robinhood (NASDAQ:HOOD) shares are down more than 13% today following a disappointing first-quarter earnings report.
Yesterday, Robinhood reported Its revenues exceeded $1.07 billion, an increase of 15% compared to the same quarter of the previous year. Funded accounts increased by over 400,000 during the quarter.
Transaction-based revenues increased 7% compared to the first quarter of 2025 to $623 million; This was largely driven by “other transaction revenues” of $147 million, up 32%, primarily from its new event marketplaces platform.
Options revenue rose 8% to $260 million and equity revenue rose 46% to $82 million, partially offset by cryptocurrency revenue of $134 million, down 47%.
Crypto revenue has been particularly disappointing, as some observers attribute Robinhood’s performance to the booming digital asset sector.
Net income increased 3% year over year to $346 million, resulting in EPS of $0.38.
Analysts expected revenue of $1.13 to $1.17 and earnings per share of $0.39 to $0.41. So Robinhood was disappointed.
While Robinhood claims to be number one in the global financial ecosystem, it has touted its platform as the leading platform for active investors.
Robinhood increased spending even further, adding to the disappointment in performance.
CEO Vlad Tenev visited CNBC this morning, where he claimed the market’s understanding of Robinhood is “lagging behind the reality.” He explained that Robinhood is building a diversified financial platform and highlighted new features such as the increasingly popular event marketplace.
