Robinhood Markets Inc. (NASDAQ:HOOD) and SoFi Technologies Inc. (NASDAQ:SOFI) shares traded sharply lower on Wednesday after quarterly results suggested investors are growing less forgiving toward fintech names where headline growth is offset by misses, margin pressure or segment-specific weakness.

HOOD Q1 Disappoints 

Robinhood shares were down 12.25% at $72.02 after the company reported first-quarter revenue of $1.07 billion, below estimates of $1.14 billion. 

Earnings came in at 38 cents per share, missing estimates of 40 cents.

The selloff came even as Robinhood reported 15% year-over-year revenue growth, $346 million in net income, $17.7 billion in net deposits and total platform assets of $307 billion, according to Robinhood's earnings release. 

The pressure appeared tied to weakness in crypto, where revenue fell 47% year-over-year to $134 million, partially offsetting strength in options, equities, event contracts and subscription revenue. 

SOFI Q1 Details

SoFi shares were also lower on Wednesday, falling 13.02% to $15.97, despite reporting record GAAP net revenue of $1.1 billion, net income of $166.7 million, and adjusted EBITDA of $339.9 million, according to SoFi's earnings release. 

The company posted EPS of 12 cents, in line with estimates, but investors appeared to focus on SoFi's Technology Platform, where revenue fell 27% year-over-year and contribution profit fell 61%. 

The company said the decline reflected the impact of a large client that fully transitioned off the platform before the end of 2025. 

SoFi expects second-quarter revenue to be $1.11 billion, just below the consensus estimate of $1.12 billion. 

The Takeaway

The moves in SoFi and Robinhood stocks highlight a tougher setup for fintech stocks after strong runs in recent years. 

Robinhood still has a buy consensus rating and an average price target of $109.26, while SoFi carries a hold consensus and an average target of $19.33, according to Benzinga data. 

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