Robinhood has announced a significant drop in its crypto trading revenue for the first quarter of 2026, despite an overall increase in company earnings driven by other trading products. The trading platform’s crypto revenue plummeted by 47% year-over-year, totaling $134 million, down from $252 million in the same quarter of 2025.
This decline in crypto trading coincides with a shift in customer focus towards different trading options. Transaction-based revenue saw a modest rise, reaching $623 million compared to $583 million a year prior. A notable factor in this growth was a remarkable increase in event contracts, which contributed to a staggering 320% year-over-year rise in “other transaction revenue,” amounting to $147 million.
During the quarter, Robinhood reported that users engaged in a record 8.8 billion event contracts, signaling a growing interest in prediction markets. These markets allow users to place bets on the outcomes of real-world events, such as economic indicators or election results.
Overall, Robinhood’s total revenue increased by 15%, reaching $1.07 billion, up from $927 million in the previous year. The company also saw a 3% rise in net income, which stood at $346 million. Adjusted earnings per share were reported at $0.38, slightly surpassing the $0.37 from the same period last year, but falling short of analyst expectations of $0.39.
The latest results reflect Robinhood’s ongoing efforts to diversify its revenue streams and reduce dependence on the volatile crypto market. Similar to Coinbase, which is set to release its earnings on May 7, Robinhood is expanding into new sectors, including derivatives and prediction markets, to stabilize its revenue.
Additionally, the company reported robust growth in net interest revenue and subscription services, particularly its Gold offering, as it aims to create a more comprehensive financial ecosystem for its users.
Following the earnings announcement, shares of Robinhood (HOOD) fell by 6% in after-hours trading. The company has scheduled an earnings call for 5 p.m. ET to discuss these results further.
Robinhood's first-quarter earnings reveal a steep decline in crypto revenue, down 47% year-over-year, while overall revenue grew 15% due to increased interest in other trading products. The company continues to diversify its offerings to mitigate reliance on the volatile crypto market.