Robinhood Markets shares slipped about 6% in after-hours trading Tuesday after the retail brokerage reported a 34% quarterly drop in cryptocurrency revenue, dragging overall first-quarter results below Wall Street expectations.
The Menlo Park firm posted $346 million in first-quarter profit, or $0.38 per share, narrowly missing analyst estimates of $0.39 even as earnings rose 3% from a year earlier.
Crypto Revenue Slides as Bitcoin Cools
Crypto transactions generated $134 million in revenue during the quarter, down from $221 million in the prior period. Bitcoin (BTC) fell 22% over the same window.
Total revenue reached $1.07 billion, short of the $1.14 billion analysts had projected. The miss arrived even as equities, options, futures, and prediction markets posted double-digit growth or record volumes, the company said.
Trading fees drove much of the platform’s gains last year, when HOOD stock peaked at $153.86 in October alongside crypto’s broader run.
Robinhood stock dipped on this report, and was trading for $82.05 as of this writing.
Robinhood (HOOD) Stock Performance. Source: TradingViewPrediction Markets and Tokenization Cushion the Slide
Chairman and CEO Vlad Tenev pointed to the firm’s expanding role across customer finances in a statement.
Wagers routed through Kalshi-powered prediction markets logged record volumes, supported by a one-cent transaction fee.
Robinhood also launched the public testnet for Robinhood Chain, an Ethereum (ETH) layer-2 network built around tokenized assets.
Total platform assets stood at $307 billion, down from $324 billion at the end of last year but 39% higher year-over-year.
The European tokenized stocks product, which offers exposure to private companies including OpenAI and SpaceX, has processed more than 100 million transactions since launch.
The after-hours sell-off pushed HOOD to roughly $82, well off the October peak. The path forward depends on whether prediction markets and tokenization can offset the cooling in digital asset trading.
The post HOOD Stock Topples After Robinhood Earnings Reveals 47% Decrease in Crypto Revenue appeared first on BeInCrypto.
Source: https://beincrypto.com/hood-stock-robinhood-crypto-revenue-q1-2/
