Robinhood Faces Crypto Headwinds as Q1 Trading Activity Drops by Half

Robinhood Markets, Inc. has published its earnings report showing a 47% year-over-year decline in crypto revenue (from $252 million to $134 million) in Q1 2026.

Revenue is also down 39% quarter-over-quarter, after hitting a record high of $221 million in Q4 2025.

Similarly, the app’s notional volume fell 48% year-over-year to $24 billion. These negative figures have been attributed to moderate trading among retailers following a wider market downturn.

Robinhood misses revenue estimates

The quarter saw tensions between the US and Iran escalate, causing a crude oil supply shock, a resulting rise in inflationary pressures, and, consequently, economic turbulence.

Flagship cryptocurrency Bitcoin dropped 22.73% from a January 1 high of $88,642 to a March 31 low of $68,495. 

The largest 24-hour decline in Q1 occurred on the Strike Day of February 28, when Bitcoin fell by about 8.5% from $72,000 to $63,000.

That said, Robinhood’s total crypto notional volume reached $66 billion, supported by $42 billion from its June 2025 Bistamp acquisition.

Still, the platform missed the $1.14-$1.18 billion in analyst-expected revenue, achieving $1.07 billion instead. This caused a 9.33% pullback in the company’s stock (NASDAQ: HOOD), pushing the price to $74.41 after hours.

Source; MarketWatch

Even then, Robinhood recorded positive figures in other metrics, partly offsetting growth losses seen above. Equities revenue grew 46% to $82 million, and options revenue grew 8% to $260 million. Event contracts performed the best, surging 320% to $147 million in revenue.

2026 outlook and financial health

By comparison, Galaxy Digital, a rival of Robinhood, reported a $216 million net loss due to similar reasons. Companies like Coinbase are set to release their earnings report next month.

Growth-wise, Robinhood became the first platform to develop and manage the Trump Accounts app for government-seeded savings for up to 60 million American children.

As for the rest of the year, Robinhood is channeling its focus into revenue diversification – from transaction-based to banking and subscription fees. For instance, Robinhood Gold hit a $4.3 million subscriber record, generating an annualized revenue run rate of roughly $200 million.