Robinhood shares plummeted over 6% in after-hours trading Tuesday after the trading platform announced first-quarter earnings that fell short of analyst expectations. Weaker cryptocurrency revenue overshadowed growth in other areas, including equities, options, and subscriptions.
The company reported diluted earnings per share of $0.38 on revenue of $1.07 billion, missing forecasts of $0.39 per share and $1.14 billion in revenue. While overall net revenue increased 15% year-over-year, and net income rose 3% to $346 million, transaction-based revenue saw a 7% climb to $623 million.
However, a significant factor contributing to the miss was a 47% drop in crypto revenue, which fell to $134 million as digital asset trading activity cooled. This decline offset gains in options, equities, and event contracts.
Despite the earnings miss, Robinhood highlighted growth in key metrics. Net deposits reached $17.7 billion, a 22% annualized growth rate, and total platform assets climbed 39% year-over-year to $307 billion. Gold subscribers also saw a 36% increase, reaching 4.3 million.
The company also revised its outlook for 2026 adjusted operating expenses and stock-based compensation upwards, citing increased costs for supporting new user interfaces, including those related to 'Trump Accounts'.