Key Takeaways:
Robinhood reported record second-quarter revenue of $1.31 billion, up 32 percent from a year earlier, as prediction-market income of $156 million overtook both crypto and stock trading for the first time. Net income rose 48 percent to $573 million, with diluted earnings per share of $0.62 beating the $0.41 consensus.
"The business is firing on all cylinders," Chief Financial Officer Shiv Verma said. "We delivered record revenues and drove new highs across equity, option, and event contract volumes, as we continue to win market share."
Event-contract revenue climbed more than tenfold year over year to $156 million, roughly 20 percent of transaction-based revenue, which rose 44 percent to $776 million. Options remained the largest trading category at $342 million, up 29 percent, followed by event contracts, equities at $129 million (up 95 percent) and crypto at $100 million (down 38 percent). Users traded a record 13.6 billion event contracts during the quarter, more than ten times the year-earlier level.
The shift marks a structural turn for the zero-commission brokerage, which entered prediction markets in late 2024 with contracts on the US presidential election. In June, Robinhood and Susquehanna International Group launched Rothera, a CFTC-licensed exchange and clearing house, contributing $17 million of the segment's revenue and processing $2.1 billion in notional volume in its first quarter. The move cut Robinhood's reliance on Kalshi, whose share of the incumbent's volume fell to 17.5 percent from nearly 50 percent a year earlier, according to Artemis data.
Crypto trading weakened as organic in-app volume dropped 35 percent to $18 billion, while total volume of $40 billion included $22 billion from the acquired Bitstamp. The company still expanded its digital-asset footprint, closing the WonderFi acquisition, launching the Robinhood Chain mainnet and adding tokenized stocks in more than 120 countries.
Adjusted EBITDA reached $741 million with a 57 percent margin. Net income included $129 million from the deconsolidation of Robinhood Ventures Fund I, adding about $0.14 to EPS, meaning roughly 23 percent of quarterly profit came from one-off investment activity. Funded customers rose to 28.4 million, platform assets grew 32 percent to $369 billion, and net deposits hit a record $21.7 billion.
The prediction-market surge gives Robinhood a second high-growth engine beyond equities and crypto, with Bernstein analysts projecting $586 million in event-contract revenue for 2026, of which $260 million has been booked through two quarters. Investors will watch whether volume holds after the World Cup cycle, with the NFL season and US midterm elections expected to drive the next leg of growth.
This article is for informational purposes only and does not constitute investment advice.
