Robinhood Earnings Miss as Crypto Revenue Drops Despite Overall Growth

Robinhood (HOOD) reported first-quarter results that fell short of Wall Street expectations, as a sharp decline in crypto trading revenue offset gains in other areas of the business. The trading platform posted adjusted earnings per share of $0.38, slightly below the $0.39 estimate. Revenue came in at $1.07 billion, marking a 15% increase year over year but missing analysts’ forecast of $1.14 billion. Following the earnings release, Robinhood stock dropped about 8% in after-hours trading.

The biggest drag on performance was crypto-related revenue, which declined 47% to $134 million compared to $252 million a year earlier. Cryptocurrency trading has been a major driver for Robinhood, but the company is actively working to reduce its dependence on crypto market cycles. CEO Vlad Tenev stated that the focus is shifting away from bitcoin price movements toward leveraging blockchain technology as long-term financial infrastructure.

Despite weaker crypto trading activity, other segments showed resilience. Transaction-based revenue increased to $623 million from $583 million in the same period last year, supported by growth in newer offerings. Event contracts played a significant role, driving a 320% surge in “other transaction revenue” to $147 million. During the quarter, users traded a record 8.8 billion contracts tied to prediction markets, highlighting growing engagement beyond traditional assets.

Robinhood is expanding into derivatives, prediction markets, and advisory services to create more stable and diversified revenue streams. The company also saw growth in net interest revenue and subscription services, particularly its premium Gold tier. Similar to Coinbase (COIN), Robinhood aims to reduce its reliance on crypto trading and build a broader financial ecosystem. Tenev also pointed to the long-term potential of tokenization, suggesting that blockchain-based assets could play a key role in the future of financial markets.