Robinhood Beats Estimates on Strong Trading Activity and Growing Prediction Markets

Retail trading at Robinhood Markets remained robust in the second quarter, driven by heightened market volatility and investor interest in prediction markets. The company beat Wall Street estimates for quarterly profit, with adjusted earnings coming in at 48 cents per share.

Transaction-based revenue jumped 44% from a year earlier to $776 million, driven by gains in equities, options, and event contracts. Prediction markets emerged as a growth driver, with interest surging during the 2024 U.S. presidential election.

Crypto trading, however, remained subdued due to weaker digital asset prices and market volatility. Robinhood's transaction-based crypto revenue fell 38% from a year earlier to $100 million.