Robinhood (Nasdaq: HOOD) is witnessing a contraction in its cryptocurrency revenue stream. The second quarter of 2025 saw digital asset revenue totaling $160 million, a significant drop of 36.5% compared to the $252 million generated in the first quarter. Despite this sequential decline, the brokerage firm emphasized that its crypto-related income nearly doubled compared to the same period last year.
What’s Behind the Crypto Demand Dip on Robinhood?
This marks the second consecutive quarter of reduced crypto revenue for the platform. Digital asset revenue reached its highest point in Q4 2024 at $358 million but experienced a 30% decrease in Q1 2025. Vlad Tenev, the CEO, has previously mentioned the company’s strategy to lessen its dependence on cryptocurrency, acknowledging the inherent volatility in trading volumes.
Related: Robinhood’s “Lowest Cost” Crypto Trading Claim Under Scrutiny: Is It Accurate?Vlad Tenev, CEO at Robinhood; Photo: Wikimedia Commons
Notwithstanding the reduced crypto activity, the total revenue for the Nasdaq-listed brokerage increased to $989 million. This reflects a 45% increase compared to the previous year and a 6.6% rise from the previous quarter, exceeding market expectations of $928.8 million.
Transaction-based revenue reached $539 million, representing a strong 65% year-over-year increase, however, fell 7.5% quarter-over-quarter.
The overall revenue surge was primarily fueled by robust demand for options trading, which generated $265 million. Moreover, revenue from net interest income and subscription services also contributed to the positive results.
Breakdown of Robinhood’s transaction-based revenue, showing crypto, equities, options, and other contributions. (Source: Robinhood)
Robinhood reported a net income of $386 million for the quarter, translating to earnings per share (EPS) of $0.42. This figure substantially exceeded analysts’ predictions, which had forecasted EPS of $0.31.
“Our strong Q2 performance was fueled by consistent product innovation, including the introduction of tokenization – a major step forward for the industry in the last decade,” stated Tenev. Jason Warnick, Chief Financial Officer of Robinhood (Photo: Robinhood)
The launch of tokenized stocks in European markets has been a factor contributing to Robinhood’s growing appeal. Strategic acquisitions, such as the successful closing of the Bitstamp deal, have also played a role in the company’s expansion.
Read more: Tokenized Stocks: A Real Improvement Over CFDs, or Just Hype?
Strong ARPU Performance
Beyond the financial results, several key customer metrics showed improvement. The number of funded accounts on the platform grew by 10% year-over-year, reaching 27.4 million. Total assets held on the platform doubled, reaching $279 billion.
Average revenue per user (ARPU) reached $151, reflecting a 34% increase from the same period last year and a 4% increase from the previous quarter. While positive, this remains slightly below the peak ARPU of $164 recorded in Q4 2024.
“July is off to a good start. Customer deposits accelerated to around $6 billion. We saw active trading across all categories,” commented Jason Warnick, the Chief Financial Officer of Robinhood.
Meanwhile, eToro, a competitor to Robinhood, is expanding rapidly following its public listing. The company still derives a significant portion of its revenue from cryptocurrency trading but has also begun offering tokenized stocks and 24/7 trading options.