Robinhood Reports Record Prediction Markets Revenue Despite Share Decline
Robinhood (HOOD) reported a record $156 million in fees from its prediction markets platform during the second quarter of 2026, driven by increased user activity around events like the World Cup. This revenue exceeded that generated from stock and crypto trading but remained behind options trading. The company has started routing some contracts through Rothera, a regulated exchange it co-launched with Susquehanna International Group, aiming to scale this business further for future events such as football seasons and midterm elections. Robinhood also lowered commissions on prediction market bets to gain market share while using other revenue streams like interest income from its growing margin book. The company reported net income of $573 million ($0.62 per share), surpassing analyst expectations, despite rising operating costs driven by marketing expenses and Rothera-related expenditures. Despite the strong earnings report, Robinhood's shares fell roughly 20% in 2026 through Wednesday’s close.
Tickers: $HOOD