Crypto activity was weaker, with transaction revenue falling 47% to $134 million and trading volume dropping 48%. Growth in newer businesses helped offset some of the slowdown, as Robinhood Predictions recorded 8.8 billion contracts traded and revenue from the company’s “other” trading segment rose 320%.
Robinhood Misses Q1 Estimates
Robinhood Markets Inc. (NASDAQ: HOOD) came under pressure in after-hours trading after reporting first-quarter results that missed Wall Street expectations. Over the past 24 hours, HOOD slipped 2.24% to $82.07, after moving in a range between $81.45 to $83.08.
HOOD price over the past 24 hours (Source: CoinCodex)
The company posted earnings per share of $0.38 on revenue of $1.07 billion, missing analyst estimates by 11.6% and 6.1%, respectively. Despite the miss, Robinhood stayed profitable, with net income rising 3% year over year to $346 million.
A major drag on the quarter was the continued decline in crypto activity. Crypto transaction revenue fell 47% from a year earlier to $134 million, down from $252 million, while crypto trading volume dropped 48% to $24 billion. It was also the third consecutive quarter of declining transaction-based crypto revenue.
CEO Vladimir Tenev said the decline was mainly tied to market volatility and changing price conditions, but explained that the company is still committed to blockchain infrastructure and tokenized assets. He described the industry as being at the start of a “tokenization supercycle,” and suggested that Robinhood is ready to stay aggressive in expanding its crypto ecosystem despite weaker near-term trading activity.
Offsetting some of the crypto weakness was strong growth in newer business lines. Robinhood Predictions, the company’s event-contract trading platform powered through Kalshi, delivered record activity with 8.8 billion contracts traded in the quarter. That helped drive a 320% year-over-year increase in revenue from Robinhood’s “other” trading category, which rose to $147 million.
Robinhood also shared that trading activity from Bitstamp, which it acquired in June of 2025, was not included in the crypto segment figures. Bitstamp generated $42 billion in quarterly trading volume, though that was down 13% from the previous quarter.
The mixed results leave Robinhood balancing two narratives: a profitable and diversifying fintech platform with growing alternative revenue streams, and a trading business still vulnerable to cyclical slowdowns in crypto and retail activity. With HOOD shares already soft over the past day and sharply lower after earnings, investors seem a bit more focused on the near-term slowdown than the company’s longer-term expansion plans.
