Robinhood posted record second-quarter net revenue of $1.31 billion as prediction markets, options, and equities trading picked up the slack from a steep drop in crypto activity. Event contract revenue alone jumped more than tenfold, and the broker is pushing further into blockchain with a new Ethereum layer-2 network.
Robinhood reported record second-quarter net revenue of $1.31 billion, up 32% from a year earlier. Transaction-based revenue drove much of the gain, rising 44% to $776 million for the quarter.
Event Contracts Jump Tenfold
Event contracts turned into one of the company's fastest-growing lines. Revenue from these contracts reached $156 million, more than ten times higher than the same quarter last year. The number of contracts traded also surged past 13.6 billion, also a record.
Chairman and CEO Vlad Tenev said the prediction markets segment has grown steadily since March and expects the momentum to continue. Robinhood launched Rothera, a CFTC-licensed exchange and clearinghouse, in June through its joint venture with Susquehanna International Group, and the company said more than 3.5 billion event contracts had traded to date.
Options and Equities Add to the Total
Options trading stayed a major contributor, generating $342 million in revenue, up 29% year-over-year. Equities revenue climbed further still, rising 95% to $129 million for the quarter. Equity notional trading volume hit a record $956 billion, an 85% increase from the same period last year.
Crypto Slips While Blockchain Push Continues
The gains across these businesses came despite weaker crypto activity. Robinhood's crypto revenue fell 38% year-over-year to $100 million. Crypto notional trading volume stood at $40 billion, split between $18 billion from its own app and $22 billion from Bitstamp.
Robinhood is still expanding its blockchain footprint abroad. It unveiled the public mainnet for Robinhood Chain, an Ethereum layer-2 network built for financial services and real-world assets, and announced stock tokens for eligible users in more than 120 countries.
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