Why Did Robinhood Rally 220% In 2025? The Answer Isn't Speculation

Benzinga and Yahoo Finance LLC whitethorn gain committee oregon gross connected immoderate items done the links below.

Robinhood Markets Inc. (NASDAQ:HOOD) has surged implicit 220% successful 2025, partially owed to prediction markets, which became the fastest-growing merchandise successful institution history.

Robinhood reported Q3 gross of $1.27 billion, up 100% year-over-year, with nett income hitting $386 million, up 105%.

Full-year 2025 gross is projected astatine $4.6-$4.7 billion, up 55% from 2024, with EPS estimates astir $1.95-$2.07, up 79%.

At the enactment level, equity trading measurement deed a grounds $647 cardinal successful Q3, up 126% year-over-year.

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Meanwhile, crypto trading volumes totaled $80 billion, divided evenly betwixt the Robinhood app and Bitstamp, which the institution acquired this year.

The lawsuit basal expanded to astir 27 cardinal funded accounts holding implicit $300 cardinal successful assets, with deposit maturation moving astatine 40%+ annually.

While beardown net acceptable the stage, prediction markets became the defining maturation catalyst of 2025.

Launched successful concern with Kalshi successful March 2024, lawsuit contracts became the company’s fastest-growing merchandise enactment by far.

In the archetypal year, Robinhood customers traded implicit 9 cardinal contracts crossed much than 1 cardinal users, generating annualized revenues supra $100 million.

That’s faster adoption than immoderate merchandise Robinhood has ever launched.

To deepen power implicit the ecosystem, Robinhood and Susquehanna International Group agreed successful precocious November to get 90% of LedgerX, a regulated derivatives speech antecedently owned by FTX.

The transaction sets the signifier for a afloat vertically integrated prediction markets platform, with a caller speech targeted to spell unrecorded successful 2026.

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Alongside prediction markets, crypto remained a large contributor to growth.

Crypto gross successful Q1 reached $252 million, doubled year-over-year, accounting for astir 27% of transaction revenue.

In June, the institution launched crypto-based “stock tokens” for EU customers, letting them commercialized implicit 200 U.S. equities and ETFs 24/5 connected blockchain infrastructure.

This tokenization strategy positions Robinhood astatine the intersection of accepted concern and decentralized infrastructure.