Robinhood Markets Inc (NASDAQ:HOOD) fell short of first-quarter revenue expectations as a sharp decline in cryptocurrency trading revenue weighed on results, even as the company’s broader platform continued to show solid growth.
The retail brokerage reported Q1 revenue of $1.07 billion, missing analyst estimates of $1.14 billion, while earnings per share came in at $0.38, just shy of the $0.39 consensus estimate. Shares fell nearly 12% on Wednesday morning.
Crypto trading revenue was the headline drag, tumbling 47% year-over-year to $134 million, compared with $252 million in the same period last year. The drop offset strength elsewhere on the platform, including a standout performance in event contracts and prediction markets, where “other trading revenue” surged 320% year-over-year to $147 million, surpassing crypto trading revenue for the first time.
The milestone underscores a strategic shift for Robinhood in the prediction market space. The company said it intends to own the full prediction market stack through Rothera, its joint venture with Susquehanna, rather than relying on third-party venues such as Kalshi.
Despite the revenue miss, several platform metrics reflected continued user engagement and asset growth. Total platform assets reached $307 billion, up 39% year-over-year, while Robinhood Gold subscribers climbed 36% to 4.3 million. Average revenue per user rose 8% year-over-year to $157.
Robinhood also announced a $100 million investment to build and develop Trump Accounts through the rest of 2026, expanding what is expected to be a long-term program. The initiative, often described as a children’s IRA, is part of a broader effort to deepen its suite of financial products.
