Platform Tops Wall Street Forecasts as Crypto Trading Cools from Q4 Highs
Robinhood outperformed Wall Street expectations in the first quarter of 2025, despite a significant decline in crypto trading revenues and an overall dip in revenue from the previous quarter.
In earnings reported on April 30, the trading app posted $927 million in revenue, an 8.6% decrease from Q4 2024, but still 3.16% higher than analyst estimates, according to Zacks Investment Research.
Crypto Revenue Falls Sharply, Market Conditions Blamed
Robinhood’s crypto revenue dropped nearly 30% quarter-on-quarter to $252 million, following the company’s record-setting performance in the final quarter of 2024.
The decline mirrors an overall 35% drop in crypto trading volume on the platform. Robinhood attributed the downturn to:
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A 10% reduction in customer trades
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A 27% decline in average trade size
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Broader macro uncertainty, including Trump administration tariffs that triggered an 18% drop in global crypto market cap
Still, year-over-year growth remained strong, with crypto revenues up 100% and trading volumes rising 28% compared to Q1 2024.
Tenev: Market Share, Tokenization Key Strategic Priorities
On an earnings call, CEO Vladimir Tenev acknowledged short-term fluctuations in crypto volumes but reaffirmed Robinhood’s focus on expanding its market share in the digital asset space.
Tenev also highlighted tokenization of private equities as a major long-term initiative:
“Tokenizing private equities is a huge unlock that can solve many problems in secondary market transactions,” he said.
“That will unlock a ton of economic value for the crypto industry in the U.S.”
He previously suggested tokenization could enable users to trade shares in companies like OpenAI and SpaceX with near-instant settlement.
“That’s been our primary policy objective in Washington when it comes to crypto,” Tenev added.
Regulatory Tailwinds and Bitstamp Acquisition in Play
Regulatory pressure eased for Robinhood in Q1 after the SEC closed its crypto-related investigation on Feb. 21 — a move that removes a key overhang from the firm’s crypto roadmap.
Meanwhile, Robinhood’s proposed $200 million acquisition of Bitstamp, one of the oldest centralized crypto exchanges, is progressing toward regulatory approval by mid-2025. The deal would allow Robinhood to begin serving institutional crypto clients in the U.S. for the first time.
Share Buybacks and Market Reaction
To boost shareholder confidence, Robinhood expanded its share repurchase program, adding $500 million to bring the total authorization to $1.5 billion. So far, the firm has bought back $667 million worth of its own stock.
Shares of Robinhood (HOOD) rose 1.51% in after-hours trading, reaching $49.85, according to Google Finance.
Final Thoughts: Mixed Crypto Results, Strong Strategic Vision
Robinhood’s Q1 results paint a picture of a resilient company navigating volatile crypto markets with a long-term vision focused on tokenization, institutional expansion, and regulatory clarity.
While crypto revenues fell from recent highs, the platform’s broader user growth and regulatory momentum suggest it is well-positioned to capitalize on the next wave of crypto innovation and mainstream adoption.
