Robinhood Markets Inc. shares declined sharply after the financial services firm reported first-quarter results below analyst expectations. For the quarter ending March 31, the company posted diluted adjusted earnings per share of 38 cents on revenue of $1.07 billion, a 15% year-over-year increase. However, these figures missed the 41 cents per share and $1.17 billion in revenue projected by analysts.
Mixed revenue streams characterized the quarter. While total transaction-based revenue grew 7% to $623 million, cryptocurrency revenue saw a substantial 47% drop to $134 million. This decline in digital asset trading was partially offset by an 8% rise in options revenue and a significant 46% surge in equities revenue. Notably, revenue from other transactions, primarily from the company's Prediction Markets Hub, jumped 320% to $147 million.
Net interest revenue increased 24% to $359 million, and revenue from Robinhood Gold subscriptions grew 57% to $85 million. The company reported 27.4 million funded customers, a 6% increase, with Robinhood Gold subscribers reaching a record 4.3 million. Total platform assets climbed 39% to $307 billion.
Robinhood also announced it has been selected by the U.S. Department of the Treasury as the broker and sole initial trustee for the new federal savings program, Trump Accounts. This initiative will involve collaboration with Bank of New York Mellon Corp.
To accommodate the Trump Accounts buildout, Robinhood has raised its 2026 outlook for adjusted operating expenses and share-based compensation. CEO Vlad Tenev stated that the company is increasingly positioned at the center of customer financial lives.