Robinhood’s proprietary prediction market business experienced a 64% surge in revenue during the third quarter of the 2026 fiscal year. According to a report published this week by Finance Magnates, the Rothera exchange brought in $28 million in revenue in Q3, which compares favorably to the firm’s $17 million revenue mark for the second quarter.
Overall, the Rothera exchange prediction market services offered by Robinhood accounted for as much as 16% of total event-contract revenue ($173 million) this past quarter. According to the company’s Chief Financial Officer Shiv Verma, that percentage will likely increase as Robinhood’s in-house exchange business and Crypto.com flow soak up trading activity that used to be diverted to Kalshi.
The number of prediction market event contracts that went through Robinhood during the third quarter climbed by 21% compared to Q2. Robinhood’s most-recent financials show that the firm accommodated 16.4 billion event contracts on its legal prediction market exchange during the months of July through September of 2026.
While those figures are nowhere close to industry estimates for Kalshi, they do reveal a growing consumer demand for trading products linked to sports, political, entertainment, and global affairs outcomes. Event contracts have also been responsible for shoring up Robinhood’s bottom line as cryptocurrency trading remains stagnant after trailing off earlier this year as digital currency prices stalled.
The only disappointing news in Q3 for Robinhood’s prediction markets was an 8% revenue dip for each contract that was traded. In the second quarter, the platform was garnering 1.15 cents (on average) for each prediction market contract. That metric fell to 1.05 cents in the third quarter.
The Finance Magnates article includes a quote from CFO Verma on why per-contract revenue has slightly dropped.
“We lowered pricing for customers when we bought Rothera,” stated the Robinhood executive. The statistic is 11% below the 1.18 cents that Robinhood made on prediction market contracts during the first quarter.
Still, the continued revenue growth from prediction markets signals good news for the platform. As long as trading volume follows current trends, the company is projected to benefit significantly from the trading of event contracts for the rest of 2026 and beyond.
Robinhood plans to launch a regional base within the Dubai International Financial Centre (DIFC) at some point in 2027. The plans stem from a licensing agreement that it has secured with the Dubai Financial Services Authority (DFSA).
While prediction market event contracts won’t be a part of Robinhood’s initial product launch in the Middle East, the regional product line will include trading in equities, ETFs, and digital assets. “The DIFC is one of the world’s most important financial hubs,” said Robinhood CEO Vlad Tenev in a recent statement.
Robinhood’s stock price has more than doubled since late 2024. However, it is down sharply from its October 2025 highs, mostly due to reduced activity in cryptocurrency trading.
Loading …
