Robinhood Results Hold Up as Prediction Markets Grow, While Coinbase Revenue Falls to Lowest Since 3Q 2024

Robinhood turned in solid results as growth in its prediction-markets business helped offset continued weakness in digital assets, crypto-focused media outlet The Block reported on August 4. That stood in contrast to Coinbase, whose second-quarter performance weakened as the broader crypto market remained under pressure.

Robinhood's second-quarter crypto trading revenue fell 37.5% from a year earlier to $100 million. Growth in options, equities and prediction markets, however, lifted total transaction-based revenue to a record $776 million.

The prediction-markets segment generated $156 million in revenue on 13.6 billion contracts traded, surpassing Robinhood's crypto business revenue for the first time.

Coinbase's second-quarter revenue came in at $1.22 billion, the lowest since the third quarter of 2024. Total trading volume also fell 24% from the previous quarter to its lowest level since the third quarter of 2023.

The Block said Robinhood's strategy of reducing its reliance on crypto and diversifying revenue through prediction markets tied to sports and political events helped support earnings.