Key Highlights
- Q1 earnings per share reached $0.38, falling one cent below analyst consensus of $0.39
- Cryptocurrency revenue declined 47% compared to prior year, reaching $134 million; trading volume decreased 48% to $24 billion
- Shares dropped approximately 9.4% during extended trading hours
- Event contract trading through prediction markets surged to 8.8 billion contracts, representing a 780% increase from Q2 2025
- Company maintained profitability with net income climbing 3% year-over-year to $346 million
Robinhood faced investor disappointment Tuesday evening after releasing first-quarter results that fell short of analyst expectations across key metrics. Shares tumbled roughly 9.4% in after-hours trading following the announcement.
The company reported adjusted earnings of $0.38 per share for Q1, missing the Street’s $0.39 target by a penny. Revenue totaled $1.07 billion, representing 15% growth from the prior year period, yet trailing the $1.14 billion consensus estimate. The shortfall amounted to approximately 6% on revenue and 11.6% on earnings per share.
Cryptocurrency performance drove the disappointing results.
Transaction revenue from cryptocurrency plummeted 47% year-over-year, declining from $252 million to $134 million. Trading volume in digital assets contracted 48% to reach $24 billion. This marked the platform’s third consecutive quarter recording declining cryptocurrency transaction revenue.
CEO Vlad Tenev confronted the issue directly during the earnings call. “I want to get away from talking about the price of bitcoin,” he stated, indicating a strategic shift away from crypto price-dependent revenue streams.
Tenev positioned cryptocurrency as a long-horizon infrastructure opportunity. “We’re at the very beginning of what’s going to be a tokenization supercycle,” he explained, referencing the company’s expanded blockchain strategy.
While cryptocurrency weighed on results, other segments showed strength. Total transaction-based revenue increased to $623 million from $583 million in the comparable period. The company maintained profitability with net income advancing 3% year-over-year to $346 million.
Prediction Markets Deliver Strong Growth
The quarter’s most impressive performance came from Robinhood Predictions. Customers traded a record 8.8 billion event contracts during Q1 — representing a 780% surge from Q2 2025, when the product completed its first full quarter.
This activity drove “other transaction revenue” up 320% year-over-year to $147 million, partially compensating for cryptocurrency weakness. Tenev indicated that Robinhood Predictions appears on track for approximately $3 billion in trading volume during April alone.
The prediction market feature operates through integration with Kalshi and has experienced rapid adoption since launching in March 2025.
Net interest revenue along with Gold subscription revenue also delivered positive contributions as the company expands its comprehensive financial services portfolio.
Bitstamp Figures Excluded from Core Metrics
An important detail: Bitstamp, which Robinhood purchased in June 2025, remained separate from the cryptocurrency figures discussed above. The exchange generated $42 billion in trading volume throughout Q1, declining 13% from Q4 2025.
This represents substantial volume that doesn’t appear in Robinhood’s primary crypto metrics, indicating the complete scope of cryptocurrency activity across the consolidated platform exceeds the reported decline.
Coinbase (COIN), scheduled to release earnings May 7, also declined approximately 1% Tuesday — the two stocks frequently move in tandem given their comparable exposure to retail cryptocurrency trading.
Robinhood’s first-quarter performance reveals a company undergoing strategic evolution, emphasizing prediction markets and expanded financial services while its original cryptocurrency business experiences softening demand.
