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Robinhood reported a 3% rise in quarterly profit, driven by growth in prediction markets and subscription services, but its shares fell about 6% in late trading after earnings missed Wall Street expectations.
Net income rose to $346 million, or 38 cents per share, from $336 million, or 37 cents, a year earlier. The result fell short of analysts’ estimate of 39 cents per share.
Total revenue increased 15% to $1.07 billion, supported by a surge in event-based trading and higher subscription income. Event contracts traded reached a record 8.8 billion during the quarter, while revenue from the Robinhood Gold program rose 32%.
Transaction-based revenue rose 7% year-on-year to $623 million, though it declined 20% from the previous quarter. Crypto trading remained a weak spot, with revenue falling 47% to $134 million amid a downturn in digital asset prices.
Net interest revenue climbed 24% to $359 million, while other revenue rose 57% to $85 million, largely driven by subscriptions. Operating expenses increased 18% to $656 million due to higher marketing and growth investments, while adjusted EBITDA rose 14% to $534 million.
The company reported continued growth in its user base and platform activity, with funded customers rising 6% to 27.4 million and investment accounts increasing 8% to 29.1 million. Total platform assets jumped 39% to $307 billion, while net deposits reached $17.7 billion in the quarter.
Robinhood Gold subscribers rose 36% to 4.3 million, and average revenue per user increased 8% to $157.
Chief Financial Officer Shiv Verma said the company’s broader business mix has strengthened its resilience. “It’s a much more durable business relative to 2022,” he said.
Robinhood has been expanding beyond core trading into areas such as prediction markets, credit cards, venture capital, and banking in an effort to diversify revenue streams.
However, prediction market activity has shown volatility, with trading volumes falling 29% month-on-month after the end of the football season, while analysts have raised concerns about declining retail investor engagement amid macroeconomic uncertainty.
Chief Executive Officer Vlad Tenev said the company is positioning itself for long-term growth. “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,” he said.
“In Q1, customers remained engaged and rapidly adopted new products, leading to a 20 percent-plus annualized net deposit growth rate, double digit growth across equities and options, and record volumes for prediction markets, futures, and index options,” Verma added.
“And Q2 is off to a good start in April, as equity and option trading volumes are on track to be the highest month of the year, and even with tax season, net deposits are approximately $5 billion month-to-date.”
Robinhood said it is continuing to invest in new initiatives, including artificial intelligence tools, tokenization infrastructure, and new account offerings, and raised its 2026 adjusted operating expense outlook to between $2.7 billion and $2.825 billion.