered the fastest growth, jumping 320% to $147 million. Those gains softened part of the pressure from the crypto segment, though they did not erase the headline miss.
Focus shifts to subscriptions and banking fees
For the rest of 2026, Robinhood said it is concentrating on revenue diversification, moving away from a heavier reliance on transaction-based income and putting more weight on banking and subscription fees. Robinhood Gold reached a record 4.3 million subscribers, producing an annualized revenue run rate of about $200 million.
The company also said it became the first platform to develop and manage the Trump Accounts app, built for government-seeded savings for as many as 60 million American children. Rival Galaxy Digital reported a $216 million net loss under similar market conditions, while Coinbase is expected to release its earnings next month.