Key Takeaways
- Q1 earnings per share fell short at $0.38 versus analyst expectations of $0.39, while revenue reached $1.07B against forecasts of $1.14B
- Cryptocurrency-based revenue plummeted 47% compared to the prior year, landing at $134 million as crypto trading volumes decreased 48% to $24 billion
- Shares of HOOD declined approximately 9.4% during after-hours trading session
- The company’s prediction markets platform emerged as a growth driver with 8.8 billion contracts traded, representing a 780% surge from Q2 2025
- Bottom-line profitability remained intact with net income climbing 3% year-over-year to $346 million
Robinhood experienced a challenging evening on Tuesday as the popular trading platform delivered first-quarter financial results that fell short of analyst projections across key metrics. Investors reacted negatively, sending HOOD shares down roughly 9.4% in extended trading hours.
The company’s adjusted earnings per share registered at $0.38 for the quarter, narrowly missing the Street consensus of $0.39 by a single penny. Meanwhile, total quarterly revenue climbed 15% from the year-ago period to reach $1.07 billion, yet this figure still disappointed compared to the $1.14 billion Wall Street had anticipated. The revenue shortfall represented approximately 6%, while the EPS gap widened to 11.6%.
The primary driver behind the underperformance? Cryptocurrency trading activity.
Transaction revenue derived from crypto assets tumbled 47% on a year-over-year basis, contracting from $252 million to just $134 million. Trading volumes for digital currencies similarly contracted by 48%, settling at $24 billion for the period. This marked the third consecutive quarter where Robinhood witnessed declining transaction revenue from its crypto segment.
Chief Executive Vlad Tenev confronted the issue directly during the company’s earnings conference call. “I want to get away from talking about the price of bitcoin,” Tenev stated, making clear the company’s strategic shift away from dependency on cryptocurrency price volatility for revenue generation.
Tenev repositioned crypto as a foundational infrastructure opportunity rather than a trading phenomenon. “We’re at the very beginning of what’s going to be a tokenization supercycle,” he explained, highlighting the firm’s expansive blockchain strategy moving forward.
While crypto struggled, other business segments demonstrated resilience. Overall transaction-based revenue actually expanded to $623 million from $583 million in the comparable year-earlier quarter. The company maintained profitability with net income advancing 3% year-over-year to reach $346 million.
Prediction Markets Emerge as Bright Spot
The most impressive metric from the quarterly report came from Robinhood Predictions. The platform’s users executed a record-breaking 8.8 billion event contracts throughout Q1 — representing a stunning 780% increase compared to Q2 2025, when the feature completed its initial full quarter of availability.
This robust activity propelled “other transaction revenue” upward by 320% year-over-year to $147 million, providing crucial balance against the cryptocurrency revenue decline. According to Tenev, Robinhood Predictions is on pace to generate approximately $3 billion in trading volume for the month of April by itself.
The prediction markets functionality operates through a partnership with Kalshi and has experienced rapid adoption since launching in March 2025.
Additional positive contributions came from net interest revenue and Gold subscription fees as the company continues expanding its comprehensive financial services ecosystem.
Bitstamp Figures Reported Separately
An important detail: The crypto exchange Bitstamp, which Robinhood completed acquiring in June 2025, wasn’t factored into the cryptocurrency metrics mentioned earlier. Bitstamp independently processed $42 billion in trading volume throughout Q1, representing a 13% decrease from the fourth quarter of 2025.
This represents substantial volume that remains separate from Robinhood’s primary crypto reporting, meaning the comprehensive scope of cryptocurrency activity across the combined platform exceeds what the headline figures indicate.
Coinbase (COIN), scheduled to announce earnings on May 7, also experienced a roughly 1% decline on Tuesday — the two companies frequently demonstrate correlated movement due to their comparable exposure to retail cryptocurrency trading dynamics.
Robinhood’s first-quarter performance illustrates a business undergoing strategic evolution, doubling down on prediction markets and diversified financial services while navigating a cooling period in its foundational crypto trading operations.
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