Robinhood Markets Inc. (HOOD) has surged over 220% in 2025, driven partially by prediction markets, the fastest-growing product in company history. Q3 revenue hit $1.27 billion, up 100% YoY, with net income at $386 million, up 105%. Full-year 2025 revenue is projected at $4.6-$4.7 billion, up 55% from 2024, with EPS estimates at $1.95-$2.07, up 79%.
Equity trading volume hit a record $647 billion in Q3, up 126% YoY. Crypto trading volumes totaled $80 billion, split evenly between the Robinhood app and Bitstamp. The customer base expanded to about 27 million funded accounts holding over $300 billion in assets, with deposit growth at 40%+ annually.
Prediction markets were the defining growth catalyst of 2025 for Robinhood. Launched in partnership with Kalshi in March 2024, event contracts became the company’s fastest-growing product line. Customers traded over 9 billion contracts in the first year, generating annualized revenues above $100 million.
To deepen control over the ecosystem, Robinhood acquired 90% of LedgerX, a regulated derivatives exchange previously owned by FTX. This acquisition sets the stage for a fully vertically integrated prediction markets platform, with a new exchange targeted to go live in 2026.
Crypto revenue reached $252 million in Q1, doubled YoY, accounting for about 27% of transaction revenue. Robinhood launched crypto-based “stock tokens” for EU customers in June, allowing them to trade over 200 U.S. equities and ETFs 24/5 on blockchain infrastructure, positioning the company at the intersection of traditional finance and decentralized infrastructure.
Robinhood completed acquisitions of WonderFi and Bitstamp in 2025, strengthening its crypto-exchange footprint in Canada and Europe along with obtaining crucial regulatory licenses. The company joined the S&P 500 on Sept. 22, replacing Caesars Entertainment Inc, signaling its graduation into large-cap legitimacy. Analyst sentiment shifted with high-profile firms issuing targets between $155 and $180 following Q3 earnings.
Read more at Yahoo Finance.: Why Did Robinhood Rally 220% In 2025? The Answer Isn’t Speculation