Robinhood Prediction Market Revenue Surpasses Crypto as Rothera Expansion Accelerates

Robinhood's prediction market revenue has surpassed both crypto and equities in Q2, reaching $156 million. This figure marks a significant increase from previous quarters, with event contract activity climbing to another record for the company.

In its Q2 earnings release and call, Robinhood reported that customers traded 13.6 billion event contracts during the quarter, up 55% from 8.8 billion in the first quarter. The results marked another sharp increase for a business that generated $104 million in revenue during the first three months of the year.

Rothera, its designated contract market (DCM) joint venture with Susquehanna International Group, has rapidly become a top three DCM after it began supporting Robinhood's prediction market business in late May. Rothera handled 2.1 billion contracts in its first month of operation and accounted for $17 million of Robinhood's prediction market revenue.

Robinhood CEO Vlad Tenev said, 'Rothera has gone live, and I think the World Cup was really a proof of concept there.' He added that the company is looking to scale Rothera rapidly and make it much bigger.