Robinhood Q1 Earnings: Crypto Revenue Plunge Overshadows Broad Growth

Robinhood Markets Inc. reported mixed first-quarter results, with a 47% collapse in cryptocurrency trading revenue dragging down otherwise strong performance. The brokerage posted $0.38 EPS, missing estimates, as digital asset revenue fell to $134 million despite 15% YoY growth in total net revenue to $1.07 billion.

Equities and options trading delivered robust growth, with revenue jumping 46% and 8% respectively. The platform saw record activity in prediction markets and derivatives, while Robinhood Gold subscriptions grew 32% to $50 million. CFO Shiv Verma noted April's strong start, with equity and options volumes tracking toward yearly highs.

The crypto segment's underperformance - typically a key metric for Robinhood's investor base - triggered a 2.3% after-hours stock drop. This decline occurred despite net deposits growing at a 20%+ annualized rate and interest revenue increasing 24% to $359 million.