Robinhood (HOOD) missed its first-quarter earnings and revenue estimates after reporting a pointy decline in crypto trading revenue, whilst development in different components of its enterprise pushed general revenue increased.
The standard trading platform reported first-quarter adjusted earnings per share of $0.38, lacking Wall Street’s $0.39 estimate, in accordance to FactSet information. While the corporate reported a 15% year-over-year enhance in complete revenue to $1.07 billion, it fell in need of the analysts’ expectation of $1.14 billion.
Crypto-related actions, one of many greatest contributors to transaction-based revenue, fell 47% from a yr earlier to $134 million, down from $252 million in the identical interval of 2025, in accordance to its earnings launch.
The shares fell about 8% in post-market trading after the earnings report.
The drop in crypto trading revenue got here as buyer exercise shifted towards different trading merchandise, indicating a possible shift for retail merchants out of dangerous property equivalent to crypto. The transaction-based revenue rose modestly to $623 million from $583 million a yr in the past. A key driver was a surge in so-called occasion contracts, which accounted for a big share of “other transaction revenue,” which climbed 320% yr over yr to $147 million.
Robinhood stated customers traded a report 8.8 billion occasion contracts in the course of the quarter, reflecting rising curiosity in prediction markets. These merchandise let customers place bets on the result of real-world occasions, comparable to forecasting whether or not rates of interest will rise or who would possibly win an election.
The outcomes present how Robinhood is working to cut back its reliance on crypto trading, which might swing sharply with market sentiment. Like Coinbase (COIN), which is ready to report earnings on May 7, the corporate has been increasing into new areas such as derivatives and prediction markets to clean out revenue.
Robinhood additionally reported sturdy development in internet curiosity revenue and subscription merchandise, together with its Gold service, because it builds a broader monetary ecosystem.
UPDATE (April 28, 22:10 UTC): Adds extra context all through the story on the miss, updates share worth drop.
