Robinhood (HOOD) has reported a significant decline in cryptocurrency trading revenue for the first quarter of 2026, yet the company's overall revenue saw an increase due to growth in other areas. The revenue from cryptocurrency trading fell by 47% to $134 million, down from $252 million in the same period of 2025. This decline occurred as users shifted their focus towards other trading products. Meanwhile, transaction-based revenue experienced a modest increase to $623 million from $583 million in the previous year.
A major contributor to this growth was the substantial rise in event contracts, which accounted for a large portion of 'other transaction revenue' that soared 320% year-over-year to $147 million. During the quarter, users traded a record 8.8 billion event contracts, reflecting a growing interest in prediction markets. These markets allow users to place bets on the outcome of real-world events, similar to predicting interest rate changes or election results. The company's total revenue rose 15% to $1.07 billion, compared to $927 million in the previous year.
Net income also saw a 3% year-over-year increase to $346 million. Adjusted earnings per share were $0.38, slightly higher than the $0.37 in the prior-year period but fell short of analyst estimates of $0.39. The results demonstrate Robinhood's efforts to reduce its dependence on cryptocurrency trading, which can be heavily influenced by market sentiment.
Similar to Coinbase (COIN), which is set to report earnings on May 7, Robinhood has been expanding into new areas such as derivatives and prediction markets to stabilize its revenue. The company also reported strong growth in net interest revenue and subscription-based products, including its Gold service, as it works to establish a more comprehensive financial ecosystem.
Following the earnings report, shares of HOOD dropped 6% in post-market trading, with the company scheduled to host an earnings call at 5 p.m. ET.