Key Takeaways
- Q1 earnings per share of $0.38 fell short of analyst expectations of $0.39, while revenue reached $1.07B versus $1.14B consensus
- Transaction-based crypto revenue plummeted 47% compared to the previous year, landing at $134 million; trading volumes decreased 48% to $24 billion
- Shares of HOOD declined approximately 9.4% during after-hours trading on the news
- The company’s prediction market platform showed explosive growth with 8.8 billion contracts traded, representing a 780% increase from Q2 2025
- Despite revenue shortfall, net income increased 3% year-over-year to reach $346 million
Robinhood experienced a challenging post-market session Tuesday evening. The popular trading platform delivered first-quarter financial results that fell below expectations on both earnings and revenue metrics, triggering an immediate market reaction that sent HOOD shares down roughly 9.4% in extended trading.
The platform reported adjusted earnings per share of $0.38 for Q1, falling one penny short of the Street’s $0.39 consensus. Total quarterly revenue reached $1.07 billion, representing a 15% year-over-year increase but landing approximately 6% below the anticipated $1.14 billion. The earnings miss was even more pronounced at 11.6%.
The primary driver behind the disappointment? Cryptocurrency operations.
Transaction revenue from cryptocurrency trading collapsed 47% compared to the year-ago period, tumbling from $252 million down to $134 million. Overall crypto trading volume experienced a parallel decline of 48%, settling at $24 billion. This marked the third consecutive quarter where the platform witnessed deteriorating cryptocurrency transaction revenue.
CEO Vlad Tenev confronted the crypto challenges directly during the company’s earnings conference call. “I want to get away from talking about the price of bitcoin,” Tenev stated, indicating a strategic shift away from cryptocurrency price-dependent revenue streams.
Tenev positioned crypto as a long-term infrastructure opportunity rather than a trading revenue driver. “We’re at the very beginning of what’s going to be a tokenization supercycle,” the CEO explained, highlighting the company’s broader blockchain strategy and ambitions.
While crypto stumbled, other business segments showed resilience. Overall transaction-based revenue climbed to $623 million from $583 million in the prior-year quarter. Net income grew 3% year-over-year to $346 million, demonstrating the company’s ability to maintain profitability despite top-line challenges.
Prediction Markets Emerge as Growth Engine
The most impressive metric from the quarter came from Robinhood Predictions. The platform’s users executed a record-breaking 8.8 billion event contracts throughout Q1 — representing a staggering 780% surge compared to Q2 2025, the feature’s inaugural full quarter.
This explosive activity propelled “other transaction revenue” upward by 320% year-over-year to $147 million, providing a significant offset to cryptocurrency losses. According to Tenev, Robinhood Predictions is on pace to generate approximately $3 billion in trading volume during April alone.
The prediction market feature operates through a partnership with Kalshi and has experienced rapid adoption since its March 2025 rollout.
Additional positive contributions came from net interest revenue and Gold subscription revenue as Robinhood expands its comprehensive financial services ecosystem.
Bitstamp Figures Excluded from Core Metrics
An important detail: Bitstamp, the cryptocurrency exchange Robinhood acquired in June 2025, wasn’t factored into the crypto metrics mentioned above. The exchange platform processed $42 billion in trading volume throughout Q1, representing a 13% decline from Q4 2025.
This represents substantial volume that doesn’t appear in Robinhood’s primary crypto figures, meaning the complete scope of cryptocurrency activity across the consolidated platform is actually larger than the reported declines indicate.
Coinbase (COIN), scheduled to announce earnings on May 7, also experienced a roughly 1% decline on Tuesday — the two companies frequently move in tandem given their shared retail crypto trading exposure.
Robinhood’s first-quarter performance illustrates a company undergoing strategic transformation, doubling down on prediction markets and diversified financial services while its historically strong cryptocurrency business experiences a cooling period.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
