Robinhood's first-quarter earnings and revenue fell short of expectations due to a significant decline in cryptocurrency trading revenue. However, growth in other areas helped push overall revenue higher. The company reported adjusted earnings per share of $0.38, missing the estimated $0.39, and posted a 15% year-over-year increase in total revenue to $1.07 billion, which was below the expected $1.14 billion.
As a result, shares dropped approximately 8% in post-market trading. The decline in crypto-related revenue, which decreased 47% to $134 million, was offset by stronger activity in other areas, such as transaction-based revenue and event contracts. The company's CEO, Vlad Tenev, emphasized the focus on using cryptocurrency technology as infrastructure for financial services, rather than relying on crypto price cycles.
The results highlight a shift in customer engagement, with users trading a record 8.8 billion contracts tied to prediction markets during the quarter. Robinhood is expanding into areas like prediction markets, derivatives, and advisory tools to reduce its dependence on cryptocurrency trading and create a more consistent revenue stream.