Robinhood Markets Inc. (NASDAQ:HOOD) reported first-quarter results that came in below expectations, with both earnings and revenue missing analyst forecasts.
Shares dropped nearly 10% in premarket trading on Wednesday following the release.
The company posted adjusted earnings per share of $0.38, falling short of the consensus estimate of $0.41. Revenue totaled $1.07 billion, also below expectations of $1.17 billion, although it marked a 15% year-over-year increase from $927 million in the same period of 2025.
Total net revenue of $1.07 billion was supported by $623 million in transaction-based income, up 7% year over year, and $359 million in net interest revenue, which rose 24%. Net income edged up 3% from a year earlier to $346 million.
“Q1 revenues missed across the board, more than offsetting slightly lower opex,” Barclays analysts said. “April trends look better, but options and crypto are seeing more fee rate compression.”
In a separate note, Morgan Stanley analysts said Robinhood delivered softer-than-expected results, adding that “April commentary was mixed but generally supportive for 2Q trading revenues.”
Robinhood reported net deposits of $17.7 billion, equivalent to a 22% annualized growth rate. Its Robinhood Gold subscriber base grew 36% year over year to a record 4.3 million, while funded customer accounts rose 6% to 27.4 million. Total assets on the platform increased 39% year over year to $307 billion.
“In Q1, customers remained engaged and rapidly adopted new products, leading to a 20%-plus annualized net deposit growth rate, double digit growth across equities and options, and record volumes for prediction markets, futures, and index options,” said Shiv Verma.
The company also revised its 2026 expense outlook higher, raising its adjusted operating expense and stock-based compensation guidance to a range of $2.7 billion to $2.825 billion, up from a prior forecast of $2.6 billion to $2.725 billion. Robinhood said it plans to invest an additional $100 million to support the Trump Accounts initiative, noting that the program operates on a cost-plus basis with expected revenues exceeding associated costs.
During the quarter, the company repurchased $250 million of its Class A common stock, representing approximately 3.1 million shares at an average price of around $81 each.