Robinhood's Surprise Earnings Beat Despite Trading Lull Could be Positive for Coinbase

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.

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.

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