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HOOD Eyes Deeper Push Into Prediction Markets: What Does This Mean?
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Key Takeaways
Robinhood may add Crypto.com event contracts to broaden suppliers beyond Kalshi and other venues.
A deal could expand products, improve reliability and lift engagement and transaction-based revenues.
Regulatory disputes, competition and execution risks could keep Robinhood's results volatile.
Robinhood Markets (HOOD - Free Report) is reportedly exploring a partnership with Crypto.com that could bring the crypto exchange’s yes-or-no event contracts to Robinhood’s prediction-markets hub. This was first reported by the Wall Street Journal, citing persons familiar with the matter.
Although discussions may not result in an agreement, the move highlights HOOD’s plan to broaden its network of contract suppliers rather than depend heavily on one venue. The company currently routes event contracts through Kalshi, ForecastEx and Rothera, its exchange venture with Susquehanna International Group.
A Crypto.com tie-up could expand product availability, improve platform reliability and give Robinhood greater bargaining power over economics and execution. It would also deepen competition with Kalshi, which began as a key distribution partner but increasingly overlaps with Robinhood as both companies build wider product sets and exchange capabilities. The proposed arrangement could place Crypto.com’s contracts before Robinhood’s large retail audience, potentially lifting engagement and transaction-based revenues.
The financial opportunity appears meaningful. Robinhood’s prediction-market revenues are expected to reach record levels in the medium term, supported by major sporting events, broader distribution and rising adoption. The company has also invested directly in infrastructure through Rothera, suggesting it wants to capture more of the economics across both distribution and exchange operations.
However, regulatory uncertainty remains a key risk. Several states contend that sports-linked event contracts resemble gambling, while the CFTC maintains that federally regulated derivatives exchanges fall under its jurisdiction. Hence, a deeper push could strengthen HOOD’s growth profile and diversification, but legal disputes, competition and execution risks may keep results volatile.
How are Robinhood’s Peers Diversifying Their Businesses?
Schwab is diversifying beyond brokerage into wealth management, advisory, banking, lending, retirement and asset management. Schwab’s fee-based assets, net interest income and broader financial services reduce commission dependence, support steadier revenues and deepen client relationships.
Interactive Brokers is diversifying through global market access, high-yield cash balances, securities lending, institutional services, retirement accounts and advisor solutions. Interactive Brokers’ interest income, international reach and technology platform reduce reliance on trading commissions while supporting scalable growth.
So far this year, Robinhood shares have lost 16.1% against the industry’s growth of 10.4%.
HOOD’s YTD Price Performance
Image Source: Zacks Investment Research
HOOD shares are currently trading at a premium to the industry. The company has a 12-month trailing price-to-tangible book (P/TB) of 9.56X compared with the industry average of 3.4X.
P/TB TTM
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Robinhood’s 2026 earnings suggests a year-over-year decline of 9.3%. The trend is likely to reverse next year, with earnings expected to jump 39.9%. In the past month, earnings estimates for 2026 and 2027 have been revised higher to $1.86 and $2.60 per share, respectively.
View the Zacks #1 Rank List
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HOOD Eyes Deeper Push Into Prediction Markets: What Does This Mean?
Key Takeaways
Robinhood Markets (HOOD - Free Report) is reportedly exploring a partnership with Crypto.com that could bring the crypto exchange’s yes-or-no event contracts to Robinhood’s prediction-markets hub. This was first reported by the Wall Street Journal, citing persons familiar with the matter.
Although discussions may not result in an agreement, the move highlights HOOD’s plan to broaden its network of contract suppliers rather than depend heavily on one venue. The company currently routes event contracts through Kalshi, ForecastEx and Rothera, its exchange venture with Susquehanna International Group.
A Crypto.com tie-up could expand product availability, improve platform reliability and give Robinhood greater bargaining power over economics and execution. It would also deepen competition with Kalshi, which began as a key distribution partner but increasingly overlaps with Robinhood as both companies build wider product sets and exchange capabilities. The proposed arrangement could place Crypto.com’s contracts before Robinhood’s large retail audience, potentially lifting engagement and transaction-based revenues.
The financial opportunity appears meaningful. Robinhood’s prediction-market revenues are expected to reach record levels in the medium term, supported by major sporting events, broader distribution and rising adoption. The company has also invested directly in infrastructure through Rothera, suggesting it wants to capture more of the economics across both distribution and exchange operations.
However, regulatory uncertainty remains a key risk. Several states contend that sports-linked event contracts resemble gambling, while the CFTC maintains that federally regulated derivatives exchanges fall under its jurisdiction. Hence, a deeper push could strengthen HOOD’s growth profile and diversification, but legal disputes, competition and execution risks may keep results volatile.
How are Robinhood’s Peers Diversifying Their Businesses?
Two close peers of HOOD are Charles Schwab (SCHW - Free Report) and Interactive Brokers Group (IBKR - Free Report) .
Schwab is diversifying beyond brokerage into wealth management, advisory, banking, lending, retirement and asset management. Schwab’s fee-based assets, net interest income and broader financial services reduce commission dependence, support steadier revenues and deepen client relationships.
Interactive Brokers is diversifying through global market access, high-yield cash balances, securities lending, institutional services, retirement accounts and advisor solutions. Interactive Brokers’ interest income, international reach and technology platform reduce reliance on trading commissions while supporting scalable growth.
HOOD’s Price Performance, Valuation & Estimate Analysis
So far this year, Robinhood shares have lost 16.1% against the industry’s growth of 10.4%.
HOOD’s YTD Price Performance
Image Source: Zacks Investment Research
HOOD shares are currently trading at a premium to the industry. The company has a 12-month trailing price-to-tangible book (P/TB) of 9.56X compared with the industry average of 3.4X.
P/TB TTM
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Robinhood’s 2026 earnings suggests a year-over-year decline of 9.3%. The trend is likely to reverse next year, with earnings expected to jump 39.9%. In the past month, earnings estimates for 2026 and 2027 have been revised higher to $1.86 and $2.60 per share, respectively.
Earnings Estimates
Image Source: Zacks Investment Research
HOOD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.