eToro posted strong second-quarter results with a net income of $53 million, surpassing Wall Street expectations, but the positive earnings failed to reverse the persistent decline in its share price. As markets opened on Tuesday, the trading platform’s stock dropped over 8% to $31.15 on NASDAQ.
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AAPLFinancial performance and earning highlights
The company’s Q2 earnings showed a significant 77% year-on-year jump in GAAP net income, rising from $30 million to $53 million. Adjusted diluted earnings reached $0.68 per share for the quarter ending June 30, topping the analyst consensus of $0.61 and marking the fourth consecutive quarter of outperforming estimates.
eToro’s operational growth was reflected in several key indicators. Equities trading led the way, lifting net contribution to $229 million, up 9%. The number of funded accounts climbed 18% from a year earlier and now stands at 4.28 million. Assets under administration reached $19.2 billion, while total cash, cash equivalents, and short-term investments were estimated at $1.2 billion.
Meron Shani, eToro’s CFO, noted that client behavior has shifted throughout the quarter, stating that customers have diversified into various markets instead of concentrating on a single asset class. The company reported that 60% of its user base moved into equities trading during Q2, following prior periods of interest in commodities. Nearly 90% of this segment also traded cryptocurrencies within the same timeframe.
Shani observed that clients have been actively rotating capital across different markets, not focusing on a single asset class throughout the quarter.
Crypto trading volumes tumble
Despite overall gains, eToro experienced a steep decline in cryptocurrency trading activity, mirroring an industry-wide slowdown. In July 2026, total crypto trades on the platform fell to 1.4 million, a drop of 73% from the previous year. The average investment per crypto trade also decreased 50% to $182.
As a result, revenue generated from crypto operations slumped by roughly 30% to $1.34 billion, down from $1.9 billion a year earlier. Equities and commodities trading delivered far stronger returns, with net income from these segments reaching $141 million, compared to just $19.7 million from crypto assets alone. In the first quarter of 2026, eToro’s crypto profit accounted for just 5% of net trading profit.
| Metric | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Net income (GAAP) | $53 million | $30 million | +77% |
| Crypto trades (July) | 1.4 million | 5.19 million | -73% |
| Average crypto trade size | $182 | $364 | -50% |
| Crypto revenue | $1.34 billion | $1.9 billion | -30% |
| Funded accounts | 4.28 million | 3.63 million | +18% |
| Assets under administration | $19.2 billion | N/A | N/A |
TradeZero acquisition targets US expansion
Alongside its earnings, eToro disclosed a $231 million deal to acquire TradeZero, in a move to strengthen its presence in the US market. TradeZero, established in 2015, operates as an online brokerage servicing active traders across the US, Canada, and other markets. The acquisition will be settled through a combination of cash and up to 2.5 million newly issued Class A shares, with the transaction expected to close in the first half of 2027, subject to regulatory approval.
This acquisition centers on securing critical broker-dealer infrastructure in the United States, a country where launching regulated products requires more than simply adapting technology developed for other markets. In the prior 12 months leading to June 30, TradeZero generated approximately $80 million in revenue, achieving an 81% gross margin, which implies a valuation of about 2.9 times sales at the deal’s upper limit.
Jefferies acted as the advisor to eToro, which marked this transaction as its third acquisition agreement in 2026. The move follows eToro’s entry into the New York market after gaining approval under the state’s BitLicense regulatory regime.
Yoni Assia, eToro’s CEO, stated that the TradeZero acquisition marks a crucial step in the company’s efforts to expand its US operations. eToro, founded in 2007 and headquartered in Tel Aviv, operates as a global multi-asset online trading platform, offering access to stocks, cryptocurrencies, commodities, and more to millions of users worldwide.
Assia emphasized that acquiring TradeZero is vital to building eToro’s presence in the US and accelerating the company’s push into regulated markets.
Mini dictionary: TradeZero, founded in 2015, is an online brokerage that provides trading services for equities and other assets to active traders in the US, Canada, and internationally. Its brokerage licenses and infrastructure are key for platforms expanding into regulated US markets.
