Robinhood (HOOD) reported a sharp decline in crypto trading revenue for the first quarter of 2026, even as growth in other parts of its business pushed overall revenue higher.

Crypto-related revenue fell 47% from a year earlier to $134 million, down from $252 million in the same period of 2025, according to its earnings release.

The drop came as customer activity shifted toward other trading products. Transaction-based revenue rose modestly to $623 million from $583 million a year ago. A key driver was a surge in so-called event contracts, which brought in a large share of “other transaction revenue” that climbed 320% year over year to $147 million.

Robinhood said users traded a record 8.8 billion event contracts during the quarter, reflecting growing interest in prediction markets. These products let users place bets on the outcome of real-world events, similar to forecasting whether interest rates will rise or who might win an election.

Total revenue increased 15% to $1.07 billion, compared with $927 million a year earlier. Net income increased 3% year-over-year to $346 million.

Adjusted earnings per share came in at $0.38, slightly above $0.37 in the prior-year period, but missing analyst estimates of $0.39.

The results show how Robinhood is working to reduce its reliance on crypto trading, which can swing sharply with market sentiment. Like Coinbase (COIN), which is set to report earnings on May 7, the company has been expanding into new areas such as derivatives and prediction markets to smooth out revenue.

Robinhood also reported strong growth in net interest revenue and subscription products, including its Gold service, as it builds a broader financial ecosystem.

Shares of HOOD fell 6% in post-market trading. The company said it will host an earnings call at 5 p.m. ET.

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