Robinhood's Crypto Revenue Takes Hit, But Prediction Markets Offer Hope

Robinhood Markets' recent earnings report highlighted a challenging quarter for the company's crypto business, with revenue plummeting to $134 million in Q1 2026. This decline is attributed to the cyclical nature of the crypto market, which can result in inconsistent levels of investing and trading activity.

The company's stock price took a sharp drop following the earnings announcement, underscoring the significant impact of its crypto revenue on investor sentiment. However, Robinhood has identified another potential source of revenue growth - prediction markets, also known as event contracts.

According to Forbes, monthly trading volume in prediction markets surged from less than $100 million in early 2024 to over $13 billion by the end of 2025. Bernstein Research analyst forecasts that this trend will continue, with predicted trading volumes reaching $1 trillion annually by 2030.

The prediction market segment is a significant contributor to Robinhood's revenue growth, generating $147 million in Q1 2026 - a 320% increase from the same period last year. With an expected $3 billion in revenue for April 2026, this segment is likely to become one of the company's major revenue drivers.