Robinhood (HOOD) said revenue from cryptocurrency-related trading fell 38% year over year in the fourth quarter, highlighting that lower digital asset prices continue to dampen trading activity even as the platform deepens its penetration into the industry.
According to its latest earnings report, the trading app generated $221 million in cryptocurrency trading revenue, down from $358 million a year ago. The decline comes despite Robinhood’s efforts to make cryptocurrencies a larger part of its business.
Over the past year, the company has launched new encryption features and expanded its product offerings. Robinhood has launched cryptocurrency transfers in more regions, allowing users to move assets on and off the platform. It has also added a host of new trading tokens, expanding to a small set of major tokens that were once restricted to customers. The company sees these moves as steps toward becoming a broader digital asset portal rather than a simple trading app.
This strategy has not yet insulated cryptocurrency income from market fluctuations. Lower prices tend to dampen trading, especially among retail investors, who are the main drivers of Robinhood’s trading volume.
The slowdown in cryptocurrencies contrasts with Robinhood’s broader business. Overall transaction-based revenue reached $776 million, up 15% from the prior year. Gains in stock and options trading helped offset losses in cryptocurrencies, suggesting the revenue mix was more balanced than in past cycles.
The company’s fourth-quarter earnings per share were $0.66, above Wall Street expectations of $0.63, but revenue of $1.28 billion fell short of expectations of $1.33 billion.
The stock fell 7.7% in after-hours trading, extending a plunge that began around the time the cryptocurrency peaked in early October 2025. The stock currently trades at $79, down nearly 50% from its all-time high.
Rival Coinbase (COIN) is scheduled to report earnings on Thursday. Analysts expect the company’s trading volume and revenue to decline, reflecting the same market conditions as Robinhood’s crypto business. According to HOOD results, COIN dropped by 1.6% after a few hours.
