Robinhood's Crypto Revenue Declines Amid Record Quarter

Robinhood's stock price has been falling despite the company's record-breaking quarter. The company reported total net revenue of $1.31 billion, a company record, with diluted EPS of $0.62 against a consensus that sat around $0.39, $0.41.

The reason for the decline is concentrated in one line item: crypto transaction revenue came in at $100 million, down 38% from $160 million a year earlier, and that decline happened on roughly $40 billion of crypto trading volume. Volume held up; the revenue per unit of volume did not. This is a margin story, not a demand story.

Options are now more than three times crypto in terms of revenue, and event contracts have passed crypto for the first time in company history. Crypto has slipped to fourth place in a business where it was once the swing factor that decided whether a quarter was good or bad.