Robinhood crypto revenue slumps; HOOD shares fall after Q1 miss

Robinhood Markets (NASDAQ: HOOD) reported mixed Q1 results, but investors focused on a sharp drop in Robinhood crypto revenue, sending the stock lower in after-hours trading. Financially, HOOD posted EPS of $0.38 on revenue of $1.07B, missing consensus by 11.6% (EPS) and 6.1% (revenue). Net income rose 3% year over year to $346M, keeping the company profitable. The crypto slowdown was the key driver: crypto transaction revenue fell 47% to $134M, while crypto trading volume dropped 48% to $24B, extending the decline in transaction-based crypto revenue to a third straight quarter. CEO Vladimir Tenev attributed the weakness largely to market volatility and changing price conditions, while reiterating plans around blockchain infrastructure and tokenized assets. Offsetting strength came from Robinhood’s “other” trading segment, where revenue grew 320% to $147M, boosted by record activity on Robinhood Predictions (Kalshi-driven event contracts): 8.8B contracts traded. Bitstamp activity was not included in HOOD’s crypto segment; Bitstamp reported $42B quarterly trading volume, down 13% quarter over quarter. For crypto traders, the update reinforces that HOOD remains highly sensitive to cyclical crypto trading demand. With Robinhood crypto revenue down sharply and shares already weak before the print, near-term market focus may stay on crypto activity trends rather than long-term tokenization narratives.