Robinhood Q2 Revenue Reaches Record as Event Contracts Grow

Robinhood reported its strongest quarterly revenue to date in the second quarter of 2026, with prediction markets becoming a larger source of revenue than cryptocurrency trading for the first time in the company’s history.

The trading platform posted total net revenue of $1.31 billion for the quarter, representing a 32% increase from a year earlier. Diluted earnings per share reached $0.62, exceeding analyst expectations that had generally centered around approximately $0.41. The results also surpassed Wall Street revenue forecasts that ranged between $1.25 billion and $1.28 billion.

A major contributor to the quarter’s performance came from event contracts and prediction markets, which generated $156 million in revenue. By comparison, cryptocurrency trading produced $100 million, marking a 38% year-over-year decline.

“The business is firing on all cylinders,” said Shiv Verma, Chief Financial Officer of Robinhood, according to the Tech Times. “We delivered record revenues and drove new highs across equity, option, and event contract volumes, as we continue to win market share.”

Rothera Expansion Reshapes Revenue Mix

Robinhood’s growing presence in prediction markets accelerated following the launch of Rothera, a venture created with Susquehanna International Group. The platform began processing trades on June 4 and gives Robinhood direct control over both exchange operations and trade clearing.

Prior to Rothera’s launch, Robinhood offered prediction market products through Kalshi. The new infrastructure allows the company to retain revenue streams that were previously shared with a third-party provider.

The foundation for Rothera was established in January 2026 through the acquisition of MIAXdx, which already held Commodity Futures Trading Commission (CFTC) approvals as a Designated Contract Market and a Designated Clearing Organization. Those licenses enabled Robinhood to enter the market with a complete regulatory framework already in place.

Verma previously described the benefits of that structure, stating that a platform can “control the whole product and engineering, (and) you also control the better economics,” when it operates with a full set of CFTC licenses.

Since launch, Robinhood has directed increasing amounts of prediction market activity through Rothera. The platform processed more than 3.5 billion contracts between its June debut and the end of the quarter. Rothera also recorded approximately $2.1 billion in notional prediction market volume during Q2, placing it fourth among U.S. competitors despite operating for less than a month of the reporting period.

Prediction Markets Continue Rapid Growth

Robinhood entered the prediction market sector in 2024 and introduced a dedicated event contracts hub in March 2025. The business has expanded quickly since then.

Revenue from prediction markets increased from roughly $104 million in the first quarter of 2026 to $156 million in the second quarter, representing a 50% sequential rise. Through the first half of the year, the segment has generated $260 million in revenue.

Trading activity reached record levels as customers executed 13.6 billion event contracts during the quarter. The company reported that this volume was more than ten times higher than the level recorded in the same quarter of 2025.

FIFA World Cup-related contracts represented a significant portion of activity following Rothera’s launch. Available markets included match results, group winners, tournament champions, spreads, totals, player-focused contracts, and combination wagers.

Industry-wide prediction market activity also reached new highs during the tournament. Daily volume peaked at $4.8 billion on June 12 during the United States versus Paraguay match, exceeding the amount traded around the previous year’s Super Bowl.

Analysts at Bernstein have projected that Robinhood could generate $586 million in prediction market revenue during 2026, up sharply from $150 million in 2025. With $260 million already recorded through the first two quarters, the company remains on pace with that forecast.

The growing business has also changed the competitive landscape. Kalshi Chief Executive Officer Tarek Mansour has identified Robinhood among the main competitors facing his company, alongside other established market participants.

Broader Platform Posts Record Metrics

While prediction markets expanded rapidly, cryptocurrency trading moved in the opposite direction. Crypto revenue fell 38% year over year to $100 million. Total cryptocurrency trading volume reached $40 billion during the quarter, including $18 billion from the Robinhood app and $22 billion from Bitstamp, the European exchange Robinhood acquired in 2024.

Transaction-based revenue climbed 44% year over year to $776 million. Equities trading revenue nearly doubled to $129 million, while options revenue increased 29% to $342 million.

Total platform assets rose 32% to $369 billion. Net deposits reached a record $21.7 billion, while funded customer accounts increased 7% to 28.4 million.

Chief Executive Officer Vlad Tenev said the company now operates 13 business lines that each generate more than $100 million in annualized revenue, compared with only three such business lines in 2022.