eToro acquires TradeZero as crypto revenue drops 30% in Q2
In brief
- eToro acquires TradeZero, a US online brokerage, for US expansion
- Crypto revenue fell 30% to $1.34B; total revenue declined to $1.59B in Q2
- Crypto trades dropped 73% year-on-year to 1.4M in July
- eToro previously acquired self-custodial wallet provider Zengo in April
TradeZero acquisition and outlook
eToro plans to acquire US online brokerage TradeZero as part of its US expansion strategy. TradeZero generated about $80 million of revenue with 81% gross margins in the last 12 months ended June 30, 2026. eToro expects the deal to be accretive to adjusted earnings per share in the first year after closing, with the transaction expected to close in the first half of 2026.
The acquisition follows eToro's April announcement to acquire self-custodial wallet provider Zengo, signaling a broader push to expand its product suite and user base across the US market.
Crypto revenue headwinds and user behavior
Crypto-related revenue fell about 30% to $1.34 billion in Q2 2026 compared to $1.9 billion in Q2 2025. The platform reported total net income of $53.4 million in Q2 2026, with crypto assets contributing $19.7 million of that total. Equities and commodities-related trading generated $141 million in net income, underscoring the platform's diversification beyond digital assets.
More significantly, total cryptocurrency trades on the platform fell to 1.4 million in July, marking a 73% decline year-on-year, with the invested amount down 50% in the same period. This sharp contraction reflects softer retail demand for crypto trading as volatility subsided from 2025 peaks.
User engagement data, however, shows cross-asset trading momentum. More than 60% of users who traded commodities during Q4 2025 to Q1 2026 subsequently traded equities in Q2 2026, and nearly nine in ten of those users have also traded crypto on eToro. The diversification pattern suggests eToro's core user base remains active across multiple asset classes despite crypto revenue headwinds.
eToro's Nasdaq-traded shares (ETOR) were down more than 5% in pre-market activity on Tuesday following the earnings release.
