Robinhood Shares Plunge as Crypto Slump Drags Down Q1 Revenue Growth

Robinhood Markets (HOOD) saw its stock price tumble more than 14% following a first-quarter earnings report that revealed a deceleration in revenue growth and a miss on key analyst estimates. The results underscore the company's ongoing struggle to maintain momentum amidst a volatile digital asset environment. The fintech firm reported revenue of $1.06 billion, representing a 15% increase year-over-year but a 17% decline compared to the previous quarter. Net income for the period stood at $346 million, a slight increase from $336 million a year ago, but a sharp drop from the $605 million recorded in the fourth quarter of 2025. Diluted earnings per share came in at $0.38, falling short of the $0.48 expected by analysts. Analysis of transaction-based revenue, which totaled $623 million, reveals a stark divergence between asset classes. While equities revenue surged 46% to $82 million and 'other' revenue—driven largely by event contracts—spiked 320% to $147 million, cryptocurrency revenue plummeted 47% to $134 million. This decline reflects a broader slump in major cryptocurrencies, which has reduced trading frequency among the platform's user base. Despite the revenue miss, management highlighted strong operational metrics. Chief Financial Officer Shiv Verma noted that net deposits reached approximately $5 billion month-to-date, suggesting continued user growth and capital inflow. However, with the stock currently trading more than 50% below its all-time high, investors remain cautious about the company's heavy reliance on crypto-market recovery for future growth.