Bitcoin Trading Revenue at Robinhood Falls 38% to $100M

Crypto News

Bitcoin (BTC) retail flow at Robinhood weakened during the second quarter, with crypto transaction revenue declining 38% from the prior year to $100 million, the company’s investor-relations disclosure showed. The figure placed digital-asset trading behind both equities, which generated $129 million, and event contracts, which produced $156 million after expanding more than tenfold. The quarterly report described an all-time-high net revenue result of $1.31 billion, up 32% year over year, while net income rose 48% to $573 million, equal to $0.62 per diluted share and above analyst expectations of $0.43. Transaction-based revenue advanced 44% to $776 million, showing that activity remained strong even as the crypto line contracted. Robinhood said users traded 13.6 billion event contracts during the period, also a more-than-tenfold increase, while options revenue climbed 29% to $342 million and equities revenue nearly doubled. Crypto notional volume decreased from $66 billion in the first quarter to $40 billion, including $18 billion on the company’s own app, down 35% annually, and $22 billion routed through Bitstamp. The disclosure also highlighted Rothera, a CFTC-licensed exchange and clearinghouse operated with Susquehanna International Group, which launched in June and processed more than 3.5 billion contracts. Thirteen business lines now exceed $100 million in annualized revenue, and the company pointed to the public mainnet launch of Robinhood Chain plus Agentic Trading, an AI trading bot product that attracted almost 100,000 accounts and more than $100 million in assets since May. Net deposits reached $21.7 billion for the quarter, Robinhood Gold subscribers increased 39% to 4.8 million, total platform assets expanded 32% to $369 billion, and funded customers grew 7% to 28.4 million, underscoring that the firm’s broader retail-finance engine kept expanding even while digital-asset trading cooled. For altcoin and Bitcoin traders, the shift suggests that retail platforms are monetizing shorter-duration event exposure alongside traditional execution.

The second-quarter filing also showed Robinhood’s earnings quality improving beyond transaction fees. Net interest income rose 9% to $389 million, helped by growth in interest-earning assets despite lower short-term rates, while other revenue advanced 54% to $143 million on contributions from Robinhood Gold subscriptions and Trump account service fees. The company reported average revenue per user of $187, up 24% year over year, a metric that indicates deeper engagement across its 28.4 million funded customers. Total operating expenses increased 33% to $734 million, reflecting marketing spend, costs tied to new product lines, and restructuring charges from a June 2026 workforce reduction. Adjusted operating expenses and stock-based compensation rose 23% to $641 million, which management said came in below internal expectations, and adjusted EBITDA climbed 35% to $741 million. Chief executive Vlad Tenev framed the quarter around broader ownership, citing Robinhood Chain, Robinhood Ventures, and Trump accounts as tools to make more people participants in asset markets. Chief financial officer Shiv Verma said the business was firing on all cylinders, pointing to record revenue and record volumes in stocks, options, and event contracts. The balance sheet also shifted: cash and cash equivalents reached $5.4 billion, up from $4.2 billion a year earlier, supported by $2.2 billion of net proceeds from a June convertible-bond issuance. Robinhood repurchased $414 million of Class A common stock during the quarter, bringing cumulative buybacks under its program to $1.3 billion since late 2024. The filing included a $129 million gain, or $0.14 per share, tied to consolidation of Robinhood Ventures Fund I, a one-time item that investors may strip out when assessing recurring profitability. Excluding the Ventures-related gain, diluted earnings would have been about $0.48 per share, still above the $0.43 analyst estimate cited in the release. That comparison matters because Robinhood is trying to show that subscription, interest, and event-contract revenue can offset weaker crypto trading cycles.

COINOTAG’s reading of the disclosure is that Robinhood is moving from a crypto-cycle broker toward a multi-product retail exchange, where crypto execution is only one revenue line among event contracts, subscriptions, interest, and automation. This matters while the COINOTAG Fear and Greed Index sits at 28/100, a Fear reading, and Bitcoin accounts for 69.7% of our tracked market of $1,864,112,890,525. In such conditions, platforms cannot rely on speculative algorithmic-stablecoins narratives or a single token rally; they need diversified flow. Robinhood’s 38% crypto revenue decline and 10-fold event-contract growth show that retail demand is rotating toward defined-outcome products rather than leaving the platform entirely.