Robinhood Stock Drops After First-Quarter 2026 Earnings Miss Tied to Weak Crypto Trading Revenue

Robinhood’s stock fell after the company reported a first-quarter 2026 earnings and revenue miss tied to weak crypto trading revenue, with CoinDesk saying “Robinhood stock falls 8% after big earnings miss due to weak crypto trading revenue.”

“Robinhood stock falls 8% after big earnings miss due to weak crypto trading revenue While the trading platform’s crypto revenue tanked 47% to $134 million, a record-breaking surge in prediction market bets helped push overall revenue up 15% to $1”

@coindesk

CoinDesk reported that crypto-related revenue “tanked 47% to $134 million,” while overall revenue rose “up 15% to $1.07 billion,” yet still missed expectations of $1.14 billion.

@coindesk

SiliconANGLE likewise said shares fell “more than 8% in late trading today” after Robinhood reported diluted adjusted earnings per share of “38 cents per share” and revenue of “$1.07 billion,” both below analyst expectations of “$1.17 billion.”

TechStock² framed the market reaction as a larger immediate drop, saying Robinhood “slipping around 6% when the online broker fell short of Wall Street’s Q1 profit forecasts.”

Crypto Briefing put the after-hours move at “around $77” after HOOD “closed near $82 on Tuesday before dropping to around $77 in after hours trading.”

Across outlets, the earnings figures were consistent: SiliconANGLE said net income grew “3% year-over-year to $346 million,” while TechStock² said “Net income reached $346 million, up 3%” and “Diluted EPS landed at 38 cents.”

The company’s reported transaction mix also aligned across coverage, with CoinDesk and SiliconANGLE both pointing to crypto revenue down “47%” to “$134 million” and other transaction revenue rising to “$623 million” from “$583 million” or “$623 million” from “$583 million” depending on the outlet’s framing.

The central driver of Robinhood’s miss was the decline in crypto trading revenue, which multiple outlets quantified in the same way.

CoinDesk said “Crypto-related revenue dropped 47 percent to $134 million,” and SiliconANGLE reported “Cryptocurrency revenue fell 47% year-over-year, to $134 million.”

CoinDesk

TechStock² similarly stated “Revenue from crypto transactions dropped sharply, down 47% to $134 million,” and Crypto Briefing echoed that “crypto revenue fell 47% to $134 million as digital asset trading cooled from last year’s levels.”

While crypto weakened, Robinhood’s other revenue lines rose enough to lift total revenue, but not enough to meet Wall Street’s targets.

CoinDesk reported “Transaction-based revenue rose to $623 million from $583 million a year earlier,” and SiliconANGLE said “Transaction-based revenue rose 7% year-over-year to $623 million.”

Both outlets also highlighted event contracts as a key offset, with CoinDesk noting “event contracts… helped lift transaction-based revenue to $623 million” and “other transaction revenue” rising “320% year over year to $147 million.”

TechStock² provided additional detail on the same mechanism, saying “Robinhood’s other transaction revenue—driven mostly by event contracts—jumped 320% to $147 million,” and it also reported “record 8.8 billion event contracts traded last quarter.”

SiliconANGLE tied the event-contract surge to its platform feature, saying other transaction revenue “made up largely of event contracts, surged 320%, to $147 million on record volumes through the company’s Prediction Markets Hub.”

Beyond transactions, SiliconANGLE and Crypto Briefing both pointed to net interest and subscription revenue as stabilizers, with SiliconANGLE reporting “Net interest revenue rose 24% year-over-year, to $359 million” and “other revenue, driven by Robinhood Gold subscriptions, rose 57%, to $85 million.”

Crypto Briefing added that “Gold subscribers increased 36% to 4.3 million,” and it also said “Net deposits reached $17.7 billion, representing a 22% annualized growth rate,” while total platform assets rose “39% year over year to $307 billion.”

In its earnings messaging, Robinhood’s leadership emphasized a shift away from crypto price cycles and toward using crypto technology as infrastructure while leaning on newer product categories.

“Robinhood stock drops 6% after earnings miss tied to crypto revenue slump Robinhood shares fell more than 6% in after hours trading after Q1 results came in below Wall Street expectations”

Crypto Briefing

CoinDesk quoted CEO Vlad Tenev saying, “I want to get away from talking about the price of bitcoin,” and it added that he described Robinhood’s focus on using crypto technology as “infrastructure” for financial services.

CoinDesk also quoted Tenev saying, “If you build great products… they’ll be there throughout the cycle,” and it described his argument for “more consistent engagement across asset classes.”

PYMNTS quoted CFO Shiv Verma saying, “In Q1, customers remained engaged and rapidly adopted new products,” and it specified that this led to “record volumes for prediction markets, futures, and index options.”

TechStock² also attributed a direct statement to CFO Shiv Verma, reporting that he said customers “remained engaged and rapidly adopted new products,” and it added that Verma highlighted “double-digit gains in equities and options.”

In the same reporting, TechStock² said Verma added that “April was shaping up to be even better: equity and option trading volumes are pacing for their highest monthly tally this year.”

Tenev’s broader strategic framing appeared in CoinDesk as well, where he said, “We’re at the very beginning of what’s going to be a tokenization super cycle,” referring to efforts to bring assets like stocks onto blockchain rails.

SiliconANGLE echoed the company’s internal narrative by quoting Vlad Tenev in the earnings release: “Driven by our relentless product velocity and innovation, Robinhood is increasingly positioned at the center of our customers’ financial lives, just as we enter the early innings of the Great Wealth Transfer.”

The outlets also connected the pivot to product and revenue mix changes, with CoinDesk pointing to prediction markets and derivatives and PYMNTS describing Robinhood as moving toward a broader “super app” focused on long-term customer relationships.

Even as leadership emphasized engagement, the financials showed the pivot was not yet enough to satisfy the market’s expectations, with CoinDesk noting the company “missed its first-quarter 2026 total revenue and adjusted earnings per share” and SiliconANGLE reporting both figures came in below analyst expectations.

Alongside the earnings results, outlets tied Robinhood’s outlook to regulatory complications and legal disputes involving prediction-market and crypto-adjacent products.

TechStock² said “Regulatory complications are ramping up” and described Robinhood as “tangled in legal disputes alongside Kalshi, Polymarket, Crypto.com and Coinbase,” adding that “the U.S. Commodity Futures Trading Commission filed suit against Wisconsin this Tuesday—an answer to the state’s own legal actions targeting those same firms.”

https

SiliconANGLE also reported that Robinhood disclosed a federal role tied to children’s savings accounts, saying “the U.S. Department of the Treasury has named Robinhood the broker and sole initial trustee for Trump Accounts, the new federal savings program for children.”

It further stated that “Robinhood will work with Bank of New York Mellon Corp. to build a standalone Trump Account app and custody the assets,” which connected the company’s earnings guidance to a specific operational buildout.

CoinDesk’s coverage focused more on revenue mix, but it still linked the company’s strategy to reducing dependence on crypto trading, saying “Like Coinbase, which reports earnings May 7, the company is trying to reduce its dependence on crypto trading.”

PYMNTS described the platform’s expansion into “prediction markets, derivatives and advisory tools” while noting that “Prediction markets and event contracts… exist in a gray area that varies by jurisdiction,” and it said “Legal challenges are already emerging, with some states questioning whether such offerings constitute unlicensed gambling.”

Investor’s Business Daily tied the earnings miss to expense guidance, saying management “guided 2026 expenses higher” and that it anticipates “investing an additional $100 million to build and support the user interface for Trump Accounts.”

SiliconANGLE gave the same expense range update, reporting that Robinhood “raised its 2026 outlook for adjusted operating expenses and share-based compensation to a range of $2.7 billion to $2.825 billion,” and it said this increase reflected “an additional $100 million for the Trump Accounts buildout.”

In the same reporting, SiliconANGLE quoted the company’s earnings-release language about product velocity, but it also included a skeptical analyst voice from Zacks Investment Research, where David Bartosiak said “Robinhood came out swinging with a headline beat on growth, but when you dig in, this is a classic case of top-line strength, bottom-line pressure.”

The immediate consequence of the earnings miss was a sharp market repricing, but the longer-term stakes in the reporting centered on whether Robinhood can convert engagement and new product adoption into sustainable profit.

“Robinhood (HOOD) missed earnings and revenue estimates for the first quarter late Tuesday”

Investor's Business Daily

CoinDesk said “Shares fell about 8% in post-market trading following the report,” and SiliconANGLE described the stock move as “fell more than 8% in late trading today.”

Investor's Business Daily

Crypto Briefing added a more granular after-hours path, saying HOOD “closed near $82 on Tuesday before dropping to around $77 in after hours trading at press time.”

Beyond price action, SiliconANGLE’s analyst David Bartosiak argued that the company’s growth did not translate into earnings strength, saying “Profit growth is basically stalling. Net income up just 3% and EPS up just 3%.”

Bartosiak also framed the revenue shift as potentially fragile, saying “They’re replacing lost crypto momentum with less proven, more speculative revenue streams,” and he pointed to “That 320% growth in ‘other transaction revenue’ sounds great, he said, but on a small, volatile base.”

SiliconANGLE’s Bartosiak concluded that the situation had become a “prove-it story,” stating “This is no longer just a growth story, it’s now a prove-it story.”

TechStock² similarly warned that “There’s a risk here: Robinhood’s newer businesses might not ramp up quickly enough to cushion against another crypto slump, or regulatory headwinds could stall prediction-market expansion just as the company bets bigger on it.”

The outlets also tied the next steps to specific operational spending and platform expansion, with SiliconANGLE reporting operating expenses “jumped 18% to $656 million for the quarter” and raising guidance to “$2.7 billion to $2.825 billion.”

Crypto Briefing and CoinDesk both referenced the $100 million Trump Accounts buildout, with Crypto Briefing saying the company “now expects 2026 adjusted operating expenses and stock based compensation of $2.7 billion to $2.825 billion,” and that “The increase includes an additional $100 million tied to building and supporting the user interface for Trump Accounts.”

In parallel, CoinDesk emphasized that Robinhood is trying to smooth revenue swings by expanding into “prediction markets, derivatives and advisory tools,” while TechStock² reported that Gold subscribers reached “an all-time high of 4.3 million” and that net interest revenue climbed to “$359 million.”