Robinhood released its Q1 2026 earnings report, marking a third consecutive quarter of declining crypto activity. Transaction-based crypto revenue fell 47% year-over-year to $134 million, while crypto trading volume dropped 48% to $24 billion. HOOD shares slid 9.4% in after-hours trading after the results came out.
Where the Report Fell Short
Robinhood posted revenue of $1.07 billion and earnings per share of $0.38 for the quarter. Wall Street's consensus estimate had called for $1.14 billion in revenue and EPS of $0.43. The revenue miss was 6.1%, the EPS miss 11.6%. After the report dropped, HOOD shares fell roughly $3.50 from their regular-session close.
The company stayed profitable. Net income grew 3% year-over-year to $346 million. Still, missing both headline metrics at the same time spooked investors. For a stock trading at a high earnings multiple, two misses in one earnings release are enough to trigger double-digit after-hours selling.
Three Quarters of Declines: What Drove the Crypto Drop
Trading in Bitcoin, Ethereum, and other digital assets on the platform generated $252 million in Q1 2025. That was a record quarter for Robinhood, driven by the crypto rally that followed Trump's election win in November 2024. The Q1 2026 picture looked very different: a bear market, reduced retail interest, and lower volumes across the industry.
CEO Vladimir Tenev attributed the decline to short-term price swings. "Price moves up and down, but crypto as technology infrastructure is going to be big, and we're investing," he said during the analyst call. The company says it is shifting focus toward crypto infrastructure and assets with practical, real-world applications.
The decline was the third in a row. Q3 and Q4 2025 already showed lower numbers than the record Q1 2025, but the pace of contraction deepened each quarter.
Bitstamp: $42 Billion in Its First Full Quarter Under Robinhood
Robinhood closed its acquisition of crypto exchange Bitstamp in June 2025. Q1 2026 marked the first complete quarter with Bitstamp operating under the Robinhood umbrella. The exchange recorded $42 billion in trading volume for the quarter, down 13% from Q4 2025. Bitstamp serves mostly institutional clients and does not share the same retail audience as the HOOD platform.
Bitstamp's numbers are reported separately and are not included in Robinhood's crypto figures. So the $24 billion volume figure covers only the HOOD retail platform. Combined, the two segments accounted for more than $66 billion in total crypto trading volume in Q1. The acquisition logic: HOOD's retail reach paired with Bitstamp's institutional setup creates a two-sided user funnel.
Robinhood Predictions: Up 780% in Nine Months
While the crypto segment slipped, prediction markets turned into the fastest-growing part of Robinhood's business. Robinhood Predictions, launched in March 2025 through a partnership with Kalshi, recorded 8.8 billion event contracts in Q1 2026. That is a 780% jump from Q2 2025, the first full quarter the product was live.
Predictions, together with other non-traditional products, lifted the "Other transaction revenues" category: it grew 320% year-over-year to $147 million in Q1, partly offsetting the crypto losses. Tenev added that April 2026 is tracking toward $3 billion in Predictions volume, which would make it the second-highest month since the product launched.
What Comes Next for Robinhood
The 47% crypto revenue decline is first and foremost a market story. Q1 2025 was an outlier driven by the post-election rally, and comparing the current quarter to it without adjusting for market conditions gives a distorted read. A crypto market recovery in Q2 would bring HOOD's transaction revenue back up.
That said, three straight quarters of declines plus two consensus misses suggest the bear market is hitting Robinhood harder than some competitors. Charles Schwab launched retail crypto spot trading in April 2026; eToro closed the Zengo deal the same month. Competitive pressure in crypto retail is building.
The bet on tokenization and prediction markets makes sense directionally, but the payoff will not show up before 2027. Short-term, HOOD stays exposed to crypto market sentiment.
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