Robinhood prediction markets drive $1.31B quarter

Robinhood Markets reported record second-quarter revenue on July 29, as growth in event contracts, options and equities offset another decline in cryptocurrency trading. Summary Robinhood’s Q2 revenue rose 32% to a record $1.31 billion, while net income climbed 48%. Event contract revenue reached $156 million, rising more than 10x and overtaking cryptocurrency transaction revenue. Crypto revenue fell 38% to $100 million despite $40 billion in reported quarterly trading volume. According to its Q2 earnings release, total net revenue rose 32% year over year to $1.31 billion for the quarter ended June 30. Net income increased 48% to $573 million, while diluted earnings per share reached $0.62. However, Robinhood said net income included $129 million of gains mainly tied to the deconsolidation of Robinhood Ventures Fund I. Those gains added $0.14 to diluted EPS. The wider revenue mix also expanded. Net interest revenue rose 9% to $389 million, while other revenue increased 54% to $143 million. Robinhood attributed the latter increase mainly to Trump Account service revenue and higher Gold subscription revenue. Event contracts became Robinhood’s fastest-growing revenue line Transaction-...