Ethereum staking protocol Lido reported a 23% decline in revenue for 2025, totaling $40.5 million, as detailed in its annual report. The decrease was attributed to net staking outflows driven by user withdrawals and a reduction in the network's annualized staking yield. Lido's core Simple LST segment has been contracting since 2024, with funds moving towards exchange staking and low-risk institutional options. In response, Lido plans to initiate an LDO token buyback program in the second quarter, utilizing staking rewards to purchase LDO from the market and bolster the LDO/wstETH liquidity position. Additionally, Lido aims to diversify its offerings by launching new services targeting institutional investors and users seeking higher yields. Last year, the protocol reduced its workforce by 15% to maintain long-term sustainability.