Robinhood Earned 8% Less per Prediction Market Contract as Trading Rose 21%
By Damian Chmiel
AI summary of the source article
Robinhood earned about 1.05 cents per event contract in the third quarter, down from 1.15 cents previously, despite trading volume rising 21% to 16.4 billion contracts. Event contracts generated $173 million, accounting for roughly 12% of Robinhood's net revenue.
Why it matters
Robinhood is the only reviewed retail platform that publishes both contract counts and revenue for the product, which "makes its ratio the one public benchmark for brokers pricing it."
Key facts
- Event contracts generated $173 million in Q3, exceeding the $120 million earned from crypto and representing about 12% of net revenue.
- Customers traded 16.4 billion contracts in the quarter, up 21% from 13.6 billion, while revenue per contract fell to roughly 1.05 cents.
- Rothera, a joint venture controlled with Susquehanna, accounted for $28 million of Robinhood's $173 million event contract revenue.
Source excerpt · Finance Magnates
Robinhood earned about 1.05 cents per event contract in the third quarter, down from 1.15 cents three months earlier, an FM Intelligence analysis published today (Tuesday) found. Its customers traded about 21% more contracts over the quarter, while revenue from them rose 11%. Event contracts brought in $173 million between July and September, more than the $120 million Robinhood earned from crypto…