Robinhood (HOOD) reported a sharp decline in cryptocurrency trading revenue during the first quarter of 2026, even as growth in other parts of its business drove overall revenue higher.
Cryptocurrency-related revenue fell 47% from a year earlier to $134 million, down from $252 million in the same period in 2025, according to its earnings release.
The decline occurred as customer activity shifted to other commercial products. Transaction-based revenue rose modestly to $623 million from $583 million a year ago. A key factor was the rise of so-called event contracts, which generated a large share of “other transaction income” that increased 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 place bets 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, compared to $927 million a year earlier. Net income increased 3% year over year to $346 million.
Adjusted earnings per share were $0.38, up slightly from $0.37 in the year-ago period, but missed analyst estimates of $0.39.
The results show how Robinhood is working to reduce its reliance on cryptocurrency trading, which can vary dramatically depending on market sentiment. Like Coinbase (COIN), which will report earnings on May 7, the company has been expanding 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 post-market trading. The company said it will hold an earnings conference call at 5 p.m. ET.
