--- title: "Robinhood Earnings Miss Expectations, Stock Plunges in After-Hours Trading" type: "News" locale: "en" url: "https://longbridge.com/en/news/284465674.md" description: "Cryptocurrency revenue plummeted 47% year-over-year and overall revenue fell short of expectations, leaving the market deeply disappointed with Robinhood's Q1 earnings. The stock dropped nearly 9% in after-hours trading, bringing its year-to-date decline to 27%. However, amidst the gloom, the prediction market business emerged as a standout, with revenue surging 320% and the number of member subscriptions hitting a record high" datetime: "2026-04-29T00:18:52.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284465674.md) - [en](https://longbridge.com/en/news/284465674.md) - [zh-HK](https://longbridge.com/zh-HK/news/284465674.md) --- # Robinhood Earnings Miss Expectations, Stock Plunges in After-Hours Trading Robinhood Markets' first-quarter earnings fell short of Wall Street expectations, dragged down by a sharp decline in cryptocurrency trading revenue, while cooling trading activity added further pressure. The company reported first-quarter earnings per share (EPS) of $0.38 and revenue of $1.07 billion, both missing analysts' estimates of $0.39 and $1.14 billion, respectively. Following the earnings release, Robinhood's stock fell 9% in after-hours trading on Tuesday. These results have raised doubts about the company's growth prospects. The prolonged slump in the cryptocurrency market has already caused Robinhood's stock to drop 27% year-to-date, and this earnings report has further intensified investor concerns. ## Crypto Revenue Halved, Trading Revenue Drops Significantly Quarter-over-Quarter The cryptocurrency business was the core drag on performance this quarter. Robinhood's Q1 cryptocurrency revenue plunged 47% year-over-year to $134 million, as the continued downward trend in Bitcoin and other crypto asset prices directly eroded this revenue stream. Overall trading-related revenue also faced pressure. Q1 transaction-based revenue stood at $623 million. Although this represented a 6% year-over-year increase, **it marked a 20% quarter-over-quarter decline from the fourth quarter of 2025, reflecting a notable cooling in investor trading activity.** For comparison, Robinhood reported EPS of $0.37 and revenue of $927 million in the same period last year. While the base was relatively low at that time, the company still failed to exceed analysts' expectations this quarter. ## Prediction Market Emerges as a Standout, Contributing Unexpected Growth While the crypto business weighed on overall performance, Robinhood's prediction market business became a highlight of the quarter. The company disclosed that other trading revenue—primarily composed of event contract income—**surged 320% year-over-year to $147 million, driven largely by strong demand surrounding the Super Bowl.** CEO Vlad Tenev expressed optimism about the outlook for prediction markets during the earnings call. "I believe this asset class will continue to grow, and we are beginning to see diversification beyond sports events," he stated. Currently, Robinhood relies on the prediction market exchange Kalshi to support its related products, but the company has announced plans to collaborate with Susquehanna International Group to develop its own prediction market exchange. Management indicated that this move would allow Robinhood to better control the economic benefits and user experience of this business. Tenev also predicted a certain degree of consolidation within the prediction market sector. ## Diversification Efforts Continue, Gold Membership Subscriptions Hit Record High Despite pressure on its core trading business, Robinhood has made progress in business diversification. **The number of subscribers to its Gold membership service reached a record 4.3 million, a 36% year-over-year increase; Gold membership subscription revenue grew 32% year-over-year to $50 million in the first quarter.** Its robo-advisory product, Robinhood Strategies, had accumulated over 285,000 funded customer accounts by the end of the quarter, with assets under management exceeding $1.6 billion. CFO Shiv Verma stated on the earnings call, "Product rollout speed continues to accelerate. We are investing for the long term and actively applying artificial intelligence across our entire business scope." Under Tenev's leadership, Robinhood continues to advance its "one-stop financial services" strategy, having sequentially launched credit cards, financial advice, and banking services in an effort to reduce reliance on single-source trading revenue. However, trading-related revenue still constitutes the bulk of the company's income, and the transmission effect of market volatility on its performance remains significant. ### Related Stocks - [HOOX.US](https://longbridge.com/en/quote/HOOX.US.md) - [HOOG.US](https://longbridge.com/en/quote/HOOG.US.md) - [HOOD.US](https://longbridge.com/en/quote/HOOD.US.md) ## Related News & Research - [Robinhood Q1 adj EBITDA, revenue miss estimates as crypto activity declined](https://longbridge.com/en/news/284442620.md) - [Robinhood CEO Vlad Tenev Was Asked If Prediction Markets Are Headed For A Duopoly Like Uber-Lyft Or Healthy Competition—Here's What He Said](https://longbridge.com/en/news/284513735.md) - [Here's where Robinhood's retail traders have flocked as the Iran conflict rages on](https://longbridge.com/en/news/284455788.md) - [Robinhood to report as growth slows and expansions add risk](https://longbridge.com/en/news/284267549.md) - [Robinhood outlines $2.7b-$2.825b 2026 adjusted OPEX outlook while targeting Q2 Rothera launch](https://longbridge.com/en/news/284477358.md)