Robinhood's first-quarter earnings report fell short of expectations, with the company posting adjusted earnings per share of $0.38, below the estimated $0.39. Total revenue rose 15% year-over-year to $1.07 billion, but missed the projected $1.14 billion.
The company's shares dropped approximately 8% in post-market trading. A significant decline in crypto-related revenue, which decreased by 47% to $134 million, was a major contributor to the disappointing results.
However, the company saw growth in other areas, including transaction-based revenue and 'other transaction revenue', which increased by 320% year-over-year to $147 million due to 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 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.