eToro posts 77% profit surge, acquires TradeZero for $231M
In brief
- eToro Q2 GAAP net income jumped 77% to $53 million; adjusted EBITDA grew 9% to $78 million.
- TradeZero acquisition for $231 million expands eToro's US equities business and active trader focus.
- Crypto revenue fell 30% year-over-year, signaling strategic pivot from volatile digital assets.
Strong Profitability and User Growth
eToro's adjusted net income increased 17% to $63 million, while adjusted EBITDA grew 9% to $78 million. The platform's user base expanded meaningfully: funded accounts reached 4.28 million, an 18% increase year-over-year, and assets under administration climbed to $19.2 billion, a 10% gain over the same period last year.
Net contributions, a key metric for measuring new money flowing onto the platform, rose 9% year-over-year to $229 million. That steady inflow of capital reflects confidence in the platform despite headwinds in one major revenue line.
The Crypto Pivot
Crypto revenue fell roughly 30% year-over-year during the quarter. The decline underscores why eToro is betting on diversification. Rather than chase volatile digital-asset trading, the platform is doubling down on equities and active traders—a more stable, higher-margin business.
"eToro appears to be diversifying away from its dependence on crypto trading at precisely the moment when that revenue stream is proving unreliable." — Crypto Briefing
TradeZero Acquisition and Expansion
The acquisition of TradeZero is structured as up to $231 million in cash plus up to 2.5 million new Class A common shares. TradeZero generated approximately $80 million in revenue with 81% gross margins for the twelve months ended June 30, 2026, making it an attractive bolt-on for eToro's US push.
The deal is expected to close in the first half of 2027. The acquisition is projected to be accretive to eToro's adjusted earnings per share within the first year after closing, signaling confidence in the integration and the combined business model.
