Robinhood's first-quarter earnings report fell short of expectations, with the company missing both earnings and revenue estimates due to a sharp decline in crypto trading revenue. The trading platform reported adjusted earnings per share of $0.38, below the estimated $0.39, and total revenue of $1.07 billion, which was 15% higher than the previous year but short of the expected $1.14 billion.
As a result, shares dropped approximately 8% in post-market trading. The decline in crypto-related revenue, which decreased by 47% to $134 million, was offset by growth in other areas, including transaction-based revenue and event contracts.
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 report highlights a shift in customer usage, 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 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.