TLDR
- Robinhood drops after Q1 revenue growth fails to offset crypto weakness
- HOOD slides as crypto revenue falls 47% despite strong deposit growth
- Robinhood stock weakens after earnings miss and higher cost outlook
- HOOD falls below $80 after mixed Q1 results and weaker crypto income
- Robinhood reports 15% revenue growth, but crypto decline hits sentiment
Robinhood Markets (HOOD) shares faced a sharp after-hours selloff after mixed first-quarter results exposed pressure from weaker crypto trading. HOOD closed at $82.07, down 2.24%, before falling to $76.96 after hours. The drop came as revenue grew, but earnings missed Wall Street expectations.
Robinhood Reports Revenue Growth as Crypto Weakens
Robinhood reported first-quarter 2026 net revenue of $1.07 billion, up 15% from the same period last year. However, the result failed to support the stock after the earnings update. The after-hours decline pushed shares below the $80 level.
Transaction-based revenue rose 7% year over year to $623 million. Options revenue increased 8% to $260 million, while equities revenue climbed 46% to $82 million. Besides, other transaction revenue surged 320% to $147 million, helped by event contracts.
Crypto revenue dropped 47% year over year to $134 million. That decline weighed on the broader revenue mix, despite growth in active trading products. Consequently, the market focused on weaker digital asset activity after last year’s stronger base.
Core Metrics Show Growth Despite Earnings Pressure
Robinhood’s net income increased 3% year over year to $346 million. Diluted earnings per share also rose 3% to $0.38. However, operating expenses increased 18% to $656 million during the quarter.
Net deposits reached $17.7 billion in the first quarter. The figure represented a 22% annualized growth rate against platform assets from the prior quarter. Moreover, total platform assets rose 39% year over year to $307 billion.
Funded customers increased by 1.7 million to 27.4 million. Investment accounts also grew by 2.1 million to 29.1 million. Additionally, Robinhood Gold subscribers increased 36% to 4.3 million.
Higher Costs Add Pressure as Product Expansion Continues
Robinhood raised its 2026 adjusted operating expense and stock-based compensation outlook. The company now expects costs between $2.7 billion and $2.825 billion. That range moved higher from its previous $2.6 billion to $2.725 billion forecast.
The updated expense outlook includes about $100 million tied to Trump Accounts. Robinhood will build and support the user interface for the standalone product. Meanwhile, the company continues expanding banking, retirement, credit card, and private market products.
Robinhood also reported stronger activity across margin, equities, options, and event contracts. Margin book rose 93% year over year to a record $17.0 billion. The stock reaction showed that weaker crypto income and rising costs overshadowed broader growth.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
