Robinhood Reports Mixed Q1 2026 with Soaring Event Contract Volumes

Robinhood Markets, Inc. (Nasdaq: HOOD) reported a significant surge in its prediction markets activity during the first quarter of 2026, with 8.8 billion event contracts traded. The brokerage noted that $147 million in revenue came from "other transactions," a category primarily consisting of these event contracts, representing a 320% year-over-year increase.

The platform's event contracts hub, launched in March 2025, allows trading on political, economic, and sports outcomes. This follows a reported 8.5 billion contracts traded in the final quarter of 2025, up sharply from 2.3 billion in the prior period. "Customers remained engaged and rapidly adopted new products," said CFO Shiv Verma, citing record prediction market volumes alongside double-digit growth in equities and options.

However, the company is taking a curated approach to these markets. A company statement indicated it is deliberately limiting its contract offerings to mitigate concerns about insider trading and market manipulation, issues that have drawn increased regulatory scrutiny to the sector.

This growth in prediction markets contrasted with a sharp decline in cryptocurrency-related activity. Crypto trading revenue fell 47% year-over-year to $134 million, partially offsetting gains elsewhere. Notional crypto trading volumes on Robinhood dropped 46% to $24 billion.

Overall, Robinhood's Q1 transaction-based revenue rose 7% to $623 million, while total net revenue increased 15% to $1.07 billion. Net income was $346 million, up 3%, with diluted earnings per share at $0.38. Verma added that Q2 started strongly, with April equity and options volumes on track to be the year's highest.