Robinhood Q1 Crypto Revenue Falls 47% to $134M

Robinhood's cryptocurrency revenues and trading volumes declined sharply in the first quarter, the company reported Tuesday. Crypto revenues fell 47% year-over-year to $134 million, while native-app notional trading volumes dropped 48% to $24 billion, according to the company's earnings report.

Segment Performance

Bitstamp, acquired by Robinhood last year, reported notional trading volumes of $42 billion with no year-over-year comparison provided.

Despite the crypto decline, Robinhood's overall transaction revenues grew 7% year-over-year to $623 million for the quarter. This growth was "primarily driven" by a 320% increase in event contracts revenue. Options revenue reached $260 million, up 8% year-over-year, while equities revenue of $82 million jumped 46%.

Profitability and Customer Engagement

Robinhood maintained profitability despite crypto headwinds, posting net income of $346 million, a 3% increase compared to the same period the previous year.

CFO Shiv Verma stated: "In Q1, customers remained engaged and rapidly adopted new products, leading to a 20 percent-plus annualized net deposit growth rate, double digit growth across equities and options, and record volumes for prediction markets, futures, and index options."

Historical Context

The Q1 decline continues a trend from the end of 2025. In February, the company reported that fourth-quarter cryptocurrency transaction revenues fell 38% year-over-year to $221 million.

Market Reaction

Robinhood's shares dropped over 6% to $76.99 in after-hours trading following the earnings announcement.