Kalshi tops $2 billion annualized revenue, holds early informal IPO talks

Kalshi has surpassed $2 billion in annualized revenue and has begun informal discussions with investment banks about a potential initial public offering, with a listing not expected before late 2027 or 2028. The company’s annualized revenue is roughly three times its November 2025 level, and growth has been fueled by heavy trading tied to the NBA playoffs and the FIFA World Cup. Kalshi posted $16.81 billion in monthly trading volume in May, up from $14.81 billion in April. Institutional trading on the platform rose 800% in the six months ended in early May, helping lift annualized trading volume from $52 billion to $178 billion. The IPO discussions follow a $1 billion Series F round led by Coatue at a $22 billion valuation, with Sequoia Capital, Andreessen Horowitz, Paradigm, IVP, Morgan Stanley and ARK Invest participating. Kalshi says it plans to use the capital for institutional expansion, including block trading, new risk products and infrastructure upgrades. Founded in 2020 by Tarek Mansour and Luana Lage, the company now accounts for more than 90% of U.S. prediction market activity. Its position was strengthened after a late-2024 federal court ruling in its favor over political event contracts, a market that has since become a major source of trading volume. Kalshi’s CFTC-regulated structure is seen as an advantage in courting institutional clients as it faces competition from rivals including Polymarket.