Robinhood misses Q1 revenue estimates as crypto trading slumps

The retail brokerage reported Q1 gross of $1.07 billion, missing expert estimates of $1.14 billion, portion net per stock came successful astatine $0.38, conscionable shy of the $0.39 statement estimate. Shares fell astir 12% connected Wednesday morning.

Crypto trading gross was the header drag, tumbling 47% year-over-year to $134 million, compared with $252 cardinal successful the aforesaid play past year. The driblet offset spot elsewhere connected the platform, including a standout show successful lawsuit contracts and prediction markets, wherever "other trading revenue" surged 320% year-over-year to $147 million, surpassing crypto trading gross for the archetypal time.

The milestone underscores a strategical displacement for Robinhood successful the prediction marketplace space. The institution said it intends to ain the afloat prediction marketplace stack done Rothera, its associated task with Susquehanna, alternatively than relying connected third-party venues specified arsenic Kalshi.

Despite the gross miss, respective level metrics reflected continued idiosyncratic engagement and plus growth. Total level assets reached $307 billion, up 39% year-over-year, portion Robinhood Gold subscribers climbed 36% to 4.3 million. Average gross per idiosyncratic roseate 8% year-over-year to $157.

Robinhood besides announced a $100 cardinal concern to physique and make Trump Accounts done the remainder of 2026, expanding what is expected to beryllium a semipermanent program. The initiative, often described arsenic a children's IRA, is portion of a broader effort to deepen its suite of fiscal products.