The shares of Robinhood fell 9.4% in after-hours trading after the company failed to meet analyst projections for Q1 revenue and saw a 50% decrease in cryptocurrency revenue and trading volume compared to the previous year.
Crypto transaction revenue for Robinhood fell 47% year-on-year, from $252 million to $134 million, according to the company’s Q1 financial report that was posted on Tuesday. At the same time, the volume of cryptocurrency trading volume fell 48% to $24 billion.
Robinhood (HOOD) shares plummeted 9.4% as a result of a 6.1% miss in industry estimates for revenues and an 11.6% miss for earnings per share. The firm had $1.07 billion in revenue and $0.38 in profit per share. The company maintained its profitability with a 3% year-on-year growth in net income to $346 million.
Market Swings as Reason
Robinhood CEO Vladimir Tenev put the fall in crypto revenue and trading volume down to market swings, but he also claimed that the company is focusing on building crypto infrastructure and adding assets with “real-world utility.”
In an effort to entice more retail consumers and improve revenue, several trading platforms, including Robinhood, have grown their blockchain-based products during the down market.
As an additional service, Robinhood Predictions is a prediction market platform linked via Kalshi. In Q1, 8.8 billion event contracts were traded on Robinhood, a 780% increase over Q2 2025—its first full quarter on the market.
If Tenev’s predictions for Robinhood Predictions are correct, the trading volume in April will be close to $3 billion. In terms of monthly revenue, this would rank second from the product’s inception in March 2025. Robinhood Predictions, which is a part of Robinhood’s “other” trading division, contributed to the company’s ability to recover from Q1 crypto-related losses, increasing revenue by 320% year-on-year to $147 million.