Robinhood Q2 Profit Surges as Prediction Markets Replace Crypto Revenue
Robinhood posted record second-quarter revenue of $1.31 billion as a tenfold surge in prediction market fees offset a steep decline in cryptocurrency trading, signaling a successful shift in its business model.
Robinhood generated $1.31 billion in revenue during the second quarter of 2026, beating analyst estimates of $1.26 billion. Net income rose 48% to $573 million, or $0.62 per share. The results were driven by a structural shift in the brokerage's revenue streams rather than a broad crypto rally.
Event contracts, which allow users to trade on real-world outcomes like central bank decisions, emerged as the company's fastest-growing segment. Revenue from these prediction markets surged more than tenfold year-over-year to $156 million. This growth was largely fueled by Rothera, a CFTC-licensed exchange launched in late May as a joint venture with Susquehanna International Group that has already processed over 3.5 billion contracts.
Conversely, the crypto segment continued to contract. Cryptocurrency trading revenue fell 38% year-over-year to $100 million, while total crypto notional volumes dropped from $66 billion in the first quarter to $40 billion. Spot trading on Robinhood's main app fell 35% year-over-year to $18 billion, though its acquired Bitstamp exchange contributed $22 billion in volume.
Rather than retreating from digital assets, management is pivoting toward tokenized infrastructure. The Robinhood Chain, an Ethereum layer-2 network launched on July 1, has processed over 12 billion in index volume since its debut. "The rapid growth and developer activity on the chain has been awesome to see, plenty more to come," CEO Vlad Tenev said.
Tokenized stocks on this network grew from $5 million to $60 million in daily volume in under two weeks. Traditional equities and options trading also provided a highly profitable foundation, with equities revenue jumping 95% to $129 million and options rising 29% to $342 million.
"We hit all-time highs in trading volumes across equities, options, and prediction markets," Tenev said. The platform is also pushing into automated trading, launching a system for AI agents to execute trades that has attracted nearly 100,000 accounts since late May.
With platform assets swelling to $369 billion and 13 distinct business lines now generating over $100 million annually, the firm is proving its ability to diversify. Net deposits reached a record $21.7 billion, while premium Gold subscribers hit 4.8 million and its Gold Card crossed one million cardholders with $17 billion in annualized purchase volume.
