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 posted a 15% year-over-year increase in total revenue to $1.07 billion, it fell short of analysts’ expectations of $1.14 billion.
Shares fell about 8% in post-market trading following the report.
Crypto-related revenue, one of Robinhood’s largest transaction drivers, dropped 47% to $134 million from $252 million a year earlier. The decline comes as the company tries to shift the narrative away from crypto price cycles.
“I want to get away from talking about the price of bitcoin,” CEO Vlad Tenev said on the earnings call, adding that Robinhood is focused on using crypto technology as “infrastructure” for financial services.
The drop in crypto trading revenue coincided with stronger activity in other areas. Transaction-based revenue rose to $623 million from $583 million a year earlier, helped by growth in newer products.
A key driver was event contracts, which pushed “other transaction revenue” up 320% year over year to $147 million. Robinhood said users traded a record 8.8 billion contracts tied to prediction markets during the quarter.
The results highlight a shift in how customers are using the platform. “If you build great products… they’ll be there throughout the cycle,” Tenev said, pointing to more consistent engagement across asset classes.
Robinhood has been expanding into areas like prediction markets, derivatives and advisory tools as it works to smooth out revenue swings. Like Coinbase, which reports earnings May 7, the company is trying to reduce its dependence on crypto trading. Coinbase (COIN) stock also fell about 1% on Tuesday, reflecting how the two companies often trade in tandem given their shared reliance on retail trading activity, especially in crypto.
Tenev also framed crypto as a longer-term bet beyond trading. “We’re at the very beginning of what’s going to be a tokenization super cycle,” he said, referring to efforts to bring assets like stocks onto blockchain rails.
The company also saw gains in net interest revenue and subscriptions, including its Gold tier, as it builds out a broader financial services platform.
UPDATE (April 28, 22:10 UTC): Adds more context throughout the story on the miss, updates share price drop.
UPDATE (April 28, 22:43 UTC): Adds quotes from earnings call.
