Shares of Robinhood (HOOD) slipped in after-hours trading after the financial services platform reported its first-quarter results. Indeed, earnings per share came in at $0.38, which missed analysts’ consensus estimate of $0.39 per share. Furthermore, sales increased by 15% year-over-year to $1.07 billion. This also missed analysts’ expectations of $1.14 billion.
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Nevertheless, the increase in revenue was primarily driven by growth in interest-earning assets and higher transaction volume. Specifically, options trading brought in $260 million for the company, a 8% increase compared to Q1 2025, while equities revenue grew by 46% to $82 million. At the same time, cryptocurrency trading revenue fell 47% to $134 million.
In addition, the number of Funded Customers increased by 6% year-over-year to 27.4 million, with average revenue per user jumping 8% to $157. However, as shown in the image below, the average revenue per user figure is currently below the previous quarter’s result of $191.
Is HOOD a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on HOOD stock based on 14 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average HOOD price target of $106 per share implies 28.4% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
