Robinhood misses on profit with $0.38 EPS as crypto revenue sinks 47% to $134 million

Robinhood (NASDAQ: HOOD) missed on profit in the first quarter of 2026, with diluted EPS at $0.38, while crypto revenue dropped 47% from last year to $134 million, according to latest earnings report released on Tuesday.

HOOD crashed by 2.30% after hours as traders focused on the weak crypto line, even though total net revenue up 15% year over year to $1.07 billion.

Robinhood CFO Shiv Verma said customers kept using new products, net deposits grew at a 20% plus annualized rate, equities and options posted double-digit growth, and prediction markets, futures, and index options reached record levels.

Shiv also said:

“And 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.”

Robinhood reports higher revenue while crypto trading revenue falls hard

Robinhood posted $623 million in transaction revenue, up 7% from a year earlier. Event-contract activity helped carry that side of the business, with other transaction revenue jumping 320% to $147 million. Options revenue rose 8% to $260 million, while equities revenue increased 46% to $82 million.

The crypto business brought in $134 million, down 47%, which is not a tiny miss for an audience that watches digital-asset revenue like a hawk.

Net interest revenue rose 24% to $359 million as interest-earning assets grew. Lower short-term rates and weaker securities-lending activity cut into that gain. Other revenue increased 57% to $85 million, helped by Robinhood Gold subscription revenue of $50 million, up 32%.

Robinhood’s net income rose 3% year over year to $346 million. Adjusted EBITDA increased 14% to $534 million. Total operating expenses rose 18% to $656 million, as the company spent more on marketing, growth projects, and acquisition costs. Adjusted operating expenses plus share-based compensation came in at $607 million, up 14%, including $14 million tied to Rothera and Trump Accounts.

Funded Customers increased by 1.7 million, or 6%, to 27.4 million. Investment Accounts grew by 2.1 million, or 8%, to 29.1 million. Total Platform Assets rose 39% to $307 billion, helped by fresh deposits, stronger equity prices, and assets added through deals.

Net Deposits came in at $17.7 billion, equal to 22% annualized growth versus platform assets at the end of Q4 2025. Over the last twelve months, Net Deposits reached $67.8 billion, a 31% growth rate versus platform assets at the end of Q1 2025.

Robinhood adds traders, products, buybacks, banking deposits, and tokenization plans

Robinhood’s trading activity stayed active outside crypto revenue. Equity and options volumes grew by double digits, while prediction markets, futures, index options, shorting, and margin reached record activity.

Cortex Digests has been used by nearly 1 million customers. Cortex Assistant is being rolled out across the app with real-time AI insight tools.

Robinhood Social beta launched to 10,000 customers with verified live trades and profile-based community features.

Banking deposits passed $2 billion from more than 125,000 Funded Customers, and about 40% of those users signed up for direct deposit.

Robinhood Strategies crossed 285,000 Funded Customers and $1.6 billion in assets under management. The company added trust and custodial accounts, unveiled the Robinhood Platinum Card, and said the Robinhood Gold Card passed 800,000 Funded Customers.

Robinhood also launched the IPO of Robinhood Ventures Fund I, a New York Stock Exchange listed closed-end fund that gives retail investors exposure to private companies.

In April, the U.S. Department of the Treasury named Robinhood as broker and sole initial trustee for Trump Accounts. The company is working with BNY Mellon (NYSE: BK) on the standalone app, customer support, education, and custody.

Outside the United States, Robinhood received in-principle approval from Singapore’s Monetary Authority to offer brokerage services. It also launched the public testnet for Robinhood Chain, a financial-grade Ethereum (ETH) Layer 2 built for tokenized real-world assets. The testnet has processed more than 100 million transactions.

Retirement AUC rose 90% to $27.4 billion. Margin Book increased 93% to $17.0 billion. Cash and Deposits rose 71% to $16.7 billion. Cash Sweep fell 8% to $26.0 billion after more than $6 billion of balances went into customer free credit balances in February.

Robinhood’s equity notional trading volume rose 54% to $638 billion. Options contracts increased 17% to 586 million. Crypto notional volume totaled $66 billion, with $24 billion from the Robinhood app and $42 billion from Bitstamp. Event contracts reached 8.8 billion.

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