Robinhood Markets reported record quarterly revenue and earnings on Wednesday, but a 38% drop in crypto trading revenue to $100 million sent shares down 4% in regular trading and another 3% after hours.
Crypto revenue falls hard
The $100 million figure marks a steep decline from the prior quarter. Crypto trading revenue, once a growth engine for the brokerage, now accounts for a smaller slice of the pie. The drop comes as retail interest in digital assets has cooled and trading volumes have thinned across the industry.
Record quarter, but not enough
Robinhood posted record quarterly revenue and earnings overall, driven by gains in equities and options trading. But the crypto slump was enough to spook investors. The after-hours slide suggests the market is focused on the weakness in digital assets rather than the broader strength.
After-hours action
Shares fell another 3% in extended trading after the regular session decline. The timing isn't great — Robinhood has been trying to rebuild its crypto business after regulatory scrutiny and a pullback in meme-stock-era enthusiasm. The next quarterly report will show whether this is a one-off dip or a longer trend.
