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. The trading platform's overall revenue rose 15% to $1.07 billion, but missed the predicted $1.14 billion. The company's shares declined by about 8% in post-market trading.
A major factor contributing to the decline was the 47% drop in cryptocurrency-related revenue, which fell to $134 million from $252 million in the previous year. However, the company saw growth in other areas, including a 320% increase in 'other transaction revenue' to $147 million, driven by the rise of event contracts and prediction markets.
CEO Vlad Tenev emphasized the company's focus on utilizing cryptocurrency technology as infrastructure for financial services, rather than relying on crypto price cycles. The results reflect 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 such as prediction markets, derivatives, and advisory tools to reduce its dependence on cryptocurrency trading and create a more stable revenue stream.