Article by Edward Sheldon
Robinhood Stock: Q1 Earnings Highlight Growth Runway
April 29, 2026 | Research Insights
After a huge move higher in 2025, Robinhood Markets stock has pulled back in 2026. Year to date, it is down over 30%1. Yet the company continues to grow at an impressive rate due to interest in stock market trading and prediction markets and its global expansion. So, could there be an opportunity to explore here?
A Solid Q1 Despite Crypto Weakness
Robinhood’s Q1 earnings2 were generally pretty solid. While crypto revenues were a weak spot (down 47% to $134 million), both equities revenues (up 46% to $82 million) and other (this includes prediction markets) transaction revenues (up 320% to $147 million) were up significantly.
Overall, total net revenues rose by 15% year-over-year to $1.07 billion. Net interest revenue was up 24% to $359 million.
It’s worth noting that operating expenses increased 18% year-over-year to $656 million. This was due to marketing and growth investments and acquisition-related expenses.
This increase in expenses impacted profitability, with earnings per share only rising 3% to $0.38 (missing the consensus forecast of $0.443). Adjusted EBITDA, however, was up 14% year-over-year to $534 million.
Operational Momentum
On the operational side of things, the company showed progress with funded customers rising 6% to 27.4 million and investment accounts rising 8% to 29.1 million. Notably, Robinhood Gold subscribers grew 36% year-over-year to a record 4.3 million. At the end of the quarter, total platform assets stood at $307 billion. This represented an increase of 39% year-over-year.
In terms of trading volumes:
Equity notional trading volumes increased 54% year-over-year to $638 billion.
Options contracts traded increased 17% year-over-year to 586 million.
Event contracts traded were a record 8.8 billion.
Crypto notional trading volumes decreased 48% to $66 billion.
New Products and Continued Global Expansion
Importantly, the company released numerous new products and features in Q1, which should help to drive growth in the future. Examples here include its trust and custodial accounts (part of its new family investing experience), the Robinhood Platinum Card, and the Robinhood Ventures Fund I – a NYSE-listed closed-end investment fund that offers retail investors access to the private markets.
Additionally, the company expanded its global footprint. One highlight here was approval from the Monetary Authority of Singapore to offer a comprehensive suite of brokerage services.
It’s worth pointing out that in April, the U.S. Department of the Treasury announced that Robinhood will be the broker and sole initial trustee for Trump Accounts. This will see Robinhood build and run the standalone Trump Account app, host dedicated customer support, provide educational content, and custody the account assets.
This could be a big opportunity for the company. Already, around five million children have signed up for these accounts according to Treasury Secretary Scott Bessent4.
Robinhood: Valuation and Price Targets
After the recent share price decline, Robinhood’s valuation has come down significantly. With analysts forecasting earnings per share of $2.183 this year, the stock is now trading on a forward-looking P/E ratio of less than 35.
Taking next year’s earnings forecast of $2.733, the P/E ratio is below 30. So, the stock is far less expensive than it has been in the past.
As for analyst price targets, the average price target5 is currently $101. That is more than 30% above the current share price.
However, several firms have price targets that are well above this. Bernstein SocGen5, for example, currently has a price target of $130.
In light of this valuation compression, and analysts' bullish price targets, Robinhood stock could be worthy of further research right now. In the near term, crypto market weakness may continue to hamper the company’s growth, however, in the long run, the group’s growth runway looks expansive.
Disclaimer: The author has positions in Robinhood Markets
Footnotes:
1Google Finance, as of April 29, 2026
2Robinhood Reports First Quarter 2026 Results, as оf April 28, 2026
3LSEG, as of April 29, 2026
4CNBC, Trump Accounts for kids now total 5 million, and 1.2 million can get $1,000 seed money, Bessent says, as of April 15, 2026
5BBC, Lufthansa cuts 20,000 summer flights as fuel prices surge, as of April 21, 2026
6Investing.com, Robinhood Markets Inc (HOOD), as of April 28, 2026
