Robinhood Reports Strong Q1 Earnings, Crypto Revenue Doubles Year-on-Year

Robinhood exceeded earnings expectations in Q1 2025 with $927M revenue, including $252M from crypto. However, transaction revenue fell to $583M. The company boosted its buyback programme by $500M. Analysts speculate on divergent trading trends ahead of Coinbase’s earnings call on May 8.

In the first quarter of 2025, Robinhood Markets, the popular trading app, reported its earnings, which surprised some analysts. With adjusted earnings per share coming in at $0.37, this beats the expected $0.33. The firm’s total revenue stood at $927 million, slightly down from $1 billion in the previous quarter but still higher than analysts’ predictions of $920.1 million. Notably, the revenue from cryptocurrency trading reached $252 million, marking a significant leap of 100% compared to the same time last year.

However, it’s not all good news. Robinhood’s transaction-based revenue dropped to $583 million, down 13% from $672 million last quarter. This decline can be attributed to a cooling market following the significant trading activity observed after the 2020 U.S. presidential election, driven by a wave of crypto enthusiasm during that period. As markets cooled, the exuberant trading habits moderated.

An interesting development from Robinhood is their decision to increase their share buyback programme by an additional $500 million, which adds to an already substantial $1 billion authorisation. So far, Robinhood has spent $667 million on buybacks, which leaves them with around $833 million available to repurchase shares going forward.

Looking ahead, insights from Robinhood’s performance may give clues about Coinbase’s upcoming earnings announcement on May 8. Analysts suggest that, unlike Robinhood, Coinbase might report a smaller decline in customer trading volumes. Barclays analyst Benjamin Buddish even posits that Coinbase could fare better in this quarter compared to Robinhood, traditionally, the trading volumes of the two platforms tend to show high correlation.

Coinbase is expected to report revenue of approximately $2.1 billion, dropping from $2.27 billion the previous quarter. Moreover, exchange volume is anticipated to decrease to about $403.8 billion, down from $439 billion as per insights from FactSet. In after-hours trading, Robinhood shares dipped by 2.2%, reflecting the nuances of market reactions to earnings reports and future expectations.

Helene Braun, a markets reporter for CoinDesk, has covered significant developments including Wall Street updates and the evolution of the cryptocurrency landscape, adding a wealth of knowledge that informs her analyses. She is a graduate of NYU and has experience in various leading financial news platforms, holding positions that reflect her expertise in both traditional and emerging markets.