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Robinhood Posts Record Q2 Revenue as Prediction Markets Outpace Crypto
27 Aug 2026, 19:47
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Robinhood's event contracts business generated more revenue than its crypto trading arm for the first time, even as total revenue jumped 32% year-over-year to $1.31 billion.
<p>Robinhood posted record second-quarter revenue of $1.31 billion, up 32% year-over-year, beating Wall Street's consensus estimate of roughly $1.25 to $1.28 billion, with diluted earnings per share of $0.62 also topping analyst expectations near $0.41.</p>
<p>The headline number obscured a more striking shift inside the business: for the first time, Robinhood's prediction markets segment generated more revenue than its crypto trading operations. Event contracts -- essentially tradable bets on the outcome of real-world events -- brought in $156 million during the quarter, compared to $100 million from crypto trading, marking a reversal for a business line that had long been a secondary product alongside stocks, options and crypto.</p>
<p>The result underscores how successfully Robinhood has diversified its transaction-based revenue beyond crypto, a category that has historically been highly sensitive to broader market sentiment and volatility. With crypto markets choppy for much of the year, prediction markets gave Robinhood a growth lever less directly tied to whether Bitcoin and other tokens were rallying or retreating -- a contrast to competitors more heavily concentrated in crypto trading revenue.</p>
<p>The quarter's results position Robinhood favorably heading into a period some analysts have described as a heated rivalry with Coinbase for leadership across crypto and adjacent retail trading products. Robinhood's push into prediction markets, alongside its broader "everything app" strategy spanning banking, brokerage and now event contracts, has been credited with helping the company outperform peers more narrowly focused on crypto trading volume.</p>
<p>Robinhood's results stand in sharp contrast to Coinbase's own second-quarter report, where crypto-specific revenue weakness weighed more heavily on the bottom line -- illustrating how differently two major public crypto-adjacent companies have fared depending on how diversified their revenue base is beyond spot and derivatives crypto trading.</p>
<p>Robinhood did not provide specific guidance on how it expects the balance between prediction markets and crypto trading to evolve in coming quarters, though the strength of the shift this quarter suggests event contracts are likely to remain a meaningful, and possibly growing, share of the company's transaction revenue going forward.</p>
<p>The headline number obscured a more striking shift inside the business: for the first time, Robinhood's prediction markets segment generated more revenue than its crypto trading operations. Event contracts -- essentially tradable bets on the outcome of real-world events -- brought in $156 million during the quarter, compared to $100 million from crypto trading, marking a reversal for a business line that had long been a secondary product alongside stocks, options and crypto.</p>
<p>The result underscores how successfully Robinhood has diversified its transaction-based revenue beyond crypto, a category that has historically been highly sensitive to broader market sentiment and volatility. With crypto markets choppy for much of the year, prediction markets gave Robinhood a growth lever less directly tied to whether Bitcoin and other tokens were rallying or retreating -- a contrast to competitors more heavily concentrated in crypto trading revenue.</p>
<p>The quarter's results position Robinhood favorably heading into a period some analysts have described as a heated rivalry with Coinbase for leadership across crypto and adjacent retail trading products. Robinhood's push into prediction markets, alongside its broader "everything app" strategy spanning banking, brokerage and now event contracts, has been credited with helping the company outperform peers more narrowly focused on crypto trading volume.</p>
<p>Robinhood's results stand in sharp contrast to Coinbase's own second-quarter report, where crypto-specific revenue weakness weighed more heavily on the bottom line -- illustrating how differently two major public crypto-adjacent companies have fared depending on how diversified their revenue base is beyond spot and derivatives crypto trading.</p>
<p>Robinhood did not provide specific guidance on how it expects the balance between prediction markets and crypto trading to evolve in coming quarters, though the strength of the shift this quarter suggests event contracts are likely to remain a meaningful, and possibly growing, share of the company's transaction revenue going forward.</p>