Quick Summary
- Robinhood fell short of analyst projections with EPS of $0.38 versus the $0.39 consensus and revenue of $1.07B compared to the $1.14B forecast
- Crypto transaction revenue declined 47% from the previous year to $134 million, while crypto trading volume decreased 48% to $24 billion
- Revenue per user averaged $157, down from $191 in the previous quarter
- Operating expense forecast for 2026 increased to $2.7B–$2.825B, representing an 18% year-over-year rise
- The Robinhood Predictions platform achieved a milestone with 8.8 billion event contracts traded in Q1, representing a 780% increase from the launch quarter
Robinhood delivered its first quarter 2026 financial results on Tuesday, triggering a sharp negative market response. Shares of HOOD plummeted over 9% during after-hours trading after the company delivered a rare double miss on revenue and profit expectations.
Earnings per share registered at $0.38, falling short of the $0.39 analyst consensus. Total revenue reached $1.07 billion, approximately 6% below the anticipated $1.14 billion.
The brokerage firm maintained profitability during the period. Net income increased 3% compared to the same quarter last year, reaching $346 million. Meanwhile, customer metrics showed resilience with Gold subscriptions reaching an all-time high of 4.3 million members and net deposits totaling $18 billion.
However, market attention centered on different concerns.
Cryptocurrency performance dominated the negative narrative. Transaction revenue from digital assets plummeted 47% on a year-over-year basis, dropping from $252 million to $134 million. Trading activity in crypto assets fell 48% to $24 billion. This marked the third straight quarter of declining crypto transaction revenue.
CEO Vladimir Tenev attributed the decline to market price volatility, while emphasizing the company’s long-term commitment to crypto infrastructure development over short-term trading volume targets. “Price moves up and down, but what I can tell you is crypto as technology infrastructure is going to be big,” he stated.
Bitstamp, which the company acquired in June 2025, generated separate results beyond those crypto figures. The exchange recorded $42 billion in trading volume during the quarter, representing a 13% decline from Q4 2025.
Revenue per user metrics also showed weakness, declining to $157 from the previous quarter’s $191. This metric indicates that while Robinhood continues expanding its user base, monetization per customer is decreasing.
Operating Expenses on the Rise
Operating costs increased 18% to reach $656 million, fueled by expanded marketing campaigns and development investments in emerging products, including the newly launched “Trump Accounts.”
Management revised upward its full-year 2026 operating expense outlook to a range of $2.7 billion–$2.825 billion. This figure has become a focal point for investors, as it signals potential near-term pressure on profit margins.
The elevated spending reflects the company’s expansion into additional business segments, though market participants remain cautious about the timing and potential returns from these investments.
Predictions Platform Delivers Strong Growth
A standout performer emerged in Robinhood Predictions, the company’s event-contracts trading platform developed in partnership with Kalshi.
The platform processed a record 8.8 billion event contracts during Q1 — representing a 780% surge from Q2 2025, which was its initial full operating quarter. Tenev indicated that April is trending toward approximately $3 billion in trading volume, which would rank as the platform’s second-strongest month on record.
This performance drove the “other” revenue segment up 320% year-over-year to $147 million, providing some balance against the cryptocurrency weakness.
Analyst sentiment remains predominantly positive on the stock. HOOD holds a Strong Buy consensus rating with 14 Buy recommendations, 3 Hold ratings, and zero Sell ratings compiled over the past three months. The consensus price target stands at $106, suggesting approximately 29% potential upside from present trading levels.
The company plans to release April trading volume data for Robinhood Predictions within the next few weeks.
