Robinhood Plans to Diversify as Crypto Volumes “Go Up and Down”

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Robinhood Plans to Diversify as Crypto Volumes “Go Up and Down”

Thursday, 01/05/2025 | 06:36 GMT by
Arnab Shome

  • The Q1 2025 crypto volume on the platform dropped by 30 per cent from the previous quarter.
  • Options, on the other hand, brought in $240 million in revenue, 8.1 per cent higher than Q4.

Robinhood (shutterstock)

The crypto windfall for Robinhood appears to be fading. Revenue from the asset class for the first quarter of 2025 came in at $252 million, about 30 per cent below the figure from the previous quarter. However, year-over-year, the number doubled.

Diversifying “Outside Crypto”

According to the results, the American brokerage ended Q1 2025 with total net revenue of $927 million, a 50 per cent yearly increase but a decline from $1.01 billion in Q4 2024. The standout figure was the decline in crypto revenue, although it remained higher than revenue from options, previously the broker’s primary income source.

Vlad Tenev, CEO at Robinhood; Photo: Wikimedia Commons

It should be noted that Robinhood beat market estimates with its total revenue and per-share profits.

Amid declining crypto demand, Robinhood plans to diversify its services. “It’s going to go up and down in terms of trading volumes,” said Robinhood CEO Vlad Tenev during an earnings call with shareholders. “We’re diversifying the business outside of the crypto business, which will make us less reliant on crypto transaction volumes.”

The diversification efforts can be seen as the broker is launching traditional bank-like savings accounts and also jumped into prediction markets.

You may also like: Still Investing or Already Binary Options Gambling? Event Contracts Are Set to Become a “Trillion Dollar Asset Class”

Options Demand Is Reliable

The broker’s total transaction-based revenue was $583 million, down from $672 million in the previous quarter. Options brought in $240 million in revenue, up from $222 million in Q4, while equities generated $56 million.

The broker’s net quarterly income was $336 million, marking a 114 per cent year-over-year increase. However, the figure remained significantly lower than the previous quarter’s $916 million, when the broker received a windfall in deferred tax benefits.

In Q1, the broker added 1.9 million funded customers to its platform, a 7.9 per cent year-over-year increase. This was higher than the average annual growth rate of 4.1 per cent over the past two years.

Furthermore, average revenue per user stood at $145, up 39 per cent year-over-year, but a decline from $164 in Q4 2024.

The crypto windfall for Robinhood appears to be fading. Revenue from the asset class for the first quarter of 2025 came in at $252 million, about 30 per cent below the figure from the previous quarter. However, year-over-year, the number doubled.

Diversifying “Outside Crypto”

According to the results, the American brokerage ended Q1 2025 with total net revenue of $927 million, a 50 per cent yearly increase but a decline from $1.01 billion in Q4 2024. The standout figure was the decline in crypto revenue, although it remained higher than revenue from options, previously the broker’s primary income source.

Vlad Tenev, CEO at Robinhood; Photo: Wikimedia Commons

It should be noted that Robinhood beat market estimates with its total revenue and per-share profits.

Amid declining crypto demand, Robinhood plans to diversify its services. “It’s going to go up and down in terms of trading volumes,” said Robinhood CEO Vlad Tenev during an earnings call with shareholders. “We’re diversifying the business outside of the crypto business, which will make us less reliant on crypto transaction volumes.”

The diversification efforts can be seen as the broker is launching traditional bank-like savings accounts and also jumped into prediction markets.

You may also like: Still Investing or Already Binary Options Gambling? Event Contracts Are Set to Become a “Trillion Dollar Asset Class”

Options Demand Is Reliable

The broker’s total transaction-based revenue was $583 million, down from $672 million in the previous quarter. Options brought in $240 million in revenue, up from $222 million in Q4, while equities generated $56 million.

The broker’s net quarterly income was $336 million, marking a 114 per cent year-over-year increase. However, the figure remained significantly lower than the previous quarter’s $916 million, when the broker received a windfall in deferred tax benefits.

In Q1, the broker added 1.9 million funded customers to its platform, a 7.9 per cent year-over-year increase. This was higher than the average annual growth rate of 4.1 per cent over the past two years.

Furthermore, average revenue per user stood at $145, up 39 per cent year-over-year, but a decline from $164 in Q4 2024.

Arnab Shome

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Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.

  • 6874 Articles
  • 113 Followers

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