Robinhood (HOOD) Earnings News: Surprise Gain Despite Trading Quiet Could Be Positive For COIN
Robinhood's Surprise Profit Rise Despite Market Calm Could Be Good for Coinbase
The trading platform's results may provide insight into Coinbase's earnings on May 8.
Author: Helen Brown | Edited by: Stephen Alpher Updated May 1, 2025, 1:04 pm Published April 30, 2025, 8:16 pm
What is important to know:
- Robinhood's first-quarter results beat both high and low estimates.
- The platform saw revenue decline in the fourth quarter as markets cooled during the first three months of the year.
- Analysts expect Coinbase to report a smaller drop in volumes, highlighting possible differences in user behavior across major retail platforms.
Robinhood (HOOD) beat analysts' conservative Q1 2025 estimates, reporting adjusted EPS of $0.37 versus expectations of $0.33.
The popular trading platform reported $927 million in total revenue, down from $1 billion in the fourth quarter but beating Wall Street expectations of $920.1 million. Cryptocurrency revenue was $252 million, up 100% year-over-year.
Transaction revenue was $583 million, down 13% from $672 million in the fourth quarter.
Robinhood saw a sharp rise in the fourth quarter, thanks in part to a surge in cryptocurrency trading amid euphoria following U.S. President Donald Trump's election victory. However, interest in cryptocurrencies and traditional markets quickly faded after Trump's inauguration.
The company added $500 million to its existing $1 billion share repurchase program. To date, HOOD has repurchased $667 million, leaving $833 million authorized.
Robinhood's monthly crypto volumes have historically shown a high correlation with Coinbase (COIN) retail trading volumes. However, Barclays analyst Benjamin Buddish expects COIN to see a less significant decline in trading volumes in the first quarter.
Coinbase reports 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 trading volume is likely to decline to $403.8 billion from $439 billion, according to analysts at FactSet.
HOOD shares fell 2.2% in after-hours trading.
Read More: Robinhood Crypto Revenue Expected to Fall in Q1 After Record Gain in Late 2024: JPMorgan
