Robinhood stock drops after crypto revenue falls 34%
Shares fell 6% after hours after Robinhood reported Q1 profit of $346M ($0.38), revenue of $1.07B that missed estimates and crypto revenue down 34% to $134M.
Robinhood’s shares slipped 6% in after-hours trading after the Menlo Park brokerage reported first-quarter results on Tuesday. The firm posted net income of $346 million, or $0.38 per share, and revenue of $1.07 billion.
Quarterly profit rose 3% from $336 million a year earlier but missed the $0.39 per-share expectation. Revenue trailed analyst forecasts of about $1.14 billion. The company reported double-digit growth in equities and options and said record volumes in prediction markets, futures and index options helped offset weakness in crypto trading.
Crypto transaction revenue fell 34% sequentially to $134 million from $221 million. Robinhood linked the decline to a sharp pullback in cryptocurrency prices; Bitcoin fell about 22% in the three months ended March 31, and clients scaled back crypto trading.
Total platform assets were $307 billion at quarter end, down from $324 billion late last year but up 39% from a year earlier, the company said. Robinhood attributed the year-over-year increase to net deposits and higher equity valuations.
The company highlighted growth in new product areas. Volumes in Kalshi-powered prediction markets reached record levels after the firm added sports wagers. In January Robinhood began rolling out “custom combos,” which resemble sportsbook parlays, and it charges a one-cent fee on prediction-market transactions. Robinhood also launched a public testnet for Robinhood Chain, an Ethereum layer-2 network, as part of its work on tokenized assets.
Robinhood Ventures Fund I bought about $75 million of OpenAI common stock, offering retail investors who buy into the public fund exposure to the AI company. Robinhood said its European offering of digital representations of private companies has processed more than 100 million transactions since launch.
“Robinhood is increasingly positioned at the center of our customers’ financial lives,” Vlad Tenev wrote in a statement.
Robinhood shares reached a peak of $153.86 last October during a broader crypto rally. After the earnings release the stock traded around $82 in after-hours trading.
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