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Further Reading from MarketBeat Media Robinhood's NFL Parlay Push Could Turn Prediction Markets Into a Real Revenue EngineReported by Jordan Chussler. Posted: 12/26/2025. 
Summary - Robinhood has announced that it is expanding its prediction markets feature to include NFL prop bets and parlays.
- The stock is up nearly 205% this year, but that momentum could carry into 2026 as more users are drawn to the app and away from competitors like DraftKings and FanDuel.
- Despite those gains, analysts still see more than 14% potential upside for HOOD over the next 12 months.
When you think of financial sector stocks, companies like JPMorgan Chase (NYSE: JPM) and Bank of America (NYSE: BAC) are likely to come to mind. But since its initial public offering on July 29, 2021, perhaps no fintech company has differentiated itself from the pack more than Robinhood (NASDAQ: HOOD). Imagine a bull market so powerful, every single investor became a millionaire. Not by finding the next NVIDIA or Bitcoin, but by owning a simple index fund.
It sounds impossible. Yet it happened – just a short time ago. Now a legendary figure says: "Brace yourselves. It's about to happen here, in America. But fair warning – it could be the worst thing that ever happens to you."
This story has received little coverage in the press. But if history repeats, it could bump tens of millions of Americans into a 7-figure net worth practically overnight. Click here for the full story. The financial services company is best known for its mobile-first brokerage platform, popular with retail investors, and which aims to "democratize finance for all," according to the company. Now Robinhood is expanding beyond equities and derivatives, setting its sights on the NFL prop bet and parlay market and emerging as a competitor to online sportsbooks such as Hard Rock Bet, DraftKings (NASDAQ: DKNG), and Flutter Entertainment's (NYSE: FLUT) FanDuel. Sports Betting Has Become Very Big Business Since its federal legalization in 2018, online sports betting has been the fastest-growing segment of gambling. Now legal in 35 states and Washington, D.C., the rise of betting apps allows users to place wagers around the clock. The combination of mobile technology and convenience has been a major growth driver, with younger Americans flocking to online sportsbooks. With the NFL and college football playoffs quickly approaching, that creates a short-term catalyst, and Robinhood wants in on the action. According to industry consultancy Grand View Research, the sports betting market is projected to grow at a compound annual growth rate (CAGR) of 11% from 2025 to 2030, rising from roughly $100 billion to more than $187 billion over the forecast period. Robinhood's Foray Into Prediction Markets The move into prop bets and parlays builds on the company's success with prediction markets—Robinhood's fastest-growing product. That feature lets users place bets not only on sports events but also on outcomes such as who will win the Grammy for Song of the Year, how many subscribers Mr. Beast will have by year-end, and who is most likely to host Saturday Night Live in its 51st season. Sports remain the primary draw, especially for Robinhood's target demographic of young and often first-time investors. JB Mackenzie, vice president and general manager of futures and international, told CNBC that users can currently trade preset combinations for game outcomes, point totals and spreads in individual NFL games. Beginning in 2026, users will be able to create custom combos (for example, parlays) across NFL matchups. CNBC also reported that Robinhood's prediction markets are already contributing materially to revenue—on pace to become a $300 million revenue driver in 2025. In November alone, the platform saw more than 3 billion prediction market contracts traded, a 20% increase over October. Bolstered Revenue Could Produce More Consistent Results With the expansion of its prediction market offerings, Robinhood is trying to strengthen its top line and achieve more consistent earnings results. Over the past five quarters, the company has missed earnings per share (EPS) expectations twice. Robinhood has missed revenue guidance only once—but that was a significant miss. Analysts had expected around $930 million in quarterly revenue in Q4 2024, yet the company reported just $637 million—a shortfall of about 31.5%. While net income returned to positive territory last year for the first time since the IPO, the $556 million reported in Q3 trailed the $916 million reported in Q4 2024. Similarly, net cash from operating activities, which reached $3.509 billion in Q2 of this year, swung to a loss of $1.576 billion in Q3—a nearly 145% decrease. Given that backdrop, success with—and expansion of—the prediction markets platform could be key to delivering steadier financial performance in 2026 and beyond. Despite Eye-Catching Gains in 2025, HOOD Remains Attractively Rated Despite those mixed results, the stock has had an exceptional run this year. HOOD is up nearly 205% in 2025, and that momentum could extend into the new year as more users are drawn to the app's suite of features and may shift away from competitors like Hard Rock Bet, DraftKings and FanDuel. Analysts still see more than 14% potential upside over the next 12 months for the stock, which carries a Moderate Buy rating. The stock also shows very high institutional ownership—more than 93%—while short interest stands at a modest 5.78% of the float.
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