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 apps 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, Robinhoods 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 companys 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