Robinhood Q1 EPS Misses as Crypto Revenue Drops 47%

Robinhood reported diluted earnings per share of $0.38 for the first quarter of 2026, below analyst estimates. Crypto revenue declined 47% year over year to $134 million, while total net revenue increased 15% to $1.07 billion. The stock fell about 2.3% in after-hours trading after the results were released Tuesday.

Transaction revenue totaled $623 million, a 7% rise from a year earlier. Options revenue was $260 million, up 8%, and equities revenue rose 46% to $82 million. Other transaction revenue, supported in part by event-contract activity, jumped 320% to $147 million.

Net interest revenue increased 24% to $359 million as interest-earning assets expanded. Other revenue grew 57% to $85 million, helped by Robinhood Gold subscription sales of $50 million, a 32% increase.

Net income for the quarter was $346 million, up 3% from the prior year. Adjusted EBITDA rose 14% to $534 million. Total operating expenses increased 18% to $656 million, driven by higher spending on marketing, growth projects and acquisition costs. Adjusted operating expenses plus share-based compensation were $607 million, up 14%, and included $14 million related to Rothera and the Trump Accounts.

Funded Customers rose by 1.7 million, or 6%, to 27.4 million. Investment Accounts increased by 2.1 million, or 8%, to 29.1 million. Total Platform Assets were $307 billion, up 39% from a year earlier, supported by fresh deposits and stronger equity values. Net deposits for the quarter totaled $17.7 billion, which the company said equates to a 22% annualized growth rate versus platform assets at the end of Q4 2025. Net deposits over the past twelve months reached $67.8 billion, a 31% increase versus Q1 2025.

Equity notional trading volume climbed 54% to $638 billion and options contracts rose 17% to 586 million. Crypto notional volume was $66 billion, with $24 billion on the Robinhood app and $42 billion on Bitstamp. The company reported record activity in prediction markets, futures, index options, shorting and margin. Event contracts totaled 8.8 billion during the quarter.

Product usage and new offerings were highlighted. Cortex Digests has been used by nearly 1 million customers and Cortex Assistant is being rolled out across the app. Robinhood Social launched a beta to 10,000 users with verified live trades and profile-based community features. Banking deposits exceeded $2 billion from more than 125,000 funded customers, about 40% of whom set up direct deposit. Robinhood Strategies surpassed 285,000 funded customers with $1.6 billion in assets under management. The company added trust and custodial accounts, introduced the Robinhood Platinum Card, and said the Robinhood Gold Card reached 800,000 funded customers.

Corporate and international developments included the IPO of Robinhood Ventures Fund I, a NYSE-listed closed-end fund. The U.S. Department of the Treasury named Robinhood as broker and sole initial trustee for the Trump Accounts, and the firm is working with BNY Mellon on a standalone app, customer support, education and custody. Robinhood received in-principle approval from Singapore’s Monetary Authority to offer brokerage services and launched the public testnet for Robinhood Chain, an Ethereum layer 2 for tokenized real-world assets; the testnet has processed more than 100 million transactions.

Balance-sheet details showed retirement assets under custody rose 90% to $27.4 billion. The margin book increased 93% to $17.0 billion. Cash and deposits grew 71% to $16.7 billion. Cash sweep balances fell 8% to $26.0 billion after more than $6 billion moved into customer free credit balances in February.

CFO Shiv Verma noted, “Q2 is off to a good start in April, as equity and option trading volumes are on track to be the highest month of the year, and even with tax season, net deposits are approximately $5 billion month-to-date.”