"Robinhood shares moved lower after the company released its fourth-quarter earnings, as investors weighed strong headline results against lingering questions about the firm's growing emphasis on prediction markets and its plan to funnel those users into longer-term investment products. The company reported record fourth-quarter revenue of $1.28 billion, up 27% year over year, and full-year revenue of $4.5 billion, a 52% increase from 2024."
"On the earnings call, CEO Vlad Tenev pointed to prediction markets as the company's fastest-growing product. "In Q4, prediction market volumes doubled, more than doubled yet again, with over 12 billion contracts traded in 2025, which is the first full year of prediction markets," he said, adding that customers had already traded more than 4 billion contracts early in 2026. Tenev framed the opportunity in ambitious terms. "I think we are just at the beginning of a prediction market super cycle that could drive trillions in annual volume over time," he said, citing upcoming global sporting events, expansion beyond sports, and the launch of Rothera, Robinhood's joint venture with Susquehanna International Group, as key drivers."
"Robinhood prediction markets offering draws unwanted attention But a separate part of the call quickly drew attention and criticism online. While discussing customer acquisition, Tenev said Robinhood is seeing "an increasing number of people coming to Robinhood... not because they want to trade equities or crypto, but because they've heard of our prediction markets offering." He added that once users enter through prediction markets, the company aims to "easily cross-sell you to, you know, things like retirement or"
Robinhood reported record fourth-quarter revenue of $1.28 billion, a 27% year-over-year increase, and full-year revenue of $4.5 billion, up 52% from 2024. Net income for the quarter was $605 million, or $0.66 per diluted share, while funded customers rose 7% to 27 million. Prediction markets emerged as the fastest-growing product, with over 12 billion contracts traded in 2025 and more than 4 billion early in 2026. CEO Vlad Tenev described a potential prediction market "super cycle" and cited Rothera and global events as drivers. The earnings call drew criticism after comments about acquiring users via prediction markets and plans to cross-sell retirement and investment products.
Read at ReadWrite
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