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, and total revenue of $1.07 billion, missing the predicted $1.14 billion. The company's stock price dropped approximately 8% in post-market trading. A significant contributor to the decline was the 47% drop in crypto-related revenue to $134 million. However, the company saw growth in other areas, including a 15% increase in overall revenue and a 320% rise 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 reflect 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 saw gains in net interest revenue and subscriptions, including its Gold tier, as it builds a broader financial services platform.