Robinhood Stock Slides 9% on Q1 Earnings Miss and Crypto Revenue Drop

Robinhood Markets delivered Q1 2026 results that disappointed the Street, sending shares down 9% as crypto revenue collapsed and total revenue missed estimates. Total revenue came in at $1.07 billion — up 15% year-over-year but below the $1.14 billion consensus estimate. GAAP EPS of $0.38 missed the consensus by $0.01, and net income of $346 million grew just 3% year-over-year despite the strong top-line growth rate.

The headline miss was driven by a 47% collapse in cryptocurrency transaction revenue to $134 million, down from $252 million a year ago as retail crypto trading volumes fell 48% to $24 billion. The sharp decline exposed HOOD's ongoing sensitivity to crypto market cycles, a structural concern for investors who had priced in continued crypto engagement following the 2025 bull run. ARPU came in at $157, up 8% year-over-year, offering some comfort on monetization per customer.

Bright spots included a 320% surge in event contracts and prediction markets revenue to $147 million, options revenue up 8% to $260 million, and equities revenue up 46% to $82 million — reflecting diversification efforts that have yet to fully offset the crypto headwind. The company's cash position grew to $5 billion from $4.4 billion, providing financial flexibility. Management faces pressure to demonstrate that its evolving revenue mix can sustain growth through the next crypto downcycle.

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