Robinhood Had Its Best Quarter Ever. Crypto Was No Longer Its Biggest Trading Engine

Robinhood just posted the best quarter in its history.

The most revealing number was not Bitcoin volume, stock trading or even options.

It was $156 million from event contracts.

That line produced more transaction revenue than Robinhood’s crypto business, which brought in $100 million. It also beat the company’s $129 million of equities transaction revenue.

A product that barely registered a year ago has become one of Robinhood’s largest trading engines.

THE BLOCK: Robinhood's prediction market transaction revenue surpassed revenues for both crypto and equities trading in the second quarter. $HOOD

The company said its transaction-based revenues rising 44% year-over-year in Q2 2026 was "primarily driven by event contracts revenue

— The Block (@TheBlockCo) July 29, 2026

Robinhood’s second-quarter earnings release, filed with the SEC on Wednesday, shows total net revenue of $1.308 billion. That was up 32% from a year earlier, set a company record and came as customer assets, subscriptions and net deposits all moved higher.

Transaction-based revenue rose 44% to $776 million, making trading and market activity nearly three-fifths of Robinhood’s total net revenue. Options remained the largest contributor at $342 million, up 29%.

Event contracts were the breakout. Revenue from the product climbed more than tenfold year over year to $156 million, a gain large enough to reshape the company’s transaction mix in a single year.

Equities revenue nearly doubled to $129 million. Crypto moved in the opposite direction, falling 38% to $100 million.

Robinhood also reported $573 million of net income, up 48%, and $741 million of adjusted EBITDA, up 35%.

The filing shows annualized revenue per user rising 24% to $187. Net deposits reached $21.7 billion for the quarter, equivalent to a 27% annualized growth rate against assets at the beginning of the period.

Robinhood said total operating expenses increased 33% to $734 million. That figure included costs tied to restructuring, the company’s Trump Accounts commitment and its Rothera prediction-market venture.

There is an important qualification inside the profit figure. Net income included $129 million of gains, primarily connected to the deconsolidation of Robinhood Ventures I.

The company said those gains contributed about 14 cents to diluted earnings per share.

Even with that caveat, the operating picture was unusually strong.

Funded customers reached 28.4 million. Total platform assets climbed 32% to $369 billion, and Robinhood Gold subscribers increased 39% to 4.8 million.

The revenue mix is where the quarter becomes a crypto story.

Robinhood spent years riding the connection between retail traders and digital assets. During the last major crypto booms, token trading could swing the company’s results dramatically from one quarter to the next.

That dependence has weakened.

Crypto revenue fell by $62 million from the year-earlier period. Robinhood still grew its overall transaction business by $236 million.

Event contracts filled much of that gap.

The company lets customers trade on the outcomes of elections, sports, economic data and other real-world events. A contract usually settles at $1 if the selected outcome occurs and $0 if it does not, allowing its market price to function as a live probability.

The format is easy to understand, fast to resolve and tied to subjects that reach far beyond traditional investors.

A customer who has never researched a public company or moved a coin into self-custody may still have a view on an election, a championship game or the next Federal Reserve decision.

That widens Robinhood’s addressable market.

It also creates more occasions to trade. Stocks have market hours.

Crypto trades around the clock, but activity often clusters around a relatively small group of tokens and major price moves.

Events never stop arriving.

Every economic release, political contest, awards show and sports schedule can produce another market. The inventory can expand much faster than the number of publicly traded companies or widely held cryptocurrencies.

Robinhood says customers have traded more than 3.5 billion event contracts on its platform to date.

The company is building infrastructure to own more of that activity. It recently introduced Rothera, a joint venture designed to operate a federally regulated exchange and clearinghouse under Commodity Futures Trading Commission oversight.

That matters because Robinhood does not want prediction markets to remain a thin feature sitting on someone else’s rails.

Exchange and clearing infrastructure can give the company more control over product design, market availability, economics and the customer experience. It can also make regulatory compliance more demanding.

Prediction markets sit in a contested area between financial regulation and gambling law. Contracts tied to elections and sports have already drawn challenges from state regulators, tribal gaming interests and traditional betting operators.

The revenue opportunity is now large enough that those fights will intensify.

Check out the highlights from Vlad and catch our earnings call live at: https://t.co/pFOYygGBa9

— Robinhood (@RobinhoodApp) July 29, 2026

Decrypt’s review of the results puts the shift in stark terms: prediction markets are doing work that crypto once did for Robinhood’s growth story. The comparison is especially striking because digital assets had been one of the brokerage’s defining sources of retail-trading momentum.

The report notes that event contracts out-earned both crypto and equities during the quarter while total company revenue reached a record $1.31 billion. It connects that result to the extraordinary growth in event trading rather than a broad decline across Robinhood’s business.

It also points to Robinhood Chain, the company’s planned blockchain network, as evidence that management has not abandoned its digital-asset ambitions. The project is intended to support tokenized assets and services even if spot-crypto trading remains cyclical.

Robinhood is still expanding internationally, building tokenized-stock products and integrating acquisitions such as WonderFi. Crypto remains a major strategic lane even when the trading revenue falls.

Decrypt also notes that Robinhood’s stock rose in after-hours trading as investors absorbed the revenue record and the changing product mix.

The company’s planned Robinhood Chain is intended to support tokenized real-world assets, linking its traditional brokerage business with onchain settlement. That effort could make crypto infrastructure more important even when customer token-trading fees are temporarily weaker.

The distinction matters: crypto trading produced less revenue this quarter, but blockchain technology still sits inside Robinhood’s longer-term expansion plan.

But the quarter draws a line between long-term crypto infrastructure and the business generating momentum right now.

The strongest current engine is event trading.

That does not mean the company can treat the $156 million as guaranteed recurring revenue. Prediction activity can surge around major elections, unusually active sports calendars or dramatic macroeconomic periods, then cool.

Robinhood will also have to prove that customer demand survives tighter rules, additional competition and the novelty wearing off.

Kalshi, Polymarket, Crypto.com and traditional sportsbooks are all competing for pieces of the same behavior. Brokerages and exchanges will not ignore a revenue pool growing this quickly.

There is also a customer-risk question.

A simple yes-or-no contract can feel more approachable than an options chain or an unfamiliar token. Simplicity does not eliminate loss.

It can make repeated trading easier, especially when markets are built around emotionally charged events.

Robinhood has spent years trying to shed the idea that its app turns investing into a game. Prediction markets reopen that debate in a more literal form.

The company’s numbers show why it is willing to have the argument.

Crypto revenue fell 38%, yet Robinhood still produced record revenue and record trading volumes across several product lines. It now has a second around-the-clock market that attracts customers without requiring a bull run in Bitcoin.

For crypto investors, that is a warning and an opportunity.

The warning is that digital assets no longer have a monopoly on the retail appetite for fast, speculative markets. Capital and attention can move to event contracts just as easily as they once moved from stocks into meme coins.

The opportunity is that Robinhood can use its larger customer base, stronger cash flow and expanding infrastructure to keep building crypto products through weaker trading cycles.

The company is becoming less dependent on any single asset class.

That makes Robinhood a more durable business. It also changes what investors are buying when they buy HOOD.

The old story was a mobile brokerage with an unusually powerful crypto lever.

After this quarter, the better description is a retail market platform that can turn almost any tradable outcome into revenue.

Crypto is still inside that machine.

For the first time, it is no longer the most important alternative-trading engine.

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