Robinhood Q1 EPS Misses by $0.03, Revenue Trails Consensus, Guidance Raised
Robinhood posted Q1 adjusted EPS of $0.38 versus $0.41 expected and revenue of $1.07 billion, up 15% YoY but trailing the $1.17 billion consensus. Net deposits climbed 22% annualized to $17.7 billion and the firm raised 2026 expense guidance to $2.7–2.825 billion after a $100 million Trump Accounts investment.
1. Q1 Financial Results
Robinhood reported adjusted earnings per share of $0.38 against the $0.41 estimate and revenue of $1.07 billion versus a $1.17 billion consensus, reflecting 15% year-over-year growth. Net income rose 3% to $346 million on stronger interest and transaction-based revenues.
2. Deposit and Customer Growth
The platform saw net deposits of $17.7 billion, representing a 22% annualized growth rate. Gold subscription users reached 4.3 million, up 36% year-over-year, while funded customers increased 6% to 27.4 million, and total assets under custody climbed 39% to $307 billion.
3. Expense Outlook and Trump Accounts Investment
Robinhood updated its 2026 adjusted operating expense and stock-based compensation guidance to $2.7–2.825 billion, up from $2.6–2.725 billion. The raise reflects a $100 million incremental investment in the Trump Accounts initiative, structured on a cost-plus basis with revenues expected to exceed costs.
4. Share Repurchase Program
During the quarter, the company repurchased $250 million of Class A common stock, buying back approximately 3.1 million shares at an average price of $81 per share to support shareholder returns.