Robinhood down as results prove less robust than they appear

Published: 2026-04-28 17:38:28 ET HOOD

Robinhood shares fell approximately 4% in after-hours trading following a mixed quarterly release, characterized by revenue that missed expectations, despite continued strong customer activity.

Kevin Smith

Published on 04/28/2026 at 05:38 pm EDT

The American online broker posted Q1 revenue of $1.07bn, up 15% y-o-y, but below the consensus estimate of nearly $1.14bn. Diluted EPS came in at $0.38, up 3% y-o-y, yet slightly underperforming expectations. The market is primarily penalizing the sequential deceleration, as revenue declined 17% compared to Q4 and the adjusted EBITDA margin dropped to 50%, down from 59% three months earlier.The weak spot remains cryptocurrencies, with revenue plunging 47% year-on-year to $134m and crypto notional volumes on the Robinhood app falling by 48%. This pressure partially offsets progress made elsewhere, particularly in options, equities, and event contracts, which continue to bolster transaction-based revenue.The investment case is not entirely broken, however, as net deposits reached $17.7bn, representing an annualized growth rate of 22%. Gold subscribers grew by 36% to 4.3 million, and assets under custody remain up 39% year-on-year at $307bn. Robinhood thus continues to expand its ecosystem beyond traditional brokerage, moving into banking, premium products, prediction markets, and "Trump Accounts," a US  public investment account program for children.However, the group also raised its 2026 expense forecast to $2.7bn-$2.825bn to incorporate $100m in investments related to Trump Accounts. While Robinhood continues to grow, the market is now demanding a clearer conversion between product innovation, recurring revenue and profitability.