Robinhood (Nasdaq: HOOD) is witnessing massive demand for its prediction markets offering, with 8.8 billion event contracts traded in the first three months of 2026. Although the broker did not reveal the exact revenue it generated from event contracts, it did mention that $147 million was generated from other transactions, which primarily consist of event contracts. The figure jumped by 320 per cent year over year.
Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)
Are Event Contracts Robinhood's Next Big Bet?
FinanceMagnates.com reported earlier that the platform handled trading of 8.5 billion event contracts in the last three months of 2025, compared to only 2.3 billion in the prior period. Five million contracts were traded in October alone.
Robinhood officially launched its prediction markets hub for event contracts in March 2025, allowing users to trade on political, economic, and sports outcomes.
“In Q1, customers remained engaged and rapidly adopted new products, leading to a 20 per cent-plus annualised net deposit growth rate, double-digit growth across equities and options, and record volumes for prediction markets, futures, and index options,” said Shiv Verma, Chief Financial Officer of Robinhood.
Interestingly, the brokerage industry disruptor is deliberately limiting the prediction market contracts it offers to avoid concerns about insider trading and manipulation that have put the sector under increasing regulatory pressure.
- Robinhood Invests US$75 Million in OpenAI via Investment Vehicle
- Robinhood Takes a Curated Approach to Prediction Markets, Avoiding High-Risk Contracts
- Robinhood Gets the Nod to Build Trump Accounts App, Alongside BNY
Crypto Takes a Massive Dive
While prediction market demand took off, the platform is experiencing a slowdown in crypto, a phenomenon also affecting the industry. Revenue from cryptocurrency trading went down by 47 per cent to $134 million, which “partially offset” the gains from other streams.
Crypto revenue in the previous quarter was $221 million, making the latest figure 40 per cent lower.
Transaction-based revenue on the platform for the quarter jumped by 7 per cent to $623 million. The total net revenue, meanwhile, came in at $1.07 billion, a 15 per cent rise year over year. However, the figures dropped compared to the previous quarter, which brought in $1.28 billion in total revenue and $776 million in transaction-based revenue.
Robinhood ended the quarter with $346 million in net income, which is 3 per cent higher. Its diluted earnings per share increased by 3 per cent to $0.38.
Demand from crypto trading went down drastically on the platform, with a 46 per cent decrease in Robinhood app notional value to $24 billion and $42 billion from Bitstamp notional volumes.
“Q2 is off to a good start in April, as equity and option trading volumes are on track to be the highest month of the year, and even with tax season, net deposits are approximately $5 billion month-to-date,” Verma added.
