10-Q · April 28, 2026
Robinhood reported a disappointing Q1 2026 with total net revenues of $1.067 billion and diluted EPS of $0.38, both missing analyst expectations. While total revenues grew 15% year-over-year and EPS rose 3%, the…
Earnings analysis · 10-Q
HOOD earnings analysis
Filed October 27, 2026 · Our reading of the company's report
The latest report
Robinhood delivered strong Q3 revenue of $1.424 billion, up approximately 74% year over year and 8.7% sequentially, while diluted EPS of $0.60 declined modestly from both the prior quarter and prior year but exceeded…
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Robinhood delivered strong Q3 revenue of $1.424 billion, up approximately 74% year over year and 8.7% sequentially, while diluted EPS of $0.60 declined modestly from both the prior quarter and prior year but exceeded the $0.56 consensus estimate. The filing indicates elevated exposure to interest rates, crypto-market volatility, event-contract regulation, higher margin leverage and newly launched AI and blockchain products. Management also reduced the top end of its 2026 adjusted operating expense and SBC outlook by $25 million, supporting a mixed but overall neutral outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.6
What stood out
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Revenue reached a quarterly record
Q3 revenue was $1.424 billion, up approximately 8.7% from $1.31 billion in Q2 2026 and approximately 74% from $818 million in Q3 2025. Revenue was approximately $9 million below the $1.433 billion consensus estimate.
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EPS beat consensus despite sequential decline
Reported diluted EPS was $0.60 versus $0.62 in Q2 2026 and $0.61 in Q3 2025, declines of approximately 3.2% and 1.6%, respectively. EPS was approximately $0.04 above the $0.56 consensus estimate.
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Interest-rate sensitivity increased
The filing reports that a hypothetical 100-basis-point interest-rate increase would affect total net revenues, net income and cash flows by $366 million at September 30, 2026, versus $298 million at September 30, 2025, reflecting higher interest-earning asset balances.
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Share repurchases continued
Robinhood repurchased 237,957 Class A shares during Q3 at an average price of $105.07, leaving approximately $1.348 billion available under the repurchase program at September 30, 2026.
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Cost discipline remains a focus
Management completed a previously announced reduction in force of approximately 10% of full-time employees in September 2026, citing efforts to maintain a high-performance culture, accelerate product velocity and remain lean and disciplined.
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Disclosure controls remain effective
Disclosure controls were assessed as effective as of September 30, 2026. Management expects to exclude WonderFi from its 2026 internal-control assessment while it evaluates and integrates the acquisition completed on June 1, 2026.
What to watch
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Crypto revenue remains volatile
Cryptocurrency activity and related revenue are exposed to volatility and regulatory pressure. The filing states that the company expects regulatory changes could materially decrease Transaction Rebates, while Q3 revenue was $1.424 billion and prior analysis identified a decline in crypto activity and revenue.
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Higher margin leverage raises credit risk
Robinhood expanded intraday margin buying power from up to 2x to up to 4x during regular market hours beginning in October 2026. The change increases customer position sizes and potential losses if customers fail to reduce positions before lower overnight limits apply.
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Convertible notes create dilution risk
The company issued $2.2 billion of 0.00% convertible senior notes due 2029 in June 2026. Conversion could require cash payments or delivery of Class A shares, creating liquidity needs and potential dilution.
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Event-contract regulation threatens growth
Event-contract offerings face ongoing litigation and regulatory uncertainty. Robinhood agreed to stop offering new sports-related event contracts in Michigan by September 9, 2026 and close open contracts by October 9, 2026; proposed North Carolina and Kentucky taxes would be 6% and 14.25% of specified operator revenue or fees, respectively.
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Agentic AI adds operational risk
The company launched Robinhood Agents in September 2026 and identifies risks from agentic trading, including unintended trades, regulatory obligations and third-party model dependence. The filing notes that agents may execute trades without direct customer input and that Robinhood Agents depends on a limited number of third-party AI model providers.
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Workforce reduction may impair execution
Robinhood completed an approximately 10% workforce reduction in September 2026. The filing warns that restructuring can reduce productivity and morale, increase employee attrition and weaken institutional knowledge, potentially affecting product development and compliance execution.
Management's outlook
The company lowered the top end of its 2026 Adjusted Operating Expenses and SBC outlook by $25 million, to $2.675 billion-$2.75 billion from $2.675 billion-$2.775 billion. The outlook excludes provision for credit losses, pending-acquisition costs, potential significant regulatory matters, restructuring charges and other significant expenses.
Earlier filings 4
10-K · February 18, 2026
Robinhood’s 2025 10-K positions the company as a product-led fintech expanding beyond commission-free brokerage into crypto (Bitstamp), custody/advisory (TradePMR), prediction markets and banking features while…
10-Q · July 31, 2025
Robinhood reported a strong quarter: total net revenues of $989 million and diluted EPS of $0.42 for the three months ended June 30, 2025, materially above the year-ago period. Operating leverage and cash generation…
10-K · February 18, 2025
Robinhood’s 2024 Form 10-K emphasizes product and geographic expansion (including Robinhood Legend, index options, futures, UK product rollouts and a planned Singapore office) and continued focus on crypto (supporting…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.