Robinhood earns more from prediction markets than stock trading

Robinhood’s prediction markets business just crossed a milestone that would have sounded absurd two years ago. In Q2 2026, the company’s event contracts segment pulled in $156 million in transaction revenue, topping both stock trading at $129 million and crypto trading at $100 million. That makes prediction markets the second-largest revenue driver on the entire platform, trailing only options trading at $342 million. For a product line that didn’t exist before 2024, that’s a remarkable ascent. The numbers behind the crossover Robinhood’s Q2 2026 earnings paint a picture of a company rapidly reshaping its revenue mix. Total net revenue hit a record $1.31 billion, up 32% from the prior year. Net income came in at $573 million. The event contracts business grew roughly 50% from Q1 alone, and more than tenfold year-over-year. The platform processed 13.6 billion contracts during the quarter, a 55% jump from the previous three months. Much of that volume was driven by FIFA World Cup markets. Meanwhile, crypto trading revenue dropped to $100 million, a 38% decline year-over-year. Nearly two million users have now traded event contracts on the platform. How Robinhood built a prediction ma...