Robinhood Markets released its Q1 2026 earnings, showcasing strong overall revenue growth despite a sharp decline in cryptocurrency-related activities, signaling a major shift in the company's revenue composition.
Earnings Overview: Revenue Up 15%, Profit Edges Higher
Robinhood reported Q1 total revenue of $1.07 billion, up 15% year-over-year. Net income reached $346 million, a 3% increase, with diluted earnings per share of $0.38. Total assets under custody (AUC) surged 39% to $307 billion, supported by strong net deposits and asset appreciation.
Crypto Slump Offsets as Equities Surge
Cryptocurrency transaction revenue, once a key growth driver, plummeted 47% to $134 million, reflecting lower digital asset prices and subdued retail trading activity. In contrast, transaction-based revenue overall rose 7% to $623 million, powered by a 46% jump in equities revenue ($82 million) and an 8% increase in options revenue ($260 million). New event contracts quickly gained traction, contributing $147 million.
“Driven by relentless product velocity and innovation, Robinhood is increasingly becoming the center of our customers’ financial lives as we enter the early innings of the Great Asset Transfer,” said Vlad Tenev, Chairman and CEO of Robinhood.
Interest and Subscription Income Strengthen
Net interest income grew 24% to $359 million, driven by expansion in interest-earning assets. Robinhood Gold subscription revenue rose 32% to $50 million, boosting other revenues by 57%. Funded accounts increased 6% to 27.4 million, and total investment accounts reached 29.1 million, with average revenue per user (ARPU) up 8% to $157.
International Expansion and New Tech Initiatives
Robinhood is pushing global growth, having secured temporary regulatory approval in Singapore and launched an Ethereum-based L2 blockchain testnet aimed at supporting tokenized assets. The company also plans to roll out an AI-powered platform 'Cortex' and social trading features in 2026. CFO Shiv Verma stated, “Customers continued to show high engagement and rapid adoption of new products, and we see significant long-term opportunities ahead.”
During the quarter, Robinhood repurchased $250 million in shares and refreshed its buyback authorization to $1.5 billion. Although crypto activity has waned, the company is diversifying revenue streams to reduce dependency on any single asset class. The coming quarters will reveal whether these new initiatives can fully offset digital asset volatility.