By David Hollerith

Robinhood (HOOD) stock slid around 10% in premarket trading on Wednesday as the company said its Q1 profit and revenue fell short of Wall Street estimates.

The financial app provider said on Tuesday that profits rose 3% from the prior year to $346 million, or $0.38 per share, while net revenue rose 15% from the first quarter of last year to $1.07 billion.

Analysts were expecting $382 million, or $0.42 per share, and net revenue of $1.14 billion, according to data compiled by Bloomberg.

A big source of revenue for Robinhood, fees from crypto trades, fell 47% from the first quarter of last year, driven by a slump across the digital asset world that kicked off late last year and worsened through early February. The figure was slightly lighter than analysts expected.

“I can't tell you what the price is going to be in three months. You know, [the] price moves up and down, but what I can tell you is crypto as technology infrastructure is going to be big and we're investing,” Tenev said during the Tuesday earnings call when asked for the outlook for digital assets.

He also reiterated the company’s long-term ambition of  becoming a “financial super app.”

Fees from options trades rose 8%. The figure was still lighter than what analysts hoped for in the activity.

The app’s net interest revenue from customers' cash balances, margin loans and securities lending rose 27% but also came in lighter than what the Street forecast.

Driven by a retail trading frenzy in its online brokerage business, Robinhood’s stock reached lofty heights last year. Thus far in 2026, it hasn’t regained that momentum. Ahead of its first quarter earnings report, Robinhood’s stock was down 27% year to date as of Tuesday’s close.

The company, which historically made most its revenue from crypto and options trading, has also been on a major push to diversify its revenue streams into other financial services businesses, such as banking, wealth management, and prediction markets.

Robinhood launched a platinum credit card earlier this year in a bid to chase wealthy spenders. Earlier this month the company also got tapped to help the Treasury Department implement its Trump Accounts program.

“By developing and managing the new Trump accounts app, we're getting Robinhood technology in front of the next generation of investors, 60 million of them,” Tenev said.

Vlad Tenev, CEO and co-founder of Robinhood, attends the IPO of his company’s flagship $658.4 million Robinhood Venture Fund I, on the floor at the New York Stock Exchange (NYSE) in New York City, March 6, 2026. (REUTERS/Brendan McDermid)