Robinhood's first quarter financial report was released, with a significant drop after hours. There may be two reasons for the decline: 1) The company announced an 18% increase in first quarter expenses and warned that its "Trump Account" promotion plan would require an additional $100 million investment. "Our contract to provide services to Trump Accounts is based on a cost plus model with lower profit margins, so we expect revenue to exceed costs; 2) Revenue from encryption was $134 million (-47%) - the biggest drag, affected by the sluggish trading of digital assets such as Bitcoin (Robinhood App's cryptocurrency trading volume decreased by 48%). Let's talk in detail about Hood's financial report 1. Data indicators The total net income increased by 15% year-on-year, but did not meet the consensus of analysts (approximately 1.13-1.17 billion US dollars); EPS slightly increased by 3%, which was also slightly lower than expected. 1. Overview of Core Financial Data Total net income: 1.07 billion US dollars (+15% YoY, up from 927 million US dollars) Transaction revenue: 623 million US dollars (+7% YoY) Net interest income: $359 million (+24% YoY) Other income: 85 million US dollars (+57% YoY) Net profit: 346 million US dollars (+3% YoY) Diluted EPS: 0.38 USD (+3% YoY, up from 0.37 USD) Operating expenses: $656 million (+18% YoY) Compared to expectations: Revenue fell short of expectations (market expectation of approximately 1.13-1.77 billion US dollars), while EPS remained largely unchanged or slightly below expectations (expected 0.39-0.41 US dollars). The revenue growth rate has significantly slowed down compared to the high growth stage of the whole year in 2025. 2. Revenue breakdown: driven by diversification, but significantly dragged down by encryption Robinhood continues to transition from "commission dependency" to "interest+subscription+diversified trading", and its performance this season is as follows: 1) Transaction Based Revenue (58% of total revenue): $623 million (+7%) 2) Options: $260 million (+8%) - benefiting from market volatility and high user activity 3) Stocks: $82 million (+46%) - Strong trading volume, nominal equity trading volume of $638 billion (+54%) 4) Cryptocurrency: $134 million (-47%) - the biggest drag 5) Other trading revenue: $147 million (+320%) - mainly from innovative products such as event contracts, futures, index options, etc., with a record trading volume of 8.8 billion copies, becoming a new growth point 6) Net Interest Revenue (34% of total revenue): $359 million (+24%) - a core stable growth point, derived from cash sweep, margin loans, and other sources. Cash and deposit balance of 16.7 billion US dollars (+71%), margin account book of 17 billion US dollars (+93%) 7) Other Revenue (8% of total revenue): $85 million (+57%) - Robinhood Gold subscription revenue of $50 million (+32%), showing increased stickiness among high-value users 3. User and Platform Metrics: Steady Growth, Increased Gold Penetration Rate 1) Fund account users: 27.4 million (+1.7 million,+6% YoY) 2) Investment account: 29.1 million (+8% YoY) 3) Robinhood Gold subscribers: 4.3 million (+1.2 million,+36% YoY, historical high), penetration rate of approximately 15.7% 4) Total Platform Assets: $307 billion (+39% YoY) - driven by net deposits, rising equity valuations, and acquisitions 5) Net deposits: $17.7 billion (annualized growth rate of 22%), $67.8 billion (+31%) in the past 12 months Robinhood is transitioning from an "explosive user growth" phase to a "deep monetization" phase. Gold subscriptions and product innovations (retirement, credit cards, bank accounts) are key to the future. Overall highlights Affected by the downturn in encryption and the significant increase in spending, the growth rate has slowed down, but there are still some highlights: 1) The revenue is very diversified, and the proportion of encrypted revenue has increased from nearly 50% to only about 15% now; 2) The market business growth rate is predicted to be very fast, with 8.8 billion event contracts in the first quarter, a year-on-year increase of 320%. Other transaction revenue mainly based on event contracts has already exceeded cryptocurrency revenue. There will be a World Cup in the second quarter, and it is highly likely that there will be a surge in event contracts; 3) Diversification success (net interest+subscriptions+new trading products), rapid growth of platform assets and deposits, stock buybacks+strong cash flow. Operating cash flow of 2 billion US dollars, strong free cash flow, and cash and equivalents of 5 billion US dollars. Watch Vlad Tenev's statement: The company is at the center of the 'Great Wealth Transfer', with an accelerated pace of product innovation and users viewing Robinhood as the core of financial life. Short term pressure, but there are still many highlights in the fundamentals. It will take time for another outbreak to occur