Robinhood Surpasses Q1 Expectations; What It Could Mean for Coinbase’s Upcoming Earnings
Robinhood (HOOD) exceeded analysts’ expectations in the first quarter of 2025, reporting adjusted earnings per share (EPS) of $0.37, surpassing the forecasted $0.33.
The trading platform’s total revenue for the quarter reached $927 million, down from $1 billion in Q4 but still ahead of Wall Street’s expectations, which had pegged it at $920.1 million. Notably, crypto-related revenue surged 100% year-over-year, totaling $252 million.
However, transaction-based revenue saw a decline of 13%, dropping from $672 million in Q4 to $583 million in Q1.
While Robinhood experienced record-breaking results in Q4, driven by a crypto trading surge linked to excitement surrounding U.S. President Donald Trump’s election win, the market momentum quickly dissipated after his inauguration, leading to a downturn in both crypto and traditional markets.
In addition, Robinhood expanded its share repurchase program by $500 million, bringing its total buyback amount to $1.5 billion. To date, the company has repurchased $667 million worth of shares, leaving $833 million remaining under the authorization.
Given that Robinhood’s monthly crypto trading volumes tend to correlate closely with Coinbase’s (COIN) retail volumes, investors are looking to the company’s upcoming earnings report for a clearer picture. Barclays analyst Benjamin Buddish, however, suggests that Coinbase’s decline in trading volumes may be less significant in Q1 compared to Robinhood.
Coinbase is set to report its earnings on May 8, with analysts predicting a slight revenue dip to $2.1 billion from $2.27 billion in the previous quarter. Exchange volume is expected to fall to $403.8 billion from $439 billion.
After-hours trading saw Robinhood’s shares dip by 2.2%.
