Robinhood Defies Crypto Winter with Diversified Growth

Rising interest rates chilled the crypto market in the first quarter of 2026, causing Robinhood's cryptocurrency trading revenue to plummet by 47% year over year. However, this decline only accounted for 13% of the online brokerage's total revenue, which rose 15% to $1.07 billion.

The company offset its declining crypto revenue with strong growth in other areas. Options trading revenue increased by 8% to $260 million, equities trading revenue grew 46% to $82 million, and 'other' transaction revenue surged 320% to $147 million.

Rising interest rates also boosted Robinhood's net interest revenue, which rose 24% year over year to $359 million. The company's subscription platform, Robinhood Gold, expanded by 36% year over year to 4.3 million subscribers in the first quarter, resulting in a 57% increase in subscription revenue to $85 million.

Analysts expect Robinhood's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at compound annual growth rates of 16% from 2025 to 2028. The company's expansion into new areas, such as its Ethereum Layer-2 network for tokenizing stocks, bonds, and other assets, is expected to drive this growth.

Robinhood's stock still appears reasonably valued at 24 times next year's adjusted EBITDA, with an enterprise value of $85 billion. The company's diversification into a more comprehensive fintech platform should reduce its dependence on cryptocurrencies and drive its stock even higher.