Key Takeaways
- Q1 earnings per share landed at $0.38, missing analyst expectations of $0.39, while revenue reached $1.07B versus $1.14B forecasted
- Cryptocurrency revenue plummeted 47% compared to the prior year, declining to $134 million, while crypto trading volume decreased 48% to $24 billion
- Shares of HOOD declined approximately 9.4% during after-hours trading session
- The prediction markets segment showed exceptional growth with 8.8 billion event contracts executed, representing a 780% increase from Q2 2025
- Bottom-line profits increased 3% year-over-year, reaching $346 million, even as topline revenue disappointed
Robinhood experienced a challenging Tuesday evening following its first-quarter earnings release. The trading platform delivered financial results that fell short of expectations across key metrics, triggering an immediate reaction from investors — shares plummeted roughly 9.4% after the closing bell.
The company’s adjusted earnings per share for the first quarter registered at $0.38, narrowly missing the Street consensus of $0.39. Overall revenue climbed to $1.07 billion, representing a 15% increase from the same period last year, yet significantly trailing the analyst forecast of $1.14 billion. The revenue shortfall amounted to approximately 6%, while the EPS miss reached 11.6%.
The primary driver behind the disappointment? Cryptocurrency.
Transaction-based revenue from crypto assets collapsed 47% compared to last year’s quarter, tumbling from $252 million down to $134 million. Meanwhile, cryptocurrency trading volumes contracted 48% to reach $24 billion. This marked the third consecutive quarter where the platform witnessed declining crypto transaction revenues.
Robinhood Markets, Inc., HOOD
Chief Executive Vlad Tenev tackled the issue directly during the company’s earnings conference call. “I want to get away from talking about the price of bitcoin,” he stated, indicating a strategic shift away from dependency on cryptocurrency price fluctuations for revenue generation.
While crypto represented a significant headwind, other segments delivered positive results. Overall transaction-based revenue climbed to $623 million from $583 million in the year-ago period. The company maintained profitability with net income advancing 3% year-over-year to $346 million.
Prediction Markets Emerge as Growth Driver
The quarter’s most impressive performance came from Robinhood Predictions. The platform’s users executed an unprecedented 8.8 billion event contracts throughout Q1 — representing a staggering 780% surge compared to Q2 2025, when the feature first launched for a complete quarter.
This robust activity propelled “other transaction revenue” upward by 320% year-over-year to $147 million, providing a crucial counterbalance to cryptocurrency losses. According to Tenev, Robinhood Predictions is on pace to generate approximately $3 billion in trading volume for April alone.
The prediction market functionality operates through an integration with Kalshi and has experienced rapid adoption since its March 2025 introduction.
Additional revenue streams including net interest income and Gold subscription fees also delivered positive contributions as Robinhood expands its comprehensive financial services ecosystem.
Bitstamp Results Reported Separately
An important detail: Bitstamp, the cryptocurrency exchange that Robinhood acquired in June 2025, was excluded from the consolidated crypto metrics mentioned above. The standalone exchange processed $42 billion in trading volume throughout Q1, representing a 13% decline from Q4 2025.
This represents substantial volume that isn’t reflected in Robinhood’s primary crypto reporting, meaning the complete scope of cryptocurrency activity across the combined platform exceeds what the reported decline might suggest.
Coinbase (COIN), scheduled to announce earnings on May 7, also experienced a roughly 1% decline on Tuesday — the two companies frequently exhibit correlated movements given their mutual exposure to retail cryptocurrency trading activity.
Robinhood’s first-quarter performance illustrates a platform undergoing strategic transformation, pivoting toward prediction markets and diversified financial services while its historically strong cryptocurrency segment experiences headwinds.
The post Robinhood (HOOD) Stock Tumbles 9% After Q1 Miss Driven by Crypto Decline appeared first on Blockonomi.
Source: https://blockonomi.com/robinhood-hood-stock-tumbles-9-after-q1-miss-driven-by-crypto-decline/
