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Key Takeaways
- EToro’s crypto segment swung to a $7.2 million loss as crypto revenue fell 29% and monthly trade volume dropped 73% year over year.
- Equity trading offset the crypto slowdown, pushing net contribution up 9% and adjusted EPS above analyst estimates, though shares still fell over 12%.
- EToro announced its third 2026 acquisition, agreeing to buy U.S. brokerage TradeZero for up to $231 million to expand beyond crypto trading.
EToro’s crypto trading operations posted a $7.2 million loss in the second quarter of 2026, reversing a $37.7 million profit from the same period last year, even as the company’s overall results beat Wall Street estimates. The Tel Aviv-based trading platform reported the results Tuesday alongside an agreement to acquire U.S. brokerage TradeZero for up to $231 million.
Crypto Revenue and Trading Volume Both Decline
EToro reported $1.35 billion in cryptoasset revenue for the quarter, down roughly 29% from $1.91 billion a year earlier, according to its second-quarter earnings release. Cost of revenue from cryptoassets came in just above $1.35 billion, erasing what would otherwise have been a profitable crypto segment and producing the $7.2 million loss.
Trading activity slowed sharply heading into the current quarter. The company reported 1.4 million crypto trades in July, down 73% from a year earlier, while the average crypto trade size fell 50% to $182. The pullback reflects both fewer active crypto traders on the platform and smaller position sizes among those who remain.
Equity Trading Offsets the Crypto Slowdown
EToro’s broader business held up despite the crypto decline. Net contribution across the platform rose 9% year over year to $229 million, driven mainly by equity trading rather than crypto. Funded accounts grew 18% to 4.28 million over the same period. The growth shows the platform continued adding users even as crypto activity cooled.
Adjusted diluted earnings per share came in at $0.68, ahead of analyst estimates of $0.61. Chief Executive Yoni Assia characterized the results positively in the earnings release, stating:
“We delivered another strong quarter.”
Shares Fall Despite an Earnings Beat
EToro shares fell more than 12% in the hours following the earnings release, trading around $29.80. Shares fell despite the earnings beat as the crypto business swung to a loss and eToro announced the cash outlay tied to the newly announced TradeZero acquisition.
The company said it is developing on-chain perpetual futures and described crypto buying power as “coming soon,” meaning neither product has launched yet. Both remain in development rather than available to users on the platform.
EToro Adds U.S. Brokerage TradeZero for Up to $231 Million
EToro also announced an agreement to acquire TradeZero, a U.S. brokerage offering commission-free stock and options trading along with tools built for short sellers, according to a separate release. The deal, valued at up to $231 million in cash and stock, is expected to close in the first half of 2027, pending regulatory approval.
TradeZero generated approximately $80 million in revenue over the 12 months through June, eToro said. Neither company disclosed any crypto, blockchain or tokenization plans tied to TradeZero, making the deal primarily a U.S. brokerage and distribution move rather than a crypto-focused acquisition.
EToro’s Third Acquisition of 2026 Expands Beyond Crypto Trading
The TradeZero agreement is eToro’s third signed acquisition of 2026. The company’s crypto trading revenue has declined over the past year as it has added new lines of business.
Whether that diversification stabilizes the company’s results going forward will depend on how the newly acquired businesses perform once folded into eToro’s platform.
