Overview
- Robinhood shares fell nearly 14% on Wednesday after Tuesday’s report showed $1.07 billion in revenue and $0.38 adjusted EPS, both below Wall Street’s targets.
- Crypto trading slumped, with transaction revenue down 47% to $134 million and volume at $24 billion, and peers like Coinbase and Webull also dropped in sympathy.
- Prediction markets broke out, as customers traded a record 8.8 billion event contracts and “other” transaction revenue rose 320% to $147 million; these contracts let users bet on real‑world outcomes for a one‑cent fee per trade.
- Management raised 2026 expense guidance to $2.7 billion to $2.825 billion to fund new products including Trump Accounts, and said it is shifting focus to tokenization and crypto infrastructure rather than coin prices.
- Reported crypto metrics exclude Bitstamp, which Robinhood bought in 2025, and which logged $42 billion in Q1 trading volume that does not appear in the headline totals.