Robinhood's 13 Business Lines Achieve Annual Revenue of $100 Million or More
In its Q2 2026 performance report, Robinhood announced that 13 of its business lines have achieved or exceeded an annual revenue of $100 million, an increase from 11 lines at the end of 2025.
The quarterly net revenue reached a record $1.31 billion, up 32% year-on-year; diluted earnings per share were $0.62, up 48% year-on-year. Net deposits set a record of $22 billion. Robinhood Gold subscribers increased to 4.8 million. CFO Shiv Verma highlighted that the new business lines crossing the threshold this season are the trading terminal Robinhood Legend and the credit card business. Legend surpassed $100 million in annual revenue about 18 months after its launch; Gold Card customers exceeded 1 million, with an annual spending amount exceeding $17 billion, and the Platinum Card is beginning to roll out.
Trading revenue was $776 million, up 44% year-on-year. This includes event contract prediction market revenue of $156 million, up over 10 times year-on-year; options at $342 million, up 29%; stocks at $129 million, up 95%; and cryptocurrency at $100 million, down 38%. The businesses that crossed the threshold by the end of 2025 include options, margin interest, stock trading, crypto trading, margin-based securities lending, cash sweep, full payment securities lending, Gold subscriptions, instant withdrawals, prediction markets, and Bitstamp. Businesses nearing the threshold include futures, index options, banking, and venture capital.
The prediction market is advancing through the Rothera exchange, which is a joint venture with Susquehanna and is regulated by the Commodity Futures Trading Commission, with cumulative transactions exceeding 3.5 billion contracts. Nearly 100,000 agency trading accounts launched in May, with custodial assets exceeding $100 million. The Robinhood Chain launched in July has seen daily fees surpass Ethereum and Base, and Deutsche Bank expects this chain to become the 14th business line to cross the threshold in Q4. Management stated that on-chain transactions do not count towards crypto trading volume.
In terms of market mechanism, buyers are young active traders and subscribers who want to keep their wallet share within the same app, while sellers are Robinhood, which breaks down trading, interest, subscriptions, cards, and on-chain fees into multiple lines that can each cross the $100 million threshold. Funds flow in from options, event contracts, and deposit interest, while crypto contributions decline. Events are driven by financial report disclosures. Beneficiaries are platforms that can continuously create new revenue entry points through product speed; pressured parties are traditional brokers that still heavily rely on single trading commissions or order flow, as well as related revenue lines during crypto transaction declines.
The market capitalization at that time was approximately $100 billion, with a forward P/E ratio of about 47 times. The consultation period for regulatory opinions on prediction markets was extended to October 13.
Source: Public Information
ABAB AI Insight
Robinhood has transformed from a commission-free stock app into a group ledger reporting annualized revenue by product line. The $100 million threshold turns each new feature into a segment that can be counted by sell-side analysts, with Legend and the credit card counted as "another business" rather than a feature update. This differs from the early structure that relied on payment for order flow: interest, subscriptions, cards, and event contracts shift user retention from trading frequency to account relationships.
Capital allocation follows the product calendar. The prediction market exchanges a joint venture license for a regulated contract volume; the Chain retains developers through a sorting fee; agency trading uses AI as a new reason for account openings. The motivation is to slice the wallet share on the same batch of funds into mutually exclusive fee layers, reducing revenue elasticity when a single asset class's transactions decline. The acquisition of Bitstamp fills the compliance gap in crypto channels.
Benchmarking against Schwab, which layers brokerage, banking, and advisory fees on the same customer account, and Coinbase, which hedges trading fees with subscriptions and stablecoin interest. Robinhood is in an expansion phase transitioning from a retail broker to a consumer finance operating system, with the number of $100 million lines serving as a scoreboard for external narratives, ahead of disclosing the profit margins of each line.
The structural change belongs to the reconstruction of the industry chain. Brokerage income is broken down into trading, lending, subscriptions, cards, and on-chain infrastructure, with pricing power shifting from individual transactions to total account relationships. The mechanism is: commission-free attracts users into the app, and each line that crosses the threshold represents a secondary or tertiary billing on the same funds, the more lines there are, the more they can compensate for financial report numbers when transactions in a certain category cool down.
ABAB News · Cognitive Law
The number of crossed business lines is repackaging functions into a company
Commission-free retains accounts, fees occur in every new pipeline within the account
Crypto cooling can still report growth, indicating revenue is no longer solely reliant on transactions