Robinhood Turns Crypto Loss into Betting Boom

Robinhood’s earnings show a sharp fall in crypto trading income, but other parts of the business are growing. Crypto revenue dropped 47% to $134 million from last year’s $252 million. The company said customers are moving away from crypto to other trading options. Transaction‑based revenue climbed a little, reaching $623 million versus $583 million before. A big part of this increase came from event contracts, which jumped 320% to $147 million. During the quarter, users traded a record 8. 8 billion event contracts. Event contracts let people bet on real‑world outcomes, like elections or interest rates.This new product line is helping Robinhood spread risk away from the volatile crypto market. Total revenue rose 15% to $1. 07 billion, up from $927 million last year. Net income grew 3% to $346 million. Adjusted earnings per share were $0. 38, just below analysts’ $0. 39 forecast. Robinhood is diversifying into derivatives and prediction markets, similar to Coinbase’s strategy. It also sees strong growth in interest income and subscription services such as Gold. Shares fell 6% after the earnings report. The company will hold an earnings call at 5 p. m. ET.