Robinhood beats Q1 estimates despite revenue, crypto trading dip
Robinhood's Q1 revenues fell 8.6% quarter-on-quarter to $927 million, exceeding Wall Street estimates by 3.16%. Crypto revenue dropped nearly 30% to $252 million, influenced by an 18% decline in the crypto market cap due to tariffs. Crypto trading volume decreased by 35%, attributed to a 10% reduction in customer trades and a 27% drop in average trade volume. Despite this, crypto revenue increased 100% year-over-year, and trading volumes rose 28% compared to the same quarter last year. Robinhood expanded its buyback program by $500 million, totaling $1.5 billion, and has repurchased $667 million in shares. The acquisition of Bitstamp is expected to receive regulatory approval by mid-2025. Regulatory pressure eased with the SEC closing its investigation into Robinhood's crypto business. The company is focusing on integrating crypto tokenization, which could enhance secondary market transactions and allow investments in private firms like OpenAI and SpaceX.
