Robinhood’s profits fell while its cash pile grew.
Quarterly revenue dropped to $1.1 billion, a 16.2% decline, and net income slid to $350 million, down 37.1%; at the same time the company’s cash balance rose to $5.0 billion from $4.3 billion the year before. The simple read is a business making less money but holding more liquidity.
"The increase was partially offset by a decrease in interest revenue from securities lending activities, driven by lower collateral balances and higher stock loan interest expense as stock loan balances grew, as well as a decrease in interest revenue on corporate cash and investments driven by a lower short-term interest rate environment."
Robinhood Markets / 10-Q / 2026-04-29
Put plainly: the interest line that used to pad revenue, securities lending and interest on corporate cash, shrank because collateral balances were lower and short-term rates fell.
Costs didn’t help. Technology and development expense rose to $241 million, up 13% year-over-year, while general and administrative climbed to $174 million, a 31% jump driven by higher stock-based compensation tied to the CFO transition, bigger headcount, and sharply higher legal fees. The filing also calls out lower equity and option rebate rates from a different trading mix, which bites into contribution margins.
Management also laid out how sensitive the business is to small rate moves:
"The impact to total net revenues, net income, and cash flows, prior to any income tax effects, as a result of a hypothetical interest rate change at the end of each reporting period would be: March 31, (in millions) 2025 2026 50 basis point $ 104 $ 147 100 basis point 208 294 150 basis point 313 441 The change to total net revenues, net income, and cash flows, prior to any income tax effects, would be the same as total net revenues includes net interest revenue, which captures both the impact of any incremental interest revenue and interest expense, and changes in interest rates do not have a direct impact on operating expenses."
Robinhood Markets / 10-Q / 2026-04-29
a modest 50 basis-point move now equals roughly a $147 million swing to net revenues on the March snapshot, which explains why revenue and margin math tilt with rates.
That sensitivity sits alongside a higher cash balance and multiple committed borrowing arrangements. The filing shows revolving commitments with Goldman Sachs and Truist, each allowing re-borrowing up to $300 million, and a renegotiated Barclays rate on other facilities. So liquidity increased even as the P&L weakened.
Why this matters: investors are valuing the company at a premium to peers, P/E and EV/sales sit well above peers, while the quarter highlights two volatile inputs to earnings: short-term rates and trading‑symbol mix. One quarter increased cash; the same quarter showed a weaker profit performance.
Robinhood reported lower earnings, higher cash balances, and quantified sensitivity of revenues to small rate moves.
Source: Robinhood Markets Form 10-Q for the quarter ended March 31, 2026, filed April 29, 2026.