Market forecast: Kalshi's annual revenue exceeds $2 billion, tripling in six months! Rumored to be entering early IPO negotiations

Tech media The Information reports that the U.S.-regulated prediction market platform Kalshi's annualized revenue has surpassed $2 billion, a nearly threefold increase from November last year. The growth is driven by a surge of traders betting on NBA games and the 2026 World Cup, pushing trading volume to new heights.

The same report indicates that Kalshi has begun early, informal discussions about an IPO. However, the company maintains a cautious stance, emphasizing ample private funding and no rush to go public, and has not yet filed any IPO documents.

Valuation doubled in half a year

Kalshi's rapid expansion is evident from its recent funding round. On May 7, Kalshi announced a $1 billion Series F funding at a valuation of $22 billion, led by hedge fund Coatue, with Sequoia, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest participating.

This figure is double what it was five months earlier. At the end of last year, Kalshi's Series E valuation was $11 billion. In half a year, its annualized trading volume jumped from $52 billion to $178 billion, more than tripling, with institutional trading activity soaring 800%. The influx of money is outpacing regulatory resolution speed.

Kalshi CEO Tarek Mansour stated during the May funding: "In recent years, few sectors have expanded as quickly as this, aside from AI. Event contracts have the potential to become a trillion-dollar market, and we are still in the early stages of this transformation."

Close competition with Polymarket

A significant part of Kalshi's push past the $2 billion revenue mark is driven by sports betting. After the 2026 World Cup kicks off, betting enthusiasm has exploded the prediction market, bringing the competition with its biggest rival Polymarket into focus.

• World Cup champion prediction: Kalshi and Polymarket combined trading volume exceeds $2 billion, with Spain leading at a 17% chance of winning
• App downloads: June 1-15, Kalshi captured 42.3% of new installs, Polymarket 31.2%, together over 70%, more than three times DraftKings and FanDuel
• Overall scale: According to Binance Research, the total trading volume of prediction markets in May hit a record $31.2 billion, with Kalshi accounting for 58% and Polymarket 28%

Their strategies differ. Kalshi focuses on the "regulated by CFTC" branding, targeting the compliant U.S. market; Polymarket takes an on-chain approach. This summer’s World Cup pits these two paths directly against each other.

IPO rumors "not urgent"

The rapid growth has amplified rumors of an IPO. Amid the prediction market boom, Kalshi is one of the most frequently mentioned potential IPO candidates in the financial sector. However, the company repeatedly downplays these rumors, reaffirming sufficient private funds and no scheduled listing, with no S-1 filings, ticker symbols, or pricing ranges visible yet.

On the other hand, rushing too fast has caused friction. The Chicago Mercantile Exchange (CME) recently threatened legal action after CFTC approved Kalshi’s Bitcoin perpetual contracts; Kalshi and Polymarket jointly sued Kentucky over its 14.25% prediction market tax, claiming it is unconstitutional.

Frequently Asked Questions

What is Kalshi?

Kalshi is the first U.S.-regulated prediction market platform overseen by the Commodity Futures Trading Commission (CFTC), allowing users to trade contracts on election, sports, economic data, and other event outcomes. As of May 2026, it is valued at $22 billion, with annualized revenue exceeding $2 billion.

Will Kalshi go public with an IPO in 2026?

According to The Information, Kalshi has engaged in early, informal discussions about an IPO but has not yet filed an S-1 or announced a timeline. The company states publicly that it has sufficient private funding and is not in a hurry to list, having only recently raised $1 billion at a $22 billion valuation in May.