Robinhood’s Crypto Revenue Fell 55% in a Year. Is Retail Money Leaving Crypto?

Robinhood’s crypto revenue fell 55% from last year to $120 million in the third quarter. Robinhood Markets (NASDAQ: HOOD | HOOD Price Prediction) reported the news after market close on October 27, 2026. The company’s earnings per share came in at $0.51, below analyst expectations of $0.56.

Before the earnings report, Robinhood’s shares closed at $95 on October 27, but fell to $88 before the market opened, down about 6.6%. This drop leaves the stock down 21.9% for the year. So, is retail money pulling out of crypto, or is the app’s revenue mix simply changing?

Strong Earnings Outside of Crypto

Aside from crypto, Robinhood’s third-quarter performance held steady. Total revenue rose 12% to $1.42 billion. Options trading revenue rose 31% to $399 million, while equities revenue climbed 41% to $121 million. Additionally, total net deposits, or new funds customers deposited onto the platform, totaled $15.7 billion.

Crypto revenue has declined for several quarters. In the second quarter, crypto revenue fell by 38%. Comparing to last year is also challenging because third quarter 2025 was exceptionally strong, with $268 million in crypto revenue, up over 300%.

Reports still vary on how they present net income, with some even claiming crypto revenue increased. During the earnings call, management said October trading volumes in equities, options, and crypto are running “within plus or minus 5%” of third-quarter records, though they did not make formal projections.

Crypto’s Share of Revenue Continues to Dwindle

Despite the drop, crypto accounted for $120 million of the overall $1.42 billion, making up about 8.5% of total revenue—roughly a third of what the options segment generated. Interestingly, even Robinhood’s event contracts earned more revenue than equities trading.

The decline in crypto revenue also indicates a shift in product mix. CFO Shiv Verma explained that the “take rate”—the portion Robinhood retains from each dollar traded—has decreased due to Robinhood Earn, the company’s stablecoin product. “It now has over 500 million in assets there. But because it’s a stablecoin, we monetize it less than the normal platform,” he said.

Additionally, Robinhood’s blockchain network, launched on July 1, generated about $50 million in gross revenue, which translated to about $25 million net after splitting roughly half with Arbitrum.

Declining Coin Prices Contribute to Revenue Drop

Robinhood’s crypto trading volume fell 38% year over year, and revenue fell even faster. Much of this discrepancy is due to lower coin prices. Bitcoin (CRYPTO: BTC) trades at $80,566 as of October 28, down 28.5% from the previous year. Similarly, Ethereum (CRYPTO: ETH) fell 41.1% over the same period, shrinking the dollar amount of each trade.

Management reported that Robinhood’s crypto market share grew “up double digits year over year.” However, executives may be framing a weaker quarter more favorably, since they didn’t directly explain the significant 55% drop.

Does Falling Robinhood Crypto Revenue Mean Retail Money Is Leaving?

Retail investors are indeed trading less in the crypto market, but much of the 55% decline can be attributed to falling coin prices and lower revenue from the stablecoin mix. Customers continue to deposit and shift their funds into options and event contracts, suggesting that while interest in crypto may be waning, money is still staying within the Robinhood ecosystem.

The downside is that crypto revenue has dropped year over year for two consecutive quarters, down 38% and then 55%.

For HOOD stock, crypto is now a smaller part of a business growing in other areas. The fourth-quarter report will be crucial. If crypto revenue falls below $120 million again, despite management saying October crypto volumes were stable within 5% of the previous quarter’s levels, the view that retail is exiting the market may hold.

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