Robinhood's first-quarter earnings report fell short of expectations, with the company posting adjusted earnings per share of $0.38, missing the estimated $0.39. Total revenue increased 15% year-over-year to $1.07 billion, but was below analysts' forecast of $1.14 billion. The stock price dropped approximately 8% in post-market trading. The decline in crypto-related revenue, which decreased 47% to $134 million, was offset by 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 highlight 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.