Robinhood’s Revenue Doubles as It Bets on Prediction Markets

Robinhood Markets beat third-quarter expectations, doubling its revenue from a year earlier.

Robinhood posted adjusted earnings of 61 cents a share on record revenue of $1.27 billion. (Image: Robinhood) 

Two new business lines—prediction markets and the Bitstamp crypto trading platform—are already generating about $100 million in annualized revenue. Robinhood said current-quarter trading trends remain strong, Janet H. Cho reported for Barron’s Daily.

Chairman and CEO Vlad Tenev credited record results to “relentless product velocity,” adding that Robinhood has no plans to slow down.

Alongside prediction markets, Robinhood Banking is rolling out, and Robinhood Ventures, a private investment arm, is set to launch soon.

Robinhood posted adjusted earnings of 61 cents a share on record revenue of $1.27 billion.

Transaction revenue rose sharply, driven by cryptocurrency trading ($268 million), options ($304 million), and equities ($86 million).

CFO Jason Warnick said fourth-quarter trading volumes are already at record levels. Prediction markets have become a “hot trend” on Wall Street, with Robinhood expanding its hub for trading event contracts through Kalshi.

These cover sports, politics, economics, and culture, including new pro and college football markets launched in August. Event contracts traded more than doubled from the second to the third quarter to 2.3 billion, and October alone saw 2.5 billion traded—suggesting an even stronger fourth quarter ahead.