Robinhood’s Q2 Revenue Hits Record $1.31B as Prediction Markets Fuel 10x Surge in Event Contracts

Robinhood posted file second-quarter internet income of $1.31 billion, up 32% year-over-year, as exercise throughout prediction markets, choices, and equities helped offset a pointy decline in crypto revenue.

The firm’s transaction-based income jumped 44% to $776 million in the course of the quarter. Event contracts emerged as one in every of its fastest-growing companies.

In reality, income from occasion contracts reached $156 million, greater than 10 instances greater than a yr earlier. The variety of contracts traded additionally surged greater than 10x to a file 13.6 billion.

Prediction Markets Steal the Spotlight

Speaking concerning the development of prediction markets, Chairman and CEO Vlad Tenev said that the house has grown steadily since March and expects the momentum to proceed. Robinhood launched Rothera, a CFTC-licensed change and clearinghouse, in June through its three way partnership with Susquehanna International Group. The firm stated greater than 3.5 billion occasion contracts had been traded thus far.

Meanwhile, choices remained one other main contributor, producing $342 million in income. This determine was up by 29% year-over-year. Equities income climbed much more sharply, rising 95% to $129 million as fairness notional buying and selling volumes reached a file $956 billion, an 85% improve from the identical interval final yr.

The sturdy efficiency throughout these companies got here regardless of weaker cryptocurrency exercise. Robinhood’s crypto income fell 38% year-over-year to $100 million, whereas crypto notional buying and selling quantity stood at $40 billion, together with $18 billion from its app and $22 billion from Bitstamp.

Global Push

The on-line brokerage is pushing deeper into blockchain and digital property internationally. It unveiled the general public mainnet for Robinhood Chain, an Ethereum Layer 2 community designed for monetary providers and real-world property, whereas additionally saying inventory tokens for eligible customers in greater than 120 international locations.

In May, it launched Agentic Trading, which permits prospects to make use of AI-powered brokers to commerce equities, choices, and crypto. Nearly 100,000 prospects have opened Agentic Trading accounts thus far, with greater than $100 million in property underneath custody.

During the quarter, the corporate expanded its worldwide footprint by closing its acquisition of WonderFi, a Canadian digital asset services platform. The transfer marked its official entry into the Canadian market.

Tenev additionally pointed to the broader enlargement technique, saying

“Whether it’s the Robinhood Chain, Robinhood Ventures, or Trump Accounts, our product velocity is targeted on one objective: making everybody an proprietor. Broad possession is crucial to a free, steady, and affluent society.”

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