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More Reading from MarketBeat.com Robinhood's NFL Parlay Push Could Turn Prediction Markets Into a Real Revenue EngineAuthored by Jordan Chussler. First Published: 12/26/2025. 
At a Glance - 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). A tiny government task force just wrapped up 20 years of work.
And buried in their federal filings, I found something remarkable:
American citizens now have a legal birthright claim to something previously inaccessible.
Under U.S. law, you can stake your claim right now. The name and ticker are available here now >>> The financial services company is best known for its mobile-first brokerage platform, a favorite among retail investors, 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 including Hard Rock Bet, DraftKings (NASDAQ: DKNG), and Flutter Entertainment's (NYSE: FLUT) FanDuel. Sports Betting Has Become Very Big Business Since the federal change in 2018, online sports betting has been the fastest-growing sector of gambling. Now legal in 35 states and Washington, D.C., the rise of betting apps lets users 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, Robinhood sees a short-term catalyst to gain market share. 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 wagers not only on sports events but also on topics 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 during its 51st season. Sports remain the biggest draw, particularly 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 outcomes, point totals, and spreads of individual NFL games. Beginning in 2026, users will be able to create custom combos (for example, parlays) across multiple NFL games. CNBC also reported that Robinhood is already seeing top-line benefits from its prediction markets segment, which is on pace to generate about $300 million in revenue in 2025. In November alone, the platform handled 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 aiming to strengthen its top line and produce more consistent earnings. Over the past five quarters, the company has missed earnings-per-share (EPS) expectations twice. Robinhood has missed revenue just once in that span, but that miss was sizable: analysts expected roughly $930 million in quarterly revenue in Q4 2024, while the company reported $637 million—a shortfall of 31.5%. While net income turned positive last year for the first time since the company went public, its $556 million in Q3 net income was still well below the $916 million reported in Q4 2024. Similarly, net cash from operating activities, which reached $3.509 billion in Q2 of this year, moved to a negative $1.576 billion in Q3—a nearly 145% swing. In that context, success with and the expansion of the prediction markets platform could be key to delivering steadier financial results in 2026 and beyond. Despite Eye-Catching Gains in 2025, HOOD Remains Attractively Rated Despite the mixed recent results, the stock has had an exceptional run this year. HOOD is up nearly 205% in 2025, and that momentum could continue as more users are drawn to the app's expanding feature set and away from competitors like Hard Rock Bet, DraftKings and FanDuel. Analysts still see roughly 14% potential upside over the next 12 months for the stock, with shares carrying a Moderate Buy rating. The stock also features very high institutional ownership—more than 93%—while short interest is relatively low at 5.78% of the float.
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