Robinhood Q1 EPS Misses, Revenue Hits $1.07B vs $1.17B; Expense Outlook Raised to $2.7B–$2.825B
Robinhood reported Q1 adjusted EPS of $0.38 vs. $0.41 estimate and revenue of $1.07B against a $1.17B forecast, sending shares down 10%. It raised 2026 operating expense guidance to $2.7B–$2.825B, earmarking $100M for its Trump accounts project and repurchasing $250M of stock.
1. Q1 Earnings and Revenue
In Q1 Robinhood posted adjusted earnings per share of $0.38, falling short of the $0.41 consensus, while revenue of $1.07 billion missed the $1.17 billion forecast. Net income rose 3% year-over-year to $346 million.
2. Revenue Mix and Trends
Transaction-based income totaled $623 million, up 7% year-over-year, and net interest revenue reached $359 million, rising 24%. However, fee rate compression in options and crypto trading offset better trends in April.
3. Expense Guidance and Investments
The company raised its 2026 operating expense and stock-based compensation guidance to $2.7 billion–$2.825 billion from prior ranges of $2.6 billion–$2.725 billion. It plans to invest an additional $100 million in the Trump accounts project.
4. User Growth and Capital Returns
Net deposits grew to $17.7 billion (22% annualized growth), funded customer accounts increased 6% to 27.4 million, and Robinhood Gold subscribers climbed 36% to a record 4.3 million. Platform assets rose 39% to $307 billion, and the firm repurchased $250 million of Class A common stock.