Robinhood (HOOD) has reported a significant decline in cryptocurrency trading revenue for the first quarter of 2026, yet the company's overall revenue has increased due to growth in other areas of its business. The revenue from cryptocurrency-related activities dropped by 47% to $134 million, down from $252 million in the same period of 2025, as disclosed in the company's earnings release.
This decline was offset by a shift in customer activity towards other trading products, with transaction-based revenue rising modestly to $623 million from $583 million in the previous year. A key factor in this growth was the substantial increase in event contracts, which contributed significantly to the 'other transaction revenue' that soared 320% year-over-year to $147 million.
During the quarter, Robinhood users traded a record 8.8 billion event contracts, reflecting the growing interest in prediction markets, which allow users to place bets on real-world events, such as forecasting interest rate changes or election outcomes. The company's total revenue increased by 15% to $1.07 billion, compared to $927 million in the same period last year. Net income also rose by 3% year-over-year to $346 million.
Adjusted earnings per share were $0.38, slightly higher than the $0.37 in the previous year but fell short of analyst estimates of $0.39. These 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 release its earnings on May 7, the company has been expanding into new areas such as derivatives and prediction markets to stabilize its revenue. Robinhood also reported strong growth in net interest revenue and subscription-based products, including its Gold service, as it works to build a more comprehensive financial ecosystem.
Following the release, HOOD shares dropped by 6% in post-market trading, and the company announced that it will host an earnings call at 5 p.m. ET.