Robinhood Markets Inc. posted first-quarter revenue of $1.07 billion, a 15% year-over-year increase, despite a sharp 47% decline in cryptocurrency trading revenue to $134 million. The results underscore a strategic pivot toward equities, options, and subscription-based income as the crypto retail frenzy cools.
Crypto Slump Masks Broader Resilience
Net income for the quarter stood at $346 million, up 3% from a year ago, with diluted earnings per share of $0.38. Total transaction-based revenue rose 7% to $623 million, led by a 46% surge in equities revenue to $82 million and an 8% gain in options revenue to $260 million. The new events contracts segment contributed $147 million in revenue.
Crypto transaction revenue, once a growth engine, nosedived 47% to $134 million, reflecting weak digital asset prices and reduced retail activity. However, total assets under custody soared 39% to $307 billion, fueled by net deposits of $17.7 billion and higher equity valuations. The annualized net deposit growth rate reached 22%.
Subscription and Interest Income Provide Stability
Net interest income climbed 24% to $359 million, driven by an expanded interest-earning asset base. Robinhood Gold subscription revenue jumped 32% to $50 million, contributing to a 57% surge in other revenue. Gold subscribers hit 4.3 million, up 36% YoY. Funded accounts increased 6% to 27.4 million, while total investment accounts reached 29.1 million. Average revenue per user rose 8% to $157.
Operating expenses grew 18% to $656 million, primarily due to marketing and product development. Adjusted EBITDA was $534 million, up 14%, indicating improved operating leverage. The company repurchased $250 million in shares during the quarter and raised its buyback authorization to $1.5 billion.
Expanding into AI, Blockchain, and Global Markets
Robinhood is aggressively diversifying beyond trading. Its investment fund participated in a $75 million round in OpenAI, giving retail investors access to private markets. The firm has also launched AI-powered tools on its Cortex platform, social trading features, and plans to deploy an Ethereum-based Layer 2 testnet in 2026 to support tokenized assets.
CEO Vlad Tenev commented, "With relentless product velocity and innovation, Robinhood is becoming increasingly central to our customers' financial lives, at the onset of the Great Wealth Transfer." CFO Shiv Verma added that the company sees significant opportunity ahead as it continues to invest for long-term growth and accelerate product releases.
Internationally, Robinhood secured preliminary regulatory approval in Singapore, eyeing expansion in Asia. While near-term crypto headwinds persist, the company's pivot toward equities, subscriptions, AI, and blockchain infrastructure suggests a deliberate strategy to reduce reliance on volatile digital asset trading.