Get 125% / $2,500 on 1st deposit!
New players only. Exclusive Welcome Bonus of up to $2,500
Robinhood reported higher first-quarter profit and revenue, but the trading platform still missed Wall Street earnings expectations and saw shares fall about 6% in late trading.
Good to Know
Prediction Markets Help Revenue As Crypto Trading Weakens
Robinhood had more users, more platform assets and record prediction market activity in Q1, but investors focused on the earnings miss.
The company posted net income of $346 million, up from $336 million a year earlier. Earnings reached 38 cents per share, just below the 39 cents expected by analysts. Shares dropped about 6% in late trading after the results.
Revenue gave a stronger reading. Total revenue climbed 15% to $1.07 billion, while transaction-based revenue rose 7% year over year to $623 million. However, transaction revenue fell 20% from the previous quarter, and crypto remained a drag. Crypto trading revenue dropped 47% to $134 million as digital asset prices weakened.
Prediction markets helped offset some of that pressure. Event contracts traded hit a record 8.8 billion in the quarter, giving Robinhood another growth line beyond stocks, options and crypto. The company has also been building into credit cards, banking, venture capital access and other financial products.
Subscriptions added another lift. Robinhood Gold revenue rose 32%, while Gold subscribers climbed 36% to 4.3 million. Other revenue rose 57% to $85 million, mainly from subscription growth. Net interest revenue also increased 24% to $359 million.
Operating expenses rose 18% to $656 million, driven by higher marketing and growth investment. Adjusted EBITDA still increased 14% to $534 million.
User numbers also improved. Funded customers rose 6% to 27.4 million, investment accounts grew 8% to 29.1 million, and total platform assets jumped 39% to $307 billion. Net deposits reached $17.7 billion during the quarter, while average revenue per user increased 8% to $157.
Chief Financial Officer Shiv Verma said the wider business base has made Robinhood less exposed to one product cycle. He said: “It’s a much more durable business relative to 2022.”
However, prediction market volume has already shown uneven demand. Volumes fell 29% month on month after football season ended, while analysts have raised concerns about weaker retail trader activity during uncertain macro conditions.
Chief Executive Officer Vlad Tenev said Robinhood is still building for a wider role in personal finance. He said: “Driven by our relentless product velocity and innovation, Robinhood is increasingly positioned at the center of our customers’ financial lives, just as we enter the early innings of the Great Wealth Transfer.”
Verma added: “In Q1, customers remained engaged and rapidly adopted new products, leading to a 20 percent-plus annualized net deposit growth rate, double digit growth across equities and options, and record volumes for prediction markets, futures, and index options.”
He 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 also raised its 2026 adjusted operating expense outlook to between $2.7 billion and $2.825 billion as it invests in artificial intelligence tools, tokenization infrastructure and new account products.