Robinhood experienced a significant decline in cryptocurrency trading revenue, resulting in a miss of its first-quarter earnings and revenue estimates, even as the company saw growth in other areas of its business, contributing to a 15% increase in overall revenue to $1.07 billion. The trading platform reported adjusted earnings per share of $0.38, falling short of the $0.39 estimate by Wall Street analysts. The 15% year-over-year revenue growth was not enough to meet the $1.14 billion expectation. A substantial 47% decline in crypto-related activities to $134 million, down from $252 million in the same period of 2025, was a major contributor to the earnings miss.
The company's shares dropped approximately 8% in post-market trading following the release of the earnings report. The decline in crypto trading revenue was offset by a shift in customer activity towards other trading products, indicating a possible move away from high-risk assets like cryptocurrencies.
Transaction-based revenue saw a modest increase to $623 million from $583 million a year ago, driven by a significant surge in event contracts, which rose 320% year over year to $147 million. Robinhood users traded a record 8.8 billion event contracts during the quarter, reflecting a growing interest in prediction markets. These markets allow users to place bets on real-world events, such as forecasting interest rate changes or election outcomes.
The results demonstrate Robinhood's efforts to reduce its dependence on crypto trading, which can be highly volatile, by expanding into areas like derivatives and prediction markets. The company also reported strong growth in net interest revenue and subscription products, including its Gold service, as it works to establish a more comprehensive financial ecosystem.