Robinhood Reports Strong Revenue Growth in Prediction Markets, Eyes Middle East Expansion

Robinhood's proprietary prediction market business demonstrated significant revenue growth in the third quarter of the 2026 fiscal year, generating $28 million. This represents a substantial increase from the $17 million reported in the second quarter, according to Finance Magnates. These prediction market services accounted for 16% of the firm's total event-contract revenue of $173 million during the period.

The number of event contracts traded on Robinhood's platform also saw a notable increase, climbing 21% from the previous quarter to reach 16.4 billion contracts between July and September 2026. This surge in activity highlights a growing consumer interest in trading products tied to outcomes in sports, politics, entertainment, and global affairs. This growth in prediction markets has helped offset stagnant cryptocurrency trading volumes.

Prediction Market Performance and Future Outlook

Despite the overall revenue increase, Robinhood experienced an 8% dip in revenue per contract, falling from an average of 1.15 cents in Q2 to 1.05 cents in Q3. Chief Financial Officer Shiv Verma attributed this decline to a pricing reduction implemented after the acquisition of Rothera. This metric is also 11% lower than the 1.18 cents per contract recorded in the first quarter. Nevertheless, the continued revenue expansion from prediction markets is viewed positively, with projections indicating significant benefits for the company through the remainder of 2026 and beyond, assuming current trading volume trends persist.

International Expansion Plans

Looking ahead, Robinhood has announced plans to establish a regional base in the Dubai International Financial Centre (DIFC) in 2027, following a licensing agreement with the Dubai Financial Services Authority (DFSA). While prediction market contracts will not be part of the initial Middle East product offering, the platform will launch with trading in equities, ETFs, and digital assets. CEO Vlad Tenev emphasized the strategic importance of the DIFC as a major global financial hub.

Robinhood's stock performance has been strong, more than doubling since late 2024, although it has retreated from its October 2025 peak, largely influenced by reduced cryptocurrency trading activity.