Robinhood ( HOOD ) reported a sharp drop in crypto trading revenue for the first quarter of 2026, even as growth in other parts of the company’s business pushed overall revenue higher.
Crypto-related revenue fell 47% from a year earlier to $134 million, down from $252 million in the same period of 2025, according to the earnings release.
The decline came as customer activity shifted towards other trading products. Transaction-based revenue increased modestly to $623 million from $583 million a year ago. A key driver was an increase in so-called event contracts, which brought in a large share of “other transactional income,” which rose 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 bet 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 rose 3% year-over-year to $346 million.
The adjusted earnings per Shares came in at $0.38, slightly above $0.37 in the prior-year period, but missing analyst estimates of $0.39.
The results show how Robinhood is working to reduce its reliance on crypto trading, which can fluctuate wildly with market sentiment. Like Coinbase (COIN), which is set to report earnings on May 7, the company has been expanding into new areas like derivatives and prediction markets to smooth out revenue.
Robinhood also reported strong growth in net interest income and subscription products, including the Gold service, as it builds a broader financial ecosystem.
Shares in HOOD fell 6% in post-market trading. The company said it will host an earnings call at 5 p.m. ET.
