Robinhood stock falls 8% after big earnings miss due to weak crypto trading revenue
CoinDesk • • business
Key Points:
- Robinhood reported first-quarter adjusted earnings per share of $0.38, missing Wall Street's estimate of $0.39, and total revenue of $1.07 billion, below the expected $1.14 billion, leading to an 8% drop in post-market shares.
- Crypto trading revenue declined sharply by 47% to $134 million, reflecting the company's shift away from reliance on crypto price cycles toward using crypto technology as financial infrastructure.
- Growth in other areas, particularly transaction-based revenue which rose to $623 million, was driven by a 320% increase in event contracts, with users trading a record 8.8 billion contracts in prediction markets.
- CEO Vlad Tenev emphasized the company's focus on expanding into prediction markets, derivatives, and advisory tools to stabilize revenue and reduce dependence on crypto trading, viewing crypto as a long-term opportunity in tokenization.
- Robinhood also experienced gains in net interest revenue and subscriptions, including its Gold tier, as it continues to build a broader financial services platform.
