Robinhood Markets Inc. delivered a solid start to 2026 with Q1 revenue of $1.07 billion, up 15% year-over-year, even as crypto trading revenue plunged 47% to $134 million. The results underscore a strategic shift from digital assets toward equities, options, and interest income as the company navigates a cooling retail crypto environment.
Key Financial Highlights
Net income rose 3% to $346 million, with diluted EPS of $0.38. Total platform assets surged 39% to $307 billion, supported by robust net deposits and rising equity valuations. Operating expenses climbed 18% to $656 million, but adjusted EBITDA still improved 14% to $534 million, indicating better operating leverage.
Crypto Weakness Reshapes Revenue Mix
Transaction-based revenue increased 7% to $623 million, but the composition changed dramatically. Crypto trading revenue fell 47% to $134 million, reflecting lower digital asset prices and reduced retail activity on the core app. Crypto notional trading volumes dropped sharply during the quarter.
In contrast, traditional trading lines gained ground. Equities revenue jumped 46% to $82 million, options revenue rose 8% to $260 million, and event contracts—a newer offering—generated $147 million. Net interest income climbed 24% to $359 million as the company benefited from a larger base of interest-earning assets.
Subscription and User Growth
Robinhood Gold subscription revenue grew 32% to $50 million, with premium users reaching 4.3 million, up 36% year-over-year. Funded accounts increased 6% to 27.4 million, while total investment accounts reached 29.1 million. Average revenue per user rose 8% to $157, reflecting better monetization.
Net deposits hit $17.7 billion in Q1, representing a 22% annualized growth rate. Customer engagement remained high as the platform rolled out new products.
Product Expansion and International Push
Robinhood is transforming beyond a trading app. It launched Cortex AI, an AI-powered investment toolkit, social trading features, and expanded banking and wealth management offerings. Internationally, the company obtained preliminary regulatory approval in Singapore and began testing an Ethereum-based Layer-2 blockchain for tokenized assets.
CEO Vlad Tenev commented: “Robinhood is increasingly positioned at the center of our customers’ financial lives, just as we enter the early innings of the Great Wealth Transfer.” CFO Shiv Verma added that rapid product adoption and long-term investments present massive opportunities.
Capital Allocation and OpenAI Investment
Robinhood repurchased $250 million in shares during Q1 and refreshed its buyback authorization to $1.5 billion. Additionally, Robinhood’s investment fund took a $75 million stake in OpenAI, deepening its push to give retail investors access to frontier technology.
The quarter paints a picture of a company in transition. With crypto activity cooling, Robinhood is leaning on equities, interest income, and new product verticals to sustain growth. Whether these efforts can fully offset the volatility of digital assets will be closely watched in the quarters ahead.