Robinhood Markets (HOOD) stock jumped more than 8% out of the gate Thursday after the online brokerage platform reported record first-quarter results that crushed expectations on both the top- and bottom-lines. Shares have since pulled back, however, with HOOD in negative territory at midday.
In the three months ended March 31, Robinhood said its revenue surged 40% year-over-year to $618 million, driven by a 59% rise in transaction-based revenues to $329 million. This included a 232% increase in cryptocurrency revenue which coincided with a roughly 60% rise in bitcoin's price in the first quarter.
HOOD also swung to earnings of 18 cents per share from a loss of 57 cents in the year-ago period.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"We delivered significant revenue growth and margin expansion in Q1 as we remain focused on driving another year of profitable growth in 2024," Robinhood Chief Financial Officer Jason Warnick said in a statement. "In Q1, we set records for quarterly revenues, net income, and EPS, even as we stepped up our marketing and growth investments."
Robinhood's results blew past analysts’ expectations. According to CNBC, Wall Street was anticipating revenue of $549 million and earnings of 6 cents per share.
"We continued to aggressively execute on our product roadmap in Q1, leading to all-time highs for net deposits and gold subscribers," Robinhood CEO and co-founder Vlad Tenev said in a statement. "Q2 is off to a strong start with April being our highest month of the year for net deposits and gold subscriber growth, and we're excited to see strong interest from over 1 million customers in our Robinhood Gold Card."
Is Robinhood stock a buy, sell or hold?
According to S&P Global Market Intelligence, the consensus analyst target price for the financial services stock is $19.87, representing implied upside of more than 10% to current levels. Meanwhile, the consensus recommendation on the online broker and trading platform is Hold.
Commenting on the first-quarter results, Needham analyst John Todaro said, "HOOD posted a strong beat on top-line and adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] driven by options and crypto activity."
The analyst adds that crypto volume was up three times over Q4 2023. "HOOD is doing a great job managing expenses, with costs coming in below our estimates in nearly every category," Todaro says.
Despite the positive commentary, the analyst has a Hold rating on Robinhood stock.
Related Content
-
Crypto Trends to Watch in 2026Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Original Medicare vs Medicare Advantage Quiz: Which is Right for You?Quiz Take this quick quiz to discover your "Medicare Personality Type" and learn whether you are a Traditionalist, or a Bundler.
-
Ask the Editor: Capital Gains and Tax PlanningAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on capital gains tax rates and end-of-year tax planning
-
Crypto Trends to Watch in 2026
Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Time Is Running Out to Make the Best Moves to Save on Your 2025 TaxesDon't wait until January — investors, including those with a high net worth, can snag big tax savings for 2025 (and 2026) with these strategies.
-
4 Smart Ways Retirees Can Give More to Charity, From a Financial AdviserFor retirees, tax efficiency and charitable giving should go hand in hand. After all, why not maximize your gifts and minimize the amount that goes to the IRS?
-
I'm an Insurance Pro: If You Do One Boring Task Before the End of the Year, Make It This One (It Could Save You Thousands)Who wants to check insurance policies when there's fun to be had? Still, making sure everything is up to date (coverage and deductibles) can save you a ton.
-
Small Caps Hit a New High on Rate-Cut Hope: Stock Market TodayOdds for a December rate cut remain high after the latest batch of jobs data, which helped the Russell 2000 outperform today.
-
What Investors May Face in the New Year: InterviewKeith Lerner, the chief market strategist and chief investment officer for Truist Wealth, speaks with Kiplinger.
-
3 Year-End Tax Strategies for Retirees With $2 Million to $10 MillionTo avoid the OBBB messing up your whole tax strategy, get your Roth conversions and charitable bunching done by year's end.
-
'Politics' Is a Dirty Word for Some Financial Advisers: 3 Reasons This Financial Planner Vehemently DisagreesYour financial plan should be aligned with your values and your politics. If your adviser refuses to talk about them, it's time to go elsewhere.
