Robinhood shares fell more than 6% in after hours trading Tuesday after the trading platform reported first quarter earnings that missed Wall Street expectations, with weaker crypto revenue offsetting growth in equities, options, prediction markets, and subscriptions.
HOOD closed near $82 on Tuesday before dropping to around $77 in after hours trading at press time. Investors had expected Robinhood to report about $0.39 in earnings per share and revenue of roughly $1.14 billion. The company reported diluted EPS of $0.38 and revenue of $1.07 billion.
Robinhood’s total net revenue rose 15% year over year, while net income increased 3% to $346 million. Transaction based revenue climbed 7% to $623 million, helped by options, equities, and event contracts, but crypto revenue fell 47% to $134 million as digital asset trading cooled from last year’s levels.
The miss landed against elevated investor expectations after a volatile quarter for retail trading platforms. Analysts had expected Robinhood to benefit from higher trading activity, stronger net interest income, and new products, while also watching for pressure from weaker crypto volumes and rising competition. Options markets had priced in a potential move of up to 9% in either direction after the report.
Robinhood still pointed to growth across several core metrics. Net deposits reached $17.7 billion, representing a 22% annualized growth rate, while total platform assets rose 39% year over year to $307 billion. Gold subscribers increased 36% to 4.3 million, and average revenue per user rose 8% to $157.
The company also said it now expects 2026 adjusted operating expenses and stock based compensation of $2.7 billion to $2.825 billion, up from its prior outlook of $2.6 billion to $2.725 billion. The increase includes an additional $100 million tied to building and supporting the user interface for Trump Accounts.
