Robinhood’s crypto trading revenue plunges 38% as retail traders sit on the sidelines

Robinhood reported Q2 2026 earnings on July 29, posting total net revenue of $1.31 billion, a 32% jump year-over-year. Diluted EPS came in at $0.62, beating Wall Street estimates. But crypto trading revenue fell 38% from the prior year to $100 million, continuing a slide that has now stretched across three consecutive quarters. A pattern that’s hard to ignore Robinhood’s crypto revenue dropped 38% in Q4 2025 to $221 million. Then it fell 47% in Q1 2026, landing at $134 million. Now Q2 brings another 38% decline. Total notional crypto trading volume on the platform hit $40 billion for the quarter. Of that, $18 billion came from Robinhood’s retail app, representing a 35% year-over-year decline. The remaining $22 billion flowed through Bitstamp, the institutional exchange Robinhood acquired in June 2025 for roughly $200 million. Despite beating earnings estimates, Robinhood’s stock fell about 4% following the report. Prediction markets are picking up the slack Prediction markets generated $156 million in revenue during Q2 2026, outpacing crypto by a comfortable margin. Equities and options trading also performed well, contributing to the record overall revenue figure. The Bitstamp bet...