Robinhood reports shrinking revenue, fewer active users

▤ Summary

Retail brokerage firm Robinhood reported a wider-than-expected loss and shrinking revenue for the first quarter, showing signs that the small-dollar trading boom that captivated Wall Street a year ago may have run out of steam. "Our larger customers are still remaining active, but we are seeing more pronounced declines from those that have lower balances," CEO Vlad Tenev said on a conference call with investors and analysts. Heres what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv: For the three months ended March 31, Robinhood said its loss narrowed to $392 million, or 45 cents per share, from a loss of $1.4 billion, or $6.26 per share, a year ago. On Tuesday, Robinhood said it will cut its full-time workforce by about 9%, citing "duplicate roles and job functions" for the layoffs. Tenev said the company aimed to have positive adjusted EBITDA — or earnings before interest, taxes, depreciation and amortization — by the end of the year.

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Robinhood Markets, Inc.

$1M to $5M