Robinhood Earnings Beat Wall Street Estimates as Crypto Revenue Doubles

On Wednesday, Robinhood Markets Inc. (NASDAQ: HOOD) reported strong numbers for the first quarter of 2025, surpassing Wall Street expectations. The trading platform attributed the growth primarily to crypto trading, as total revenue reached a record $927 million.

With earnings of $0.37 per share, Robinhood marked a 50% year-over-year increase in revenue.

Crypto Trading Fuels Robinhood’s Record Q1 Revenue

The company’s cryptocurrency trading revenue significantly contributed to this growth, which doubled to $252 million compared to the same period last year.

“This quarter, we significantly accelerated product innovation across our key initiatives, highlighted by the announcement of Robinhood Strategies, Banking, and Cortex. Customers have clearly responded, demonstrated by… robust year-over-year growth in trading across all asset classes,” said Vlad Tenev, Chair and CEO of Robinhood, in a statement.

The surge in crypto trading was fueled by heightened stock market volatility and the renewed interest in crypto with the new administration in Washington. But nothing could match the figures seen during the crypto rally during Trump’s reelection in November 2024. Despite the impressive year-over-year growth, Robinhood’s crypto revenue remained lower than the previous quarter’s $358 million.

In the last quarter of 2024, Robinhood’s revenue grew substantially to reach $1.01 billion, largely driven by a sharp increase in crypto revenue by 700% to reach a whopping $358 million. The marginal drop in the January to March quarter reflected some cooling of the crypto market.

Despite a strong reliance on revenue from crypto trading in recent quarters, Robinhood is planning to diversify its revenue sources. “It’s going to go up and down in terms of trading volumes. We’re diversifying the business outside of the crypto business, which will make us less reliant on crypto transaction volumes,” said Tenev during the earnings call with shareholders, reported Fortune.

Robinhood’s Transaction-based Revenues Grow by 77%

Robinhood also reported that the transaction-based revenues overall rose 77% to $583 million during the last quarter. Options trading revenue also increased by 56% to $240 million, and equities revenue climbed 44% to $56 million. Net interest revenue also saw a 14% uptick, reaching $290 million.

As the results were announced, HOOD’s stock prices rose by around 3% towards the end of the trading session from $47.5 to $49.1 on Wednesday, but remained marginally below the previous day’s close.

Robinhood’s user base expanded to 25.8 million customers last quarter, with monthly active users reaching 14.4 million. However, this figure was slightly below expectations and down from the previous quarter.

In a show of confidence, the company announced a $500 million increase to its share repurchase program, bringing the total authorization to $1.5 billion. Its international is also likely to jump with the acquisition of Luxembourg-based cryptocurrency exchange Bitstamp Ltd. on track to close in the middle of this year.

Robinhood’s above-expectations performance indicates a strong position in the market, particularly in the crypto trading space, despite the inherent volatility.