Robinhood stock shrugs off a 47% crash in crypto revenue thanks to a massive surge in event betting

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Robinhood stock shrugs off a 47% crash in crypto revenue thanks to a massive surge in event betting While the trading platform’s crypto revenue tanked 47% to $134 million, a record-breaking surge in prediction market bets helped push overall revenue up 15% to $1.07 billion. What to know: - Robinhood’s first-quarter 2026 total revenue rose 15 percent to $1.07 billion, while adjusted earnings per share edged up to 38 cents from 37 cents a year earlier. - Crypto-related revenue dropped 47 percent to $134 million as customer activity shifted toward other products, including a surge in event contracts that helped lift transaction-based revenue to $623 million. - The company reported strong growth in net interest income and subscription products such as its Gold service, even as its shares fell 6 percent in post-market trading ahead of its 5 p.m. Eastern earnings call. Robinhood (HOOD) reported a sharp decline in crypto trading revenue for the first quarter of 2026, even as growth in other parts of its 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 its earnings release. The drop came as customer activity shifted toward other trading products. Transaction-based revenue rose modestly to $623 million from $583 million a year ago. A key driver was a surge in so-called event contracts, which brought in a large share of “other transaction revenue” that climbed 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 let users place bets on the outcome of real-world events, similar to forecasting whether interest rates will rise or who might win an election. Total revenue increased 15% to $1.07 billion, compared with $927 million a year earlier. Net income increased 3% year-over-year to $346 million. Adjusted earnings per share 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 swing sharply with market sentiment. Like Coinbase (COIN), which is set to report earnings on May 7, the company has been expanding into new areas such as derivatives and prediction markets to smooth out revenue. Robinhood also reported strong growth in net interest revenue and subscription products, including its Gold service, as it builds a broader financial ecosystem. Shares of HOOD fell 6% in post-market trading. The company said it will host an earnings call at 5 p.m. ET. More For You It will be "really hard to make money" in stocks over the next decade, said the billionaire investor, noting that the S&P 500's valuation reminds him of the 2000 dot-com bubble. What to know: - Paul Tudor Jones said bitcoin, with its fixed supply, is a stronger hedge against inflation than gold, especially during periods of heavy monetary and fiscal stimulus. - U.S. equities look overvalued, Jones warned, arguing that current S&P 500 valuations imply a negative 10-year forward return. - Stock market capitalization relative to GDP...

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