At Robinhood prediction markets bring in more than crypto trading for the first time

Robinhood generated 156 million dollars from prediction markets and event contracts in the second quarter of 2026. Crypto trading came to 100 million dollars and therefore fell 38 percent against the year before.

It is the first time in the history of the firm that this area has overtaken crypto trading. The provider has offered event contracts for less than three years.

Total revenue reached a record 1.31 billion dollars, up 32 percent. Diluted earnings per share were 62 cents. Analysts had reckoned with 1.25 to 1.28 billion dollars of revenue and around 41 cents.

Net profit was 573 million dollars, and adjusted earnings before interest, tax, depreciation and amortisation 741 million dollars.

The short version

• Prediction markets and event contracts brought in 156 million dollars in the second quarter of 2026, while crypto trading came to 100 million and fell 38 percent.
• Total revenue reached a record 1.31 billion dollars, up 32 percent.
• Custodied assets rose 32 percent to 369 billion dollars.

An exchange of its own for event contracts

A structural decision sits behind the growth. In June Rothera launched, an exchange licensed by the American futures regulator with its own clearing. It is operated separately through a joint venture with Susquehanna International Group.

More than 3.5 billion contracts have been traded through the platform so far.

Event contracts are instruments whose payout depends on the occurrence of a particular event, such as the outcome of an election or a sporting fixture. Legally they are treated in the United States as futures contracts and therefore fall under the supervision of the futures authority.

That is exactly where the dispute arises. More than a dozen states currently contest whether such contracts are exempt from their own gambling law.

Trading by programs

In May the provider launched an offering in which customers can have shares, options and cryptocurrencies traded by programs that work on their own. Users connect their own models to an interface of the company.

By the end of the quarter just under 100,000 customers had opened such an account, with more than 100 million dollars of custodied assets between them.

Regulators have not yet fully examined this product category in its current form. Customers carry the responsibility for monitoring the behaviour of the programs, and the usual assurances of the securities business do not apply there.

Thirteen business lines instead of two

The shift is broader than that one area. According to the company, 13 business lines now each generate more than 100 million dollars of annualised revenue. Three years ago there were two.

Added since then are wealth management, banking services, prediction markets, retirement products and subscriptions. The trading interface for active customers also passed the 100 million dollar mark around 18 months after its launch, as did the credit card business.

Customer assets grow 32 percent

Custodied assets rose 32 percent to 369 billion dollars. That was carried by inflows and higher share prices, partly offset by lower crypto valuations.

Net inflows were 21.7 billion dollars in the quarter and 75.7 billion dollars over twelve months.

The number of subscribers to the paid add on offering rose by 1.4 million or 39 percent to 4.8 million. Average revenue per customer gained 24 percent to 187 dollars.

Cash stood at 5.4 billion dollars, including the proceeds of a convertible bond from June. For 414 million dollars the company bought back 4.4 million of its own shares at an average of around 94 dollars.

In the first quarter crypto revenue had already fallen 47 percent to 134 million dollars, while the equities business gained 46 percent. The decline in crypto therefore runs across several quarters.

Frequently asked questions

What are event contracts

Instruments whose payout depends on the occurrence of a particular event, such as the outcome of an election or a sporting fixture. Legally they are treated in the United States as futures contracts and fall under the supervision of the futures authority.

Why is there a dispute about these contracts

More than a dozen states currently contest whether such contracts are exempt from their own gambling law. In June Rothera launched as a licensed exchange of its own, through which more than 3.5 billion contracts have been traded so far.

How broad is the business now

According to the company, 13 business lines each generate more than 100 million dollars of annualised revenue. Three years ago there were two. Added since then are wealth management, banking services, prediction markets, retirement products and subscriptions.

This analysis is for information only and is not investment advice.