Investing. com -- Robinhood Markets Inc. (NASDAQ: HOOD) reported first quarter results that fell short of analyst expectations, with both earnings and revenue missing consensus estimates. The company’s shares fell 7% after hours following the announcement

The trading platform reported adjusted earnings per share of $0.38 for the first quarter, missing the analyst estimate of $0.41. Revenue came in at $1.07 billion, below the consensus estimate of $1.17 billion. However, revenue increased 15% YoY from $927 million in the first quarter of 2025.

Total net revenues of $1.07 billion were driven by transaction-based revenues of $623 million, up 7% YoY, and net interest revenues of $359 million, up 24% YoY. Net income increased 3% YoY to $346 million. "In Q1, customers remained engaged and rapidly adopted new products, leading to a 20%-plus annualized net deposit growth rate, double digit growth across equities and options, and record volumes for prediction markets, futures, and index options," said Shiv Verma, Chief Financial Officer.

The company reported net deposits of $17.7 billion, representing a 22% annualized growth rate. Robinhood Gold Subscribers grew 36% YoY to a record 4.3 million, while funded customers increased 6% YoY to 27.4 million. Total platform assets increased 39% YoY to $307 billion.

Robinhood updated its 2026 expense outlook, raising its Adjusted Operating Expenses and SBC guidance to $2.7 billion to $2.825 billion from the prior range of $2.6 billion to $2.725 billion. The company said it anticipates investing and additional $100 million increase to support the Trump Accounts initiative. The company noted that work for Trump Accounts is contracted on a cost-plus basis with revenues expected to exceed costs.

The company repurchased $250 million of Class A common stock during the quarter, representing 3.1 million shares at an average price of approximately $81 per share.