Robinhood Markets is confronting a significant downturn in user trading activity for November 2025. The company’s stock price fell more than 8% on Thursday following the release of concerning monthly operating metrics. A key worry for investors is that the slowdown appears widespread, impacting the platform’s core segments including equities, options, and cryptocurrency trading.
Expansion Efforts Contrast with Operational Slowdown
This drop in engagement comes during a period of aggressive strategic expansion for the brokerage. In early December, Robinhood revealed plans to enter the Indonesian market, which boasts an estimated 19 million capital market investors and 17 million crypto traders. Shortly after, on December 8, the firm announced it would offer Ethereum and Solana staking services to its customers in New York.
The company is also broadening its reach into new financial products. November saw the formation of a joint venture with Susquehanna International Group to operate a CFTC-licensed exchange for futures and derivatives. Furthermore, CEO Vlad Tenev is scheduled to present new AI innovations and features for prediction markets at a keynote event titled “Robinhood Presents: YES/NO” at Skywalker Ranch on December 16.
A Closer Look at the November Metrics
The operational data, published Wednesday evening, painted a clear picture of contraction. Equity trading volume plummeted 37% month-over-month to $201.5 billion. The number of options contracts traded declined 28% to 193 million.
The cryptocurrency segment proved particularly disappointing. Trading volumes there fell 12% from October to $28.6 billion, which also represents a 19% decrease from the same period last year. This is a notable setback for a firm that had aggressively expanded its crypto footprint with the $200 million acquisition of Bitstamp just last June.
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Broader platform metrics also softened. The total number of funded customer accounts decreased to 26.9 million, partly due to the closure of approximately 280,000 inactive small accounts. Assets under custody dipped 5% to $325 billion.
Analyst Sentiment and Market Reaction
In response to the data, analysts at Bank of America Securities and Cantor Fitzgerald have lowered their price targets for Robinhood stock. Their concern centers on the possibility that the retail trading boom observed in recent months may be fading as the year ends. The market reaction was swift, with shares closing near $124 after trading at $136.43 the previous day.
It is important to view this weakness in context. October was an exceptionally strong month for the platform. The third-quarter results, released in November, had revealed record performance: revenue surged 100% to $1.27 billion, while earnings per share jumped 259% to $0.61. Even with the November dip, trading volumes for stocks and options remain above the levels seen a year ago.
Underlying Business Model Vulnerabilities
The company’s fundamental challenge remains its revenue concentration. A substantial 57% of revenue is derived from transaction-based fees, and over 21% is linked to cryptocurrency trading. This structure means that volatile market conditions and sharp swings in the price of Bitcoin directly impact the core of Robinhood’s business model.
Investors and analysts will now look ahead to the company’s fourth-quarter financial results, which are expected in early February 2026, for signs of whether the November slowdown is a temporary stumble or the beginning of a more sustained trend.
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