Prediction markets bring Robinhood $173 million as crypto revenue slumps

Coinbase reported Oct. 29 that its prediction markets business had surpassed $200 million in annualized net revenue, adding another income stream as crypto trading platforms seek growth beyond digital asset transactions.The disclosure followed Robinhood's third-quarter results, in which event contracts generated $173 million against $120 million from cryptocurrencies. Robinhood's crypto revenue fell 55% from a year earlier, giving its event business an immediate financial role.The earnings show prediction markets becoming a source of platform revenue, but they represent a substantial quarterly contribution at Robinhood, a growing annualized measure at Coinbase, and a much smaller business in Gemini's earlier results.The revenue picture across platformsRobinhood earned $104 million from event contracts in the first quarter, $156 million in the second and $173 million in the third, according to its earnings materials and latest results.Those quarters sum to $433 million in revenue for the first nine months of 2026, and quarterly revenue rose about 66% from the first to the third quarter. Third-quarter event-contract revenue accounted for about 12.1% of Robinhood's $1,424 million in t...