Key Takeaways
- Robinhood’s Q1 earnings per share reached $0.38, falling short of the $0.39 consensus; revenue totaled $1.07B versus $1.14B expected
- Cryptocurrency revenue plummeted 47% from last year to $134 million; digital asset trading volume declined 48% to $24 billion
- HOOD shares dropped approximately 9.4% during after-hours trading on the disappointing results
- Robinhood Predictions showed explosive growth with 8.8 billion contracts traded, representing a 780% surge from Q2 2025
- Despite revenue shortfall, net income increased 3% year-over-year to reach $346 million
Robinhood faced a challenging Tuesday evening as its first-quarter financial performance fell short of Wall Street expectations, triggering a sharp selloff that sent HOOD shares tumbling roughly 9.4% in extended trading.
The trading platform reported adjusted earnings per share of $0.38 for the first quarter, missing analyst expectations by a penny. Total revenue reached $1.07 billion, representing a 15% increase from the prior year but landing significantly below the anticipated $1.14 billion. The shortfall amounted to approximately 6% on revenue and 11.6% on earnings per share.
The primary driver behind the disappointing results? A dramatic slowdown in cryptocurrency activity.
Transaction revenue from digital assets plunged 47% year-over-year, contracting from $252 million to just $134 million. Meanwhile, cryptocurrency trading volumes decreased 48% to $24 billion. This marked the third consecutive quarter where the platform experienced declining crypto transaction revenue.
CEO Vlad Tenev confronted the issue directly during the earnings conference call. “I want to get away from talking about the price of bitcoin,” he stated, indicating a strategic shift away from revenue dependent on cryptocurrency price fluctuations.
Tenev positioned digital assets as a long-term infrastructure opportunity. “We’re at the very beginning of what’s going to be a tokenization supercycle,” he explained, highlighting the company’s broader blockchain strategy.
While cryptocurrency dragged on performance, other segments showed resilience. Overall transaction-based revenue climbed to $623 million compared to $583 million in the year-ago period. Net income grew 3% year-over-year to $346 million, maintaining the company’s profitability.
Prediction Markets Emerge as Growth Driver
The most impressive metric from the quarter came from Robinhood Predictions. The platform saw users trade an unprecedented 8.8 billion event contracts during the first quarter — representing a massive 780% increase from Q2 2025, when the feature first launched.
This surge in activity drove “other transaction revenue” up 320% year-over-year to $147 million, providing a significant buffer against cryptocurrency weakness. According to Tenev, Robinhood Predictions is on pace to generate approximately $3 billion in trading volume for April by itself.
The prediction market feature operates through integration with Kalshi and has experienced rapid adoption since becoming available in March 2025.
Additional revenue streams from net interest income and Gold subscription services also posted positive contributions as Robinhood expands its comprehensive financial services ecosystem.
Bitstamp Figures Excluded from Core Metrics
An important detail: The crypto-focused exchange Bitstamp, which Robinhood completed acquiring in June 2025, wasn’t reflected in the cryptocurrency metrics mentioned above. Bitstamp processed $42 billion in trading volume throughout Q1, representing a 13% decrease from the fourth quarter of 2025.
This represents substantial trading activity that exists outside Robinhood’s reported cryptocurrency figures, meaning the complete scope of digital asset trading across the combined platform exceeds what the headline decline indicates.
Coinbase (COIN), scheduled to release its earnings on May 7, also declined approximately 1% on Tuesday — the two stocks frequently correlate given their similar exposure to retail cryptocurrency trading activity.
Robinhood’s first-quarter performance illustrates a platform undergoing strategic transformation, expanding into prediction markets and diversified financial services while its traditional cryptocurrency business experiences a cooling period.
