Robinhood's first-quarter earnings and revenue fell short of expectations, primarily due to a substantial decline in crypto trading revenue. However, growth in other areas drove overall revenue up by 15% to $1.07 billion. The company reported adjusted earnings per share of $0.38, missing the estimated $0.39, and total revenue of $1.07 billion, which was below the expected $1.14 billion.
As a result, shares dropped approximately 8% in post-market trading. The 47% decline in crypto-related revenue to $134 million was offset by a rise in transaction-based revenue to $623 million and a significant 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 demonstrate a shift in customer engagement, with more consistent activity across various asset classes. Robinhood is expanding into areas such as prediction markets, derivatives, and advisory tools to reduce its dependence on crypto trading. The company also reported gains in net interest revenue and subscriptions, including its Gold tier, as it develops a broader financial services platform.