Key Takeaways
- • Robinhood (HOOD) stock declined 6-8% in after-hours trading following Q1 2026 earnings that missed Wall Street expectations on both earnings per share ($0.38 vs. $0.39 expected) and revenue ($1.07B vs. $1.14B expected).
- • Crypto revenue plummeted 47% year-over-year to $134 million, representing the primary driver of the earnings miss despite growth in equities, options, prediction markets, and subscription services.
- • Management raised full-year 2026 operating expense guidance to $2.7–$2.825 billion (from $2.6–$2.725 billion), with an incremental $100 million allocation toward building Trump Account (530A tax-advantaged child IRA) infrastructure.
- • Positive offsetting metrics included net deposits of $17.7 billion (22% annualized growth), platform assets rising 39% year-over-year to $307 billion, Gold subscriber growth of 36% to 4.3 million, and average revenue per user increasing 8% to $157.
- • Broader crypto equities sector weakness followed, with Coinbase (COIN) down 1.18% after-hours and Circle (CRCL) declining 1% as Citi reduced Coinbase price target by $105 to $400 while maintaining a Buy rating.
Summary
Robinhood reported first-quarter 2026 earnings that fell short of consensus estimates, triggering a sharp equity market reaction. The online brokerage platform posted diluted earnings per share of $0.38 against expectations of $0.39, while revenue came in at $1.07 billion compared to consensus estimates of $1.14 billion. The earnings miss proved significant enough to drive HOOD shares down 6% in regular after-hours trading, with some sources reporting declines as steep as 8% in extended sessions.
The primary culprit behind the miss was a severe contraction in cryptocurrency revenue, which declined 47% year-over-year to $134 million as digital asset trading cooled from elevated 2025 levels. This crypto headwind proved substantial enough to overwhelm gains registered across other business segments. Transaction-based revenue climbed 7% to $623 million, supported by strength in options, equities, and event contracts (prediction markets). The company also reported growth in its subscription business, with Gold subscribers expanding 36% to 4.3 million users.
Despite the earnings miss, Robinhood demonstrated solid operational momentum across several key metrics. Net deposits reached $17.7 billion, representing a 22% annualized growth rate, while total platform assets surged 39% year-over-year to $307 billion. Average revenue per user rose 8% to $157, and total net revenue increased 15% year-over-year, with net income climbing 3% to $346 million. These figures suggest sustained underlying user acquisition and engagement despite cryptocurrency market softness.
Management's forward guidance, however, signaled increasing capital intensity ahead. The company raised its 2026 adjusted operating expense and stock-based compensation outlook to $2.7–$2.825 billion from the prior range of $2.6–$2.725 billion, representing a $100–$125 million increase. The company attributed $100 million of this incremental spending to building and supporting user interface infrastructure for Trump Accounts, a new tax-advantaged investment vehicle designed for minors (530A accounts). This guidance increase introduced uncertainty regarding near-term margin expansion.
The earnings miss rippled across the broader crypto equities complex. Coinbase Global (COIN) declined 1.18% in after-hours trading following a 2.83% regular-session drop, precipitated by Citi's reduction of its price target by approximately $105 to $400 per share, though the firm maintained its Buy rating on the stock. Circle Internet Group (CRCL), the issuer of USDC stablecoin, declined 1% in overnight trade. Retail sentiment surrounding Coinbase shifted from extremely bullish to bullish territory on Stocktwits following Citi's action, indicating a moderation in speculative positioning despite fundamental support from the analyst community.
The primary culprit behind the miss was a severe contraction in cryptocurrency revenue, which declined 47% year-over-year to $134 million as digital asset trading cooled from elevated 2025 levels. This crypto headwind proved substantial enough to overwhelm gains registered across other business segments. Transaction-based revenue climbed 7% to $623 million, supported by strength in options, equities, and event contracts (prediction markets). The company also reported growth in its subscription business, with Gold subscribers expanding 36% to 4.3 million users.
Despite the earnings miss, Robinhood demonstrated solid operational momentum across several key metrics. Net deposits reached $17.7 billion, representing a 22% annualized growth rate, while total platform assets surged 39% year-over-year to $307 billion. Average revenue per user rose 8% to $157, and total net revenue increased 15% year-over-year, with net income climbing 3% to $346 million. These figures suggest sustained underlying user acquisition and engagement despite cryptocurrency market softness.
Management's forward guidance, however, signaled increasing capital intensity ahead. The company raised its 2026 adjusted operating expense and stock-based compensation outlook to $2.7–$2.825 billion from the prior range of $2.6–$2.725 billion, representing a $100–$125 million increase. The company attributed $100 million of this incremental spending to building and supporting user interface infrastructure for Trump Accounts, a new tax-advantaged investment vehicle designed for minors (530A accounts). This guidance increase introduced uncertainty regarding near-term margin expansion.
The earnings miss rippled across the broader crypto equities complex. Coinbase Global (COIN) declined 1.18% in after-hours trading following a 2.83% regular-session drop, precipitated by Citi's reduction of its price target by approximately $105 to $400 per share, though the firm maintained its Buy rating on the stock. Circle Internet Group (CRCL), the issuer of USDC stablecoin, declined 1% in overnight trade. Retail sentiment surrounding Coinbase shifted from extremely bullish to bullish territory on Stocktwits following Citi's action, indicating a moderation in speculative positioning despite fundamental support from the analyst community.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.