Robinhood (HOOD) reported a significant decline in cryptocurrency trading revenue for the first quarter of 2026, despite growth in other parts of its business driving overall revenue growth.
According to its report, cryptocurrency-related revenue decreased by 47% year-over-year to $134 million, below $252 million in the same period of 2025.Profit Report
Trading volume declined due to customer activity shifting toward other trading products. Trading revenue increased slightly, rising from $583 million in the same period last year to $623 million. The primary driver was a surge in so-called "event contracts," which contributed significantly to "other trading revenue," which grew 320% year-over-year to $147 million.
Robinhood stated that users traded a record 8.8 billion event contracts this quarter, reflecting growing interest in prediction markets. These products allow users to place bets on the outcomes of real-world events, such as whether interest rates will rise or who will win an election.
Total revenue increased 15% to $1.07 billion, compared to $927 million in the same period last year. Net profit rose 3% year-over-year to $346 million.
Adjusted earnings per share were $0.38, slightly above $0.37 in the same period last year, but below the analyst expectation of $0.39.
The results show that Robinhood is working to reduce its reliance on cryptocurrency trading, which fluctuates sharply with market sentiment. Like Coinbase (COIN), which will report earnings on May 7, the company has been expanding into emerging areas such as derivatives and prediction markets to create more stable revenue.
Robinhood also reported strong growth in net interest income and subscription products, including Gold services, as the company builds a broader financial ecosystem.
HOOD stock fell 6% in after-hours trading. The company announced it will hold an earnings call at 5:00 p.m. Eastern Time.