HOOD, which delivered over three times the profit for me last year (bought at 40 in May, cleared at an average price of 120 in November), has a very small position this year. I will look for opportunities to add to the position or sell puts tonight, and remain bullish in the long term.
Earnings report data:
HOOD's Q1 2026 revenue was $1.07 billion, a 15% year-over-year increase; diluted earnings per share were $0.38, a 3% year-over-year increase, missing expectations, with a 9% drop after hours.
Trading revenue increased 7% year-over-year to $623 million, primarily driven by other trading revenue of $147 million (up 320%, mainly including event contract revenue), options revenue of $260 million (up 8%), and equities revenue of $82 million (up 46%), but partially offset by cryptocurrency revenue of $134 million (down 47%).
Net interest revenue increased 24% year-over-year to $359 million, primarily driven by growth in interest-earning assets, but partially offset by lower short-term interest rates and securities lending activity.
Other revenue increased 57% year-over-year to $85 million, primarily driven by Robinhood Gold subscription revenue of $50 million (up 32%).
Robinhood Gold subscribers increased by 1.2 million (36%) year-over-year, reaching 4.3 million.
Average revenue per user (“ARPU”) increased 8% year-over-year to $157.
Outlook
The company did not provide numerical guidance for next quarter's revenue or EPS. Regarding the full-year expense outlook, the 2026 guidance for Adjusted Operating Expenses and SBC was raised from the previous $2.6-$2.725 billion to $2.7-$2.825 billion, with approximately $100 million added for building and supporting the Trump Accounts user interface. The company stated Q2 started strong, with April equities and options trading volume expected to be the highest single month of the year, and net deposits of approximately $5 billion month-to-date.
Robinhood Chairman and CEO Vlad Tenev said, “As we enter the early stages of the ‘Great Wealth Transfer,’ Robinhood is increasingly becoming the center of our customers’ financial lives thanks to our relentless product velocity and innovation.”
Share Repurchase
Robinhood returned approximately $200 million to shareholders this fiscal year through repurchases and dividends combined. As of quarter-end, the remaining share repurchase authorization was approximately $1.5 billion.
$Robinhood(HOOD.US)
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