Robinhood Markets Inc. delivered a mixed Q1 2026 report: total revenue rose 15% year-over-year to $1.07 billion, net income edged up 3% to $346 million, and diluted EPS landed at $0.38. However, the headline masks a critical shift — cryptocurrency transaction revenue tumbled 47% to $134 million, while equities, options, and interest income filled the gap.
Equities and Interest Drive Growth as Crypto Weakens
Transaction-based revenue grew 7% to $623 million. Equities surged 46% to $82 million, options rose 8% to $260 million, and event contracts — a newer offering — contributed $147 million. Net interest income jumped 24% to $359 million, supported by a larger interest-earning asset base. Subscription revenue from Robinhood Gold climbed 32% to $50 million, with Gold subscribers reaching 4.3 million (up 36% YoY).
The crypto slowdown reflects weaker digital asset prices and lower retail engagement during the quarter. Nominal crypto trading volumes dropped sharply, especially in the core app. By contrast, the company's traditional trading businesses gained traction.
Asset Growth, International Expansion, and AI Push
Total platform assets under custody grew 39% to $307 billion, with net deposits of $17.7 billion (22% annualized growth). Funded accounts rose 6% to 27.4 million, while total investment accounts reached 29.1 million. Average revenue per user increased 8% to $157.
On the international front, Robinhood secured in-principle approval from regulators in Singapore and launched a testnet for its Ethereum-based Layer-2 blockchain aimed at tokenized assets. The company also expanded its AI suite under the Cortex platform, introducing social trading and AI-driven tools. Notably, Robinhood's investment fund acquired a $75 million stake in OpenAI, further opening private market access to retail investors.
Cost Control and Capital Returns
Operating expenses rose 18% to $656 million, driven by marketing and growth initiatives. Adjusted EBITDA increased 14% to $534 million, demonstrating improved operating leverage. Robinhood repurchased $250 million in shares during the quarter and renewed its buyback authorization at $1.5 billion.
CEO Vlad Tenev commented, “Driven by relentless product innovation, Robinhood is becoming more central to our customers’ financial lives as we enter the early stages of the great wealth transfer.” CFO Shiv Verma added, “We believe enormous opportunities lie ahead as we invest for the long term and deliver products faster than ever.”
Robinhood’s pivot from crypto dependency to a diversified mix of equities, interest income, and AI-driven products is well underway. Whether this can fully offset future digital asset volatility remains to be seen in the coming quarters.