Robinhood Markets Inc. kicked off 2026 with steady growth despite a sharp decline in cryptocurrency trading activity, which had previously been a key driver of the platform. The trading app reported first-quarter revenue of $1.07 billion, up 15% year-over-year, and net income of $346 million, edging 3% higher. Diluted earnings per share stood at $0.38. Total assets under custody surged 39% to $307 billion, fueled by net deposits and rising equity valuations.
Crypto Revenue Halves, Stocks and Options Fill the Gap
Robinhood's cryptocurrency transaction revenue plummeted 47% to $134 million, reflecting weak digital asset prices and diminished retail trading activity during the quarter. Notably, notional crypto trading volumes on the core app saw a significant drop. In contrast, the company's traditional trading segment strengthened: stock revenue jumped 46% to $82 million, options revenue rose 8% to $260 million, and new event contracts contributed $147 million. Total transaction-based revenue, including stocks and options, reached $623 million, up 7%.
Interest and Subscription Income Shine
Net interest revenue grew 24% to $359 million, supported by a larger interest-earning asset base. Robinhood Gold subscription revenue increased 32% to $50 million, helping drive other revenue up 57%. The platform ended the quarter with 27.4 million funded accounts (up 6%) and 29.1 million total investment accounts. Average revenue per user rose 8% to $157. Net deposits reached $17.7 billion, representing a 22% annualized growth rate.
Expansion Beyond Trading: AI, Crypto L2, and OpenAI
Robinhood is aggressively diversifying. Operating expenses rose 18% to $656 million due to marketing and growth initiatives, but adjusted EBITDA still climbed 14% to $534 million, indicating improving operational leverage. The company launched new AI tools on its Cortex platform, introduced social trading features, and expanded banking and wealth management services. Internationally, it obtained preliminary regulatory approval in Singapore and activated a test network for an Ethereum-based Layer 2 blockchain to support tokenized assets. In a strategic bet on private markets, Robinhood's venture fund invested $75 million in OpenAI, aiming to give retail investors access to pre-IPO opportunities.
Capital Allocation and Outlook
During the quarter, Robinhood repurchased $250 million in shares and increased its buyback authorization to $1.5 billion. CEO Vlad Tenev commented, “With relentless product velocity and innovation, Robinhood is becoming increasingly central to customers’ financial lives at the onset of the Great Wealth Transfer.” While crypto trading remains subdued, the company is pivoting toward equities, interest income, and new product verticals, betting that long-term investments in AI and blockchain infrastructure will offset crypto volatility in future quarters.