Robinhood reported solid first-quarter earnings on Wednesday, as volatile markets fueled a surge in trading activity across crypto, equities, and options.
Net income attributable to common shareholders rose to $336 million for the quarter ending March 31, more than double the $157 million reported a year earlier.
Transaction-based revenue climbed 77% year-over-year, driven by a 100% jump in crypto trading volume amid choppy bitcoin prices. Options revenue rose 56%, while equity trading income increased 44%. Net interest revenue, primarily from margin lending, rose 14% to $290 million.
President Donald Trump’s trade policy was cited as a key driver of Q1 market volatility, prompting users to actively hedge positions, a trend that benefited retail trading platforms like Robinhood.
The brokerage recorded $46 billion in crypto trading volume for Q1, down from $70 billion in Q4 2024, but still up 28% year-over-year.
Despite the pullback, Robinhood ended 2024 with $141 billion in total crypto trading volume, reflecting strong fourth-quarter activity. In contrast, equity trading volume soared to $413 billion in Q1, an 84% increase from the same period last year.
Crypto-related revenue rose 100% year-over-year to $252 million, but fell from $358 million in the previous quarter.
While early April saw a rebound in retail interest after new U.S. tariff announcements, margin and derivatives activity remains soft across platforms.
Robinhood reported Q1 diluted earnings of $0.37 per share, up 10% year-over-year, and total revenue of $927 million, both beating expectations. The company’s stock closed at $49.11 on Wednesday, up 21% year-to-date, giving it a market capitalization of $43.6 billion.
The company also continues to explore crypto and AI-powered product offerings, recently launching new tools targeting the private wealth segment.
Robinhood is also taking another step toward becoming a one-stop shop for personal finance. In March, the company announced Robinhood Banking, a fully online checking and savings platform set to launch this fall, exclusively for Robinhood Gold subscribers.
The service offers a 4% annual percentage yield (APY) and FDIC insurance up to $2.5 million, provided via a “pass-through” arrangement with Coastal Community Bank. Robinhood isn’t a bank itself, but by partnering with an FDIC member institution, it can insure customer deposits through that relationship.