Robinhood Shares Fall 9.4% as Q1 Revenue Misses Estimates, Crypto Revenue Drops 47%

Online trading platform Robinhood fell 9.4% in after-hours trading after its Q1 revenue missed analyst estimates, while crypto revenue and trading volume fell nearly 50% from a year ago. Robinhood’s crypto transaction revenue fell 47% year-on-year from $252 million to $134 million, while crypto trading volume fell 48% to $24 billion over the same period, according to the company’s Q1 earnings report on Tuesday. Robinhood’s transaction-based crypto revenue fell for the third consecutive quarter in Q1. Its earnings per share of $0.38 and $1.07 billion in revenue missed industry expectations by 11.6% and 6.1%, respectively, contributing to a 9.4% fall in Robinhood (HOOD) shares. The company still made a profit, with its net income rising 3% year-on-year to $346 million. Robinhood CEO Vladimir Tenev attributed the crypto revenue and trading volume fall to price swings in the market but added that the company is more focused on building crypto infrastructure and integrating assets that have “real-world utility.” “Price moves up and down, but what I can tell you is crypto as technology infrastructure is going to be big, and we’re investing,” he said, adding: “We’re at the very beginning of what’s gonna be a tokenization supercycle.” Robinhood is one of several trading platforms that have used the bear market to expand their blockchain-based offerings in an effort to capture new revenue streams and broaden retail demand. Another one of those offerings is Robinhood Predictions, a predictions market platform integrated through Kalshi, which saw a record 8.8 billion event contracts traded on Robinhood in Q1, marking a 780% increase from Q2 2025 — its first full quarter on the market. Tenev added that Robinhood Predictions is on track to reach around $3 billion in trading volume for April, a figure that would mark its second-highest month since rolling out the product in March 2025. Robinhood Predictions is part of Robinhood’s “other” trading category, which saw its revenue increase 320% year-on-year to $147 million in Q1, helping offset the crypto-related losses. Not included in the crypto figures was trading activity from Bitstamp, which was acquired by Robinhood in June 2025. The exchange recorded $42 billion worth of trading volume over the quarter, down 13% from Q4 2025.