retail trading revenue decline

Robinhood’s crypto business has taken a nosedive. The popular trading app reported a brutal 38% year-over-year decline in crypto revenue for Q4, bringing in just $221 million. Not great timing. This massive drop happened while Bitcoin was sitting pretty above $68,000, catching analysts off guard who expected much better numbers.

The crypto collapse dragged down Robinhood’s overall performance. Total revenue hit $1.28 billion, missing Wall Street estimates by nearly 4%. Investors weren’t happy. The stock tumbled 8% in premarket trading on February 11, 2026. Ouch.

What’s really telling? Crypto trading volume plummeted 52% compared to last year. That’s not just a small dip—it’s a free fall. Retail traders who once couldn’t get enough of crypto seem to have moved on. They’re not exactly deleting their apps, though. They’ve just shifted their gambling addiction elsewhere.

Options trading revenue jumped 41% to $314 million. Equities? Up 54% to $94 million. Even Robinhood’s subscription business is booming, with Gold members up 58% to 4.2 million. The platform’s total assets actually soared 68% to $324 billion. So money’s flowing in, just not toward crypto.

This isn’t just Robinhood’s problem. It’s a sign retail traders are ditching crypto trading while still being active elsewhere. The quarter-over-quarter transaction revenue dropped 6% to $983 million, despite growth in almost every non-crypto category. Users may be turning to altcoin diversification instead of Bitcoin due to the potential for higher short-term returns. CEO Vlad Tenev remains optimistic about the company’s prediction market business due to upcoming major sporting events.

The company’s still optimistic, targeting 20% net deposit growth for 2026 and aiming for a trillion dollars in assets “over the next several years.” Good luck with that.

Robinhood’s stock performance tells the real story. This decline in retail activity doesn’t necessarily indicate less crypto interest overall, as on-chain metrics fail to capture casual participants who exit during market downturns. From leading 94% of financial peers in mid-November 2025, it’s now outperforming just 6.1%. Talk about a reversal of fortune. The crypto collapse proved one thing: when retail moves on, they really move on. And right now, crypto trading is yesterday’s news.

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