Robinhood Q1 Earnings Miss Expectations, Stock Drops After Hours

Robinhood Markets Inc. (NASDAQ: HOOD) reported weaker-than-expected first-quarter results, sending its stock lower in after-hours trading. The popular trading platform posted adjusted earnings per share of $0.38, falling short of analyst estimates of $0.41. Revenue also missed expectations, coming in at $1.07 billion versus the projected $1.17 billion. Following the earnings release, Robinhood shares declined about 7% in after-hours trading, reflecting investor concerns over the miss.

Despite the earnings shortfall, Robinhood’s revenue still showed solid growth, rising 15% year-over-year from $927 million in Q1 2025. The company’s total net revenue was driven by transaction-based income of $623 million, which increased 7% YoY, and net interest revenue of $359 million, up 24% YoY. Net income also saw modest growth, climbing 3% to $346 million compared to the same period last year.

Robinhood highlighted strong user engagement and continued adoption of new financial products. According to CFO Shiv Verma, the platform experienced over 20% annualized net deposit growth, along with double-digit gains in equities and options trading. The company also recorded significant activity in newer segments, including prediction markets, futures, and index options, which reached record volumes during the quarter.

User metrics remained strong, with net deposits totaling $17.7 billion, reflecting a 22% annualized growth rate. Robinhood Gold subscriptions surged 36% year-over-year to 4.3 million users, while funded accounts rose 6% to 27.4 million. Total platform assets jumped 39% to $307 billion, indicating continued expansion of the company’s ecosystem.

Looking ahead, Robinhood raised its 2026 expense outlook, projecting adjusted operating expenses and stock-based compensation between $2.7 billion and $2.825 billion. The increase includes an additional $100 million investment tied to the Trump Accounts initiative, which is expected to generate revenue exceeding its costs. The company also repurchased $250 million worth of shares during the quarter, signaling confidence in its long-term growth strategy.