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.
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.
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.
Beyond that, Robinhood completed acquisitions of WonderFi and Bitstamp in 2025, giving it a stronger crypto-exchange footprint in Canada and Europe along with crucial regulatory licenses.
S&P 500 Inclusion Cemented Wall Street Validation
Institutional recognition followed operational execution as Robinhood joined the S&P 500 (NYSE:SPY) on Sept. 22, replacing Caesars Entertainment Inc (NASDAQ:CZR).
The inclusion pulled in billions of passive flows and signaled that Robinhood had graduated into large-cap legitimacy.
Analyst sentiment shifted sharply as several high-profile firms including Citizens, Mizuho, Barclays, and Cantor Fitzgerald issued targets between $155 and $180 following Q3 earnings.
What’s Next For HOOD
HOOD Price Action By TradingView
Robinhood Markets is consolidating near $120 after a sharp 2025 rally, with price compressing inside a tightening symmetrical triangle.
HOOD price is holding above the rising 100-day EMA near $119, keeping the broader uptrend intact despite recent volatility.
Short-term momentum remains capped below the 20 and 50-day EMAs, which are acting as immediate resistance around $123–$125.
A decisive break above the descending trendline could reopen upside toward the $135–$140 zone, while a failure risks a pullback toward the $113 Supertrend support.
Read Next:
Image: Shutterstock
