Robinhood Q1 Revenue Misses; Crypto Revenue Plunges 47%, Expenses Up 18%
Robinhood reported Q1 revenue of $1.07 billion, missing the $1.14 billion estimate, and EPS of $0.39 versus $0.40 consensus, driving a ~14% share drop. Crypto transaction revenue plunged 47% to $134 million while operating expenses rose 18% to $656 million, prompting a $2.7–2.825 billion expense outlook.
1. Q1 Results and Share Reaction
Robinhood posted Q1 revenue of $1.07 billion, below the $1.14 billion consensus, and EPS of $0.39 versus $0.40 forecast, sending shares down about 14%.
2. User Growth, Deposits, and ARPU Trends
The platform added 4.3 million Gold subscribers and $18 billion in net deposits, but average revenue per user fell to $157 from $191 due to softer trading volumes.
3. Crypto Business Under Pressure
Crypto transaction revenue plummeted 47% year-over-year to $134 million, reflecting a prolonged market cool-down and reduced client activity.
4. Expense Growth and Elevated Outlook
Operating expenses climbed 18% to $656 million, leading management to raise its 2026 expense guidance to $2.7 billion–$2.825 billion to support new product initiatives.