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
