Robinhood (HOOD) stock beats Wall Street estimates as revenue falls 8.6% from record Q4 crypto trading volume

Crypto trading revenue at U.S. firm fell 35% over Q1 compared to Q4, but is up 100% year-on-year, as trade volume dropped 35% from last quarter.

Despite first-quarter revenue at crypto trading platform fell and its crypto trading volume cooled from a record high in Q4, the firm has still managed to beat Wall Street estimates.

The company’s crypto revenue plummeted nearly 30% quarter-on-quarter to $252 million from the firm’s record-setting Q4 2024.

The drop could be partly attributed to the Trump administration’s tariffs, which triggered an 18% fall in the crypto market cap over the quarter.

Crypto trading volume on fell 35% over Q1 compared to the fourth quarter of 2024, which the firm attributed to a 10% drop in customer trades placed and a 27% fall in average notional volume per trade.

However, crypto trading volumes would continue to fluctuate but the firm is more focused on capturing as much market share as possible, said CEO Vladimir Tenev.

Despite the fall from last quarter, 's crypto revenue rose 100% from the same quarter a year ago, while trading volumes jumped 28% over the same period.

The firm also added $500 million to its now $1.5 billion buyback authorization program, which is aimed at boosting shareholder value and confidence in the firm’s financial health. The company has bought back $667 million worth of shares so far.

Shares in (HOOD) rose 1.51% in after-hours trading on April 30 to $49.85 since the firm disclosed its Q1 results, Google Finance data shows.

Tenev said 's $200 million acquisition of Bitstamp crypto exchange is still looking likely to receive regulatory approval in the middle of 2025, which would enable it to serve institutional investors in the U.S.

Regulatory pressure also eased for in Q1 after the Securities and Exchange Commission closed its investigation into the firm's crypto business on Feb. 21.

Crypto tokenization remains a key focus for

Tenev said is still exploring integrating crypto tokenization into the company’s services.

Tokenizing private equities is a “huge unlock” for both individuals and companies that can solve a lot of problems in secondary market transactions, he said.

“I think that will unlock a ton of economic value for the crypto industry in the U.S.,” Tenev said.

The CEO previously said crypto tokenization could let investors buy tokenized shares in big-name private firms like OpenAI and SpaceX within minutes.

“That's been kind of our primary policy objective in Washington when it comes to crypto,” Tenev said.