Disappointing Transaction Revenue
Robinhood Markets missed expectations for first-quarter profits on April 28, as disappointing transaction revenue and lower take rates in options and crypto trading diminished attention over achieved growth in customer assets and deposits.
Shares of the online brokerage dipped over 8% in extended trading. The stock has dropped more than 27% this year, as of last trading close.
Take Rate Weaker Than Expected
Shiv Verma, company CFO, told journalists that revenues of the company based in Menlo Park, California missed Wall Street expectations due to weaker take rates, which are fees charged for processing a transaction.
Analysts said the take rate for options and crypto trading was weaker than expected in the reported first quarter.
“When active traders trade more, take rates naturally go down because we have tiered pricing. It means they’re engaged, they’re using our products,” Verma reminded analysts, adding that the firm was focused on increasing market share.
Robinhood’s transaction-based revenue was $623 million in the first quarter of 2026, which is below estimates of $728.2 million, according to data compiled by LSEG.
Profits for the quarter was $346 million, or 38 cents per share, in the three months ended March 31. Analyst expectations were 44 cents per share.
Crypto Weakness
Cryptocurrency trading revenue was also weak as trading volumes remained low, offsetting gains from higher volumes in options and equities.
The crypto sector has been in a rut since the crash last October, as optimism following President Donald Trump’s return to the White House faded. Bitcoin, the world largest cryptocurrency, shed roughly 13% so far this 2026.
Transaction-based revenue from cryptocurrencies dropped 47% to $134 million from a year earlier.
Brighter Second Quarter
But Robinhood executives said the second quarter started better with a strong rebound in trading volumes, including on the equities and options front.
