Robinhood's Prediction Markets Surge as Coinbase Revenue Hits Low

Robinhood reported solid results in its second-quarter financials as its prediction-markets segment generated more revenue than its crypto business for the first time. The company's total transaction-based revenue reached a record $776 million, despite crypto trading revenue falling 37.5% from a year earlier to $100 million.

The prediction-markets segment, which involves betting on sports and political events, generated $156 million in revenue on 13.6 billion contracts traded. This growth helped offset weakness in digital assets and was a key driver of Robinhood's overall success in the quarter.

However, not all crypto companies fared as well as Robinhood. Coinbase reported its lowest quarterly revenue since the third quarter of 2024, with $1.22 billion in revenue and a 24% decline in total trading volume from the previous quarter.