Robinhood closed out 2025 with record revenues and trading volumes. But prediction markets continued to be one of the company’s most strategic growth areas. In its Q4 and full-year 2025 shareholder letter, Robinhood reported that 8.5 billion event contracts were traded in the fourth quarter alone. This contributed to more than 12 billion event contracts traded across 2025.

Preliminary January data showed a further 3.4 billion event contracts traded, suggesting that engagement is carrying into 2026 rather than fading after peak seasonal events. CEO Vlad Tenev reinforced the direction in the earnings release, stating, “Our vision hasn’t changed: we are building the Financial SuperApp.”

That places prediction markets alongside equities, options, retirement accounts, and banking as foundational components of Robinhood’s long-term product development rather than experimental add-ons. Tenev posted highlights from Robinhood Markets’s Q4 and 2025 financials on X.

Robinhood Markets has just released financial results for the fourth quarter and full year of 2025.

Check out the highlights from @vladtenev below, and catch our earnings call live at: https://t.co/W92tO1JASh pic.twitter.com/x8sdd3bibP

Robinhood recorded $1.28 billion in total net revenue for Q4, up 27% year-over-year but short of analyst estimates. Full-year revenue increased by 52% to $4.5 billion. Net income for the quarter came in at $605 million, and total platform assets rose 68% year-over-year to $324 billion.

Transaction-based revenue reached $776 million in Q4. Options revenue rose 41% year-over-year, and equities revenue increased 54%, while crypto revenue declined 38%.

The difference is telling. As crypto trading cooled, event contracts reached record volumes. Prediction markets appear to be offsetting part of the engagement gap left by weaker crypto activity, offering frequent, event-driven opportunities that do not rely solely on asset price volatility.

Robinhood stated that product expansion “led by Prediction Markets” helped increase momentum with active traders. In December, the company hosted “Robinhood Presents: YES/NO,” announcing new features for its Prediction Markets Hub, including preset and custom combos and player performance markets.

The company has also taken steps to institutionalize the category. Through its joint venture Rothera LLC, formed with Susquehanna International Group, Robinhood acquired MIAXdx in January 2026 to build an independent, CFTC-licensed exchange and clearinghouse dedicated to event contracts.

Competition in prediction markets is intensifying. Regulated exchanges such as Kalshi are expanding their institutional footprint, Coinbase has launched nationwide prediction markets access, and platforms like Polymarket continue to dominate onchain liquidity.

Robinhood’s advantage lies in distribution. The platform ended the year with 27 million funded customers and 28.4 million investment accounts, allowing it to surface event contracts to an existing retail base without requiring migration to a new platform.

For active traders accustomed to short-dated options or high-frequency positioning, binary event contracts represent a natural behavioral extension rather than a new trading paradigm.

CFO Shiv Verma described 2025 as “a record year” on X, writing that the company “shipped incredible products” and drove “another year of profitable growth for shareholders,” while expressing confidence heading into 2026.

Investor reaction was mixed in the short term, with some market participants focusing on revenue comparisons. However, others viewed the results as structurally strong. One trading entrepreneur “Hamid,” wrote on X that the market often focuses on short-term estimates while Robinhood “just keeps becoming a better and bigger company, quarter after quarter,” suggesting the company could sustain elevated growth rates.

$HOOD stock closed at $85.60 on Feb. 10 and has dipped about 14%, trading around $73.60 on the morning of Feb. 12.

While Robinhood shares have faced pressure alongside crypto-linked equities in early 2026, internally the company is leaning into prediction markets as a durable engagement engine. The Q4 report indicates that event contracts are no longer peripheral to Robinhood’s strategy. As the company pushes toward its vision of a “Financial SuperApp,” prediction markets are increasingly positioned as a central pillar of its next growth phase.

The post Robinhood Q4 Earnings Show Prediction Markets Gaining Structural Importance appeared first on DeFi Rate.

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