Robinhood Misses Q1, Hood Stock Falls on $100M Expense Lift
hood stock slipped after Robinhood Markets reported $1.07 billion in Q1 revenue, below the $1.14 billion estimate, and posted EPS of $0.38 versus $0.39 expected. The miss ended a four-quarter beat streak and came as the company lifted 2026 adjusted operating expense guidance by $100 million.
For holders of the stock, the message was simple: revenue came in short while spending plans moved higher. Robinhood said the added outlay would fund Trump Accounts infrastructure, a cost commitment that arrives while its earnings power is still tied to trading activity.
Robinhood Revenue Miss
$1.07 billion in Q1 revenue marked a 6.1% shortfall versus expectations, while the $0.38 per-share result missed by a penny. That combination mattered because it broke the company’s four-quarter beat streak and showed less room for error in a business already priced at a trailing P/E of 36 and a forward P/E of 38.
47% was the year-over-year drop in cryptocurrency revenue, which fell to $134 million. That decline helps explain why the quarter did not keep pace with forecasts: Robinhood’s operating expenses grew 18% while revenue rose 15%, leaving costs moving faster than sales.
Expense Guidance Rises $100 Million
$2.70 billion to $2.825 billion is Robinhood’s new range for 2026 adjusted operating expense guidance after a $100 million increase. The company tied the higher spending to Trump Accounts infrastructure, so investors now have a clearer cost target but a heavier expense load to absorb if trading activity cools again.
33.02% was Robinhood’s year-to-date decline, a reminder that the market has already been discounting uneven earnings power. The stock’s beta of 2.294 also leaves it more sensitive than steadier brokerage peers when revenue or spending swings one way or the other.
Schwab Sets the Contrast
$1.43 per share was Charles Schwab’s Q1 EPS, above the $1.3883 consensus, as GAAP net income rose 29.86% year over year to $2.479 billion. Net interest revenue climbed 16% to $3.144 billion, while the average deposit rate fell from 0.72% to 0.20% and net interest margin expanded to 2.88%.
39.1 million active brokerage accounts and $11.77 trillion in total client assets gave Schwab a much larger asset base than Robinhood’s trading-led model. Rick Wurster said, “Schwab's strong business momentum continued into 2026 as investors opened 1.3 million new brokerage accounts and brought $140 billion of core net new assets to the firm during the first quarter.”
24.3 million shares repurchased and $2.4 billion added to buybacks rounded out Schwab’s quarter, along with a dividend increase from $0.27 to $0.32 per share. That contrast leaves Robinhood facing a different test: whether it can rebuild revenue momentum fast enough to justify higher spending before the next stretch of trading slows again.
