eToro Q2 earnings beat Wall Street expectations after the trading platform reported $53 million in GAAP net income.
The company also agreed to acquire US brokerage TradeZero for up to $231 million as cryptocurrency trading activity weakened sharply.
ETOR shares remained under pressure despite the earnings beat, falling more than 8% in early Tuesday trading to $31.15. The decline extended losses from the previous session, while eToro’s market value stood at about $2.51 billion.
eToro continued to slide after releasing Q2 results. Source: Google Finance.
eToro Q2 Earnings Show Stronger Profitability
Adjusted diluted earnings reached $0.68 per share for the quarter ended June 30, beating the $0.61 consensus estimate. The result marked eToro’s fourth consecutive quarterly earnings beat.
GAAP net income rose 77% from $30 million a year earlier. Net contribution increased 9% to $229 million, supported by equities trading. Funded accounts climbed 18% to 4.28 million, while assets under administration reached $19.2 billion. Cash, cash equivalents, and short-term investments totaled about $1.2 billion.
Chief Financial Officer Meron Shani said customers were rotating between markets instead of concentrating on one asset class. Sixty percent of users who traded commodities between Q4 2025 and Q1 2026 expanded into equities during Q2. Nearly 90% of that group also traded cryptocurrencies during the same period.
Crypto Trading Activity Drops 73 Percent
Total cryptocurrency trades fell to 1.4 million in July 2026, down 73% from 2025. The average amount invested per trade dropped 50% to $182.
Revenue declined about 30% to $1.34 billion from $1.9 billion a year earlier. Equities and commodities generated a combined $141 million in net income, compared with $19.7 million from crypto assets. Cryptopolitan reported in July that crypto represented about 5% of eToro’s net trading profit in Q1 2026.
TradeZero Deal Supports US Expansion
TradeZero, founded in 2015, operates brokerage businesses across the United States, Canada, and international markets and serves active traders. The acquisition gives eToro access to established broker-dealer infrastructure that can be difficult to build domestically as it expands regulated products in America.
eToro will pay cash and issue up to 2.5 million newly issued Class A shares, with the transaction capped at $231 million. Closing is expected in the first half of 2027, subject to regulatory approval.
TradeZero generated about $80 million in revenue during the 12 months ended June 30 and posted an 81% gross margin, according to Calcalist. The top deal value equals roughly 2.9 times sales. Jefferies advised eToro, which described the agreement as its third acquisition signed in 2026.
“Today’s announcement is an important step in building our US business,” CEO Yoni Assia said. eToro entered New York in April after a years-long wait for authorization under the state’s BitLicense regime.
