Robinhood Beats Q1 Earnings Estimates, Crypto Revenue Doubles

Robinhood (NASDAQ: HOOD) surpassed Wall Street expectations in Q1 2025, posting adjusted earnings per share of $0.37, ahead of the projected $0.33. Total revenue came in at $927 million, slightly above the $920.1 million analysts anticipated, though down from $1 billion in Q4.

Crypto-related revenue stood out, surging 100% year-over-year to $252 million, highlighting a rebound in digital asset trading. However, transaction-based revenue declined 13% quarter-over-quarter to $583 million, reflecting a pullback following the post-election rally fueled by Donald Trump's victory. That rally cooled off after his inauguration, impacting both crypto and traditional markets.

Robinhood also expanded its share repurchase program, adding $500 million to the existing $1 billion authorization. So far, the company has repurchased $667 million, with $833 million still available.

Despite solid earnings, HOOD shares dipped 2.2% in after-hours trading. Analysts are closely watching competitor Coinbase (NASDAQ: COIN), which reports earnings on May 8. Barclays analyst Benjamin Buddish expects Coinbase’s Q1 retail volumes to show less decline than Robinhood’s. FactSet forecasts Coinbase revenue will slightly fall to $2.1 billion, down from $2.27 billion in Q4, with trading volume estimated to decline from $439 billion to $403.8 billion.

Robinhood’s results underscore growing volatility in the retail trading space, particularly in cryptocurrency markets. The company’s performance remains tightly linked to investor sentiment and market conditions, which have shifted rapidly in early 2025.