Robinhood delivered eye-opening 2026 second-quarter results, putting event contracts front and center. The company generated $156 million from prediction markets, more than ten times the year-earlier total and enough to outpace both crypto trading at $100 million and equities at $129 million. Overall net revenue reached a record $1.31 billion, climbing 32% year over year, with event contracts serving as a primary driver of the expansion.
Traders executed 13.6 billion event contracts during the quarter, a 55% increase from the first three months of the year. Robinhood’s Rothera exchange, which opened in June as a joint venture with Susquehanna International Group, processed more than 3.5 billion of those contracts and contributed $17 million in revenue. Nearly 2 million people have now used event contracts on Robinhood, up from roughly 1.5 million just weeks earlier, and these users also show stronger engagement with retirement accounts and Gold subscriptions.
July volumes remained close to the second-quarter peaks, confirming that momentum is carrying over from Q2. Company leaders are already shifting additional flow onto Rothera to capture superior business returns while keeping the Robinhood trading experience seamless for users.
Volume Acceleration and Product Expansion
Event-contract activity built steadily across the quarter and peaked on days featuring high-profile event outcomes, notably World Cup matches. One industry-wide session alone cleared $4.8 billion, and Robinhood secured a solid share by listing contracts on match results, progression milestones, and related measures. Rothera handled 2.1 billion contracts in its first full month, quickly ranking among the leading designated contract markets.
Demand on Robinhood also broadened beyond sports. Traders increasingly engaged contracts linked to economic data releases and cultural moments, creating consistent secondary volume that helped sustain daily averages after the largest sporting events (NBA Playoffs and World Cup) ended. Existing stock and options users readily converted, placing event-contract orders within the same app and reducing friction.
As a result, event contracts produced the sharpest year-over-year percentage gain among Robinhood’s disclosed transaction categories. Transaction-based revenue overall rose 44% to $776 million, and the shift in rankings among equities, crypto, and event contracts underscores how quickly the newer product is reshaping the mix.
Maintaining even a portion of the recent run rate would keep event contracts among the top revenue contributors. The company continues to add variety to prediction market contracts while directing more activity through its own infrastructure.
Rothera’s Rapid Ramp and Margin Impact
Rothera went live in late May and immediately began clearing contracts for Robinhood users. By quarter-end, it had processed more than 3.5 billion contracts and delivered $17 million in revenue. Chief Executive Officer Vlad Tenev called the launch a proof of concept that moved faster than expected, noting that Rothera became a top-three designated contract market within weeks.
The joint-venture structure supplied exchange and clearing capacity that Robinhood previously accessed only through third parties. Bringing more activity in-house improved margins while the user interface remained unchanged. Traders continued submitting orders without interruption, yet the company retained a larger share of the fees. We’re seeing this type of vertical integration more and more across competitors in the industry.
Management now intends to increase the share of contracts settling on Rothera over coming quarters. Upcoming football-season contracts and midterm-election markets are expected to supply the next volume wave. Tenev described the World Cup period as mainly a test run and said the focus has shifted to building sustained capacity to meet year-round demand.
Early data already show that event-contract users hold more products across the platform. This cross-selling effect lowers the cost of additional activity and strengthens overall customer relationships.
Leadership Perspective on the Growth Path
Chief Financial Officer Shiv Verma highlighted the speed of adoption during the earnings discussion. He noted that the nearly 2 million event-contract users display higher engagement with other services, generating revenue beyond pure transaction fees. In a separate conversation, Verma stated that the category appears to be entering a supercycle that could eventually exceed the size of the equities market, citing the expanding range of use cases from interest-rate decisions to cultural events.
Tenev reinforced the message, describing the second-quarter performance as confirmation of product-market fit. He emphasized plans to scale Rothera aggressively while still partnering with outside venues where it adds value. Leadership views event contracts as a structural growth driver rather than a seasonal spike.
These remarks line up with Robinhood’s reported figures. Options remained the largest single category at $342 million, yet the rise of event contracts has already altered the relative ranking of the other three lines and signaled a lasting change in the revenue composition.
Outlook for the Second Half
With volumes holding firm into July, Robinhood enters the third quarter carrying clear momentum. The football season and political contracts are expected to generate the next surge of activity. By routing more flow through Rothera, the company aims to expand margins while preserving the ease of access that initially attracted traders.
The 13.6 billion contracts traded in the second quarter already represent more than a tenfold increase over the year-earlier period. The expanding prediction market base of nearly 2 million Robinhood users provides a foundation for further growth without relying solely on new customer acquisition. Infrastructure upgrades and broader contract selection remain the near-term priorities.
Rothera’s early success demonstrates that Robinhood can operate its own designated contract market at scale. Combined with the existing brokerage platform, the company now offers traders a single destination for equities, options, crypto, and event contracts. The second-quarter results mark the point at which event contracts moved from experimental offering to material revenue source, and the category is positioned to play an increasingly central role going forward.
References
- Robinhood’s Prediction Markets Surpass Crypto Revenue for First Time – Blockhead
- Robinhood Shares Edge Lower After Record Quarter for Prediction Markets Business – Yahoo Finance
- Rothera Adds $17 Million as Robinhood Event Revenue Reaches $156 Million – CryptoNews
- Robinhood Prediction Markets Drive $1.31B Quarter – Crypto News
- Prediction Markets Could Be Bigger Than Equities Says Robinhood CFO – Bloomberg Podcasts
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