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Robinhood reported record second-quarter net revenue of $1.31 billion, up 32% year over year, as growth in prediction-style event contracts helped offset a sharp drop in crypto trading revenue.
Event contract revenue reached $156 million in the quarter ended June 30, rising to more than 10 times the year-earlier level and surpassing cryptocurrency transaction revenue, which fell 38% to $100 million. Robinhood said more than 13.6 billion event contracts were traded during the period.
The earnings report shows how important prediction markets have become to Robinhood’s transaction business. Overall transaction-based revenue rose 44% to $776 million. Within that total, options revenue increased 29% to $342 million and equities revenue jumped 95% to $129 million.
Robinhood also reported $573 million in net income, up 48% from a year earlier, with diluted earnings per share of $0.62. Adjusted EBITDA rose 35% to $741 million, while operating expenses increased 33% to $734 million.
Chief Financial Officer Shiv Verma said "the business is firing on all cylinders."
For crypto, Robinhood reported $40 billion in notional volume, including $18 billion on its main app and $22 billion through Bitstamp. Even so, crypto transaction revenue trailed event contracts in the quarter.
Other customer and balance-sheet metrics also moved higher. Net deposits reached $21.7 billion, total platform assets rose 32% to $369 billion, and funded customers increased 7% to 28.4 million. Robinhood Gold subscribers grew 39% to 4.8 million, while average revenue per user rose 24% to $187.
For readers tracking prediction markets, one of the key takeaways is regulatory risk. Robinhood said enforcement actions or changes in federal and state law could prevent it from offering some event contracts in the future.
The company also said it lowered its 2026 adjusted operating expense and share-based compensation outlook to between $2.675 billion and $2.775 billion. Robinhood repurchased $414 million of Class A shares during the quarter at an average price of about $94.
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Source: As reported by crypto.news.
