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Robinhood (HOOD) topped tempered analyst estimates in the first quarter of 2025, reporting adjusted earnings per share of $0.37 against forecasts for $0.33.
The popular trading platform reported $927 million in total revenue, down from $1 billion in the fourth-quarter, but beating Street expectations of $920.1 million. Crypto-related revenue was $252 million, up 100% from year-ago levels.
Transaction-based revenue of $583 million slipped 13% from $672 million in the fourth quarter.
Robinhood had seen explosive numbers in the fourth quarter, in part thanks to a surge in crypto trading amid euphoria stemming from U.S. President Donald Trump’s presidential win. But the froth in crypto and traditional markets quickly reversed following Trump's inauguration.
The company added $500 million to its existing $1 billion share repurchase program. To date, HOOD has bought back $667 million, leaving another$833 million under the authorization.
Robinhood’s monthly crypto volumes have historically shown high correlation with Coinbase’s (COIN) retail volumes, but Barclays analyst Benjamin Buddish believes the COIN will have seen a less meaningful decline in trading volumes in the first quarter.
Coinbase is reporting earnings on May 8 and is expected to post a slight decline in revenue to $2.1 billion from $2.27 billion in the previous quarter, while exchange volume is expected to have dropped to $403.8 from $439 billion, according to analysts at FactSet.
HOOD shares are down 2.2% in after hours action.
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