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▲ Robinhood (HOOD), Bitcoin (BTC)/AI generated image ©
Robinhood's stock price plummeted more than 6% in after-hours trading after its first-quarter earnings fell short of Wall Street expectations.
According to crypto media outlet Coingape on April 28 (local time), Robinhood Markets announced its Q1 2026 earnings after market close on the same day. Revenue increased by 15% year-over-year to $1.07 billion, but it missed market expectations of $1.14 billion. Diluted earnings per share (EPS) also slightly missed the estimate of $0.40, coming in at $0.38.
Net income increased slightly year-over-year to $346 million. Interest revenue grew to $359 million, and transaction revenue increased to $623 million. CEO Vlad Tenev stated that Robinhood is moving closer to the center of customers' financial lives, driven by its pace of product development and innovation.
User metrics also improved. The number of funded customers increased to 27.4 million, and total assets reached $307 billion. However, a decrease in cryptocurrency trading revenue offset strong performance in the equities and options segments, weighing on overall results.
Prior to the earnings release, a warning from David Schwartz, former CTO of Ripple, about phishing scams targeting Robinhood users also dampened investor sentiment. Robinhood's stock closed down 2.24% at $82.07 in regular trading on April 28, and after the earnings announcement, it fell further by 6.27% to $76.93 in after-hours trading.
Earlier, Robinhood's stock price had risen on news of a $75 million deal with OpenAI. However, with this earnings disappointment, the market reacted more sensitively to revenue missing Wall Street estimates and weak cryptocurrency trading rather than growth prospects.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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