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Robinhood Markets Inc. (NASDAQ:HOOD) reported stronger-than-expected second-quarter results, with both earnings and revenue exceeding Wall Street forecasts. Although the stock initially declined in after-hours trading, it recovered to trade broadly unchanged in premarket trading by 06:31 ET on Thursday. The online brokerage benefited from robust trading activity and disciplined cost management during the quarter, while a one-time accounting gain also contributed to its earnings performance. Robinhood reported diluted earnings of $0.62 per share, beating the analyst consensus estimate of $0.42 by $0.20. The result included a one-time benefit of approximately $0.14 per share, primarily related to the deconsolidation of Robinhood Ventures Fund I, which added $129 million to net income. Total net revenue increased 32% year over year to a record $1.31 billion, exceeding analysts’ expectations of $1.25 billion. Adjusted EBITDA climbed 35% from the prior year to $741 million, finishing 18% above consensus forecasts. “Q2 EBITDA came in well ahead, driven primarily by expense savings (and FY expense guide-down despite some incremental pieces) with a more modest revenue beat,” Barclays analysts noted. Transaction-based revenue rose 44% year over year to $776 million, supported by strong customer trading activity across several asset classes. Revenue from event contracts increased more than tenfold to $156 million during the quarter, while options and equities trading also recorded strong growth. Cryptocurrency trading volumes, however, declined 38% compared with the same period last year. Net interest revenue also contributed to the strong quarterly performance, rising 9% year over year to $389 million despite changes in the interest rate environment. Following the stronger-than-expected quarter, Robinhood revised its full-year 2026 expense guidance to reflect ongoing cost discipline and operational efficiencies. Management lowered its projected range for adjusted operating expenses and share-based compensation to between $2.675 billion and $2.775 billion. The previous guidance called for expenses of between $2.7 billion and $2.825 billion. Robinhood continued to expand customer engagement across its platform during the quarter. Robinhood Gold subscriptions increased 39% from a year earlier to a record 4.8 million. Net deposits reached $21.7 billion, helping total platform assets grow to $369 billion. The company also continued returning capital to shareholders, repurchasing $414 million of common stock during the quarter at an average price of approximately $94 per share. Robinhood stock price

JPMorgan has lowered its price target on Robinhood Markets (Nasdaq: HOOD). This comes just four days before it announces its earnings for the first quarter of 2026. Robinhood, cofounded by Vlad Tenev and Baiju Bhatt in 2013, is a commission-free trading platform that allows everyday investors to buy stocks, ETFs, and options with no fees. Crypto became a significant part of its business early on. Robinhood Crypto lets users trade Bitcoin (BTC), Ethereum (ETH), and other digital assets directly within the app. Related: Cathie Wood's favorite stock surges on OpenAI deal Despite the downgrade, Robinhood has had an eventful April. On Apr. 22, Robinhood Ventures Fund I announced it had closed a $75 million investment in OpenAI, the company behind ChatGPT. This was one of the fund's largest single investments to date, with the purchase of OpenAI common stock executed on April 17. The company also scored a regulatory win in Asia-Pacific, securing in-principle approval from the Monetary Authority of Singapore on Apr. 27 for offering brokerage services in the country. Gold giant freezes $344 million tied to illicit activity Trader manipulates city weather sensor to win $34K Another DeFi company loses millions in fresh exploit JPMorgan analyst Ken Worthington lowered the price target for Robinhood by 18.58% from $113 to $92. However, he maintained a Neutral rating on the stock. The revision follows conversations with Robinhood's management ahead of first quarter of 2026 results, due on Apr. 28 after market close. The analyst cited a headline decline in first-quarter estimates driven primarily by lower net interest revenue and higher-than-expected expenses. JPMorgan also trimmed its target valuation multiple, pointing to softer net deposit growth and what it described as a "limited outlook on retail engagement going forward" as key reasons for the more cautious stance. A target valuation multiple is how analysts decide what a company is worth relative to its earnings, revenue, or cash flow. As per TipRanks, among 17 Wall Street analysts offering 12-month price targets, the average sits at $106, with a high of $135 and a low of $75. HOOD stock was down 5.97% at press time, trading at $83.15. Related: Analyst warns 3 major risks for Robinhood This story was originally published by TheStreet on Apr 23, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.