Robinhood Turns Crypto Loss into Betting Boom

Robinhood’s earnings report revealed a sharp decline in crypto trading income, but other parts of the business are showing growth.

• Crypto revenue dropped 47% to $134 million, down from last year’s $252 million.
  The company says customers are moving away from crypto to other trading options.

• Transaction‑based revenue climbed slightly, reaching $623 million versus $583 million before.
  A significant portion of this increase came from event contracts, which jumped 320% to $147 million.

• During the quarter, users traded a record 8.8 billion event contracts.
  Event contracts let people bet on real‑world outcomes, such as elections or interest rates.

• Total revenue rose 15% to $1.07 billion, up from $927 million last year.

• Net income grew 3% to $346 million.
  Adjusted earnings per share were $0.38, just below analysts’ $0.39 forecast.

Robinhood is diversifying into derivatives and prediction markets, similar to Coinbase’s strategy, and sees strong growth in interest income and subscription services such as Gold.

Shares fell 6% after the earnings report. The company will hold an earnings call at 5 p.m. ET.