Robinhood Markets has turned to prediction markets as a growth catalyst after reporting a sharp decline in retail stock and crypto trading volumes in November 2025. The company launched its prediction-market platform in Q1 2025 and by Q3 had generated approximately $100 million in quarterly revenue from these contracts. To broaden appeal, Robinhood recently introduced contract types mirroring prop and parlay bets, aiming to capture users who seek more diverse wagering options. This strategic pivot not only opens a new revenue stream but also positions Robinhood to reengage its core user base, which had accounted for 70% of total transaction activity at the start of last year. With the prediction-market segment now representing nearly 5% of total revenues and showing month-over-month growth rates above 15%, investors will be watching closely to see if these offerings can sustainably reverse the company’s recent growth headwinds.