Robinhood (HOOD +0.45%) stock is getting hit with big sell-offs Wednesday following the company's latest quarterly report. The company's share price was down 14.3% as of 1:15 p.m. ET. At the same point in the daily session, the S&P 500 was down 0.3%, and the Nasdaq Composite was down 0.4%.
Robinhood published its first-quarter results after the market closed yesterday, posting sales and earnings that fell short of the market's expectations. As of this writing, the stock is now down roughly 38% in 2026.
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Robinhood's Q1 results missed the mark
Robinhood notched a profit of $0.38 per share on revenue of $1.07 billion in the first quarter, coming in below the average Wall Street analyst estimate's call for a per-share profit of $0.39 on sales of $1.14 billion. Net interest revenue jumped 24% higher year over year to reach $359 million, and transaction-based revenue rose 7% year over year to hit $623 million. With overall revenue still up 15.4% year over year, Robinhood's Q1 performance was far from terrible -- but investors are focusing on indicators that could point to growth deceleration and margin pressures for the business.
NASDAQ: HOOD
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What's next for Robinhood?
With its Q1 report, Robinhood raised its outlook for annual adjusted operating expenses and stock-based compensation by roughly $100 million -- bringing the total projected combined category range to between $2.7 billion and $2.825 billion. On the heels of results last quarter that missed the average Wall Street targets, some investors appear to be bristling at the guidance for increased expenses this year.
