Robinhood's first-quarter earnings fell short of expectations, with the company reporting 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 anticipated $1.14 billion.
The stock price dropped approximately 8% in post-market trading. A significant decline in crypto-related revenue, which decreased 47% to $134 million from $252 million in the previous year, was a major factor.
However, the company saw growth in other areas, including a 320% year-over-year 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 indicate 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. The company also reported gains in net interest revenue and subscriptions, including its Gold tier, as it builds a broader financial services platform.