Robinhood weathered a steep drop in crypto revenue in Q1 2026, offset by booming demand for event betting and other products that lifted overall results. Key numbers - Crypto revenue plunged 47% year-over-year to $134 million (from $252 million in Q1 2025). - Total revenue rose 15% to $1.07 billion, up from $927 million a year earlier. - Transaction-based revenue ticked up to $623 million from $583 million. - “Other transaction revenue” exploded 320% to $147 million, driven by event contracts. - Users traded a record 8.8 billion event contracts during the quarter. - Net income climbed 3% to $346 million. - Adjusted EPS was $0.38 (vs. $0.37 a year ago), missing analyst estimates of $0.39. - HOOD shares fell about 6% in after-hours trading. Robinhood will host an earnings call at 5 p.m. ET. What happened Crypto trading took a big hit as customer activity shifted to other products, cutting crypto-related revenue nearly in half. But Robinhood’s bet on diversifying its business limited the damage: event contracts — a form of prediction-market betting where users wager on real-world outcomes (from interest-rate moves to election results) — surged and accounted for a large share of the spike in other transaction revenue. Why it matters for crypto markets The results underline how volatile crypto revenue can be for brokers and exchanges. Robinhood’s strategy mirrors industry peers like Coinbase, which have also pushed into derivatives, subscriptions, and prediction markets to smooth revenue swings tied to crypto market sentiment. For crypto-focused traders and investors, the report signals that major retail platforms are increasingly offering alternative products that can draw user attention and volume away from crypto trading. Other growth areas Robinhood also reported strong growth in net interest revenue and subscription services such as Robinhood Gold, part of an effort to build a broader financial ecosystem and reduce reliance on crypto fees. What to watch next Investors will be parsing the earnings call at 5 p.m. ET for guidance on how sustainable event-contract volumes are, and whether the company expects crypto revenue to rebound. Coinbase is also set to report results on May 7, offering another data point on how the broader crypto-reliant businesses are faring. Read more AI-generated news on: undefined/news