Robinhood Misses Estimates, Shares Plunge as Crypto Revenue Nearly Halves

Robinhood Chain is emerging as a major venue for launching and trading memecoins, whose activity is often driven by social-media momentum and short-term speculation. The network’s ability to generate more daily revenue than Ethereum underscores how low-cost token-creation and trading tools can rapidly redirect onchain activity, intensifying competition among blockchain platforms for users, liquidity and fee income.

On Aug. 30, Robinhood Chain processed a record 5.52 million transactions as users launched about 22,600 tokens in a single day. Strong demand for memecoin trading tools lifted the network’s daily revenue to $2.66 million, surpassing Ethereum. A related report said decentralized-exchange volume on Robinhood Chain had jumped to $1.6 billion, highlighting the scale of the surge.

Robinhood Markets, which built its franchise around commission-free retail investing, remains sensitive to shifts in trading appetite across equities, options and cryptocurrencies. Its customer activity offers an early read on risk-taking by individual investors and can foreshadow results at crypto-focused rival Coinbase. Robinhood is seeking to reduce that cyclicality by expanding into prediction markets and artificial-intelligence products, including Agentic Trading.

Robinhood said on July 29 that second-quarter net revenue rose 32% from a year earlier to $1.31 billion, while net income climbed 48% to $573 million for the period ended June 30. Diluted earnings were $0.62 a share, with revenue and profit topping Wall Street expectations. Cryptocurrency transaction revenue nevertheless fell 38% to $100 million, sending the shares down about 4% in after-hours trading. The company had launched Agentic Trading on May 27, allowing third-party AI agents to place orders through dedicated accounts.

Robinhood has historically relied on stock and cryptocurrency trading, leaving revenue sensitive to swings in retail activity and digital-asset markets. The brokerage is now broadening its business through prediction markets and Robinhood Chain, its proprietary blockchain initiative. Their emergence is important because it could give the company new transaction and on-chain revenue streams while reducing its dependence on the traditional cryptocurrency operations that previously powered much of its growth.

Robinhood posted record second-quarter revenue of $1.31 billion, marking the strongest quarterly performance in the company’s history. Prediction markets and Robinhood Chain were among the fastest-rising parts of the business during the period, according to the latest report. Their momentum signals a shift in Robinhood’s revenue mix, with newer products beginning to take a larger role as the contribution from its conventional cryptocurrency business becomes comparatively less central.