Robinhood reported its smallest quarterly profit in a year on Tuesday, highlighting the retail brokerage’s lingering exposure to retail traders whose engagement has shown signs of cooling alongside a sharp downturn in cryptocurrency prices.
The company disclosed a first-quarter profit of $346 million, or $0.38 per share, compared to $336 million a year ago. Representing a 3% year-over-year increase, the performance fell slightly short of analysts’ expectations of a $0.39 gain per share for the firm.
Robinhood indicated that revenue clocked in at $1.07 billion, a performance that the company attributed to “double-digit growth across equities and options, and record volumes for prediction markets, futures, and index options” in an announcement. Analysts had expected the company that offers commission-free stock and crypto trading to post $1.14 billion in revenue.
“Robinhood is increasingly positioned at the center of our customers’ financial lives,” Chairman and CEO Vlad Tenev said in a statement.
The company reported $307 billion in total platform assets, a sequential decrease from $324 billion late last year. On a year-over-year basis, Robinhood said the metric had increased 39%, partly driven by continued net deposits and higher equity valuations.
Since the firm began offering customers in Europe access to digital representations of companies like OpenAI and SpaceX, Robinhood reported that its associated offering has already processed over 100 million transactions.
