Robinhood Crypto Revenue Plunges 38%, Retail Investors Sit on Sidelines

Robinhood's quarterly earnings report revealed that its crypto trading revenue has taken another hit. The company reported a 38% decline in crypto revenue to $100 million, extending a three-quarter slide. This follows a similar drop of 38% in Q4 2025 and 47% in Q1 2026.

Total notional crypto trading volume on the platform reached $40 billion for the quarter, with $18 billion coming from Robinhood's retail app. However, this represents a 35% year-over-year decline. The remaining $22 billion flowed through Bitstamp, which Robinhood acquired in June 2025.

The acquisition of Bitstamp was aimed at expanding institutional capabilities and international reach. Despite contributing $22 billion to notional crypto trading during the quarter, it's clear that retail investors have largely stepped back from digital assets. This trend is driven by lower prices and reduced enthusiasm.