Robinhood Hits 27.7 Million Users as Margin Debt Nearly Doubles

Robinhood Markets Inc. (NASDAQ: HOOD) ended May 2026 with 27.7 million funded customers and $377 billion in platform assets, a 48% jump from a year earlier, the company said in its monthly operating update. Net deposits added $5.6 billion for the month alone.

The more interesting number sits further down the release. Margin balances, the money customers borrow against their own portfolios, climbed 117% year over year to $19.5 billion, while crypto trading, once Robinhood’s signature growth engine, barely moved at all.

Platform Assets Jump $70 Billion in Two Months

Robinhood’s asset base has compounded fast this year. Total platform assets stood at $307 billion at the end of the first quarter. April pushed that to $345.4 billion. May closed at $377 billion, according to the company’s May 2026 operating data release, up 9% from April and 48% from a year earlier.

Net deposits, new cash and securities landing on the platform, totaled $5.6 billion in May, a 19% annualized growth rate against April’s asset base. Over the trailing twelve months, net deposits reached $69.1 billion, a 27% annualized rate relative to where assets stood a year ago.

Funded customers climbed on a similar path: 27.4 million at the end of the first quarter, 27.6 million in April, 27.7 million in May. That is roughly 300,000 net new accounts in two months and 1.76 million over the past year.

Margin Debt Nearly Doubles While Trading Volume Spikes

Robinhood’s trading and lending numbers for May outran everything else in the release.

• Equity notional trading volume: $315 billion in May, up 27% from April and 75% year over year.
• Average daily volumes: $15.8 billion, up 34% month over month and 84% year over year.
• Options contracts traded: 231 million, up 3% from April and 29% year over year.
• Margin balances: $19.5 billion, up 117% year over year.

Margin debt is the standout figure. A 117% year-over-year jump means customers are borrowing against their portfolios at nearly double last year’s pace, a bet that pays off in a rising market and cuts hard the other way in a falling one. Robinhood does not break margin balances out by account size, so there is no way to tell whether the growth sits with a small group of active traders or spreads across the whole base.

Why Is Crypto Cooling Inside the App?

Crypto notional trading volume inched up just 3% from April, to roughly $12.2 billion in May, a fraction of equity trading’s 27% jump. The bigger reason sits in the first-quarter numbers: crypto revenue collapsed 47% year over year, and executives have spent months steering investor attention toward other business lines instead.

Robinhood’s first-quarter results, released April 28, made the shift obvious. Crypto revenue fell to $134 million and transaction-based revenue of $623 million missed Wall Street estimates. Shares fell 14% in the session that followed, CNBC reported, as crypto trading revenue collapsed 47% to $134 million.

Shiv Verma, Robinhood’s chief financial officer, tried to put that number in context on the earnings call, saying crypto was “less than 20% of our revenue last year, about 18%,” and that the company has “vastly diversified” since.

We’re at the very beginning of what’s going to be a tokenization supercycle.

Vlad Tenev, Robinhood’s co-founder and chief executive, made that comment on the same call, part of a pitch to shift investor attention away from bitcoin’s price and toward tokenized real-world assets. That pitch is already moving. Robinhood’s Robinhood Chain mainnet wiring in stock tokens went live in recent weeks, the clearest sign yet that tokenization, not crypto speculation, is meant to be the next growth line.

Prediction Markets Draw Users, and Regulators

Prediction markets are Robinhood’s fastest-growing sideline. Robinhood Securities won approval to act as an IPO underwriter this year, then delivered SpaceX IPO access to 855,424 users during a launch the company said drove record platform traffic.

More of that business is now routed through Rothera, a joint venture built to capture exchange economics that used to go to third parties. Cantor Fitzgerald has called Rothera a catalyst still not fully priced into most analyst models.

Not every state is comfortable with the expansion. Kentucky filed a lawsuit naming Robinhood among prediction market operators, alongside Kalshi, Polymarket, Coinbase and Webull, a sign of the legal exposure building under one of the app’s newest revenue lines.

The product line keeps moving fast regardless. Robinhood set a 1 a.m. Eastern cutoff on its XRP contracts ahead of a July 2 settlement, the kind of granular scheduling decision that only matters once a product carries real trading volume.

Wall Street Can’t Agree on a Price Target

The stock has already priced in a lot of this optimism. Shares traded in the mid-$70s in late May, then pushed above $100 by mid-June, closing at $105.20 on June 17 after a session that ran as high as $110.73.

• Keefe, Bruyette & Woods rates the stock Hold with a $65 target, warning that fee capture rates in crypto and options keep slipping.
• JPMorgan analyst Kenneth Worthington cut his target to $92, citing slowing growth and mounting competition from crypto exchanges and prediction-market rivals.
• Cantor Fitzgerald and Mizuho raised their targets instead, to $110 and $130, betting Rothera and other new product lines outweigh softer crypto revenue.

Barclays sits in the middle. Analyst Benjamin Budish reiterated his Buy rating in late June but kept his price target at $82, implying close to 20% downside from where the stock traded that week.

Stockanalysis.com, which tracks 28 analysts polled by S&P Global, puts the consensus at Buy with an average target of $116.09, a split verdict between traders betting the current growth mix holds and those still waiting on crypto to catch up.

The Schwab Gap Still Looms Large

Even after two blockbuster months, Robinhood remains small next to the industry’s oldest names. Divide $377 billion by 27.7 million funded customers and the average account holds a little under $13,600, up from roughly $12,500 in April, using the same rough math the Motley Fool applied to the previous month’s figures.

Charles Schwab, by comparison, holds $12.22 trillion in client assets across 47 million funded accounts, an average north of $260,000 each, per the Motley Fool’s tally. Robinhood has closed some of that gap in percentage terms, though the dollar gap has barely moved.

Second-Quarter Earnings Land July 29

Robinhood is set to report second-quarter 2026 results after market close on July 29, its next real test of whether this growth mix holds.

Consensus estimates, per a projected 11.7% drop in full-year earnings per share, put 2026 EPS at $1.81, down from $2.05 in fiscal 2025, before a projected rebound to $2.49 in 2027.

Whether margin-fueled trading can keep outrunning a cooling crypto book will show up in that report, not in this one.

Frequently Asked Questions

What Counts as a Robinhood Funded Customer?

A funded customer is any account holding a positive balance of cash or securities, Robinhood’s baseline measure of an active user. The company also tracks a separate investment accounts figure, which runs higher than funded customers because some users open more than one account on the platform.

Is Robinhood’s May Asset Growth From New Money or Market Gains?

Both, but they are not the same number. Net deposits, the new cash and securities moving onto the platform, totaled $5.6 billion in May. Total platform assets grew far more than that, to $377 billion, because rising equity and crypto prices lifted the value of holdings customers already had on the platform.

Why Did Robinhood’s Margin Balances Jump So Much?

Margin balances measure how much customers borrow against their own portfolios to trade with more money than they actually hold. A 117% year-over-year increase to $19.5 billion means customers are taking on much bigger positions than a year ago, a bet that amplifies gains in a rising market and losses, including forced sales, if prices drop fast.

How Exposed Is Robinhood’s Revenue to Crypto Now?

Less than it once was, by the company’s own account. Crypto made up about 18% of Robinhood’s revenue last year, chief financial officer Shiv Verma said on the first-quarter earnings call. Equities revenue rose 46% to $82 million, options climbed 8% to $260 million, and event-contract revenue jumped 320% to $147 million that same quarter, while crypto revenue alone fell 47%.

When Is Robinhood’s Next Earnings Report?

Robinhood is scheduled to report second-quarter 2026 results after market close on July 29. Analysts will be watching whether equity and options trading, margin lending and prediction markets can keep offsetting a crypto business that shrank sharply in the first quarter.

Disclaimer: This article is for informational purposes only and is not financial or investment advice. Robinhood shares and crypto-linked products carry substantial risk, including the risk of loss, and analyst price targets are estimates, not guarantees. Consult a licensed financial professional before making investment decisions. Figures are accurate as of publication.