Robinhood Posts $1.07B Q1 Revenue as 47% Crypto Drop Shifts Focus to Equities

Key Takeaways:

• Robinhood posted $1.07B Q1 revenue, up 15%, but crypto gross fell 47% to $134M.
• Robinhood assets jumped 39% to $307B, showing displacement from crypto to equities/options.
• Robinhood expands Cortex AI and Ethereum L2 successful 2026 to thrust aboriginal growth.

Crypto Weakness Reshapes Revenue Mix for Robinhood

Robinhood Markets Inc. delivered a dependable commencement to 2026, reporting higher gross and idiosyncratic maturation contempt a crisp driblet successful crypto trading enactment that erstwhile powered its expansion.

The trading level said first-quarter gross roseate 15% from a twelvemonth earlier to $1.07 billion, portion nett income edged up 3% to $346 million. Diluted net per stock came successful astatine $0.38. Total level assets surged 39% to $307 billion, supported by beardown nett deposits and rising equity valuations.

Yet the header numbers masked a wide divergence crossed concern lines. Revenue from crypto trading fell 47% to $134 million, reflecting weaker integer plus prices and little retail enactment during the quarter. Crypto notional trading volumes dropped sharply, peculiarly connected the halfway app.

By contrast, Robinhood’s accepted trading businesses continued to summation ground. Transaction-based gross roseate 7% to $623 million, driven by beardown maturation successful equities and options trading. Equities gross jumped 46% to $82 million, portion options brought successful $260 million, up 8%. Event contracts, a newer offering, saw accelerated adoption and contributed $147 cardinal successful revenue.

“Driven by our relentless merchandise velocity and innovation, Robinhood is progressively positioned astatine the halfway of our customers’ fiscal lives, conscionable arsenic we participate the aboriginal innings of the Great Wealth Transfer,” said Vlad Tenev, Chairman and CEO of Robinhood.

Net involvement income besides provided a meaningful boost, climbing 24% to $359 cardinal arsenic the institution benefited from a larger basal of interest-earning assets. Subscription gross from Robinhood Gold roseate 32% to $50 million, helping assistance different gross by 57%.

Customer enactment remained robust. Net deposits reached $17.7 cardinal successful the quarter, representing a 22% annualized maturation rate. Funded accounts accrued 6% to 27.4 million, portion full concern accounts roseate to 29.1 million. Average gross per idiosyncratic grew 8% to $157.

The institution continued to walk connected expansion. Operating expenses climbed 18% twelvemonth implicit twelvemonth to $656 million, driven mostly by selling and maturation initiatives. Adjusted EBITDA inactive roseate 14% to $534 million, suggesting improved operating leverage.

Robinhood is besides pushing to broaden its ecosystem beyond trading. The steadfast rolled retired caller products, including AI-driven tools nether its Cortex platform, a societal trading feature, and expanded banking and wealthiness offerings. Its premium Gold subscription reached 4.3 cardinal users, up 36% from a twelvemonth earlier.

“In Q1, customers remained engaged and rapidly adopted caller products. We judge determination are monolithic opportunities up arsenic we put for the agelong term, vessel products faster than ever to customers, and present worth for shareholders,” said Shiv Verma, Chief Financial Officer of Robinhood.

International maturation is becoming a focus. The institution secured preliminary regulatory support successful Singapore and launched a trial web for its Ethereum-based layer-2 blockchain, aimed astatine supporting tokenized assets.

In superior markets, Robinhood repurchased $250 cardinal of shares during the 4th and refreshed its buyback authorization to $1.5 billion.

The results constituent to a institution successful transition. While crypto enactment has cooled, Robinhood is leaning much heavy connected equities trading, involvement income, and caller products to prolong growth. Whether those efforts tin afloat offset the volatility of integer assets volition beryllium intimately watched successful the quarters ahead.