Financial services company Robinhood (NASDAQ: HOOD) fell short of the market’s revenue expectations in Q1 CY2026, but sales rose 15.1% year on year to $1.07 billion. Its GAAP profit of $0.38 per share was in line with analysts’ consensus estimates.
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Robinhood (HOOD) Q1 CY2026 Highlights:
- Revenue: $1.07 billion vs analyst estimates of $1.13 billion (15.1% year-on-year growth, 5.3% miss)
- EPS (GAAP): $0.38 vs analyst estimates of $0.39 (in line)
- Adjusted EBITDA: $534 million vs analyst estimates of $582 million (50% margin, 8.2% miss)
- Operating Margin: 38.5%, down from 39.9% in the same quarter last year
- Free Cash Flow was $2.02 billion, up from -$950 million in the previous quarter
- Funded Customers: 27.4 million, up 1.6 million year on year
- Market Capitalization: $75.62 billion
"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," said Vlad Tenev, Chairman and CEO of Robinhood.
Company Overview
With a mission to democratize finance, Robinhood (NASDAQ: HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, Robinhood grew its sales at an incredible 45.4% compounded annual growth rate. Its growth surpassed the average consumer internet company and shows its offerings resonate with customers, a great starting point for our analysis.
This quarter, Robinhood’s revenue grew by 15.1% year on year to $1.07 billion but fell short of Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 16.9% over the next 12 months, a deceleration versus the last three years. Despite the slowdown, this projection is commendable and implies the market is baking in success for its products and services.
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Funded Customers
User Growth
As a fintech company, Robinhood generates revenue growth by increasing both the number of users on its platform and the number of transactions they execute.
Over the last two years, Robinhood’s funded customers, a key performance metric for the company, increased by 7.2% annually to 27.4 million in the latest quarter. This growth rate is slightly below average for a consumer internet business. If Robinhood wants to reach the next level, it likely needs to enhance the appeal of its current offerings or innovate with new products. 
In Q1, Robinhood added 1.6 million funded customers, leading to 6.2% year-on-year growth. The quarterly print isn’t too different from its two-year result, suggesting its new initiatives aren’t accelerating user growth just yet.
Revenue Per User
Average revenue per user (ARPU) is a critical metric to track because it measures how much the company earns in fees from each user. ARPU also gives us unique insights into the average transaction size on Robinhood’s platform and the company’s take rate, or "cut", on each transaction.
Robinhood’s ARPU growth has been exceptional over the last two years, averaging 143%. Its ability to increase monetization while growing its funded customers demonstrates its platform’s value, as its users are spending significantly more than last year. 
This quarter, Robinhood’s ARPU clocked in at $157. It grew by 8.3% year on year, faster than its funded customers.
Key Takeaways from Robinhood’s Q1 Results
We struggled to find many positives in these results. Its revenue missed and its EBITDA fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 6.3% to $77.26 immediately after reporting.
Robinhood didn’t show it’s best hand this quarter, but does that create an opportunity to buy the stock right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
