Robinhood (NASDAQ:HOOD) shares cratered today, currently down over 13%, following a disappointing Q1 earnings report.
Yesterday, Robinhood reported a top-line revenue increase of 15% versus the same quarter of the prior year, topping $1.07 billion. Funded accounts inched higher by over 400,000 during the quarter.
Transaction-based revenues increased 7% compared to Q1 2025 to $623 million, largely fueled by “other transaction revenue” of $147 million, up 32%, primarily from the new event markets platform.
Options revenue was up by 8% to $260 million, and equities revenue of $82 million, up 46%, partially offset by cryptocurrencies revenue of $134 million, down 47%.
The crypto revenue was particularly disappointing as some observers tie Robinhood’s performance to the emerging digital asset sector.
Net income rose by 3% year over year to $346 million, or an EPS of $0.38
Analysts had hoped for top-line revenue of $1.13 to $1.17 and EPS of $0.39 to $0.41. Thus, Robinhood disappointed.
Robinhood touted its platform as the leading platform for active traders while claiming to be number one in the global financial ecosystem.
Robinhood guided higher on expenses, which added to the performance disappointment.
CEO Vlad Tenev visited with CNBC this morning, where he claimed the market’s understanding of Robinhood was “lagging reality.” He explained that Robinhood is building a diversified financial platform, emphasizing new features like the events marketplace, which has grown in popularity.