Robinhood (HOOD) Shares Drop 9% as Crypto Revenue Plummets
Robinhood (NASDAQ: HOOD) shares sank 9.4% in after-hours trading after the company reported $1.07 billion in Q1 revenue, missing Wall Street expectations by 6.1%. The shortfall was driven in part by a sharp decline in crypto-related activity, with transaction revenue from cryptocurrencies falling 47% year-over-year to $134 million, according to the companys April 28 earnings report. Crypto trading volumes also halved, dropping 48% to $24 billion compared to the same quarter in 2025. This marks the third consecutive quarter of declining crypto revenue for Robinhood, underscoring the ongoing challenges for platforms reliant on retail trading activity in a bearish digital asset market. Despite the crypto slump, Robinhood managed to post a net income of $346 million, up 3% year-over-year, aided by growth in other revenue streams. CEO Vladimir Tenev noted that the company is shifting focus toward building long-term crypto infrastructure and integrating assets with “real-world utility.” He highlighted what he called a “tokenization supercycle” on the horizon, signaling Robinhoods pivot toward blockchain-based products. Prediction Markets Shine Amid Crypto Weakness While crypto struggled, Robinhood‘s prediction market platform, Robinhood Predictions, delivered strong results. The platform saw record engagement in Q1, with 8.8 billion event contracts traded—an impressive 780% increase from its initial full quarter in