Robinhood Markets (NASDAQ: HOOD) operates an investing platform where clients can buy and sell stocks, options, futures, cryptocurrency, and event contracts in the prediction markets.
Its stock was trading at a 52-week low of $63 in March, a 57% decline from last year’s record high of $154
The sell-off was driven by weakness in Robinhood’s options and crypto trading businesses, which combine to make up the bulk of its transaction-based revenue. While options activity recovered slightly during the second quarter of 2026, the crypto business remained subdued. Robinhood stock has climbed more than 45% from its 52-week low, but here’s why I’m predicting another sell-off during the next few months.
Robinhood’s clients engage in very risky behavior Robinhood generated $1.3 billion in revenue during the 2026 second quarter, an impressive 32% increase from the year-ago period. Transaction-based revenue accounted for $776 million of that total, while net interest income contributed $389 million. Transaction-based revenue is the money Robinhood earns from its core business, which involves processing trades on behalf of its clients.