Kalshi’s Annualized Revenue Tops $4 Billion as It Seeks a $40 Billion Valuation
People familiar with the matter said demand for World Cup-related betting has driven Kalshi’s platform revenue to double. In July, the prediction-trading platform’s annualized revenue topped $4 billion, up from just over $2 billion two months earlier. The revenue growth is expected to drive another sharp increase in the company’s valuation. People familiar with the matter said negotiations for Kalshi’s latest funding round have entered the late stage, with a target post-money valuation of $400 billion—nearly double the valuation set in a financing round finalized in May. The source’s headline, however, describes the target valuation as $40 billion. Potential risks are already emerging. Kalshi has been spending heavily on marketing to compete for betting users, while facing pressure from additional tax costs in several core operating markets. Media reports in June said Kalshi was in talks for a new funding round targeting a $40 billion valuation, with a deal potentially closing as early as the third quarter. Kalshi spokesperson Elizabeth Diana declined to comment. If the round closes, Kalshi’s private-market valuation would exceed Coinbase’s market capitalization and be comparable to Robinhood’s approximately $85 billion market value. Robinhood has recently transformed into a competitor to Kalshi, with event-contract trading accounting for an increasing share of its revenue and surpassing revenue from stock and cryptocurrency trading. Data-analysis firm Artemis said Robinhood has shifted some prediction-market orders from Kalshi to the Rostera exchange, a joint venture established by Robinhood and Susquehanna International Group. In the second quarter of this year, orders from Robinhood accounted for just 17.5% of Kalshi’s total trading volume, compared with nearly 50% in the same period last year. Kalshi has been raising funds at a rapid pace. In May, Coatue Capital led a new $1 billion financing round. Before that, the company completed another $1 billion financing round at the end of 2025, when it was valued at $11 billion. Fueled by rapid expansion in sports betting, Kalshi has held preliminary, informal discussions with investment banks and plans to begin preparations for an initial public offering as early as next year. News emerged last week that smaller rival Polymarket was also negotiating a financing round, seeking to raise about $1 billion at a post-money valuation of $20 billion. Kalshi’s core source of revenue is trading fees. As event contracts gain popularity, platforms including Robinhood and DraftKings have entered the market to compete for share, making marketing likely to remain a central battleground for the companies.
The revenue growth is expected to drive another sharp increase in the company’s valuation. People familiar with the matter said negotiations for Kalshi’s latest funding round have entered the late stage, with a target post-money valuation of $400 billion—nearly double the valuation set in a financing round finalized in May. The source’s headline, however, describes the target valuation as $40 billion.
Potential risks are already emerging. Kalshi has been spending heavily on marketing to compete for betting users, while facing pressure from additional tax costs in several core operating markets.
Media reports in June said Kalshi was in talks for a new funding round targeting a $40 billion valuation, with a deal potentially closing as early as the third quarter. Kalshi spokesperson Elizabeth Diana declined to comment.
If the round closes, Kalshi’s private-market valuation would exceed Coinbase’s market capitalization and be comparable to Robinhood’s approximately $85 billion market value. Robinhood has recently transformed into a competitor to Kalshi, with event-contract trading accounting for an increasing share of its revenue and surpassing revenue from stock and cryptocurrency trading.
Data-analysis firm Artemis said Robinhood has shifted some prediction-market orders from Kalshi to the Rostera exchange, a joint venture established by Robinhood and Susquehanna International Group. In the second quarter of this year, orders from Robinhood accounted for just 17.5% of Kalshi’s total trading volume, compared with nearly 50% in the same period last year.
Kalshi has been raising funds at a rapid pace. In May, Coatue Capital led a new $1 billion financing round. Before that, the company completed another $1 billion financing round at the end of 2025, when it was valued at $11 billion. Fueled by rapid expansion in sports betting, Kalshi has held preliminary, informal discussions with investment banks and plans to begin preparations for an initial public offering as early as next year.
News emerged last week that smaller rival Polymarket was also negotiating a financing round, seeking to raise about $1 billion at a post-money valuation of $20 billion.
Kalshi’s core source of revenue is trading fees. As event contracts gain popularity, platforms including Robinhood and DraftKings have entered the market to compete for share, making marketing likely to remain a central battleground for the companies.