Robinhood Reports Fall in Q1 Crypto Revenue and Trading Volume

Robinhood (HOOD) stock slumped around 6% in the hours after the company reported that its Q1 profit and revenue fell short of Wall Street estimates. The Menlo Park-based firm said that profits rose 3% from the previous year, reaching $346 million, or $0.38 per share, while net revenue rose 15% from the first quarter of last year to $1.07 billion. 

Analysts anticipated $382 million, or $0.42 per share, and net revenue of $1.14 billion, according to Bloomberg’s report.    

More insights into the report      

A major source of Robinhood’s revenue comes from crypto trades, which fell by 47% from the first quarter of the previous year. This is caused by a slump across the digital asset world that began last year and continued through February. Nevertheless, the numbers are slightly lower than expected by analysts. 

“I can’t tell you what the price is going to be in three months. You know, [the] 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,” Tenev, co-founder of Robinhood, said when asked about the outlook for digital assets. 

He also emphasized the company’s long-term ambition of turning into a “financial super app.” 

Fees from options trades increased by 8%, which is lower than anticipated. According to the report, the app’s net interest revenue from customers’ cash balances, margin loans, and securities lending increased by 27%. However, the numbers are actually lower than those according to the Wall Street forecast. 

Robinhood’s stock reached a major high last year after a retail trading surge in its online brokerage business. However, in 2026, it hadn’t gained a similar momentum. The firm’s stock was down by 27% year to date, ahead of its first-quarter earnings report. 

The company has made most of its revenue from crypto and options trading, which has been a major factor in diversifying its revenue streams into other financial services businesses, such as banking, wealth management, and prediction markets. 

Robinhood launched a platinum credit card earlier this year to lure in wealthy spenders. In April, the company was picked to help the Treasury Department implement its Trump Accounts program. 

Tenev said, “By developing and managing the new Trump accounts app, we’re getting Robinhood technology in front of the next generation of investors, 60 million of them.” 

Robinhood Stock Takes A Toll 

After the report, Robinhood shares slid 2.2% to 82.07 on the stock market. Its stocks sank nearly 6% in late Tuesday trade. 

The disruptive online broker’s shares recovered the 50-day moving average ahead of Tuesday’s Q1 report. However, the 50-day line remains below the 200-day counterpart, indicating a negative sign. 

Stabilizing growth and rising risks 

Before Q1 reports, analysts anticipate cut earnings estimates and price targets for Robinhood stock. The trend has continued since the start of this year. 

On Tuesday, Robinhood reported a continued surge in other revenue streams, as seen in the previous quarter. This includes transaction fees from customers placing prediction market wagers, along with those from credit and futures contracts. 

Other revenue rose to $147 million, $101 more than the company reported last year. Robinhood CFO Shiv Verma said, “customers remained engaged and rapidly adopted new products.” He also added, “Despite the macro backdrop, we really held engagement on the platform.” 

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