Robinhood's first-quarter earnings report fell short of expectations, with the company reporting adjusted earnings per share of $0.38, below the estimated $0.39. The trading platform's overall revenue rose 15% year-over-year to $1.07 billion, but missed analysts' projections of $1.14 billion. As a result, shares declined by approximately 8% in post-market trading. A major contributor to the revenue shortfall was a 47% decline in cryptocurrency-related revenue, which dropped to $134 million from $252 million in the previous year.
However, the company saw growth in other areas, including a 320% increase in 'other transaction revenue' to $147 million, driven by a record 8.8 billion contracts traded in prediction markets. CEO Vlad Tenev emphasized the company's focus on utilizing cryptocurrency technology as 'infrastructure' for financial services, rather than relying on crypto price cycles. The results highlight Robinhood's efforts to diversify its revenue streams and reduce its dependence on cryptocurrency trading, with the company exploring areas such as prediction markets, derivatives, and advisory tools.