NEW YORK — Kalshi, a New York-based prediction market platform, has surpassed $2 billion in annualized revenue, according to reports citing sources familiar with the company's financials.
The milestone, reported Thursday, reflects rapid growth driven by record trading volumes in sports and other event contracts. Kalshi's annualized revenue has tripled since November 2025, The Information reported, following spikes tied to events including the NBA playoffs and the FIFA World Cup.
Kalshi operates as a CFTC-regulated exchange for event contracts, allowing users to trade on outcomes of real-world events ranging from sports results to economic indicators and political developments. The platform, founded in 2018, has positioned itself as a dominant player in the U.S. prediction market sector, commanding more than 90% of domestic activity.
Details on the exact timing of the revenue threshold remain unclear. Trading volume has surged in recent months, with reports of single-day volumes exceeding $1 billion and annualized trading volume reaching levels that support the revenue run rate at a take rate of around 1.1-1.2%, according to analyses of the company's performance.
The growth comes as Kalshi explores a potential initial public offering, with the company in informal talks with investment banks about a possible listing as early as 2027 or 2028, sources told The Information. It raised $1 billion in a funding round in May at a $22 billion valuation.
Sports betting-related contracts have driven much of the recent activity, accounting for a significant portion of volume and revenue, though the platform also offers markets on non-sports events. Kalshi has faced legal challenges from some states alleging it operates unlicensed gambling activities, but it has secured certain court victories and maintains its operations under federal CFTC oversight.
"Kalshi has transformed the landscape by providing a regulated venue for trading on future events," a company spokesperson said in a statement responding to the growth reports.
The company, headquartered in New York, continues to expand its user base and institutional participation, with reports indicating institutional trading has grown substantially. Prediction markets overall have seen heightened interest, with competitors like Polymarket also active, though Kalshi leads in the regulated U.S. space.
As of June 2026, Kalshi has not publicly released official audited figures confirming the precise annualized revenue. The company did not immediately respond to requests for additional comment on the latest trading data.
Kalshi's trajectory underscores the expanding role of event-based trading platforms in financial markets, amid ongoing regulatory and legal scrutiny in various jurisdictions.
