HOOD Stock Topples After Robinhood Earnings Reveals 47% Decrease in Crypto Revenue

Robinhood Markets shares slipped about 6% in after-hours trading Tuesday after the retail brokerage reported a 47% year-over-year drop in cryptocurrency revenue, dragging overall first-quarter results below Wall Street expectations.

The Menlo Park firm posted $346 million in first-quarter profit, or $0.38 per diluted share, narrowly missing analyst estimates of $0.39 even as net income rose 3% from a year earlier.

Crypto Revenue Slides as Bitcoin Cools

Crypto transactions generated $134 million in revenue during the quarter, down 47% year-over-year as digital asset trading activity cooled across the platform.

Total revenue reached $1.07 billion, up 15% year-over-year but short of the $1.14 billion analysts had projected. The miss arrived even as equities, options, futures, and prediction markets posted double-digit growth or record volumes, the company said.

Trading fees drove much of the platform’s gains last year, when HOOD stock peaked at $153.86 in October alongside crypto’s broader run.

Robinhood stock dipped on this report, and was trading for $82.05 as of this writing.

Prediction Markets and Tokenization Cushion the Slide

Chairman and CEO Vlad Tenev pointed to the firm’s expanding role across customer finances in a statement.

“Robinhood is increasingly positioned at the center of our customers’ financial lives,” he stated in the broadcast.

Wagers routed through Kalshi-powered prediction markets logged record volumes, supported by a one-cent transaction fee.

Robinhood also launched the public testnet for Robinhood Chain, an Ethereum (ETH) layer-2 network built around tokenized assets.

Total platform assets stood at $307 billion, up 39% year-over-year on the back of net deposits and higher equity valuations.

The firm’s European tokenized stocks product continues to offer customers exposure to private companies including OpenAI and SpaceX.

The after-hours sell-off pushed HOOD to roughly $82, well off the October peak. The path forward depends on whether prediction markets and tokenization can offset the cooling in digital asset trading.

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