Robinhood Outperforms Despite Crypto Revenue Decline

Robinhood outperformed its crypto revenue, which declined 36.5% in Q2 2025, but trading drove strong options total revenue above market expectations.

The crypto boom that once supercharged Robinhood’s earnings is fading fast. The popular retail brokerage platform reported a sharp 36.5% decline in crypto-related revenue in Q2 2025, continuing a trend that began earlier this year. Yet despite the ongoing slump in digital asset activity, Robinhood (Nasdaq: HOOD) managed to outperform Wall Street expectations with its overall earnings, buoyed by strong performance in options trading and growing interest income.

Robinhood’s crypto revenue dropped to $160 million in the second quarter, down from $252 million in Q1, and a steep fall from its $358 million peak in Q4 2024. The back-to-back quarterly declines suggest a sustained cool-off in retail crypto enthusiasm, at least on the platform.

Still, the company noted a silver lining: crypto revenue nearly doubled compared to the same period last year. CEO Vlad Tenev has previously stated that Robinhood is focused on diversifying beyond digital assets, acknowledging the sector’s volatility. “Crypto volumes go up and down,” Tenev said, reinforcing the company’s long-term strategy to broaden its revenue base.

Despite the crypto headwinds, Robinhood’s total revenue climbed to $989 million in Q2, marking a 45% increase year-over-year and a 6.6% gain from Q1. Analysts had forecast $928.8 million, making the performance a notable beat.

Transaction-based revenue reached $539 million, up 65% year-over-year but down 7.5% from Q1. A major driver of the gains was options trading, which brought in $265 million. The company also saw growth in net interest income and subscription services.

Robinhood Outperforms Despite Crypto Revenue Decline

Robinhood posted a net income of $386 million for the quarter, with earnings per share (EPS) of $0.42 — significantly above analysts’ expectations of $0.31.

“We delivered strong business results in Q2 driven by relentless product velocity,” said Tenev, highlighting the company’s recent launch of tokenised stock trading in Europe. “Tokenisation is the biggest innovation our industry has seen in the past decade.”

The brokerage has also been expanding through acquisitions, including the closure of its deal to acquire crypto exchange Bitstamp. Robinhood’s push into tokenised assets, allowing fractional ownership of traditional stocks is part of its broader effort to attract global investors and reduce reliance on volatile crypto markets.

Customer metrics also point to steady growth. Funded accounts rose 10% year-over-year to 27.4 million, while assets under custody doubled to $279 billion. Average revenue per user (ARPU) hit $151, up 34% from a year ago and 4% from the previous quarter, though still trailing the Q4 2024 high of $164.

“Q3 is off to a great start in July,” said Jason Warnick, Robinhood’s Chief Financial Officer. “Customers accelerated their net deposits to around $6 billion and leaned in with strong trading across categories.”

Robinhood’s strong quarter comes amid rising competition from platforms like eToro, which is also moving aggressively into tokenised assets following its own public debut. While eToro still draws the bulk of its income from crypto, it has expanded into new asset classes and overnight trading to mirror Robinhood’s diversified approach.

As Robinhood adapts to the shifting tides of retail investing, its latest results show that while crypto may no longer be the crown jewel, it’s no longer make-or-break for the platform either.

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