TLDR
- Robinhood stock fell ~14% after Q1 2026 earnings missed estimates, with crypto transaction revenue down 47% year-over-year.
- Q1 revenue came in at $1.07B, missing the $1.14B consensus; adjusted EPS of $0.38 missed by 10%.
- Coinbase (COIN) fell 8% and Webull (BULL) dropped ~8% in sympathy trading.
- Bitcoin miners MARA and Riot also slid 6-7%, while Bitcoin dipped below $76,000.
- Oil prices surged 6% after Trump rejected Iran’s Strait of Hormuz proposal, adding pressure across markets.
Robinhood had a rough Tuesday night. The brokerage reported Q1 2026 results that missed across the board, and the market wasted no time responding.
HOOD stock opened Wednesday down roughly 12% and extended losses to nearly 14% through the session, trading around $72 after closing Tuesday at $82.07.
The core problem was crypto. Crypto transaction revenue collapsed 47% year-over-year, dragging total revenue to $1.07 billion â $70 million short of the $1.14 billion consensus estimate. Adjusted EPS of $0.38 missed forecasts by 10%.
Overall revenue still grew 15% year-over-year, but the drop in crypto income overshadowed that. Management had flagged soft retail crypto trends heading into the quarter, but the scale of the decline still caught investors off guard.
Sector Selloff
The pain didn’t stay contained to Robinhood. Coinbase (COIN) fell around 8% to $179, and Webull (BULL) dropped about 8% to $6.77 â despite neither company reporting earnings Wednesday.
Coinbase appears to have caught collateral damage from Robinhood’s crypto revenue print. There’s an open question: is retail crypto demand shrinking broadly, or is it rotating toward Coinbase? Coinbase posted record institutional derivatives revenue last quarter, which suggests the picture isn’t entirely bleak for the sector.
Bitcoin miners Riot Platforms (RIOT) and MARA (MARA) both slid 6-7%. Strategy (MSTR), the largest corporate bitcoin holder, fell around 4%. Bitcoin itself dipped below $76,000, down about 0.5% over 24 hours â a milder move compared to the equity declines.
Iran Tensions Add Fuel
Crypto stocks weren’t the only thing under pressure. Oil prices surged 6% on Wednesday after President Trump reportedly rejected an Iranian proposal to reopen the Strait of Hormuz while delaying nuclear talks. West Texas Intermediate topped $100 a barrel, adding a macro headwind to an already difficult session.
The Nasdaq ended the day down around 0.35%, limiting broader damage even as crypto-related names took heavier losses.
On the cost side, Robinhood raised its 2026 adjusted operating expense guidance to a range of $2.7 billion to $2.825 billion. That includes an additional $100 million earmarked for its Trump Accounts initiative. Margin pressure is now a bigger part of the story.
Despite the miss, some analysts aren’t walking away. Bernstein maintained an Outperform rating with a $130 price target, pointing to Robinhood’s push into prediction markets and banking as longer-term drivers. Price targets across the Street range from $110 to $170.
The user metrics weren’t a disaster either. Robinhood ended Q1 with 27.4 million funded accounts and 4.3 million Gold subscribers â up 36%. Net deposits hit $17.7 billion.
HOOD is still up 68% over the past 12 months, but is now down 27% year-to-date. Wednesday’s drop deepens what has already been a tough 2026. Polymarket put the odds of HOOD closing lower Wednesday at 98%.
Later Wednesday, the Fed wraps up its latest meeting â Jerome Powell’s last as chair â and Alphabet, Amazon, Meta, and Microsoft all report after the bell.
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