Prediction Markets Surge 10x to $156M, Outpacing Crypto and Stocks in Q2 2026

Woofun AI reports that a structural shift in revenue composition emerged during the second quarter of 2026, with Robinhood’s prediction market segment generating $156 million. This figure represents a more than 10-fold increase year-on-year, establishing event contracts as the platform’s second-largest transaction revenue source. The rapid ascent of this vertical has fundamentally altered the company’s financial profile, outpacing traditional equity and digital asset trading lines.

The total net revenue for the quarter reached a record $1.31 billion, marking a 32% year-on-year expansion. Within this aggregate, transaction-related revenue climbed to $776 million, a 44% increase from the prior year period. Options trading remained the dominant contributor with $342 million in revenue, followed by the newly prominent prediction market at $156 million. Stock trading revenue accounted for $129 million, while cryptocurrency trading revenue stood at $100 million, highlighting the divergent growth trajectories across asset classes.

Market reaction to the earnings release was muted, with HOOD stock priced at $89.84, reflecting a 1.01% decline in after-hours trading. Beyond transaction fees, net interest income contributed $389 million, up 9% year-on-year, providing a stable baseline for profitability. Other revenues surged by 54% year-on-year to $143 million, a growth vector primarily fueled by services associated with the Trump Account and an expansion in Robinhood Gold subscriptions. These non-transaction streams demonstrate the platform’s ability to monetize user engagement beyond pure trading activity.

Profitability metrics reflected strong operational leverage, with net profit reaching $573 million, a 48% year-on-year increase. This bottom-line growth included approximately $129 million in earnings derived from the merger with Robinhood Ventures Fund I. Diluted earnings were at $0.62, also up 48% year-on-year, with roughly $0.14 of that figure attributable to the merger-related accounting adjustments. The separation of organic growth from one-time merger benefits provides a clearer view of the underlying business momentum.

User acquisition and asset accumulation continued to accelerate, with funded customers rising to 28.4 million, a 7% year-on-year increase. The platform added 1.9 million new customers during the quarter, expanding its addressable market. Total platform assets grew to $369 billion, up 32% year-on-year, supported by a quarterly record of $21.7 billion in net deposits. Cumulative net deposits over the trailing 12 months reached $75.7 billion, indicating sustained capital inflow. Robinhood Gold subscribers hit a record 4.8 million, up 39% year-on-year, driving average revenue per user (ARPU) to $187, a 24% year-on-year gain.

Trading volume records were set across multiple asset classes, underscoring heightened market activity. Nominal stock trading volume reached $956 billion, an 85% year-on-year surge, while options contract trading volume hit 774 million contracts, up 50% year-on-year. In contrast, nominal cryptocurrency trading volume totaled $40.4 billion, with $18.3 billion originating from the Robinhood App, down 35% year-on-year. The remaining $22.1 billion was processed through Bitstamp, illustrating the fragmented nature of crypto liquidity within the ecosystem.

Product innovation delivered tangible financial results, particularly in the AI and automation sectors. Robinhood Legend, launched approximately 18 months prior, has generated annual revenue exceeding $100 million, validating its premium service model. Agentic Trading, introduced in May, enables users to execute stock and options trades via AI agents, with plans to extend functionality to cryptocurrencies. Nearly 100,000 users have adopted this service, managing over $100 million in assets, signaling early but significant adoption of autonomous trading tools.

The prediction market infrastructure underwent a critical transformation with the June launch of Rothera, a CFTC-licensed exchange and clearing house operated by a joint venture between Robinhood and Susquehanna International Group. Event contract trading revenue of $156 million was supported by a record 13.6 billion Event Contracts Traded, a more than 10-fold year-on-year increase. Rothera had already processed over 3.5 billion contracts by the time of the earnings release. This internalization of infrastructure contrasts with competitors like Kalshi, which reported 3 million new users and $27 billion in trading volume across 33,000 event contracts during the World Cup.

Woofun AI data shows that blockchain initiatives are gaining traction, with Robinhood Chain’s mainnet facilitating over $12 billion in DEX trading volume. The network surpassed 150 million transactions, achieving the milestone of 100 million transactions faster than any other blockchain. Robinhood Earn attracted over $200 million in deposits, serving as a gateway for retail investors to engage with on-chain lending and Real World Asset (RWA) applications. This strategy aims to convert traditional retail traffic into on-chain financial activity, offsetting the decline in native crypto trading revenue.

CEO Vlad Tenev outlined a long-term vision centered on achieving a $1 trillion market cap, driven by AI-driven finance and global accessibility of U.S. assets via Robinhood Chain. The company intends to leverage the growing private equity market and AI agent tools to unlock multiple vectors for revenue expansion. With prediction markets now a core pillar alongside options, and blockchain infrastructure maturing, the foundation for tenfold revenue growth appears structurally embedded in the platform’s evolving architecture.