According to reports from TheStreet, Robinhood Markets shares fell more than 2% to $82.07 on April 28 following the release of Q1 2026 results, marking a rare miss on both revenue and earnings expectations. The company reported EPS of $0.38, just below the $0.39 estimate, while revenue hit $1.07 billion, missing the $1.139 billion forecast by about 6%. The latest trading data shows Robinhood shares are down about 12% in early Wednesday trading, changing hands near $72 after closing Tuesday at $82.07. Despite turning a profit with net income rising 3% year-over-year to $346 million, investors focused on the crypto segment decline and rising operational expenses. The market reaction reflects growing skepticism about the timing and return on Robinhood's investments in new business lines.
As reported by TheStreet, crypto transaction revenue fell 47% year-over-year from $252 million to $134 million, with trading volume dropping 48% to $24 billion. This marks the third consecutive quarter of falling crypto transaction revenue, representing a significant headwind for the platform. Average revenue per user also slipped, falling to $157 from $191 the prior quarter, indicating that even as Robinhood adds users, it's making less from each one. Operating expenses rose 18% to $656 million, driven by higher marketing spend and investment in new products including so-called 'Trump Accounts'. Full-year 2026 expense guidance was raised to $2.7 billion–$2.825 billion, up 18% year-over-year, pointing to a near-term squeeze on margins. The latest earnings report shows Robinhood's overall revenue still grew 15% YoY, but the mix shift hurt overall performance.
Despite crypto challenges, Robinhood demonstrated robust user engagement metrics according to TheStreet. The platform achieved record 4.3 million Gold subscribers and recorded $18 billion in net deposits during the quarter with an annualized growth rate of 22%. Total platform assets surged to $307 billion, up 39% from the same period last year. The company's funded customers rose to 27.4 million, maintaining strong user acquisition momentum. Net deposits hit $17.7 billion, suggesting the customer base is still engaged and depositing despite the crypto headwinds. The platform recorded nearly $18 billion in net deposits during the quarter with an annualized growth rate of 22%, while total platform assets surged to $307 billion, up 39% from the same period last year.
According to TheStreet, Robinhood Predictions, its event-contracts platform built through Kalshi, had a breakout quarter with record 8.8 billion event contracts traded in Q1, representing a 780% jump from Q2 2025, its first full quarter of operation. Tenev said April is on track to hit around $3 billion in trading volume, which would be the platform's second-highest month. This helped push the 'other' revenue category up 320% year-over-year to $147 million, partially offsetting the crypto drag. Event contracts — Robinhood's prediction market offering — have scaled rapidly, with the company reporting record volumes across prediction markets, futures, and index options, positioning the company closer to the center of the growing prediction markets ecosystem. The prediction markets are gaining traction with the company's continued focus on this vertical.
As reported by TheStreet, Robinhood shared that trading activity from Bitstamp, which it acquired in June 2025, was not included in the crypto segment figures. Bitstamp generated $42 billion in quarterly trading volume, though that was down 13% from the previous quarter. CEO Vladimir Tenev explained that the decline was mainly tied to market volatility and changing price conditions, but described the industry as being at the start of a 'tokenization supercycle'. He suggested that Robinhood is ready to stay aggressive in expanding its crypto ecosystem despite weaker near-term trading activity. The company continues to roll out features across multiple verticals, including staking for assets such as Ethereum and Solana, tokenized stock offerings in Europe, and AI-powered tools on its platform. The latest developments show Robinhood's management also raised 2026 adjusted operating expense guidance to $2.7 billion to $2.825 billion, signaling margin pressure ahead, including an additional $100 million investment in the Trump Accounts initiative.
