Robinhood Markets Inc. posted solid first-quarter growth, with revenue up 15% year over year to $1.07 billion, even as crypto trading income fell sharply. The results highlight a shift toward equities, options, and interest income as key drivers.
Key Takeaways
- Revenue: $1.07B, up 15% YoY
- Crypto revenue: $134M, down 47%
- Net income: $346M, up 3%
- Total platform assets: $307B, up 39%
- Diluted EPS: $0.38
Crypto Weakness Reshapes Revenue Mix
Robinhood’s first-quarter revenue of $1.07 billion masked a sharp divergence across business lines. Crypto trading revenue dropped 47% to $134 million, reflecting weaker digital asset prices and lower retail activity during the quarter. Crypto notional trading volumes fell sharply, particularly on the core app.
In contrast, traditional trading businesses continued to gain ground. Transaction-based revenue rose 7% to $623 million, driven by strong growth in equities and options trading. Equities revenue jumped 46% to $82 million, while options brought in $260 million, up 8%. Event contracts, a newer offering, saw rapid adoption and contributed $147 million in revenue.
Net interest income also provided a meaningful boost, climbing 24% to $359 million as the company benefited from a larger base of interest-earning assets. Subscription revenue from Robinhood Gold rose 32% to $50 million, helping lift other revenue by 57%.
User Growth and Balance Sheet Strength
Customer activity remained robust. Net deposits reached $17.7 billion in the quarter, representing a 22% annualized growth rate. Funded accounts increased 6% to 27.4 million, while total investment accounts rose to 29.1 million. Average revenue per user grew 8% to $157.
Operating expenses climbed 18% year over year to $656 million, driven largely by marketing and growth initiatives. Adjusted EBITDA still rose 14% to $534 million, suggesting improved operating leverage.
Robinhood is also pushing to broaden its ecosystem beyond trading. The firm rolled out new products, including AI-driven tools under its Cortex platform, a social trading feature, and expanded banking and wealth offerings. Its premium Gold subscription reached 4.3 million users, up 36% from a year earlier.
International Expansion and Innovation
International growth is becoming a focus. The company secured preliminary regulatory approval in Singapore and launched a test network for its Ethereum-based layer-2 blockchain, aimed at supporting tokenized assets. In capital markets, Robinhood repurchased $250 million of shares during the quarter and refreshed its buyback authorization to $1.5 billion.
“Driven by our relentless product velocity and innovation, Robinhood is increasingly positioned at the center of our customers’ financial lives, just as we enter the early innings of the Great Wealth Transfer,” said Vlad Tenev, Chairman and CEO of Robinhood. “In Q1, customers remained engaged and rapidly adopted new products. We believe there are massive opportunities ahead as we invest for the long term, ship products faster than ever to customers, and deliver value for shareholders,” added CFO Shiv Verma.
The results point to a company in transition. While crypto activity has cooled, Robinhood is leaning more heavily on equities trading, interest income, and new products to sustain growth. Whether those efforts can fully offset the volatility of digital assets will be closely watched in the quarters ahead.