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Robinhood's Surprise Earnings Beat Despite Trading Lull Could be Positive for Coinbase
The trading platform’s results could give an indication for Coinbase’s earnings on May 8.
Updated May 1, 2025, 1:04 p.m. Published Apr 30, 2025, 8:16 p.m.
What to know:
- Robinhood's first-quarter results topped both- top and bottom-line estimates.
- The platform did see a decline revenue from the fourth quarter as markets cooled during the first three months of the year.
- Analysts expect Coinbase to report a smaller dip in volume, underscoring a possible divergence in user behavior between major retail platforms.
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.
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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.
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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 a high correlation with Coinbase’s (COIN) retail volumes. Still, Barclays analyst Benjamin Buddish believes that 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 billion from $439 billion, according to analysts at FactSet.
HOOD shares are down 2.2% in after-hours action.
Read more: Robinhood Crypto Revenue Expected to Fall in Q1 After Record Late 2024 Gain: JPMorgan
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What to know:
- Bitcoin surged towards $100,000 on Wednesday's U.S. trading session, gaining 3.2% in the past 24 hours.
- The rally coincided with significant spot BTC price premium on Coinbase.
- Fed Chair Jerome Powell called bitcoin a competitor to gold during a panel discussion.
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