Robinhood Crypto-Trading Revenue Hurt by Market Uncertainty


Robinhood Markets Inc. said users have become more cautious about their investments this year amid a challenging macro environment, weighing on its cryptocurrency-trading revenue. 

First-quarter crypto revenue fell 39% from a year earlier to $54 million, the online brokerage said Thursday in a statement. That missed the $56.1 million average estimate of 11 analysts surveyed by Bloomberg. Total net revenue fell 43% from a year ago. Shares tumbled 11% in post-market trading at 6:15 p.m. in New York. 

“With the uncertainty in the market, our customers became more cautious with their portfolios, trading less frequently and in smaller amounts across all asset classes, although crypto activity in particular came down pretty significantly,” Chief Executive Officer Vlad Tenev said on an earnings call. 

For most of its history, Robinhood has operated in an environment of low interest rates, low inflation and rising markets. Customers are now starting to experience the opposite trends, Tenev said. 

Still, crypto is one of the top areas of focus for Robinhood. Crypto revenue contributed to 18% of total net revenue, an increase from 13% in the prior quarter. In April, it added four new coins — Compound, Polygon, Solana, and Shiba Inu — after requests from customers. The company said it expects to add additional coins over time. 

Crypto wallet, recently rolled out to all users, is a long-term driver of new customers to its crypto platform, but not a revenue driver, Tenev said on the call.