Robinhood (HOOD) reported a sharp decline in crypto trading revenue for the first quarter of 2026, even as growth in other areas of its business pushed overall revenue higher.
Crypto-related revenue fell 47% from the previous year to $134 million, compared to $252 million for the same period in 2025, according to the earnings release.
This decline occurred as client activity shifted to other trading products. Transaction-based revenue increased slightly to $623 million from $583 million a year ago. One of the biggest factors was the increase in so-called event contracts, which generated a significant portion of “other transaction revenue,” which soared 320% year-over-year to $147 million.
Robinhood said users traded a record 8.8 billion event contracts during the quarter, reflecting growing interest in prediction markets. These products allow users to bet on the outcome of real-world events, similar to predicting whether interest rates will rise or who might win an election.
Total revenue increased 15% to $1.07 billion from $927 million a year earlier. Net profit increased 3% year-over-year to $346 million.
Adjusted earnings per share came in at $0.38, slightly higher than $0.37 for the same period a year ago, but missing analysts’ estimates of $0.39.
The results show how Robinhood is working to reduce its reliance on cryptocurrency trading, which can vary widely depending on market sentiment. Like Coinbase (COIN), which is scheduled to report earnings on May 7, the company has expanded into new areas such as derivatives and prediction markets to smooth revenue.
Robinhood also reported strong growth in net interest income and subscription products, including its Gold service, as it builds a broader financial ecosystem.
HOOD shares fell 6% in aftermarket trading. The company said it will host an earnings conference call at 5 p.m. ET.
