Robinhood Q1 Net Deposits Surge 22% to $18B While Crypto Revenue Collapses 47%
Robinhood reported Q1 net deposits of $18B (22% YoY) and Gold subscribers up 36% to 4.3M, supporting a 24% rise in net interest revenue. Total revenue of $1.07B missed estimates, ARPU fell 18% sequentially, crypto revenue dropped 47% and shares trade at a 40x forward P/E versus a 25x average.
1. Q1 Asset Growth and Subscription Expansion
Robinhood saw net deposits reach $18 billion in Q1, representing a 22% annualized increase. The platform grew its Gold subscriber base by 36% year over year to 4.3 million, fueling a 57% jump in other revenues and a 24% rise in net interest revenue.
2. Transaction Revenue Deceleration and ARPU Decline
Legacy transaction revenue still accounts for 58% of total sales but is softening as ARPU slid 18% sequentially from $191 to $157. Year-over-year ARPU growth slowed to 8%, down sharply from 82% in Q3 2025, highlighting cyclical pressure on trading volumes.
3. Crypto Trading Weakness Impact
Crypto transaction revenue grew just 7% year over year after a 47% collapse in crypto trading volumes erased equity and options gains. This contributed to total revenue of $1.07 billion, missing the $1.205 billion consensus, and EPS of $0.38, below the $0.43 expectation.
4. Valuation Premium and Risk
Shares trade at roughly 40 times forward expected adjusted earnings, a steep premium to the three-year average of 25 times. This valuation gap suggests a negative risk-reward profile as the downside from multiple contraction may outweigh potential upside from future earnings beats.