Breaking: Robinhood Q1 Earnings Miss Wall Street Estimate, HOOD Stock Plunges 6%
Highlights
- Robinhood reported its first-quarter 2026 earnings results on Tuesday, April 28 after the market closed.
- The company boasts a revenue of $1.07 billion in Q1, below the expectations of $1.14 billion.
- In response to the weak earnings report, the HOOD stock nosedived over 6%.
Robinhood Markets Inc. (NASDAQ:HOOD) stock plummeted following the company’s first-quarter 2026 earnings report, which fell short of Wall Street expectations. The HOOD stock fell around 6% in after-market trading, which indicates a negative reaction to the report.
Robinhood Fails To Meet Wall Street Estimates
The firm’s revenue was $1.07 billion, a 15% increase from the previous year. However, this was less than the expectations of $1.14 billion. Diluted earnings per share (EPS) were $0.38, also slightly below expectations of $0.40.
Net income grew to $346 million, up slightly from a year ago. Nonetheless, the company delivered growth on several fronts. Interest income was up to $359 million and transaction revenue up to $623 million.
In the Q1 earnings report, CEO Vlad Tenev said, “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.”
Positive user trends also continued. The number of funded customers grew to 27.4 million and total assets to $307 billion. Still, struggles in some areas offset the growth. Revenue from crypto trading was down, offsetting strength in equities and options.
Meanwhile, ahead of the earnings, Ripple CTO Emeritus David Schwartz flashed a phishing scam attacking Robinhood users. These negative developments could have indeed impacted the HOOD stock performance.
HOOD Stock Tumbles In After Hours
The earnings miss comes on the back of higher expectations. The estimates for revenue growth and a slightly stronger earnings figure made the miss more meaningful to the market.
The decline in HOOD stock comes on the quarterly report. The Robinhood stock closed at $82.07, a loss of $1.88 (down by 2.24%) on Tuesday, April 28. Further, in the after hours, after the earnings miss, the HOOD stock was down to $76.93, dropping by 6.27%.
On the contrary, previously, the HOOD share price gained after a $75 million deal with OpenAI.
For passive income from crypto, please check out our page on Ways To Earn Passive Income With Crypto.
Instant Currency Exchange at BestChange with Ease
- Compare Rates Across 1000+ Exchanges
- Access 250+ Cryptocurrencies & Pairs
- Save Time with Real-Time Price Tracking
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
