Robinhood Markets oznámí hospodářské výsledky za 2. čtvrtletí 29. července. Kryptoměnové tržby v 1. čtvrtletí klesly meziročně o 47 %, což dál tlačí růst.
Hot stock Robinhood Markets (HOOD +2.79%) hasn't been so hot for most of 2026. It's starting to recover, though, and it's roughly flat year to date.
The trading platform reports second-quarter earnings on July 29. Is now the time to buy?
What to expect in the second-quarter report Management doesn't provide a full quarterly outlook, but it does provide guidance around operating expenses, and it has planned expenses to "accelerate product velocity, drive net deposit growth, and grow revenues."
Robinhood has expanded into being much more than a stock trading platform. It also offers cryptocurrency and options trading, as well as several traditional banking products, such as a credit card. It also offers a premium membership program called Robinhood Gold, and it recently launched the prediction markets segment and the Robinhood Social social media app.
Image source: Getty Images.
It generates higher revenue when users trade on their accounts, and launching new products as well as attracting higher deposits should lead to increased revenue. What's been happening is that cryptocurrency, and specifically Bitcoin, is falling, and lower trading is negatively affecting Robinhood's growth.
Last year, cryptocurrency trading revenue increased 98% year over year in the second quarter, implying that this year, there will be either a major slowdown or a decline. In the 2026 first quarter, it declined 47%, which doesn't bode well for the second quarter. This might have already been factored into the stock, but now that the stock has recovered, it could drop again on bad news.
On the positive side, it has been setting up a new product to benefit from Trump accounts, which should be a positive impact on the business, and it was one of the platforms chosen for the Space Exploration Technologies (SpaceX) initial public offering, which could also add more revenue.
How will Robinhood stock react? Robinhood may have a long growth runway as it disrupts traditional finance, but its growth minus cryptocurrency is somewhat underwhelming. Revenue increased 15% year over year in the first quarter. It added 1.7 million funded customers in the first quarter, a 6% year-over-year increase, for a total of 27.4 million. Robinhood Gold members increased by 1.2 million, or a 36% increase, to 4.3 million.
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Since the stock is heading back up, it's becoming more expensive again. It trades at 37 times forward one-year earnings, which is rich, especially as revenue growth slows down.
Since there are reasons to suspect the pressure related to cryptocurrency has yet to abate, I wouldn't buy Robinhood stock before the report with the expectation that it will jump. I would only recommend buying it if you see the long-term vision and can hold through volatility.
Robinhood Markets is weighing the sale of between $400 million and $500 million of asset-backed securities, including a bond backed by bills for its branded consumer credit cards, Bloomberg reported Monday (July 13), citing unnamed sources.
The company is currently gauging investor interest in the bond, which would be its first such offering, according to the report.
Robinhood did not immediately reply to PYMNTS’ request for comment.
According to the Bloomberg report, Capital One Financial sold $3.85 billion in bonds backed by card receivables last week.
Robinhood announced June 25 that it closed an offering of $2.2 billion of 0.00% convertible senior notes due 2029.
The company said at the time in a press release that the transaction enhanced its “strategic flexibility to invest for future growth” and that it would use about $290 million of the proceeds to repurchase outstanding Class A common stock.
PYMNTS reported in April that Robinhood’s first quarter earnings reflected the company’s deliberate pivot from a trading app tied to retail speculation toward an integrated financial platform built to capture long-term customer value.
“Driven by our relentless product velocity and innovation, Robinhood is increasingly positioned at the center of our customers’ financial lives, just as we enter the early innings of the Great Wealth Transfer,” Robinhood Chairman and CEO Vlad Tenev said during the earnings call.
Robinhood’s March 2024 launch of a credit card marked the continuing expansion of the company into financial services at that time.
The company said at the time that it recognized the need for change and that it sought to reimagine the credit card experience with the launch of the Robinhood Gold Card.
PYMNTS reported at the time that while Robinhood made a name for itself as a stock trading and investment app, it had begun to broaden its horizons.
Robinhood announced in March that it introduced a high-end credit card with a $695 annual fee and luxury perks as part of a suite of new products centered on family finance.
In May, the company launched Agentic Trading and the Agentic Credit Card, which allows artificial intelligence agents to make trades and credit card purchases on a customer’s behalf.
Shares of Robinhood Markets (HOOD 3.96%) were down by more than 40% year to date at one point but have rapidly closed the gap. The stock has surged by more than 80% from its 52-week low, and it's certainly no fluke. Fundamentals continue to improve, and a major headwind that has plagued Robinhood this year will have a limited impact in future years.
Image source: Getty Images.
Understanding crypto's role in Robinhood's earnings Robinhood's 15% year-over-year revenue growth in the first quarter was disappointing for investors who have come to know the fintech company. The same business grew by 50% year over year in the 2025 first quarter and was up by another 40% a year earlier.
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Those growth rates all boil down to crypto transaction revenue. This part of the business more than tripled in 2024 and doubled in 2025, when comparing the respective first quarters of those years. In the first quarter of this year, that same part of the business was down by 47% year over year.
That backdrop makes the 15% growth rate look more impressive since Robinhood is gradually becoming less reliant on crypto. Fellow fintech Coinbase Global is practically an all-in crypto play, and that has resulted in sizable year-over-year revenue drops in recent quarters. Coinbase saw its overall revenue tumble by more than 30% year over year in the first quarter.
Robinhood was prepared for the crypto crash Coinbase has been scrambling to diversify beyond crypto. It offered stock trading at the end of 2025 and opened up prediction markets on its platform earlier this year. Robinhood was well ahead of the curve on this.
Robinhood became famous due to its zero-commission stock trading that revolutionized the entire brokerage industry. This backstory cemented it as a company that isn't just into crypto, while it will be harder for Coinbase to break out of that mold.
Prediction markets are still an area of strength for Robinhood. That part of the business was the key contributor to "other transaction revenue," which more than quadrupled year over year. It now makes up more than 10% of total sales. Options revenue inched up by 8% year over year and made up more than one-quarter of total sales. Robinhood also generates more than one-third of its revenue from margin interest, and that part of the business grew by 24% year over year.
The fintech has several high-growth products that minimize the impact of fewer crypto trades. A crypto bull market will send Robinhood higher, but it's not necessary. Crypto barely made up 10% of the company's total revenue, and the remaining parts of the business are growing.
Crypto's reduced impact on Robinhood's financials, plus the company's success in multiple verticals, will result in easy year-over-year comparables in 2027. While Robinhood reported 15% year-over-year revenue growth in the recent first quarter, it's likely to deliver a much higher rate in the same period in 2027. That's part of the reason investors are loading up on the stock and betting on a comeback.
Robinhood má silný růst byznysu: platformová aktiva v květnu dosáhla 377 miliard USD a Gold předplatitelé vzrostli na rekordních 4,3 milionu. Tržby a EPS ale zatím brzdí vyšší náklady a slabší odhady.
Every so often, a stock arrives at a genuinely interesting disconnect — where the underlying business is firing on all cylinders while the near-term earnings math tells a more cautious story.
Right now, Robinhood sits at a Zacks Rank #3 (Hold), and that comes down to the engine that drives the Zacks Rank: earnings estimate revisions. First-quarter 2026 results disappointed back in April, with EPS of $0.38 falling short of the $0.41 consensus and revenue of $1.07 billion missing expectations, sending the stock down nearly 15% on the print.
Management also raised its full-year operating-expense outlook by $100 million to fund the build-out of the new “Trump Accounts” initiative, adding cost pressure. As a result, the 2026 Zacks Consensus Estimate has been trimmed to around $1.81 per share, which implies a year-over-year decline of roughly 12%.
That is not the rising-estimate profile that earns a top rank. But the stock has flipped back into an uptrend, sending shares surging more than 70% off the late-April bottom and warranting renewed attention.
Image Source: StockCharts
How Robinhood’s Rating Could Improve Now to the other side of the ledger — because it’s substantial. Strip away the quarterly earnings noise and Robinhood’s core growth metrics are, frankly, remarkable. Total platform assets reached $377 billion in May, a 48% year-over-year jump, while net deposits of $18 billion in the first quarter extended a streak of 20%-plus annualized growth that management has called its “North Star” metric.
Gold subscribers hit a record 4.3 million, up 36% relative to the same time last year, and now account for roughly 40% of new customers — a powerful signal that Robinhood is deepening its relationship with users, not just adding accounts.
This matters enormously because a larger, stickier asset base compounds into higher net interest income, securities-lending revenue, and transaction activity, creating durable, recurring income streams that cushion the company against the trading-volume volatility that has historically defined it.
The diversification story is where the bull case really takes shape. Robinhood is methodically transforming from a commission-free trading app into a full-spectrum financial platform. Robinhood Banking has grown fivefold in a single earnings cycle, with over $2 billion in net deposits and a 40% direct-deposit attach rate.
Gold credit cards surpassed 800,000 customers with $15 billion in annualized purchase volume, on track to exceed one million cards. And perhaps most intriguing is the push into prediction markets through Rothera, the exchange Robinhood built with Susquehanna. Event contracts have exploded — more than 12 billion traded in 2025 and over 16 billion so far in 2026 — and by routing this flow through infrastructure it controls, Robinhood can capture more economics, control listings, and tighten the customer experience.
With the World Cup providing a marquee mainstream test, Rothera represents exactly the kind of new revenue lever that doesn’t depend on stock-trading activity.
Crucially, management’s own guidance points toward recovery: it has projected second-quarter EPS around $0.45 and revenue near $1.23 billion. And while 2026 estimates imply a slowdown, the 2027 Zacks Consensus EPS Estimate of $2.49 implies about 37% growth — evidence that analysts see the current soft patch as temporary rather than structural.
Image Source: Zacks Investment Research
This brings us to the catalyst that could change the entire complexion of the story: the July 29th earnings release. The Zacks Rank is, at its heart, a momentum indicator for estimate revisions — and a strong second-quarter print, particularly one accompanied by raised guidance, could flip that trend from negative to positive.
If Robinhood delivers a beat and demonstrates that its banking, credit, and prediction-market initiatives are scaling faster than the market appreciates, upward estimate revisions would likely follow, and with them the potential for a Zacks Rank upgrade. In other words, the same mechanism keeping HOOD at a Hold today could work powerfully in its favor. That is precisely the kind of setup patient, forward-looking investors like to position ahead of.
Bottom LineThe current Zacks Rank #3 (Hold) for HOOD exists for good reason — 2026 estimates are falling, the company missed last quarter, and elevated spending is pressuring near-term profitability. The valuation leaves little room for error, with Robinhood trading at a steep premium to its industry.
Yet Robinhood is a genuinely high-quality, fast-compounding fintech that has proven itself over the past few years. The underlying business tells a story of accelerating asset growth, deepening customer engagement, and a widening set of revenue engines that increasingly insulate the company from its trading-volume roots.
The late July date should be circled on the calendar: a strong print could be the spark that re-rates both the estimates and the stock. Robinhood hasn’t yet earned its way back to a Strong Buy — but it may be closer than the current rank suggests.
Disclosure: Robinhood (HOOD - Free Report) is a current holding in the Zacks Headline Trader portfolio.
Shares of Robinhood Markets (HOOD +3.75%) climbed 14% this past week after the financial services company unveiled an array of new product innovations.
Image source: The Motley Fool.
Going global With roughly 28 million customers in 38 countries, Robinhood's financial platform already possesses impressive scale and reach. Yet it continues to expand into new markets.
Robinhood's acquisition of digital asset services provider WonderFi in June gave it a beachhead in Canada. The fintech platform also plans to launch crypto trading and brokerage services in the U.K. and Singapore.
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In addition to entering new international markets, Robinhood launched its new stock tokens in over 120 countries. The tokenized debt securities are designed to offer economic exposure to popular stocks and ETFs. They're tradable 24 hours a day, 7 days a week.
Robinhood also expanded its popular perpetual futures offering in European markets to include commodities, ETFs, and foreign currencies.
Agentic trading Investors were perhaps most intrigued by Robinhood's plans to integrate more artificial intelligence (AI)-powered features into its platform. Robinhood wants to become a hub for agentic AI trading by enabling its customers to use AI agents to buy and sell stocks, options, and cryptocurrencies on their behalf.
Many of these products and services will be enabled by the fintech's new blockchain platform, Robinhood Chain. The Layer 2 blockchain is built on the Arbitrum Platform and integrates with leading decentralized finance networks like Chainlink and Uniswap.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chainlink and Uniswap Protocol Token. The Motley Fool has a disclosure policy.
Robinhood Markets v první polovině roku klesl o 11 %, ale za poslední tři měsíce už přidal 45 %. Pokles táhl hlavně propad kryptoměn, který zpomalil růst tržeb.
Robinhood Markets (HOOD +3.75%) stock fell 11% in the first half of the year, according to data provided by S&P Global Market Intelligence. It had been following the trajectory of Bitcoin, which was plunging, but it has started to climb back up.
More than cryptocurrency Robinhood is still a fairly small company, with $4.6 billion in trailing 12-month revenue, but it has already had a major impact on the markets. It introduced the fee-free trade, which is now standard for trading platforms, and it has been following that up with many fintech innovations.
Image source: Getty Images.
That hasn't been entirely positive for the company. Although it was reporting high growth, much of it was coming from cryptocurrency trading. The Bitcoin drop led to a contraction in growth. Some of its other innovations, like its Prediction Markets segment, are risky.
On the plus side, it was one of the trading platforms chosen for retail investor access to the Space Exploration Technologies (SpaceX) initial public offering (IPO), and it was recently approved to underwrite IPOs as well.
It's also introducing many traditional services in its bid to become a major financial player, including credit cards and bank accounts. These services provide stability and minimize the risk of other types of products.
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With cryptocurrency trading falling, revenue growth has been mediocre. Revenue increased 15% year over year in the 2026 first quarter, a huge slowdown from 50% last year. This included a 47% decrease in cryptocurrency trading revenue and 46% increase in equities trading revenue.
There were many positives in the quarter, though, including a 39% increase in platform assets and a 36% increase in Robinhood Gold subscribers, its membership program, for a total of 4.3 million. It added half a million funded accounts, and Robinhood banking grew fivefold sequentially.
Priced to buy? The 11% decrease in the first half of the year obscures the recent climb -- Robinhood stock is up 45% over the past three months. Investors are impressed with the company's new capabilities and future opportunities.
It also became much cheaper at the lower price. Robinhood stock had been priced for perfection, which made it susceptible to falling under pressure, and that's what happened.
It now trades at a P/E ratio of 55 and a price-to-sales ratio of 22, so it may be returning to premium levels. Risk-tolerant investors who have a long-term horizon might want to take a small position at this price, but as it gets more expensive, it gets back to becoming susceptible to another fall.
Shares of Robinhood Markets (HOOD) closed the holiday-shortened week in strong fashion, surging after the financial technology (fintech) company introduced Robinhood Chain — an internally developed Ethereum-based layer 2 blockchain that will serve as a foundation for the company’s burgeoning presence in the world of tokenized assets.
The news sent the Direxion Daily HOOD Bull 2X ETF (HODU) — designed to deliver 200% of the daily returns of the stock — soaring, confirming the ETF lived up to its billing as a fine one-day instrument. That doesn’t mean tactical traders should ignore the geared Robinhood ETF going forward. As Robinhood Chain evolves, it could be a headline-generator and catalyst for short-term usage of HODU.
“Without institutional-grade oracle infrastructure, tokenized assets cannot scale or maintain the security required by regulated market participants,” according to the company. “Operating as an Ethereum layer-2 network built on Arbitrum’s Orbit technology, Robinhood Chain addresses these inefficiencies with Chainlink by establishing an environment built specifically to unlock advanced onchain finance use cases for everyday Robinhood users.”
Tailwinds Abound for HOOD, HODU Wall Street is taking note of Robinhood’s broadening product base — one that could bring opportunity for traders to embrace the leveraged HODU. On Thursday, Mizuho named the financial services stock one of its top picks for the month of July. Analyst Dan Dolev rates the stock “outperform” with a $115 price target.
“Investors have been concerned historically with HOOD’s user graduation risk (i.e. leaving HOOD for a financial advisor),” Dolev wrote in a report to clients. “We believe that the company has done an impressive job mitigating these factors through the acquisition of TradePMR (financial advisor marketplace) as well as its continued strong execution on its product roadmap of comprehensive financial services.”
Another well-documented catalyst for Robinhood and HODU is the company’s emerging prediction market footprint. A recent report by Artemis suggests that as of June 25, 12.3 billion event contracts changed hands via Robinhood, potentially (not confirmed) stoking revenue of $123 million. If that proves to be the quarterly number, it’d put the company within striking distance of its previously stated goal of a $500 million annual run rate in event contracts.
Robinhood’s event contract growth is important for another reason that’s relevant to traders considering HODU. That business could soon surpass cryptocurrency in terms of revenue contributions. Crypto is arguably the more volatile of those two endeavors. Said another way, Robinhood’s digital currency transaction revenue can and does languish during crypto bear markets.
For more news, information, and strategy, visit the Leveraged & Inverse Content Hub.
July 02, 2026 16:05 ET | Source: Robinhood Markets, Inc.
MENLO PARK, Calif., July 02, 2026 (GLOBE NEWSWIRE) -- Today, Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) announced that it will release its second quarter 2026 financial results on Wednesday, July 29, 2026, after market close. Robinhood will host a video call with Chairman & Chief Executive Officer Vlad Tenev and Chief Financial Officer Shiv Verma to discuss its results at 2:00 PM PT / 5:00 PM ET on the same day. The video call and supporting materials will be available at investors.robinhood.com. The event will also be live streamed to YouTube and X.com via Robinhood’s official channels, @RobinhoodApp, and within the Robinhood mobile app. Following the call, a replay and transcript will be available at investors.robinhood.com.
Ahead of the call, Robinhood shareholders can visit https://app.saytechnologies.com/robinhood-markets-2026-q2 to submit and upvote questions for management using the Q&A platform developed by Say Technologies. The Q&A platform will be open for question submission starting Wednesday, July 22, 2026, at 2:00 PM PT / 5:00 PM ET. Shareholders will be able to submit and upvote questions until Tuesday, July 28, 2026, at 2:00 PM PT / 5:00 PM ET. Management will address a selection of the most upvoted questions relating to Robinhood’s business and financial results on the earnings call. Shareholders can email [email protected] for any support inquiries.
About Robinhood
Robinhood Markets, Inc. (NASDAQ: HOOD) is a global leader in financial services offering retail brokerage, crypto, advisory, digital banking services, and private markets access to a new generation of investors. Additional information about Robinhood can be found at robinhood.com.
Robinhood uses the “Overview” tab of its Investor Relations website (accessible at investors.robinhood.com/overview) and its Newsroom (accessible at newsroom.aboutrobinhood.com), as means of disclosing information to the public in a broad, non-exclusionary manner for purposes of the U.S. Securities and Exchange Commission (SEC) Regulation Fair Disclosure (Reg. FD). Investors should routinely monitor those web pages, in addition to Robinhood’s press releases, SEC filings, and public conference calls and webcasts, as information posted on them could be deemed to be material information.
“Robinhood” and the Robinhood feather logo are registered trademarks of Robinhood Markets, Inc. All other names are trademarks and/or registered trademarks of their respective owners.
Vlad Tenev uvedl, že Británie by měla převzít americké kroky na podporu vlastnictví akcií drobnými investory. Robinhood chce v Británii zvýšit zájem o domácí akcie.
Robinhood’s CEO says the U.K. should look to the U.S. to increase retail stock ownership.
“Think of it as similar to where the US was 30 to 40 years ago,” Vlad Tenev said in a Bloomberg Television interview in London published Thursday (July 2).
He cited things like employer-sponsored 401(k) pensions and the White House initiatives to give newborns equity ownership.
“There is no reason why the same things would not also work here,” Tenev said.
As Bloomberg notes, Robinhood arrived in England two years ago with the goal of increasing retail ownership of equities, which are low in the U.K. compared to the U.S. Now, the British government is trying to boost interest in domestic stocks, with measures like easier initial public offerings (IPOs) and tax breaks on trading in new listings.
Asked by Bloomberg about the role of regulators, Tenev said the U.K.’s Financial Conduct Authority (FCA) showed “a great deal of openness to innovation” in his talks with the regulator. The authority recently said it would simplify requirements in its crypto regime coming next year.
Tenev, who is also Robinhood’s founder, added European regulators were ahead with the Markets in Crypto Assets regulation, which was followed by the Genius Act in the U.S.
The report also touched on concerns about an AI bubble, which Tenev dismissed, saying that “companies are generating significant revenue” that demonstrates there is substance behind the businesses, and adding that ownership “is a multidecade game.”
The interview came one day after Robinhood debuted the public mainnet of Robinhood Chain, a Layer 2 blockchain.
“AI-native and purpose-built for real-world assets, Robinhood Chain creates a permissionless environment for builders to innovate seamlessly,” Robinhood said in a news release.
The blockchain is one of several new decentralized finance and agentic products the company announced during its event, “Robinhood Presents: The World is Flat.”
These include new Stock Tokens available on the Robinhood Wallet in 120 countries; the rollout of Robinhood Earn to eligible U.S. users, letting them lend USDG; and an integration that allows users to access perpetual futures on decentralized exchange Lighter within Robinhood Wallet.
Meanwhile, Tenev announced last month that Robinhood securities business can now serve as an underwriter for IPOs. He said becoming an underwriter, and not simply a selling group member, is a natural progression in better serving customers and issuers.
Vlad Tenev z Robinhood uvedl, že AI agenti brzy dosáhnou schopností lidských obchodníků. Robinhood už v květnu spustil nástroje, které uživatelům umožňují obchodovat s akciemi a nakupovat jejich jménem.
AI agents will soon have the ability to match the capabilities of human traders, Robinhood CEO Vlad Tenev predicts.
The power of agentic technology — AI that can carry out tasks for users — has been touted as potentially transformational by many in the tech sector, with industry giants including OpenAI and Anthropic racing to develop such products.
Robinhood unveiled tools in May that allow AI agents to trade stocks and make purchases on users' behalf.
"The idea behind agentic trading…[is] every capability a human can do will be available to an AI agent," Tenev told CNBC's Karen Tso on Thursday.
"I was doing programmatic trading as an institutional player before starting Robinhood, and what you don't realize is a large portion of trades are already automated and AI powered."
"But that type of intelligence and complexity has been out of reach from everyday people," he added.
"The end state of agentic trading at Robinhood is to give the everyday person access to the same tools, the same computation, the same power that institutional investors in high-frequency trading firms have been enjoying for several decades."
On Wednesday, Robinhood said it would launch crypto trading in the U.K. as it expanded its offering in Europe.
Shares of Robinhood were up around 2% in Thursday premarket trading after an 8% pop on Wednesday, taking the group's market cap $98 billion at close. Shares are down around 5% in 2026.
Robinhood stock
In April, Robinhood missed expectations for first-quarter profit as crypto-driven market volatility weighed on trading activity. Market conditions have since improved, with easing Middle East tensions and strong equity markets supporting retail trading activity.
That same month, Robinhood announced it would act as a broker and trustee for the yet-to-be-released Trump Accounts, in partnership with U.S. Treasury and BNY Mellon.
"The goal is to make this the best consumer product that the government's ever been associated with," said Tenev.
Robinhood serves nearly 28 million customers across 38 countries and three continents, the company said in a statement.
Earlier this month, Robinhood cut 10% of its workforce as it looked to operate more efficiently.
"Robinhood's business has never been stronger," Tenev said in a note to employees shared on social media platform X.
"We cannot default to operating as a heavily-layered organization. We must be a lean, hyper-focused team," he added.
The logo for Robinhood Markets, Inc., is displayed on a screen during the company’s IPO at the Nasdaq Market site in Times Square in New York City, U.S., July 29, 2021. REUTERS/Brendan... Purchase Licensing Rights, opens new tab Read more
CompaniesJuly 1 (Reuters) - Robinhood (HOOD.O), opens new tab said on Wednesday it plans to launch crypto trading in the UK and broadened its perpetual futures offering in Europe beyond cryptocurrencies.
Here are some details:
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Eligible European investors will now be able to trade perpetual futures tied to commodities, ETFs and foreign exchange markets, including gold, silver, crude oil and the euro-dollar pair, with leverage of up to 10 times and round-the-clock trading, the company said.
Perpetual futures, commonly known as "perps," are futures contracts with no expiration date and have drawn significant attention in the U.S. after the CFTC in May permitted their trading on domestic exchanges.
Separately, Robinhood said it plans to roll out crypto trading for the UK as it seeks to build an all-in-one investing platform for the region.
The company also launched Robinhood Earn, a lending product that allows eligible U.S. users to lend their dollar-backed stablecoin, USDG, through a self-custody wallet at an estimated 7% annualized return.
Robinhood Earn includes insurance for certain losses stemming from cyberattacks or smart-contract exploits, with the coverage arranged through Lloyd's of London and RELM.
The company also announced its entry into Canada following its acquisition of WonderFi and said it had received a capital markets services licence in Singapore.
The trading platform, which serves more than 28 million customers across 38 countries, has expanded into more financial services in recent years to reduce its reliance on trading activity.
The company posted weaker-than-expected transaction revenue for the first quarter amid crypto-driven volatility.
Reporting by Pragyan Kalita in Bengaluru; Editing by Leroy Leo
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Robinhood Markets stock is among today’s top performers. What’s behind HOOD gains? Robinhood Chain Goes LiveAlongside the network launch, the company said its tokenized stock offering is now fully operational, giving users in more than 120 countries the ability to trade equity tokens at any hour and plug them into lending and collateral applications.
Robinhood also rolled out a lending product called Robinhood Earn, through which users can put its USDG stablecoin to work via a self-custody wallet and collect a projected annual return of 7%.
Robinhood Live Event TodayRobinhood has stated it will present “The World is Flat,” a live event hosted at the historic Old Royal Naval College in London by CEO Vlad Tenev and SVP of Crypto and International Johann Kerbrat. The livestream will begin at 2 p.m. ET.
June Trading VolumesThe product announcements build on a strong recent trading backdrop. Through June 25, Robinhood reported equity notional trading volumes of about $343 billion, options contracts traded of approximately 274 million and crypto notional trading volumes of about $14 billion for the month. Event contracts traded came in at approximately 5.2 billion.
Full June operating data will be released alongside second-quarter earnings.
HOOD Shares Are ClimbingHOOD Price Action: Robinhood shares were up 8.42% at $108.72 at the time of publication on Wednesday, according to Benzinga Pro.
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Robinhood představil nové AI nástroje pro obchodování s kryptoměnami pro zákazníky v USA a oznámil mezinárodní expanzi, včetně Kanady, Singapuru a Spojeného království. Akcie HOOD po oznámení vzrostly o 8 %.
Robinhood HOOD shares surged 8% on Wednesday after the online brokerage unveiled a series of new products and international expansion initiatives aimed at broadening its presence in cryptocurrency trading and global financial services.
The announcements, made during a live event in London, included new AI-powered cryptocurrency trading capabilities for US customers, expanded perpetual futures trading in Europe, and progress toward entering new markets including Canada, Singapore, and the United Kingdom.
Johann Kerbrat, general manager of crypto and international at Robinhood, said the initiatives are designed to bring more investment products to customers outside the United States.
"We want to extend this vision to the rest of the world," Kerbrat tells Barron's.
In the United States, Robinhood introduced agentic cryptocurrency trading at no additional cost.
The new feature allows customers to connect their own AI agents to Robinhood so those agents can execute cryptocurrency trades on their behalf.
The launch builds on the company's rollout of agentic trading for stocks and options introduced last month.
Robinhood also announced Robinhood Earn for eligible US customers, a lending service that enables users to lend the US dollar-pegged stablecoin USDG through a self-custody wallet.
The company said the lending infrastructure is powered by the decentralized lending network Morpho.
The brokerage also expanded its blockchain strategy by launching the main network for Robinhood Chain, which is designed to support real-world assets.
Additionally, Robinhood introduced tokenized stocks that eligible customers can trade around the clock on Robinhood Chain.
The company noted that stock tokens are not available in the United States or to US customers.
Robinhood continued its international expansion with several announcements focused on Europe and Asia.
In the European Union, the company expanded its range of perpetual futures contracts, allowing eligible customers to trade contracts linked to commodities, selected currencies, and exchange-traded funds, including gold, silver, and Invesco's Nasdaq-100 tracking QQQ ETF.
Unlike traditional futures contracts, perpetual futures do not expire, allowing investors to maintain positions for longer periods.
Robinhood also announced that it had received a capital markets services licence in Singapore, bringing it closer to launching brokerage services in the country.
In Canada, the company is expanding its cryptocurrency offering following its acquisition of digital asset platform WonderFi. Robinhood said Canadian customers will receive zero crypto trading fees through Sept. 30.
The company also revealed plans to launch cryptocurrency services in the United Kingdom.
"We're very excited about that because only brokerage products have been available up until today," Kerbrat said.
Analysts remain optimistic on growthRobinhood's latest product launches add to a broader strategy of expanding beyond its traditional brokerage business.
According to a Zacks report, the company was the top-performing finance stock during the second quarter of 2026, supported by stronger retail trading activity and continued growth across equities, options, cryptocurrencies, and prediction markets.
The report also highlighted Robinhood's efforts to diversify its business through AI-powered trading, wealth management, prediction markets, and payment products, creating additional opportunities for revenue growth.
Analyst sentiment remains positive.
According to Zacks, consensus earnings estimates for 2026 and 2027 have increased to $1.81 and $2.45 per share, respectively.
While earnings are expected to decline 11.7% this year, forecasts call for growth of 35.2% in 2027.
TipRanks data also reflects a favorable outlook, with 16 of 19 analysts rating Robinhood shares a Buy, while the remaining three recommend Hold, underscoring continued confidence in the company's long-term expansion strategy.
Robinhood ve 1. čtvrtletí 2026 zvýšil výnosy o 15 % na 1,07 miliardy USD, i když příjmy z kryptoměn klesly o 47 % na 134 milionů USD. Růst táhly opce, akcie, úrokové výnosy i předplatné Gold.
Robinhood (HOOD 1.34%), the online brokerage that popularized commission-free trading through its streamlined app, generated 20% its revenue from cryptocurrency trades in 2025. The bears often claim that Robinhood's heavy reliance on crypto trading makes it an unreliable long-term investment, given the crypto market's notorious volatility.
But in the first quarter of 2026, Robinhood's total revenue rose 15% year over year to $1.07 billion, even though its crypto trading revenue plunged 47% to $134 million and only accounted for 13% of its top line. Let's see how Robinhood offset its declining crypto revenue, and why that diversification makes it a better long-term investment.
Image source: Getty Images.
Why is Robinhood insulated from the crypto winter? In the first quarter of 2026, Robinhood's options trading revenue rose 8% to $260 million, its equities trading revenue grew 46% to $82 million, and its "other" transaction revenue (mainly consisting of events/prediction contracts) surged 320% to $147 million. That growth offset its declining crypto revenue, and its total transaction-based revenue rose 7% to $623 million.
Fears of interest rate hikes chilled the crypto market in the first quarter. However, elevated interest rates boosted its net interest revenue, which rose 24% year over year to $359 million, as it collected more interest on uninvested user cash, margin books, and securities lending.
Its subscription platform, Robinhood Gold, also expanded 36% year over year to 4.3 million subscribers in the first quarter. As a result, its subscription revenue jumped 57% to $85 million. So even though Robinhood's transaction-based revenue would surge in a new crypto summer, it has enough irons in the fire to keep it warm through the current crypto winter.
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Why is Robinhood an attractive long-term investment? From 2025 to 2028, analysts expect Robinhood's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to both grow at CAGRs of 16%.
That growth should be driven by the expansion of the "Robinhood Chain", its own Ethereum (ETH 2.43%) Layer-2 network for the tokenization of stocks, bonds, real estate, and other assets; the expansion of its prediction markets business, its integration of more agentic AI tools into its platform, and the rollout of even more features for its Gold subscribers.
With an enterprise value of $85 billion, Robinhood's stock still looks reasonably valued at 24 times next year's adjusted EBITDA. Its expansion and evolution into a more diversified fintech platform should reduce its dependence on cryptocurrencies and drive its stock even higher.
Robinhood rozšiřuje aplikaci z obchodní platformy na širší finanční ekosystém a má 27,7 milionu financovaných klientů s aktivy na platformě v hodnotě 377 miliard USD. Firma zároveň získala předběžné povolení pro brokerážní licenci v Singapuru a čeká na dokončení akvizic v Indonésii.
Key Takeaways HOOD is expanding from trading into a broader financial ecosystem to deepen customer relationships.Global moves include Europe tokenized stocks, Singapore approval and impending Indonesia acquisitions.HOOD's premium valuation, volatile revenues and regulatory risks make fresh buying less compelling. Robinhood Markets’ (HOOD - Free Report) growth story is increasingly shifting from a single-product trading app to a broader financial ecosystem. The company is expanding across brokerage, crypto, subscriptions, retirement, advisory, credit cards, private markets and prediction markets, aiming to become a more central platform in customers’ financial lives.
A key part of this strategy is customer deepening. At the end of May 2026, Robinhood had 27.7 million funded customers and $377 billion in total platform assets, reflecting continued asset consolidation on the platform. The company is moving into more recurring and relationship-driven products. The company also introduced trust and custodial accounts, supporting a family-investing experience. These initiatives suggest the company is trying to capture more wallet share across saving, investing and spending.
Another growth lever is product expansion for active traders. Robinhood has been building capabilities in futures, index options, crypto, private markets and prediction markets. Further, the company has entered into the capital markets business, with the approval to underwrite IPOs.
Likewise, HOOD’s peers, Charles Schwab (SCHW - Free Report) and Interactive Brokers Group (IBKR - Free Report) , are expanding their product suites aggressively. Interactive Brokers is diversifying through global market access, high-yield cash balances, securities lending, institutional services and advisor solutions, while Schwab is broadening its reach across wealth management, banking, lending, retirement and asset management. These efforts reduce commission dependence, support steadier revenues and deepen client relationships.
Robinhood’s broader ecosystem will likely make revenues more diversified and customers more loyal. Subscriptions, advisory assets, cash balances, credit cards and retirement accounts are expected to help reduce dependence on volatile trading volumes. At the same time, active trading, crypto and prediction markets can still provide upside during periods of stronger retail engagement.
Sales Estimates
Image Source: Zacks Investment Research
The key question for investors is whether Robinhood’s “financial super app” vision justifies buying HOOD stock for long-term upside, or whether it is better to wait for more evidence of traction across its newer products. Answering that requires a closer look at the company’s fundamentals, execution strategy and market-related catalysts that could influence its growth trajectory.
Robinhood: Other Factors to ConsiderGlobal Expansion: Robinhood is expanding globally by combining traditional finance with digital assets, positioning itself as a next-generation fintech ecosystem. Its initiatives include tokenized U.S. stocks and ETFs in Europe, broader crypto services, a proprietary blockchain, future banking products and expansion into Canada and Asia-Pacific through new offices and planned acquisitions.
Robinhood has received in-principle approval to set up the brokerage business in Singapore, bringing it closer to entering one of Asia’s key financial hubs. Pending acquisitions (PT Buana Capital Sekuritas and PT Pedagang Aset Kripto) in Indonesia are expected to close soon.
Additionally, Robinhood’s acquisition of WonderFi Technologies provides a new growth lever as crypto momentum moderates. The deal expands Robinhood into Canada’s crypto market through Bitbuy and Coinsquare, adding about 300,000 funded customers and more than C$2 billion in assets under custody. WonderFi’s regulated presence also strengthens Robinhood’s foothold in a market where trust and compliance are critical.
Strong Balance Sheet: Robinhood is on solid ground, with significant cash reserves. As of March 31, 2026, it reported cash and cash equivalents of $5 billion.
Further, last week, the company raised $2.2 billion through 0.00% convertible senior notes due 2029. The proceeds give Robinhood added financial flexibility. About $290 million will go toward share repurchases to offset dilution, while $112 million will fund capped call transactions to limit potential dilution if the notes convert. The remaining proceeds can support organic investments, acquisitions and capital expenditures.
In March, HOOD announced a new $1.5 billion share repurchase authorization (to be completed over the next three years). The company initially launched a $1 billion share repurchase program in May 2024, which was later expanded by another $500 million in April 2025. The new buyback program underscores management’s confidence in the company’s financial position and long-term growth prospects.
Litigation & Probes: Robinhood operates in a heavily regulated market and continues to expand into products that can draw scrutiny. In December 2025, Connecticut’s Department of Consumer Protection Gaming Division issued a cease-and-desist order to Robinhood Derivatives and other operators over sports event contracts it characterized as unlicensed online gambling, highlighting the risk of state-level regulatory challenges. Adverse outcomes in regulatory actions or changes in law could prevent it from offering, or continuing to offer, event contracts.
The company has also faced investigations and reviews tied to crypto promotions and tokenized equity products, and it paid more than $80 million in fines from 2023 to 2025 for a range of compliance issues. As prediction markets and related derivatives scale, regulatory limits could cap product rollout and add expense volatility.
Reliance on Volatile Revenue Streams: A large portion of HOOD’s business is tied to transaction-driven activity, including options trading, equities turnover and crypto trading. These categories are highly sensitive to market cycles, investor sentiment and shifts in risk appetite. During periods of volatility or bullish momentum, revenues can surge, but they can fall just as quickly when markets cool, trading volumes fall or retail engagement declines (as occurred in the first quarter of 2026).
This creates an inherently uneven earnings profile, making Robinhood’s results less predictable and more exposed to macro- and sentiment-driven swings than traditional, fee-based financial firms.
HOOD’s Price Performance, Earnings Prospects & ValuationAfter a sharp pullback in early 2026, HOOD shares have regained some momentum and are now down only 10% year to date. Although concerns over elevated valuation and softer crypto-related activity weighed on investor sentiment, the stock’s recent recovery appears to reflect growing optimism around Robinhood’s new product launches and broader platform expansion.
In comparison, shares of Schwab and Interactive Brokers have fared better. Even the industry to which the stock belongs has rallied 5.5% so far this year.
YTD Price Performance
Image Source: Zacks Investment Research
Over the past 30 days, the Zacks Consensus Estimate for 2026 has remained unchanged at $1.81, while for 2027, estimates have been revised upward to $2.45. The Zacks Consensus Estimate for HOOD’s 2026 earnings implies an 11.7% year-over-year decline. The trend will likely reverse next year, with earnings numbers suggesting a 35.2% jump.
Earnings Estimates
Image Source: Zacks Investment Research
Despite the weakness in share price, Robinhood is trading at a premium to the industry. At present, the company has a price/tangible book (P/TB) of 10.26X for the trailing 12 months compared with the industry average of 3.25X.
Robinhood’s P/TB TTM
Image Source: Zacks Investment Research
HOOD stock is expensive compared with Schwab and Interactive Brokers. Schwab and Interactive Brokers have a trailing 12-month P/TB of 6.97X and 1.86X, respectively.
How to Approach HOOD as it Builds a Financial Super App?Robinhood’s long-term platform strategy remains promising, supported by customer growth, product expansion, global initiatives and a strong balance sheet. However, the near-term investment case is less compelling. The stock still depends heavily on volatile transaction-driven revenues, including options, equities and crypto trading, while newer products such as prediction markets, tokenized assets and global expansion remain subject to execution and regulatory risks.
Further, HOOD’s premium valuation leaves limited room for disappointment. Hence, investors should avoid initiating new positions at current levels. Those already holding HOOD may retain the stock, but fresh buying looks better deferred until valuation becomes more reasonable and product traction improves.
At present, HOOD carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BTIG uvedla, že Robinhood se mění v širší finanční platformu a může dlouhodobě růst díky mladé klientele a rozšiřování produktů. Analytici stanovili cílovou cenu na 125 USD.
BTIG analysts Andrew Harte and Brendan Greaney said Robinhood has evolved beyond its roots as a commission-free trading app into a broader financial platform spanning brokerage, crypto, prediction markets and wealth management.
Robinhood Growth Strategy And Customer ExpansionThe firm expects the company to deliver more than 20% annual platform asset growth over the next decade, driven by a young customer base entering peak earning years, deeper engagement, new customer additions and international expansion.
BTIG acknowledged Robinhood trades at a premium valuation of about 46 times next-12-month GAAP earnings, compared with roughly 15 times for traditional brokerage peers. However, the analysts argued the premium is justified by the company’s stronger growth profile and expanding product portfolio.
The brokerage said Robinhood’s average customer is about 36 years old with an average account balance of roughly $13,000, compared with older customers and significantly larger account balances at legacy brokers. BTIG believes that positions the company to benefit from an estimated $124 trillion intergenerational wealth transfer over time.
Product Expansion Supports Long-Term OutlookThe analysts also highlighted Robinhood’s growing suite of products, including retirement accounts, banking, prediction markets and international offerings, saying these services should increase customer retention and wallet share. Management’s renewed investment in customer acquisition is also expected to support faster funded-account growth.
Key Catalysts And Price ForecastBTIG sees several potential catalysts ahead, including second-quarter earnings, international expansion, prediction markets, the July launch of Trump Accounts, a stronger IPO pipeline and the removal of pattern day trading restrictions.
The firm’s $125 price forecast is based on 40 times its fiscal 2028 earnings estimate, while it outlined a bullish scenario of $150 per share if crypto activity rebounds and customer growth accelerates. Its downside scenario values the stock at $60 if trading activity weakens and competitive pressures slow customer growth.
Robinhood Stock Performance And Technical AnalysisRobinhood stock climbed about 5% on Friday, outperforming the broader market. The Nasdaq fell 0.65%, while the S&P 500 edged up 0.03%.
The stock continues to trade above its 20-day, 50-day and 100-day simple moving averages of $93.65, $85.20 and $80.27, respectively. That signals the intermediate trend remains positive.
However, shares remain about 4.8% below the 200-day moving average of $102.57, leaving a key long-term resistance level intact.
Momentum indicators have weakened. The Moving Average Convergence Divergence (MACD) indicator remains below its signal line, suggesting upside momentum has slowed even as the stock continues to rise.
The 20-day moving average remains above the 50-day average, supporting the near-term trend. However, the 50-day average is still below the 200-day average following February’s death cross, indicating longer-term caution.
Technical traders are watching resistance near $113.50 and support around $79.
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $106.25. Recent analyst moves include:
BTIG: Initiated with Buy (Forecast $125.00) (June 26) Argus Research: Buy (Raises forecast to $110.00) (June 17) Needham: Buy (Raises forecast to $97.00) (June 11) HOOD Price Action: Robinhood Markets shares were up 4.64% at $97.80 at the time of publication on Friday, according to Benzinga Pro data.
Photo via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Regulátoři zrušili 25 let staré pravidlo pattern day trader, které omezovalo menší účty na méně než čtyři denní obchody v jakémkoli klouzavém pětidenním období. Robinhood z toho může těžit vyšší aktivitou a příjmy z obchodování.
For years, retail margin accounts with less than $25,000 in equity were limited to fewer than four day trades within any rolling five-business-day window. When customers exceeded this threshold, they were subject to a 90-day account freeze. Now, 25 years later, regulators have scrapped the pattern day trading rule.
Robinhood Markets' (HOOD 3.92%) trading platform has historically served users with significantly fewer assets than those of traditional brokers. Without these users hamstrung by old pattern-day-trading rules, is Robinhood stock a buy?
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How Robinhood stands to benefit from the removal of the pattern day trade rule The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) overhauled Rule 4210, abolishing the pattern day trader (PDT) rule. Regulators eliminated the $25,000 equity and trade-counting requirements and replaced them with a $2,000 standard Regulation T minimum and risk-based intraday margin system. As a result, millions of smaller retail traders can day trade without restriction.
Robinhood's trading platform caters heavily to millennial and Gen Z investors, and these accounts tend to have lower average balances than traditional brokerages, along with higher trading activity. As of 2024, the average Robinhood account balance was around $4,000, and roughly one-quarter of accounts had a balance below the $25,000 threshold.
Image source: Getty Images.
Because this rule has constrained a large portion of Robinhood's active user base, its removal would unlock more trading opportunities, potentially boosting the company's transaction-based revenues through payment for order flow (PFOF) and exchange rebates. It also incentivizes cash account holders to upgrade to margin accounts to avoid settlement delays, potentially boosting margin interest revenue and Robinhood Gold subscriptions.
Robinhood CEO Vlad Tenev noted that "Robinhood worked alongside regulators and industry partners to make this happen," and that "this is exactly what we built Robinhood for." The change, which went into effect on June 4, comes on the heels of Robinhood already seeing stellar growth in trading volume, with average daily equities trading volume jumping 84% year over year in May.
Robinhood has done a good job of growing its business through new offerings over the past several years, including futures and index options, prediction markets, stock tokens, and agentic trading. The company's customer and asset bases continue to grow, and the removal of the PDT rule could further boost its volumes.
If Robinhood gets a bigger-than-expected boost from increased trading volume, the stock could surge. That said, investors are already paying up for strong growth ahead, with Robinhood stock priced right around 46 times forward earnings.
Robinhood získal regulační schválení jako přímý upisovatel IPO, čímž vstupuje do investičního bankovnictví. Tím si otevírá nový, neobchodní zdroj příjmů.
Robinhood Markets (HOOD 3.90%) has delivered for investors. Since the start of 2024, the stock has surged 731%, far outpacing peers such as Interactive Brokers and Charles Schwab. Robinhood has done an excellent job of expanding its customer base and consistently rolling out new offerings to increase its total asset base.
The company made headlines earlier this month when it announced it secured regulatory approval to serve as a direct underwriter for initial public offerings (IPOs). This moves Robinhood into the investment banking space, opening up an entirely new revenue stream for the company.
Image source: Getty Images.
Robinhood is taking on investment banks On the heels of Space Exploration Technologies' IPO, Robinhood announced it would build out its own investment banking and equity underwriting business. No longer will Robinhood be a passive distributor for third-party investment banks. Instead, Robinhood becomes a direct syndicate partner in IPOs, gaining control of shares at the institutional offer price and bypassing Wall Street intermediaries and gatekeepers.
Moving into equity underwriting moves Robinhood beyond its retail brokerage platform and into a full-service financial services company that aims to take on Wall Street's giants. It also builds on Robinhood's growing platform, which has added numerous offerings in recent years, including futures and index options, retirement accounts, prediction markets, stock tokens, and agentic artificial intelligence (AI) trading.
Robinhood aims to provide its customer base with early access to IPO stocks before they begin trading on public exchanges. This privilege has traditionally been reserved for institutional and high-net-worth investors. As a syndicate underwriter, Robinhood hopes to remove barriers and allow everyday users to participate in IPOs at their listing price, rather than inflated secondary-market prices.
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The move opens up a new revenue stream for Robinhood The move benefits both Robinhood users and Robinhood itself by providing a profitable, nontransactional revenue stream. The company has historically relied on payment for order flow (PFOF), which has been heavily scrutinized, and net interest income, which is sensitive to the Federal Reserve's interest rate policy. The expansion is the next step for Robinhood as it builds itself up as a formidable competitor in the financial services industry.
While the move opens Robinhood to new revenue streams, it will take time to build up its investment banking business. As part of this, the company will need to gain the trust of corporate issuers and build relationships with management teams. It is also exposed to legal risks when performing due diligence under federal and state securities laws. Finally, investment banking fees are highly volatile, and revenues could become more cyclical as a result.
Robinhood has done an excellent job of evolving from a stock-trading app to a profitable financial services operation. The company has continued to grow its customer and asset base, and the move into equity underwriting will open new revenue streams as it expands. That said, with the stock trading at 49 times forward earnings, investors are already banking on strong growth ahead.
Charles Schwab is an advertising partner of Motley Fool Money. Courtney Carlsen has positions in Interactive Brokers Group and Robinhood Markets. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends Charles Schwab and recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group, short January 2027 $46.25 calls on Interactive Brokers Group, and short June 2026 $97.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.
Robinhood po 65% růstu z březnového dna čelí varování před dalším výprodejem. Transakční výnosy v 1. čtvrtletí klesly na 623 milionů USD, hlavně kvůli slabším opcím a kryptu.
Robinhood Markets (HOOD 3.90%) operates a popular investing platform where its clients buy and sell stocks, futures, options, cryptocurrency, and even contracts in the prediction markets. Its stock hit a 52-week low of $63 in March, capping off a brutal 57% decline from last year's record high of $154.
The sell-off was sparked by weakness in Robinhood's options and crypto trading businesses, which account for most of its transaction-based revenue. But the company's monthly brokerage metrics showed a recovery in those areas in May, so its stock has surged by around 65% from its March low.
While that sounds encouraging, I don't think the recovery will last. In fact, here's why I'm predicting another sharp move lower for the stock.
Image source: The Motley Fool.
Robinhood's transaction-based revenue is on shaky foundations The majority of Robinhood's revenue comes from the transaction fees it earns whenever a client buys or sells stocks, options, or cryptocurrencies. It generated $623 million in total transaction-based revenue during the first quarter of 2026 (ended March 31), which was a 20% decline from the fourth quarter of 2025 -- just three months earlier.
Options transaction revenue was the largest of four components, and it shrank by 17% to $260 million. Options contracts are financial derivatives that many of Robinhood's clients use to make risky directional bets on stocks, exchange-traded funds (ETFs), and other assets. The stock market was very unpredictable during the first quarter because of the conflict between the U.S. and Iran, which likely spooked many options traders.
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Crypto transaction revenue experienced an even sharper sequential decline of 39% during the quarter, and came in at $134 million, the lowest level since 2024. The crypto market is in the throes of a brutal sell-off right now, and while highly speculative tokens like Dogecoin have declined the most, even Bitcoin is down 50% from its all-time high. This is likely keeping many investors sidelined.
Image source: Robinhood Markets.
Robinhood reports quarterly results like every other publicly listed American company, but it also reports monthly brokerage metrics to give shareholders a more frequent update on its clients' trading activity. During May, daily active trading volume in the options segment increased for the second straight month and hit the highest level of 2026 so far. This is a sign that the company's financial results for the second quarter (ending June 30) could bring an upside surprise.
However, history suggests it probably won't be sustainable. Spikes in trading volume in speculative segments like options and crypto tend to be very short-lived, because they are not markets where clients consistently make money. Earlier this year wasn't the first time Robinhood suffered a sharp drop in transaction revenue in the options and crypto segments -- it experienced even steeper declines after the stock market and crypto bull markets of 2021 came to an end.
Robinhood's valuation leaves little room for further upside When the stock set its all-time high last October, its price-to-sales ratio (P/S) was more than 30, which was almost triple its long-term average of 11.8. That valuation simply wasn't sustainable. But even though the stock is well off its highs, its P/S is still at an elevated level of 20.8.
HOOD PS Ratio data by YCharts.
That suggests Robinhood stock would have to decline by 43% just to trade in line with its long-term average P/S of 11.8. But that isn't the worst part: Hypothetically, if the company's overall revenue shrinks during the next few quarters like it did in the first quarter, then its forward P/S might actually be higher than its current ratio, meaning the stock is actually more expensive today than it appears at face value.
Although the company had a record 27.4 million clients at the end of the first quarter, just 13.5 million were actively engaging with the platform each month, which is still 36% below its peak of 21.3 million from the second quarter of 2021. Because many of its clients engage in risky options and crypto trading -- where it's very difficult to generate consistent profits -- some will inevitably drop off over time.
As a result, I think Robinhood's revenue will continue to be incredibly lumpy and unpredictable, as it has been since the company went public in 2021. That isn't a recipe for sustained upside in its stock, especially from its current valuation.
An article concerning a development that could benefit Robinhood Markets (HOOD 0.69%) helped boost the price of the next-generation brokerage on Wednesday. Investors took the report as excellent news for the financial services company and reacted by pushing its shares up almost 9%.
The digital future Well before market open, Reuters reported that the Securities and Exchange Commission (SEC) is preparing a policy allowing cryptocurrency companies to transact in crypto products such as tokenized stocks.
Image source: Getty Images.
Citing unnamed "analysts and lawyers," the news agency added that SEC chair Paul Atkins will formally announce the policy in the near future. Tokenized stocks, which are digital assets that sit on blockchains and are tied to actual shares of companies, can be traded outside of market hours and settled near-instantaneously, among other advantages over traditional equity transacting.
Atkins has proposed an "innovation exemption" framework under which the intermediaries typical in securities trading can be bypassed under certain circumstances. This would allow for that direct and immediate transacting promised by tokenized stocks.
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Waiting for the green light Unlike some of the more established brokerages, Robinhood began embracing crypto trading years ago. It's very much a tech-forward company, to the point where it already operates a trading platform for tokenized stocks. Unfortunately for enthusiasts of such products in the U.S., this isn't fully legal in the U.S.; this service is only available for European Union (EU) clients.
At least, not yet. Should that change, as per the Reuters report, Robinhood would undoubtedly score a win. I don't blame investors for piling into the stock on that possibility.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Robinhood plánuje soukromou emisi konvertibilních senior notes za 2,0 miliardy USD se splatností 1. října 2029. Z výtěžku chce asi 300 milionů USD použít na zpětný odkup akcií.
June 22, 2026 07:00 ET | Source: Robinhood Markets, Inc.
Opportunistic capital raise with proceeds used to enhance strategic flexibility to invest for future growth
Approximately $300 million of the proceeds to be used to repurchase shares, although the amount of Class A common stock that Robinhood actually repurchases may be more or less than $300 million
Additionally, a portion of the proceeds to be used to purchase capped calls intended to offset any share dilution until at least a targeted 125% premium to the last reported sale price of Robinhood’s Class A common stock on the date of pricing
MENLO PARK, Calif., June 22, 2026 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced that, subject to market conditions, it intends to offer $2.0 billion in aggregate principal amount of convertible senior notes due 2029 (the “Notes”) in a private placement (the “Offering”) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”). Robinhood also intends to grant the initial purchasers of the Notes an option to purchase, for settlement within a 13-day period from, and including the date on which the Notes are first issued, up to an additional $200 million aggregate principal amount of Notes.
The Notes will be senior, unsecured obligations of Robinhood. Robinhood will settle conversions by paying cash up to the aggregate principal amount of the Notes to be converted and paying or delivering, as the case may be, cash, shares of Robinhood’s Class A common stock or a combination of cash and shares of Robinhood’s Class A common stock, at Robinhood’s election, in respect of the remainder, if any, of Robinhood’s conversion obligation in excess of the aggregate principal amount of the Notes being converted, based on the then applicable conversion rate. The Notes will mature on October 1, 2029, unless earlier converted, redeemed or repurchased.
Robinhood may not redeem the Notes prior to July 1, 2028, except in the event of a cleanup redemption (as defined below). Robinhood may redeem for cash all or any portion of the Notes (subject to certain limitations), at its option, on or after July 1, 2028 and prior to the 21st scheduled trading day immediately preceding October 1, 2029, if the last reported sale price of Robinhood’s Class A common stock has been at least 120% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which Robinhood provides notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. In addition, the Notes will be redeemable at any time if the aggregate principal amount of the Notes that remains outstanding is less than $100 million and certain other conditions are satisfied (a “cleanup redemption”).
The interest rate, the initial conversion rate and certain other terms of the Notes will be determined at the time of pricing of the Offering.
Robinhood intends to use (i) approximately $300 million of the net proceeds from the Offering to repurchase its Class A common stock, although the amount of its Class A common stock that Robinhood actually repurchases may be more or less than $300 million, (ii) a portion of the net proceeds from the Offering to fund the costs of the capped call transactions described below and (iii) the remainder of the net proceeds from the Offering, if any, for general corporate purposes, which may include organic growth investments, potential acquisitions and/or capital expenditures. If the initial purchasers exercise their option to purchase additional Notes, Robinhood expects to use a portion of the net proceeds from the sale of the additional Notes to enter into additional capped call transactions. In addition, following the Offering, Robinhood plans to continue to repurchase additional shares of its Class A common stock pursuant to Robinhood’s stock repurchase program. The repurchases of Robinhood’s Class A common stock described above could increase (or reduce the size of any decrease in) the market price of Robinhood’s Class A common stock or the Notes. In the case of repurchases effected concurrently with the Offering, this activity could affect the market price of Robinhood’s Class A common stock prior to, concurrently with or shortly after the pricing of the Notes, and could result in a higher effective conversion price for the Notes.
In connection with the pricing of the Notes, Robinhood expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers of the Notes or their respective affiliates and/or other financial institutions (the “option counterparties”). The capped call transactions will cover, subject to anti-dilution adjustments, the number of shares of Robinhood’s Class A common stock initially underlying the Notes sold in the Offering. The capped call transactions are expected generally to reduce potential dilution to Robinhood’s Class A common stock upon conversion of any Notes and/or offset any cash payments Robinhood is required to make in excess of the principal amount of converted Notes, as the case may be, with such reduction and/or offset subject to a cap.
Robinhood has been advised that, as is customary for convertible note offerings that include capped call transactions, in connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates expect to purchase shares of Robinhood’s Class A common stock and/or enter into various derivative transactions with respect to Robinhood’s Class A common stock concurrently with or shortly after the pricing of the Notes. This activity could increase (or reduce the size of any decrease in) the market price of Robinhood’s Class A common stock or the Notes at that time. In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to Robinhood’s Class A common stock and/or purchasing or selling Robinhood’s Class A common stock or other securities of Robinhood in secondary market transactions following the pricing of the Notes and prior to the maturity of the Notes (and are likely to do so (x) during any observation period related to a conversion of Notes or following any repurchase of Notes in connection with any “fundamental change” (as defined in the indenture for the Notes) and (y) following any other repurchase of Notes if Robinhood elects to unwind a portion of the capped call transactions in connection with such repurchase). This activity could also cause or avoid an increase or decrease in the market price of Robinhood’s Class A common stock or the Notes, which could affect the ability of noteholders to convert the Notes and, to the extent the activity occurs during any observation period related to a conversion of Notes, it could affect the amount and value of the consideration that noteholders will receive upon conversion of the Notes.
Neither the Notes nor the shares of Robinhood’s Class A common stock potentially issuable upon conversion of the Notes, if any, have been, or will be, registered under the Securities Act, the securities laws of any other jurisdiction or any state securities laws and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. The Notes will be offered and sold only to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act. This news release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, the Notes, nor shall there be any sale of the Notes in any state or jurisdiction in which such offer, solicitation or sale is unlawful. No assurance can be made that the Offering will be consummated on its proposed terms or at all.
This press release contains forward-looking statements regarding Robinhood and its consolidated subsidiaries (“we,” “Robinhood,” or the “Company”), including, but not limited to, statements regarding the anticipated terms of the Notes, the completion, timing and size of the Offering and capped call transactions, the anticipated effects of entering into the capped call transactions, and the intended use of the net proceeds from the Offering and the anticipated effects thereof. In some cases, you can identify forward-looking statements because they contain words such as “believe,” “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Our forward-looking statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause our actual future results, performance, or achievements to differ materially from any future results expressed or implied in this press release. Factors that contribute to the uncertain nature of our forward-looking statements include, among others, risks and uncertainties associated with market conditions, including market interest rates, the trading price and volatility of Robinhood's Class A common stock and risks related to this Offering, and Robinhood’s business and operations and results of operations. Because some of these risks and uncertainties cannot be predicted or quantified and some are beyond our control, you should not rely on our forward-looking statements as predictions of future events. More information about potential risks and uncertainties that could affect our business and financial results can be found in Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, as well as in our other filings with the SEC, all of which are available on the SEC’s web site at www.sec.gov. Moreover, we operate in a very competitive and rapidly changing environment; new risks and uncertainties may emerge from time to time, and it is not possible for us to predict all risks nor identify all uncertainties. The events and circumstances reflected in our forward-looking statements might not be achieved and actual results could differ materially from those projected in the forward-looking statements. Except as otherwise noted, all forward-looking statements in this press release are made as of the date of this press release, June 22, 2026, and are based on information and estimates available to us at this time. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. Except as required by law, Robinhood assumes no obligation to update any of the statements in this press release whether as a result of any new information, future events, changed circumstances, or otherwise. You should read this press release with the understanding that our actual future results, performance, events, and circumstances might be materially different from what we expect.
