Robinhood reported a significant decline in crypto trading revenue, causing the company to miss its first-quarter earnings and revenue estimates. The trading platform posted adjusted earnings per share of $0.38, falling short of Wall Street's estimate of $0.39. Total revenue rose 15% year-over-year to $1.07 billion, but failed to meet analysts' expectations of $1.14 billion, resulting in an 8% drop in shares during post-market trading. The 47% decline in crypto-related revenue to $134 million was offset by 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 crypto technology as infrastructure for financial services, rather than relying on crypto price cycles. The results highlight a shift in customer usage, with more consistent engagement across asset classes. Robinhood is expanding into areas like prediction markets, derivatives, and advisory tools to reduce its dependence on crypto trading and create a more stable revenue stream.