Robinhood Markets saw total revenue climb 15% to $1.07 billion in the first quarter of 2026. Prediction markets drove the gains with record trading volumes. Shares dropped 6% in after-hours trade as results fell short of Wall Street hopes.
Robinhood posted net income of $346 million. That marks a 3% rise from last year. Diluted earnings per share came in at 38 cents, also up 3%.
Analysts expected 41 cents per share and revenue near $1.14 billion. The miss led to the stock slide. Still, adjusted EBITDA rose 14% to $534 million.
Total operating expenses grew 18% to $656 million. The company spent more on marketing and expansion. Net deposits hit $17.7 billion. This gives a 22% annualized growth rate.
| Revenue Category | Q1 2026 ($M) | YoY Change |
|---|---|---|
| Transaction-based | 623 | +7% |
| Net interest | 359 | +24% |
| Other | 85 | +57% |
| Total | 1,070 | +15% |
Prediction Markets Fuel Surprise Growth
Event contracts traded reached a record 8.8 billion in the quarter. This pushed other transaction revenue up 320% to $147 million. Prediction markets now outpace crypto trading income.
Users bet on events like elections and sports. Volumes exploded as retail traders piled in. Robinhood launched its Prediction Markets Hub recently.
The company aims to own more of this space. It formed a joint venture called Rothera with Susquehanna. Early signs show strong user interest.
Crypto Trading Takes a Big Hit
Crypto revenue plunged 47% to $134 million. Notional volumes fell amid lower digital asset prices. Robinhood App volumes dropped 48% year-over-year.
Bitstamp added some volumes at $42 billion. But the slump hurt overall. This exposed risks tied to volatile markets.
Traders shifted to safer bets like prediction markets. Equities revenue still rose 46% to $82 million. Options held steady with 8% growth to $260 million.
Subscriptions Draw More Loyal Users
Robinhood Gold hit 4.3 million subscribers. That’s a 36% jump and a new record. Subscription revenue climbed 32% to $50 million.
Funded customers grew 6% to 27.4 million. Total platform assets swelled 39% to $307 billion. Average revenue per user rose 8% to $157.
New perks like lower margin rates pull in users. The Gold Card now has over 800,000 funded customers. Banking deposits topped $2 billion from 125,000 users.
Robinhood Strategies manages $1.6 billion for 285,000 clients. Family features like trust accounts launched too.
Future Bets on New Products and Expansion
CEO Vlad Tenev highlighted big investments. AI tools like Cortex Assistant rolled out to one million users. Robinhood Social beta tests with traders.
Trump Accounts start soon with BNY custody. Robinhood Chain testnet processed 100 million transactions for tokenized assets. Singapore approval opens doors abroad.
Q2 looks strong so far. Equity and options volumes hit highs. Net deposits run at $5 billion month-to-date.
The board boosted share buybacks to $1.5 billion. Repurchases totaled $250 million in Q1 at $81 per share.
Robinhood rides a wave of retail trading and fresh ideas. Prediction markets prove a smart pivot from crypto woes. Subscriptions build steady cash flow that shields against market dips.
Customer numbers keep climbing as tools get smarter. This positions everyday investors for the wealth shift ahead. Growth feels real, but execution matters in tough quarters.
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