Robinhood Markets shares plunged nearly 14% Wednesday after the brokerage's quarterly earnings revealed customers are becoming more cautious amid market volatility. The stock had surged 30% this month ahead of results, but those gains evaporated as trading revenue missed Wall Street's expectations while expenses climbed.

The company reported net income of $346 million, a modest 3% increase, as clients grapple with rising energy prices, erratic stock swings, and a deep cryptocurrency downturn. Investors had hoped for stronger performance from the retail trading platform, especially after its recent price surge that had created high expectations.

Devin Ryan, head of financial-technology research at Citizens, acknowledged the challenging quarter but emphasized "there's not a lot of patience for a miss." With shares now down 37% for the year, Robinhood faces pressure to demonstrate it can navigate volatile market conditions and sustain customer engagement in an increasingly competitive retail brokerage environment.