Robinhood Reports Lower Crypto Income But Strong Annual Rise
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Robinhood’s earnings from cryptocurrencies dropped in early 2025. In the first quarter, the company made $252 million from crypto, which is 30% less than the last quarter. Still, this was double what it made in the same period last year.
The company’s total revenue for Q1 2025 reached $927 million. This was 50% higher than a year ago but dropped from $1.01 billion in the fourth quarter of 2024. Even though crypto income went down, it still brought in more than options trading, which was previously Robinhood’s main source of income.
The Firm Wants To Stop Depending On Crypto
Robinhood did better than what analysts had predicted, both in revenue and profit per share. Due to falling crypto interest, the company plans to expand its services. Vlad Tenev, the Chief Executive Officer of Robinhood told shareholders that trading numbers will keep changing, and the company is now offering other services to avoid depending too much on crypto. These include savings accounts like those offered by banks and entry into the prediction markets.
Robinhood earned $583 million in transaction-based revenue, a drop from $672 million last quarter. Revenue from options grew to $240 million from $222 million, while equity trades brought in $56 million.
The company’s net income for the quarter was $336 million, which is 114% higher than a year ago. However, this is still lower than the $916 million from the last quarter, which was boosted by tax-related benefits.
The firm also added 1.9 million new funded accounts, a 7.9% increase from last year. This was better than its 4.1% average yearly growth over the last couple of years. Revenue generated per user reached $145, which is 39% higher than a year ago but lower than the $164 from Q4 2024.
Robinhood Introduced A ‘Predictions Hub’ In Its App
A month ago, Robinhood launched a ‘Predictions Hub’ in its app. This new feature lets users make bets on real-world events, such as the Federal Reserve’s interest rate in May or winners of college basketball tournaments.
JB Mackenzie, Robinhood’s vice president for futures and international operations, noted that the company believes prediction markets are important and connect with areas like news, sports, politics, and economics. He added that the new service will follow existing rules and give users a fun new way to interact with major events.
The prediction contracts are available in the US through KalshiEX LLC, a trading platform regulated by the CFTC. Mackenzie also stated that having a special hub for prediction markets helps serve users better, and the new contracts will begin appearing for eligible users very soon.
