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Robinhood Markets Inc. (NASDAQ:HOOD) has surged over 220% in 2025, partially due to prediction markets, which became the fastest-growing product in company history.
Robinhood reported Q3 revenue of $1.27 billion, up 100% year-over-year, with net income hitting $386 million, up 105%.
Full-year 2025 revenue is projected at $4.6-$4.7 billion, up 55% from 2024, with EPS estimates around $1.95-$2.07, up 79%.
At the activity level, equity trading volume hit a record $647 billion in Q3, up 126% year-over-year.
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Meanwhile, crypto trading volumes totaled $80 billion, split evenly between the Robinhood app and Bitstamp, which the company acquired this year.
The customer base expanded to roughly 27 million funded accounts holding over $300 billion in assets, with deposit growth running at 40%+ annually.
While strong earnings set the stage, prediction markets became the defining growth catalyst of 2025.
Launched in partnership with Kalshi in March 2024, event contracts became the company’s fastest-growing product line by far.
In the first year, Robinhood customers traded over 9 billion contracts across more than 1 million users, generating annualized revenues above $100 million.
That’s faster adoption than any product Robinhood has ever launched.
To deepen control over the ecosystem, Robinhood and Susquehanna International Group agreed in late November to acquire 90% of LedgerX, a regulated derivatives exchange previously owned by FTX.
The transaction sets the stage for a fully vertically integrated prediction markets platform, with a new exchange targeted to go live in 2026.
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Alongside prediction markets, crypto remained a major contributor to growth.
Crypto revenue in Q1 reached $252 million, doubled year-over-year, accounting for about 27% of transaction revenue.
In June, the company launched crypto-based “stock tokens” for EU customers, letting them trade over 200 U.S. equities and ETFs 24/5 on blockchain infrastructure.
This tokenization strategy positions Robinhood at the intersection of traditional finance and decentralized infrastructure.
