Robinhood Markets Inc. ( HOOD ) stock has risen over the past month and closed up more than 5% at $49.05 following its first-quarter 2025 earnings report.

What To Know: The company posted earnings of 37 cents per share, ahead of the 32 cents analyst estimate and revenue of $927 million, slightly beating the $922.5 million consensus. Year-over-year, revenue rose from $618 million, with transaction-based revenue up 77% to $583 million, driven largely by increases in crypto, options and equities trading.

Despite the beat, analysts expressed concerns about the sustainability of recent gains. JP Morgan called the earnings beat "low quality," attributing it mainly to a lower tax rate and flagged heavier expenses than expected. Crypto trading volumes declined in April and early signs for the second quarter point to weaker customer activity, a drop in margin balances, and more assets shifting to cash.

Needham reduced its price target and warned of a nearly 50% expected decline in crypto volume next quarter, although it expects options and equities trading to hold up. Goldman Sachs also highlighted a sharp month-over-month crypto drop and mixed revenue trends.

While new product lines such as futures and prediction markets are growing, with management claiming $20 million in annual run-rate revenues per product category, analysts are cautious. The company reported 4.5 million futures contracts traded in April and over a billion prediction market contracts in six months. Still, broader concerns about market volatility, macroeconomic headwinds and falling crypto volumes weigh on the near-term outlook.

HOOD Price Action: RobinHood shares were up 4.55% at $48.74 at the time of writing, according to Benzinga Pro.

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