Lido revenue fell 23% to $40.5M in 2025, with $37.4M staking fees, as DAO considers LDO buyback and treasury drops to $157.5M.
Lido Revenue Drops 23%: Can an LDO Buyback Reverse the Slide? The protocol reported lower earnings for 2025 as staking conditions shifted and competition increased across the Ethereum ecosystem.
Lido reported total revenue of $40.5 million for 2025, down 23% from $52.4 million in the previous year.
Gross revenue also declined, falling by 18.2% during the same period. The drop was linked to staking outflows and reduced staking rewards.
Lido Reports $40.5 Million in Revenue Last Year, a 23% Year-over-Year Decline
Lido has announced its total revenue for the past year reached $40.5 million, marking a 23% decrease from the previous year's $52.4 million. The decline in gross revenue, down 18.2%, can be…
— 0xzx (@0xzxcom) March 24, 2026
Net staking fee revenue stood at $37.4 million, reflecting lower activity on the platform.
Users withdrew assets, and average staking returns declined across the Ethereum network. These factors reduced overall earnings for the protocol.
Lido stated that Ethereum staking conditions are changing. Lower network APR and shifting user preferences are affecting participation.
The protocol also noted that its market share has decreased as competition grows.
The Lido DAO is reviewing a proposal to introduce an LDO buyback program.
The plan is expected to be considered in the second quarter of 2026. It would use staking rewards generated by the protocol to purchase LDO tokens.
The purchased tokens may be deployed into liquidity pools, including LDO and wstETH pairs.
This approach is designed to manage token supply while supporting liquidity. The DAO has not yet finalized the proposal.
A statement noted that the buyback would rely on protocol-generated rewards rather than external funding.
This keeps the mechanism tied to platform performance. The evaluation process is ongoing, and further updates are expected.
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Lido reported total expenses of $45.5 million, down 13% compared to the previous year.
The reduction followed cost control measures, including a workforce cut of 15% implemented in August. The move was aimed at maintaining long-term operations.
The protocol’s treasury stood at about $157.5 million at the end of the period.
This marked a decrease of around $14 million compared to 2024 levels. Treasury changes reflect both operational spending and market conditions.
Lido 2025 Revenue Falls 23% to $40.5M as DAO Weighs LDO Buyback Plan
Lido’s 2025 financials show total revenue declined 23% year over year to $40.5 million, with net staking fee revenue at $37.4 million, driven by staking outflows and APR compression; the DAO is evaluating a… pic.twitter.com/3JbaAV4hhB
— Wu Blockchain (@WuBlockchain) March 24, 2026
Lido also outlined plans to expand its offerings beyond basic staking services.
It aims to attract institutional users and provide products with different yield structures. This shift aligns with broader changes in the staking market.
The report noted that institutional adoption is growing. WisdomTree, which manages about $140 billion in assets, launched an Ethereum-based product in Europe.
This product uses Lido’s protocol to earn staking rewards. Lido stated that competition from exchanges and institutional services is increasing.
It also noted a shift away from simple liquid staking tokens. These trends are expected to continue as the Ethereum staking market evolves.
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