Robinhood (HOOD) missed its first-quarter earnings and revenue estimates after reporting a sharp decline in crypto trading revenue, even as growth in other parts of its business pushed overall revenue higher.
The popular trading platform reported first-quarter adjusted earnings per share of $0.38, missing Wall Street’s $0.39 estimate, according to FactSet data. While the company reported a 15% year-over-year increase in total revenue to $1.07 billion, it fell short of the analysts’ expectation of $1.14 billion.
Crypto-related activities, one of the biggest contributors to transaction-based revenue, fell 47% from a year earlier to $134 million, down from $252 million in the same period of 2025, according to its earnings release.
The shares fell about 8% in post-market trading after the earnings report.
The drop in crypto trading revenue came as customer activity shifted toward other trading products, indicating a potential shift for retail traders out of risky assets such as crypto. The transaction-based revenue rose modestly to $623 million from $583 million a year ago. A key driver was a surge in so-called event contracts, which accounted for a large share of “other transaction revenue,” which climbed 320% year over year to $147 million.
Robinhood said users traded a record 8.8 billion event contracts during the quarter, reflecting growing interest in prediction markets. These products let users place bets on the outcome of real-world events, similar to forecasting whether interest rates will rise or who might win an election.
The results show how Robinhood is working to reduce its reliance on crypto trading, which can swing sharply with market sentiment. Like Coinbase (COIN), which is set to report earnings on May 7, the company has been expanding into new areas such as derivatives and prediction markets to smooth out revenue.
Robinhood also reported strong growth in net interest revenue and subscription products, including its Gold service, as it builds a broader financial ecosystem.
UPDATE (April 28, 22:10 UTC): Adds more context throughout the story on the miss, updates share price drop.
