Robinhood Q1 Earnings on April 28th: Pivoting to Comprehensive Finance with Prediction Markets, AI, and Banking
Robinhood will report Q1 earnings on April 28th. Following record 2025 revenue of $4.5 billion, investors will focus on growth momentum in four key new business segments: prediction markets, Bitstamp, AI Cortex, and banking services.
- Robinhood reports Q1 earnings April 28, following a record 2025 with $4.5B revenue (+52%) and $1.9B net income
- Analysts rate it Strong Buy ($97.50–$130 target); crypto volatility remains the key risk
Record 2025 revenue of $4.5 billion and net income of $1.9 billion... Revenue diversification through prediction markets, AI, and banking
Robinhood (HOOD) will report Q1 2026 earnings on the 28th. This marks the first quarterly report following the company's strongest annual performance since inception in 2025. The stock surged 197% in 2025 alone, reaching a current market cap of approximately $76.4 billion (around 105 trillion won).
The 2025 annual results set records across all metrics. Total revenue increased 52% year-over-year to $4.5 billion, net income reached $1.9 billion, and diluted EPS hit $2.05. Net customer deposits totaled $68 billion, while Robinhood Gold subscribers reached a record 4.2 million. Total platform assets expanded 36% year-over-year to $314 billion.
Revenue Structure Shifts Away from Trading Fee Dependence
Historically, Robinhood's revenue was heavily concentrated in options and crypto trading fees. However, in 2025, interest income (margin lending and deposits), subscription revenue (Gold), and trading fees each established themselves as independent revenue streams generating over $100 million annually.
Transaction-based revenue surged 129% year-over-year to $730 million in Q3. Crypto revenue contributed $268 million with over 300% growth, while options revenue increased 50% to $304 million. However, Q4 saw crypto revenue fall short of expectations as Bitcoin prices declined sharply from October highs, causing shares to drop 6.3% in after-hours trading.
Four New Business Segments Drive Growth
Market attention for this Q1 report centers on the growth trajectory of new business segments.
Prediction Markets represents the fastest-growing new service in Robinhood's history. Since launching in March 2025, cumulative contract volume reached 11 billion transactions with over 1 million users by Q3. In November, the company established its own futures and derivatives exchange with clearing capabilities, elevating the business to independent infrastructure status.
The Bitstamp acquisition also serves as a major growth driver. Acquired for approximately $200 million in June 2025, this established European exchange contributed over $100 million in annualized revenue by Q3. It serves as Robinhood's gateway for expansion into European, UK, and Asian markets.
AI investment analysis tool Robinhood Cortex announced a comprehensive overhaul in December. Featuring AI-powered custom indicators, scanners, and personalized portfolio digest functions, it's expected to boost Gold subscription retention and customer asset growth.
Robinhood Banking services officially launched in Q3. Deposits exceeded $400 million with direct deposit adoption reaching 50%. Robinhood Ventures, which will enable retail investor access to previously institutional-only private assets through tokenization, is also set to launch.
Global Expansion Accelerates
In 2025, Robinhood established Singapore as its Asia-Pacific headquarters and entered Asian markets by acquiring local securities and crypto businesses in Indonesia. Indonesia alone has over 10 million capital markets and crypto community members, with the broader Asia-Pacific region estimated to have 250 million potential crypto users.
Wall Street analyst consensus from 34 analysts rates the stock a Strong Buy, with price targets ranging from $97.50 to $130, suggesting up to 54% upside potential from the current price of $84.75.
Frequently Asked Questions
What is Robinhood Gold?
Robinhood Gold is a paid membership that, for a monthly subscription fee, provides access to high-yield cash accounts, discounted margin trading, and premium data and research tools. As of late 2025, it has reached 4.2 million subscribers, making it a stable and recurring revenue stream.
Why is the prediction markets segment growing so rapidly?
The platform allows users to bet on the outcomes of a wide range of events — including U.S. elections, sporting events, and economic indicators — and has seen strong engagement among younger investors. Robinhood has further strengthened its position by building its own exchange and clearinghouse, internalizing the fee revenue structure.
How does crypto volatility affect Robinhood's financial performance?
Cryptocurrency trading revenue accounts for approximately 30–40% of total transaction-based revenue. As a result, sharp declines in Bitcoin prices have an immediate impact on quarterly earnings — Q4 2025 being a prime example. Expanding the share of non-crypto revenue streams, such as prediction markets and banking services, remains a key strategic priority.
Why is the acquisition of Bitstamp significant?
Bitstamp holds regulatory licenses across Europe, the United Kingdom, and Asia, making it a critical piece of infrastructure for Robinhood's international expansion. The acquisition delivered immediate results, contributing over $100 million in annualized revenue from the outset.
What are the most important things to watch in the Q1 earnings report?
Key indicators to monitor include the revenue contribution from three new business lines — prediction markets, AI Cortex, and banking — as well as the growth trajectory of Gold subscribers. Given that crypto markets were broadly weak in Q1, a central question is how effectively non-crypto revenue sources offset that headwind.
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