Robinhood’s event contract revenue up 6x as crypto slumps 55%

Robinhood’s prediction markets arm overtook its crypto business in the third quarter, the company said.

The hit

Robinhood’s prediction markets arm has overtaken its crypto business. Event contracts revenue hit $173 million in the third quarter, up more than sixfold, while crypto revenue fell 55% to $120 million, the company said on October 27.

Why it matters

The swing shows Robinhood leaning harder into event contracts as crypto trading cools. Chief financial officer Shiv Verma said the company “added a new business cylinder” earning over $100 million annualised, as Rothera scaled rapidly. Robinhood first built the product through Kalshi, then took minority stakes in Crypto.com & its prediction markets business, OG.

The record

Event contracts revenue	$173m, up over 6x year over year (Robinhood)
Crypto revenue	$120m, down 55% year over year (Robinhood)
Contracts traded	16.4bn, a record, up over 7x (Robinhood)
Rothera contracts traded	6.4bn since launch (Robinhood)
Connecticut action	cease-&-desist orders issued against Robinhood & others over sports-linked contracts

What happens next

Watch Robinhood’s Q4 results for whether event contract growth holds after Connecticut regulators issued cease-&-desist orders over sports-linked contracts.

Sources: Robinhood doubles down on event contracts as crypto revenue drops 55% · Whale’s Insight: Crypto Is Changing – Where Is The Money Going?

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