Robinhood Shares Drop 10% After Q1 EPS Miss and Expense Outlook Rise
Robinhood reported Q1 adjusted EPS of $0.38, missing consensus by $0.03, and revenue of $1.07 billion, below the $1.17 billion estimate despite 15% year-over-year growth. The company raised its 2026 operating expense guidance to $2.7–2.825 billion and plans a $100 million investment in its Trump Accounts initiative.
1. First-Quarter Performance
Robinhood posted adjusted EPS of $0.38, missing the $0.41 consensus, and generated $1.07 billion in revenue versus $1.17 billion expected. Revenue rose 15% year-over-year driven by $623 million in transaction-based income (+7%) and $359 million in net interest revenue (+24%), while net income increased 3% to $346 million. Shares slid nearly 10% in premarket trading following the report.
2. Revised Expense Guidance
The company raised its 2026 adjusted operating expense and stock-based compensation forecast to $2.7 billion–$2.825 billion, up from $2.6 billion–$2.725 billion. This revision includes a $100 million incremental investment to support the Trump Accounts initiative, which operates on a cost-plus basis and is expected to generate revenues exceeding associated costs.
3. Customer and Deposit Growth
Robinhood reported net customer deposits of $17.7 billion, marking a 22% annualized growth rate. Funded customer accounts reached 27.4 million (+6% year-over-year) and Robinhood Gold subscriptions climbed 36% to 4.3 million. Assets on the platform swelled 39% year-over-year to $307 billion.
4. Share Repurchase Program
During Q1, Robinhood repurchased $250 million of Class A common stock, acquiring roughly 3.1 million shares at an average price of $81. The company’s board refreshed buyback authorization to $1.5 billion, bolstering capital return plans.