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HOOD posted Q1 2026 earnings of 38 cents and revenues of $1.07B, both below the consensus estimate.
Robinhood's crypto transaction revenues fell 47% to $134M as sell-offs hit volumes; expenses rose 18%.
Robinhood repurchased $250M stock, reset buyback to $1.5B, and raised 2026 expense outlook for Trump Accounts.
Robinhood Markets, Inc.’s (HOOD - Free Report) shares slid almost 9% during after-hours trading on weaker-than-expected first-quarter 2026 performance. Earnings of 38 cents per share lagged the Zacks Consensus Estimate of 40 cents. The bottom line grew 3% year over year.
Total net revenues rose 15% from a year ago to $1.07 billion. The top line missed the consensus mark of $1.14 billion.
Weakness in crypto due to massive sell-off in the underlying assets hurt trading volume and related revenues. Higher operating expenses posed the undermining factor. Solid trading activity across options and equity amid heightened volatility led to an increase in transaction-based revenues. Further, higher net interest revenues (NIR) and a surge in Gold subscribers were tailwinds.
HOOD’s Revenue Mix Stayed Growth-Positive
HOOD generated transaction-based revenues of $623 million, up 7% year over year. Within that, “other” transaction revenues remained a key contributor at $147 million (soaring 320%), which largely comprised event contracts revenues. Further, options revenues rose 8% to $260 million, and equities revenues jumped 46% to $82 million.
During the quarter, average revenue per user (ARPU) increased 8% year over year to $157.
Net interest revenues climbed 24% year over year to $359 million, reflecting growth in interest-earning assets that more than offset lower short-term interest rates and weaker securities lending activity. Other revenues increased 57% to $85 million, helped by higher Robinhood Gold subscription revenues.
Robinhood’s Trading Activity Showed Mixed Signals
Trading volumes improved meaningfully from a year ago. Equity notional trading volumes increased 54% year over year to $638 billion, while options contracts traded rose 17% to 586 million, pointing to healthy engagement among active traders.
Crypto was a weaker spot. Cryptocurrency transaction revenues plunged 47% year over year to $134 million, despite overall crypto notional trading volume of $66 billion, including $24 billion on the Robinhood app and $42 billion at Bitstamp.
Additionally, event contracts traded were a record 8.8 billion, underscoring continued momentum in newer products.
HOOD’s Expanding Customer Base
During the first quarter, Funded Customers increased 6% year over year to 27.4 million. Investment Accounts rose 8% to 29.1 million, reflecting continued customer acquisition and deeper platform penetration.
As of March 31, 2026, Total Platform Assets increased 39% year over year to $307 billion. This was driven by net deposits of $18 billion, higher equity valuations and acquired assets. In this quarter, the company reported a monthly average user (MAU) of 13.5 million, down 6% year over year.
Retirement assets under custody surged 90% to a record $27.4 billion, while the margin book rose 93% to $17 billion. Cash and deposits increased 71% to $16.7 billion, though cash sweep balances fell 8% to $26 billion following changes to the high-yield cash program.
During the reported quarter, Robinhood Gold subscribers surged 36% year over year to 4.3 million.
Robinhood’s Costs Up on Growth Investments
Total operating expenses increased 18% from the prior-year quarter to $656 million, reflecting marketing and growth investments as well as acquisition-related costs. On an adjusted basis, operating expenses and share-based compensation rose 14% to $607 million, which included $14 million of costs tied to Rothera and Trump Accounts.
HOOD’s profitability remained solid despite the higher expense base. Adjusted EBITDA increased 14% year over year to $534 million, translating to a 50% adjusted EBITDA margin.
Net income increased 3% to $346 million, supported by revenue growth and operating leverage.
HOOD’s Buybacks and 2026 Expense Outlook in Focus
Robinhood continued returning capital to shareholders. In the reported quarter, the company repurchased $250 million of Class A common stock, representing 3.1 million shares at an average price of roughly $81 per share.
In March, the board refreshed the share repurchase authorization to $1.5 billion, expected to be completed over approximately three years with flexibility based on market conditions.
Robinhood raised its 2026 adjusted operating expenses and share-based compensation outlook range to $2.7-$2.825 billion to reflect an additional $100 million investment tied to building and supporting Trump Accounts. The Trump Accounts work is contracted on a cost-plus basis with a small margin, and expects related revenues to exceed costs.
Our View on Robinhood
Robinhood’s solid transaction-based revenues, product expansion efforts and higher interest-earning assets, alongside a solid balance sheet, will aid its financials. Further, the company’s initiatives to expand globally will drive growth. Rising expenses, crypto volatility and excessive regulatory risks are major headwinds.
Robinhood Markets, Inc. Price, Consensus and EPS Surprise
Interactive Brokers Group’s (IBKR - Free Report) first-quarter 2026 adjusted earnings per share of 60 cents missed the Zacks Consensus Estimate of 62 cents. However, the bottom line reflected a rise of 27.7% from the prior-year quarter.
IBKR’s results were primarily hurt by a rise in expenses. However, an increase in revenues, growth in customer accounts and a rise in daily average revenue trades (DARTs) acted as tailwinds.
Charles Schwab’s (SCHW - Free Report) first-quarter 2026 adjusted earnings of $1.43 per share outpaced the Zacks Consensus Estimate of $1.38. The bottom line soared 38% year over year.
Quarterly results benefited from the robust performance of the asset management business and an increase in trading revenues. Higher net interest revenues (NIR) and solid brokerage account numbers were other positives. However, an increase in expenses was the undermining factor for SCHW.
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Robinhood Q1 Earnings Miss, Crypto Slump Drags Shares Lower
Key Takeaways
Robinhood Markets, Inc.’s (HOOD - Free Report) shares slid almost 9% during after-hours trading on weaker-than-expected first-quarter 2026 performance. Earnings of 38 cents per share lagged the Zacks Consensus Estimate of 40 cents. The bottom line grew 3% year over year.
Total net revenues rose 15% from a year ago to $1.07 billion. The top line missed the consensus mark of $1.14 billion.
Weakness in crypto due to massive sell-off in the underlying assets hurt trading volume and related revenues. Higher operating expenses posed the undermining factor. Solid trading activity across options and equity amid heightened volatility led to an increase in transaction-based revenues. Further, higher net interest revenues (NIR) and a surge in Gold subscribers were tailwinds.
HOOD’s Revenue Mix Stayed Growth-Positive
HOOD generated transaction-based revenues of $623 million, up 7% year over year. Within that, “other” transaction revenues remained a key contributor at $147 million (soaring 320%), which largely comprised event contracts revenues. Further, options revenues rose 8% to $260 million, and equities revenues jumped 46% to $82 million.
During the quarter, average revenue per user (ARPU) increased 8% year over year to $157.
Net interest revenues climbed 24% year over year to $359 million, reflecting growth in interest-earning assets that more than offset lower short-term interest rates and weaker securities lending activity. Other revenues increased 57% to $85 million, helped by higher Robinhood Gold subscription revenues.
Robinhood’s Trading Activity Showed Mixed Signals
Trading volumes improved meaningfully from a year ago. Equity notional trading volumes increased 54% year over year to $638 billion, while options contracts traded rose 17% to 586 million, pointing to healthy engagement among active traders.
Crypto was a weaker spot. Cryptocurrency transaction revenues plunged 47% year over year to $134 million, despite overall crypto notional trading volume of $66 billion, including $24 billion on the Robinhood app and $42 billion at Bitstamp.
Additionally, event contracts traded were a record 8.8 billion, underscoring continued momentum in newer products.
HOOD’s Expanding Customer Base
During the first quarter, Funded Customers increased 6% year over year to 27.4 million. Investment Accounts rose 8% to 29.1 million, reflecting continued customer acquisition and deeper platform penetration.
As of March 31, 2026, Total Platform Assets increased 39% year over year to $307 billion. This was driven by net deposits of $18 billion, higher equity valuations and acquired assets. In this quarter, the company reported a monthly average user (MAU) of 13.5 million, down 6% year over year.
Retirement assets under custody surged 90% to a record $27.4 billion, while the margin book rose 93% to $17 billion. Cash and deposits increased 71% to $16.7 billion, though cash sweep balances fell 8% to $26 billion following changes to the high-yield cash program.
During the reported quarter, Robinhood Gold subscribers surged 36% year over year to 4.3 million.
Robinhood’s Costs Up on Growth Investments
Total operating expenses increased 18% from the prior-year quarter to $656 million, reflecting marketing and growth investments as well as acquisition-related costs. On an adjusted basis, operating expenses and share-based compensation rose 14% to $607 million, which included $14 million of costs tied to Rothera and Trump Accounts.
HOOD’s profitability remained solid despite the higher expense base. Adjusted EBITDA increased 14% year over year to $534 million, translating to a 50% adjusted EBITDA margin.
Net income increased 3% to $346 million, supported by revenue growth and operating leverage.
HOOD’s Buybacks and 2026 Expense Outlook in Focus
Robinhood continued returning capital to shareholders. In the reported quarter, the company repurchased $250 million of Class A common stock, representing 3.1 million shares at an average price of roughly $81 per share.
In March, the board refreshed the share repurchase authorization to $1.5 billion, expected to be completed over approximately three years with flexibility based on market conditions.
Robinhood raised its 2026 adjusted operating expenses and share-based compensation outlook range to $2.7-$2.825 billion to reflect an additional $100 million investment tied to building and supporting Trump Accounts. The Trump Accounts work is contracted on a cost-plus basis with a small margin, and expects related revenues to exceed costs.
Our View on Robinhood
Robinhood’s solid transaction-based revenues, product expansion efforts and higher interest-earning assets, alongside a solid balance sheet, will aid its financials. Further, the company’s initiatives to expand globally will drive growth. Rising expenses, crypto volatility and excessive regulatory risks are major headwinds.
Robinhood Markets, Inc. Price, Consensus and EPS Surprise
Robinhood Markets, Inc. price-consensus-eps-surprise-chart | Robinhood Markets, Inc. Quote
Currently, Robinhood carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of HOOD’s Peers
Interactive Brokers Group’s (IBKR - Free Report) first-quarter 2026 adjusted earnings per share of 60 cents missed the Zacks Consensus Estimate of 62 cents. However, the bottom line reflected a rise of 27.7% from the prior-year quarter.
IBKR’s results were primarily hurt by a rise in expenses. However, an increase in revenues, growth in customer accounts and a rise in daily average revenue trades (DARTs) acted as tailwinds.
Charles Schwab’s (SCHW - Free Report) first-quarter 2026 adjusted earnings of $1.43 per share outpaced the Zacks Consensus Estimate of $1.38. The bottom line soared 38% year over year.
Quarterly results benefited from the robust performance of the asset management business and an increase in trading revenues. Higher net interest revenues (NIR) and solid brokerage account numbers were other positives. However, an increase in expenses was the undermining factor for SCHW.