Robinhood sinks as Q1 EPS misses, crypto revenue drops 47%, expenses guided higher
Robinhood shares are sliding after its April 28, 2026 Q1 report showed EPS of $0.38 missing expectations and total net revenue of $1.07B coming in below consensus. Investors are also reacting to a 47% year-over-year drop in crypto transaction revenue to $134M and higher full-year expense guidance.
1) What’s moving the stock
Robinhood Markets (HOOD) is sharply lower today as investors digest the company’s first-quarter 2026 results released after the close on April 28, 2026. The quarter featured a profit miss versus expectations alongside a revenue shortfall, with traders focusing on weaker-than-anticipated crypto monetization and a higher cost outlook for the year. (globenewswire.com)
2) The key numbers behind the selloff
Robinhood reported diluted EPS of $0.38 for Q1 2026, below the $0.50 consensus cited in market coverage, while total net revenue rose 15% year over year to $1.07 billion but still missed estimates. Transaction-based revenue was $623 million, and net interest revenue was $359 million, showing strength in interest-driven income even as the market punished the profit miss. (globenewswire.com)
3) Crypto weakness and higher spending amplify concerns
A major negative was crypto transaction revenue, which fell 47% year over year to $134 million, reinforcing investor sensitivity to crypto-related swings in Robinhood’s results. Separately, management raised full-year adjusted operating expense and share-based compensation guidance to $2.7 billion–$2.825 billion, citing incremental investment tied to the “Trump Accounts” initiative, which also weighed on sentiment. (fool.com)
4) What to watch next
Investors will look for signs that April activity and net deposits translate into improved Q2 profitability, particularly whether equity/options momentum can offset softer crypto trading. Watch for follow-through in analyst actions and any additional detail on spending cadence versus expected revenue contribution from the new initiatives embedded in the raised cost guide. (globenewswire.com)