Robinhood reported Q1 revenue of $1.07B, beating year-over-year growth but missing analyst estimates. Crypto revenue plunged 47% to $134M, falling short of expectations and triggering a 6% after-hours decline.
The brokerage's quarterly results disappointed investors despite showing 15% year-over-year revenue growth. Q1 revenue came in below the $1.14B consensus estimate, while crypto trading revenue—a key growth driver—fell significantly short at $134M versus the expected $147.6M.
The crypto revenue miss reflects broader weakness in digital asset trading activity. Robinhood has positioned itself as a major player in retail crypto trading, making the 47% year-over-year decline a notable headwind.
Stock dropped 6% in postmarket trading, with shares falling to $77.11. The results suggest investors were pricing in stronger crypto-related gains heading into the quarter, likely anticipating momentum from Bitcoin's earlier 2024 rally.
Robinhood continues to rely on options trading and equities activity to offset crypto weakness, though total revenue growth remained solid on a year-over-year basis.
Crypto investor Katie Haun has closed $1 billion in new venture funds, marking an expansion beyond digital assets into artificial intelligence and agentic finance.
Polymarket has partnered with blockchain analytics firm Chainalysis to deploy detection tools designed to identify insider trading patterns on its prediction market platform.
The Securities and Exchange Commission has postponed releasing an 'innovation exemption' that would permit crypto firms to trade tokenized versions of U.S. stocks, according to sources cited by Bloomberg.
Prediction market platform Polymarket has applied for regulatory approval from the CFTC and NFA to offer margin trading in the United States. The feature would allow users to place bets with less capital upfront.