Robinhood adds $500M buyback after crypto trading drop

Robinhood Markets Inc. reported its first-quarter results on April 30, showing it exceeded Wall Street expectations despite a decline in crypto revenue and overall trading volume.

According to the company’s Q1 disclosure, total revenue fell by 8.6% from the previous quarter to $927 million.

This still surpassed Zacks analyst estimates by 3.16%.

Robinhood’s crypto-related revenue dropped by 30% quarter-on-quarter to $252 million, a decline from the record-setting performance in Q4 2024.

The platform also saw a 35% decline in crypto trading volume compared to the previous quarter.

The firm attributed this to a 10% drop in customer trades placed and a 27% decline in average notional trade volume.

Market pressure during the quarter, including tariff developments under the Trump administration, contributed to an 18% drop in the overall crypto market capitalisation.

Despite the sequential decline, Robinhood’s crypto revenue increased by 100% compared to the same quarter in 2024, and trading volumes rose by 28% over the same period.

“Crypto trading volumes will continue to fluctuate,” noted CEO Vladimir Tenev during the earnings call, but he emphasised Robinhood’s strategic goal, saying the company is focused on “capturing as much market share as possible.”

Robinhood also expanded its share buyback program by $500 million, bringing its total buyback authorisation to $1.5 billion.

So far, it has repurchased $667 million worth of its own stock.

Shares of Robinhood rose 1.51% in after-hours trading to $49.85 following the earnings report, based on Google Finance data.

Tenev also provided an update on Robinhood’s pending $200 million acquisition of Bitstamp, saying the company still expects regulatory approval by mid-2025.

He added that the firm remains committed to exploring crypto tokenisation, particularly in private equity markets.

“Tokenizing private equities is a huge unlock,” said Tenev, adding that it could “unlock a ton of economic value for the crypto industry in the US.”