Robinhood Revenue Doubles to $1.27 Billion, Driven by Record Prediction Market Growth
Robinhood Markets, Inc. achieved a record-breaking financial performance in the third quarter (Q3) of 2025. Total net revenue doubled year-over-year, surging 100% to $1.274 billion. This impressive growth was driven by robust transaction revenue and expanding interest income. GAAP Net Income rose 271% year-over-year to $556 million.
Profitability also reached new heights. The company posted a record Adjusted EBITDA of $742 million, an increase of 177% year-over-year, with the Adjusted EBITDA margin hitting 58%. Diluted earnings per share (EPS) was $0.61, up 259% from the prior year. Total operating expenses, including stock-based compensation, grew by 31% to $639 million, reflecting increased investment in growth areas.
Prediction Markets Become $100 Million Business
Prediction markets, offered through Robinhood’s Prediction Markets Hub, were a major force behind the company’s diversification and growth in Q3. The Chief Financial Officer, Jason Warnick, confirmed that prediction markets are now one of eleven business lines generating $100 million or more in annualized revenues.
The volume of Event Contracts Traded more than doubled sequentially in Q3 2025, reaching 2.3 billion contracts. This activity drove significant growth in the “Other transaction-based revenues” category. Furthermore, October volumes surpassed the entire Q3 volume, reaching 2.5 billion contracts, signaling accelerating momentum. In August, Robinhood expanded its offerings to include contracts on Pro and College Football within the hub.
Transaction and Interest Revenue Soar
The company saw broad strength across its established revenue streams. Transaction-based revenue increased 129%year-over-year to $730 million. This was primarily fueled by:
- Cryptocurrency: Revenue from crypto surged by over 300% year-over-year to $268 million.
- Options: Options revenue grew 50% to $304 million.
Net interest revenue increased 66% year-over-year to $456 million, driven by growth in interest-earning assets and securities lending activity. Meanwhile, customer engagement metrics were strong, with Net Deposits reaching a record $20.4 billion.
Strategic Investment and Regulatory Risk
CEO Vlad Tenev linked the record results to the team’s “relentless product velocity,” noting that the company is not slowing down. Robinhood is increasing its investment in new growth areas, including prediction markets and Robinhood Ventures, which are viewed as having “significant potential.”
However, the rapid growth of prediction markets carries regulatory risk. The company’s filings warn that the outcome of ongoing and potential future litigation or regulatory actions could “immediately or in the future prevent Robinhood from offering or continuing to offer event contracts.” These contracts are defined as a futures element and are a primary focus for regulatory scrutiny in the broader financial landscape.
Recommended