New York, April 26, 2026, 16:02 EDT
Robinhood Markets Inc. is staring down a new lawsuit from Wisconsin, just as it prepares to release first-quarter earnings. The state has targeted Robinhood and a group of rivals over contracts tied to sports events—a type of contract that allows traders to bet on real-world outcomes. The legal action drops a cloud of regulatory uncertainty over Robinhood right before its results hit.
Timing is key here. Robinhood will release results after Tuesday’s bell, with CEO Vlad Tenev and CFO Shiv Verma taking questions at 5 p.m. EDT. Shareholders have until Monday evening to send in their questions. The stock closed at $84.71 on Friday—a slide from Monday’s $91.28 finish, LSEG figures on the company show.
Investors want clarity on whether Robinhood’s push into event contracts, crypto, retirement products, margin lending, and private-market access will actually move the needle beyond its core business in stocks and options. In February, the company’s fourth-quarter revenue fell short of Wall Street’s targets, dragged down by softer-than-expected crypto trading revenue—even as revenue from equities and options ticked higher.
Wisconsin is suing Kalshi, Robinhood, Coinbase, Polymarket and Crypto.com, accusing them of running illegal sports betting via prediction markets. Robinhood pushed back, telling Wisconsin Public Radio its event contracts fall under CFTC oversight and that it will fight the case.
Wisconsin isn’t the only battleground. On Friday, the U.S. Commodity Futures Trading Commission filed suit against New York, arguing the state encroached on federal jurisdiction in prediction markets by targeting Coinbase and Gemini for related offerings. New York regulators counter that gambling laws come into play when platforms sell event contracts—like those pegged to sports results and similar wagers.
Opinions are divided across Wall Street about Robinhood’s recent growth. Benzinga data shows JPMorgan kept a Neutral call on the shares as of April 23, trimming its price target down to $92 from $113. Taking the most recent notes from JPMorgan, KeyBanc and Cantor Fitzgerald together, the average price target now lands at $104.
Tailwinds are showing up, too. Earlier this month, the SEC gave the green light to a FINRA plan scrapping the pattern day-trader rule — that old cap held accounts under $25,000 to just three day trades every five business days. Shares of Robinhood and Webull climbed on the news. Northland’s Mike Grondahl called it a “direct benefit” for revenue: more day trading simply means more orders, more often, per user. Reuters
Robinhood took another step overseas last week, winning in-principle approval from the Monetary Authority of Singapore to roll out brokerage services. Patrick Chan, who heads up Robinhood’s Asia operations, described Singapore as an “ideal hub.” The company noted the approval might extend to securities trading, exchange-traded derivatives, custody, product financing and funds, but stressed this approval does not yet amount to a licence. Robinhood
Robinhood took another swing at private markets. Its Ventures Fund I disclosed a roughly $75 million purchase of OpenAI common shares on April 17, offering retail clients a rare backdoor into an AI company still off public exchanges. “OpenAI was one of RVI’s largest investments to date,” said fund president Sarah Pinto. Robinhood
Robinhood shares jumped on the heels of the OpenAI news, Reuters said, but the RVI fund saw even steeper gains. Piper Sandler analysts, in a note this month, argued retail trading could hold up better than investors expect in 2026—regardless of whether rate cuts or a broad risk rally materialize.
The risks are obvious. Should state challenges bog down event contracts, or if Singapore’s full licence is delayed after the initial approval, or retail traders pull back again, Robinhood’s latest product updates might fall short of shoring up the shares.
Tuesday’s call? It comes down to numbers: funded customers, net deposits, margin balances, options activity, crypto trading, plus whatever management says about event contracts. Everything else is narrative. The market’s after evidence.
