In the first quarter of 2026, Robinhood (HOOD) experienced a significant reduction in its cryptocurrency trading revenue, even as it saw overall growth due to other business areas. The earnings release revealed that crypto-related income fell by 47% compared to the previous year, dropping from $252 million to $134 million.
Despite this decline, transaction-based revenue grew slightly from $583 million to $623 million. A major factor for this increase was a sharp rise in event contracts, which accounted for much of the “other transaction revenue.” This segment saw a 320% jump year over year, reaching $147 million.
During the quarter, Robinhood users traded an unprecedented 8.8 billion event contracts. These products allow traders to wager on real-world outcomes, akin to predicting interest rate changes or election results.
Overall, Robinhood’s total revenue grew by 15% to $1.07 billion from $927 million in the prior year. Net income saw a modest rise of 3% to $346 million. Adjusted earnings per share were reported at $0.38, slightly exceeding last year’s $0.37 but falling short of analysts’ predictions of $0.39.
The results highlight Robinhood’s efforts to diversify its revenue streams away from the volatile crypto market, similar to Coinbase (COIN), which will release its earnings on May 7. The company is expanding into derivatives and prediction markets to stabilize income.
Robinhood also noted strong growth in net interest revenue and subscription offerings, like its Gold service, as it develops a more comprehensive financial ecosystem. Post-market trading saw HOOD shares drop by 6%. An earnings call is scheduled for 5 p.m. ET.