Robinhood's first-quarter earnings report fell short of expectations, with the company reporting a decline in crypto trading revenue. The trading platform's adjusted earnings per share were $0.38, missing the estimated $0.39, while total revenue rose 15% year-over-year to $1.07 billion, but failed to meet the expected $1.14 billion.
As a result, shares dropped approximately 8% in post-market trading. The company's crypto-related revenue saw a 47% decline to $134 million from $252 million in the previous year. However, other areas of the business showed growth, with transaction-based revenue increasing to $623 million and 'other transaction revenue' rising 320% year-over-year to $147 million, driven by a record 8.8 billion contracts traded in prediction markets.
The CEO, Vlad Tenev, emphasized the company's focus on using crypto technology as infrastructure for financial services, rather than relying on crypto price cycles. The results indicate a shift in how customers are using the platform, with more consistent engagement across different asset classes. Robinhood is expanding into areas like prediction markets, derivatives, and advisory tools to reduce its dependence on crypto trading. The company also saw gains in net interest revenue and subscriptions, as it builds out a broader financial services platform.