Why Did Robinhood Rally 220% In 2025? The Answer Isn't Speculation
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Robinhood Markets Inc.(NASDAQ:HOOD) has surged over 220% in 2025, partially due to prediction markets, which became the fastest-growing product in company history.
The Numbers That Fueled The Rally
Robinhood reported Q3 revenue of $1.27 billion, up 100% year-over-year, with net income hitting $386 million, up 105%.
Full-year 2025 revenue is projected at $4.6-$4.7 billion, up 55% from 2024, with EPS estimates around $1.95-$2.07, up 79%.
At the activity level, equity trading volume hit a record $647 billion in Q3, up 126% year-over-year.
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Meanwhile, crypto trading volumes totaled $80 billion, split evenly between the Robinhood app and Bitstamp, which the company acquired this year.
The customer base expanded to roughly 27 million funded accounts holding over $300 billion in assets, with deposit growth running at 40%+ annually.
Prediction Markets Became The Growth Engine
While strong earnings set the stage, prediction markets became the defining growth catalyst of 2025.
Launched in partnership with Kalshi in March 2024, event contracts became the company’s fastest-growing product line by far.
In the first year, Robinhood customers traded over 9 billion contracts across more than 1 million users, generating annualized revenues above $100 million.
That’s faster adoption than any product Robinhood has ever launched.
To deepen control over the ecosystem, Robinhood and Susquehanna International Group agreed in late November to acquire 90% of LedgerX, a regulated derivatives exchange previously owned by FTX.
The transaction sets the stage for a fully vertically integrated prediction markets platform, with a new exchange targeted to go live in 2026.
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Crypto And Tokenization Expansion
Alongside prediction markets, crypto remained a major contributor to growth.
Crypto revenue in Q1 reached $252 million, doubled year-over-year, accounting for about 27% of transaction revenue.
In June, the company launched crypto-based “stock tokens” for EU customers, letting them trade over 200 U.S. equities and ETFs 24/5 on blockchain infrastructure.
This tokenization strategy positions Robinhood at the intersection of traditional finance and decentralized infrastructure.
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