Robinhood Markets Inc. kicked off 2026 with solid top-line growth despite a sharp decline in cryptocurrency trading activity. The trading platform reported first-quarter revenue of $1.07 billion, up 15% year-over-year, while net income edged up 3% to $346 million, or $0.38 per diluted share. Total assets on the platform surged 39% to $307 billion, fueled by net deposit growth and rising equity values.
Crypto Revenue Tumbles, Equities and Options Surge
Once the primary growth driver, Robinhood’s crypto business faced headwinds. Cryptocurrency transaction revenue dropped 47% to $134 million, reflecting subdued digital asset prices and lower retail trading activity during the quarter. Notably, notional crypto volumes on the core app declined sharply. In contrast, the traditional trading business strengthened: transaction-based revenue rose 7% to $623 million, with equity revenue jumping 46% to $82 million and options revenue up 8% to $260 million. A new product, event contracts, contributed $147 million in revenue, signaling successful diversification.
Interest Income and Subscriptions Expand
Net interest revenue grew 24% to $359 million, driven by a larger interest-earning asset base. Subscription revenue from Robinhood Gold increased 32% to $50 million. Operating expenses rose 18% to $656 million, mainly due to marketing and growth initiatives. Adjusted EBITDA climbed 14% to $534 million, indicating improving operating leverage.
User Growth and Product Innovation
Customer engagement remained robust. Net deposits totaled $17.7 billion in Q1, implying a 22% annualized growth rate. Funded accounts increased 6% to 27.4 million, while total investment accounts reached 29.1 million. Average revenue per user rose 8% to $157. CEO Vlad Tenev commented, “Driven by relentless product velocity and innovation, Robinhood is increasingly becoming the center of our customers’ financial lives as the Great Wealth Transfer begins.” The company launched AI-powered tools under the Cortex platform, social trading features, and expanded banking and wealth management services. Internationally, Robinhood secured preliminary regulatory approval in Singapore and launched a testnet for an Ethereum-based Layer 2 blockchain to support tokenized assets. Additionally, Robinhood’s investment fund deployed $75 million into OpenAI to offer retail investors access to private markets.
Capital Allocation and Outlook
Robinhood repurchased $250 million of its stock during the quarter and increased its buyback authorization to $1.5 billion. CFO Shiv Verma stated, “We believe there is immense opportunity ahead as we continue to invest for the long term, ship products faster than ever, and deliver value to shareholders.” While crypto revenue suffered, the company is pivoting toward equities, options, event contracts, and interest income to reduce dependence on digital asset volatility. Investors will watch whether these efforts can fully offset crypto market headwinds in the coming quarters.