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Why Is Robinhood Markets (HOOD) Up 7.1% Since Last Earnings Report?
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It has been about a month since the last earnings report for Robinhood Markets, Inc. (HOOD - Free Report) . Shares have added about 7.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Robinhood Markets due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Robinhood Q1 Earnings Miss on Crypto Trading Slump
Robinhood’s first-quarter 2026 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.
Revenue Mix Stayed Growth-Positive
Robinhood 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.
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.
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.
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.
Robinhood’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.
Share Buybacks
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.
2026 Expense Outlook
Robinhood raised its 2026 adjusted operating expenses and SBC 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -17.63% due to these changes.
VGM Scores
At this time, Robinhood Markets has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a score of F on the value side, putting it in the fifth quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Robinhood Markets has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Robinhood Markets is part of the Zacks Financial - Investment Bank industry. Over the past month, Interactive Brokers Group, Inc. (IBKR - Free Report) , a stock from the same industry, has gained 5.1%. The company reported its results for the quarter ended March 2026 more than a month ago.
Interactive Brokers reported revenues of $1.68 billion in the last reported quarter, representing a year-over-year change of +20.3%. EPS of $0.60 for the same period compares with $0.47 a year ago.
For the current quarter, Interactive Brokers is expected to post earnings of $0.59 per share, indicating a change of +15.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Interactive Brokers has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Why Is Robinhood Markets (HOOD) Up 7.1% Since Last Earnings Report?
It has been about a month since the last earnings report for Robinhood Markets, Inc. (HOOD - Free Report) . Shares have added about 7.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Robinhood Markets due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Robinhood Q1 Earnings Miss on Crypto Trading Slump
Robinhood’s first-quarter 2026 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.
Revenue Mix Stayed Growth-Positive
Robinhood 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.
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.
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.
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.
Robinhood’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.
Share Buybacks
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.
2026 Expense Outlook
Robinhood raised its 2026 adjusted operating expenses and SBC 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -17.63% due to these changes.
VGM Scores
At this time, Robinhood Markets has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a score of F on the value side, putting it in the fifth quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Robinhood Markets has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Robinhood Markets is part of the Zacks Financial - Investment Bank industry. Over the past month, Interactive Brokers Group, Inc. (IBKR - Free Report) , a stock from the same industry, has gained 5.1%. The company reported its results for the quarter ended March 2026 more than a month ago.
Interactive Brokers reported revenues of $1.68 billion in the last reported quarter, representing a year-over-year change of +20.3%. EPS of $0.60 for the same period compares with $0.47 a year ago.
For the current quarter, Interactive Brokers is expected to post earnings of $0.59 per share, indicating a change of +15.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Interactive Brokers has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.