HOOD Stock Tumbles As Drop In Crypto Trading Biz Causes Revenue, Earnings Miss

• HOOD reports earnings of $0.38 per share, missing estimates of $0.39 per share.
• Expects additional $100 million investment in 2026 to support Trump Accounts. 
• Expects adjusted expenses for 2026 at $2.7 billion to $2.825 billion, compared to the previously quoted $2.6 billion and $2.725 billion.  

Robinhood Markets (HOOD) stock tumbled 7% after-hours after the firm’s Q1 revenue and earnings missed analyst expectations owing to weakness in its cryptocurrency business. 

The brokerage firm posted earnings of $0.38, below expectations of $0.39. Revenue came in at $1.07 billion, where analysts were looking for $1.14 billion, according to estimates compiled by Fiscal.ai. For the same period a year ago, earnings per share were $0.37 on revenue of $927 million. 

Cryptocurrency revenue, which forms a major chunk of Robinhood’s total revenues, came in at $134 million, down 47% from the same quarter last year. Bitcoin, Ethereum, and other cryptocurrencies have lost significant value so far this year as investors pulled back from investing in high-risk assets such as cryptos, as geopolitics dampened risk sentiment. 

HOOD’s Q1 profit was also its smallest in a year, highlighting signs that retail investors are limiting their exposure to riskier investment products like cryptos. 

Last year, the California-based firm benefited from a booming crypto market, with its stock price peaking alongside Bitcoin at an all-time high of $153.86 in October 2025.

“Robinhood is increasingly positioned at the center of our customers’ financial lives,” Chairman and CEO Vlad Tenev said in a statement.

HOOD 2026 Guidance

The firm chose not to provide its 2026 total expense outlook and also missed providing any forward-looking guidance on revenues. 

“We are not providing a 2026 outlook for total operating expenses…,” Robinhood said. “We are unable to predict with reasonable certainty the impact of certain items without unreasonable effort.”

However, it flagged a $100 million additional investment it will make to Trump Accounts. “We now anticipate investing an additional $100 million to build and support the user interface for Trump Accounts, which was not included in our prior outlook. Our work for Trump Accounts is contracted on a cost-plus basis with a small margin, so we expect revenues to exceed costs. As a result, our updated outlook for 2026 Adjusted Operating Expenses and SBC is $2.7 billion to $2.825 billion,” said the company.

Trump accounts (also known as 530A accounts) are new tax-advantaged investment vehicles created in 2025, designed for children under 18, featuring a $1,000 federal seed contribution for newborns and allowing for tax-deferred growth in stock market index funds. 

Retail View On HOOD

Retail sentiment on Stocktwits was ‘bullish,’ and message volumes were ‘high.’ 

One user highlighted that HOOD stock matches crypto moves, and until that changes, nothing will. 

HOOD stock has lost 27% over the past 12 months.