-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
HOOD reported a double miss in Q1 2026, with diluted EPS of $0.38 missing estimates by $0.01 and revenue of $1.07B falling 6% short of consensus but up 15% Y/Y. Transaction revenues of $623M (+7%) were softer than expected, driven by crypto weakness (-47%) but offset by strong equities (+46%) and explosive event contracts growth (+320%). We think HOOD's record 8.8B traded event contracts reinforces its dominant position in the rapidly expanding prediction markets segment, validating our bullish thesis on the company's ability to capture emerging opportunities. Management raised 2026 expense guidance by $100M to $2.700B-$2.825B to support Trump Accounts infrastructure and expects positive returns on a cost-plus basis. We believe HOOD remains well positioned with $5.0B in cash and strong early Q2 momentum, including about $5B in net deposits month-to-date. Strategic developments such as Robinhood Chain's testnet launch and Singapore regulatory approval position the company for long-term growth.