Key Highlights
- eToro shares fell 8.16% to $31.23 on Tuesday, according to Yahoo Finance market data.
- Q2 GAAP net income increased 77% year over year to $53 million from $30 million.
- Net contribution rose 9% to $229 million, with the company attributing the increase primarily to equities trading.
Shares of eToro Group Ltd. (NASDAQ: ETOR) fell 8.16% on Tuesday after the company released its second-quarter 2026 results, despite reporting higher net income, customer accounts and assets under administration during the quarter.
According to Yahoo Finance data (as of 2:16 PM UTC), eToro was trading at $31.23, down 8.16%, during the session. The previous close was $34.00.
The earnings report showed stronger profitability and continued customer growth, while more recent July data pointed to a sharp decline in cryptocurrency trading activity.
Q2 net income rises 77%
eToro reported $53 million in GAAP net income for the second quarter, compared with $30 million in the same period last year.
Adjusted net income increased 17% to $63 million, while adjusted EBITDA rose 9% to $78 million. Diluted GAAP earnings per share came in at $0.58, compared with $0.31 a year earlier. Adjusted diluted EPS was $0.68, up from $0.56.
Net contribution increased 9% year over year to $229 million, compared with $210 million in Q2 2025. eToro said the increase was driven primarily by higher equities trading activity. The results also showed a notable shift in trading activity between asset classes.
Crypto trading falls 73% in July
eToro reported 1.4 million crypto trades in July, down 73% from the same month last year. The average amount invested per crypto trade also declined 50% to $182.
By comparison, total capital markets trades, which include equities, commodities and currencies, reached 48.5 million in July, roughly unchanged from a year earlier. The average amount invested per trade in those markets was $207, down 23%.
Equity trading supports Q2 results
Equity-related activity was a larger contributor to eToro’s trading performance during the quarter. Net trading income from equities, commodities and currencies increased to $141.6 million, compared with $114 million a year earlier.
CFO Meron Shani said the quarter was supported by equity trading and Copy Trading activity. “We are very pleased with our second quarter 2026 results, supported by strength in equity trading and Copy Trading activity.”
The company also reported that more than 60% of users who traded commodities during Q4 2025 and Q1 2026 subsequently traded equities during Q2.
Funded accounts reach 4.28 million
eToro ended June with 4.28 million funded accounts, up 18% from 3.63 million a year earlier. Assets under administration increased 10% year over year to $19.2 billion at the end of Q2.
The customer base continued to expand in July, with funded accounts reaching 4.32 million, also up 18% year over year. Assets under administration, however, stood at $18.5 billion, down 5% from a year earlier.
Interest-earning assets declined 8% year over year to $6.8 billion, while total money transfers increased 10% to $1.1 billion.
eToro to acquire TradeZero for up to $231 million
Alongside its Q2 results, eToro announced an agreement to acquire TradeZero, a US-based broker-dealer serving active traders, in a deal worth up to $231 million in cash and stock, including approximately $31 million tied to earn-out provisions.
TradeZero generated $80 million in revenue over the twelve months ending Q2 2026, with an 81% gross margin, according to eToro. The acquisition is expected to close in the first half of 2027, subject to regulatory approval.
CEO Yoni Assia said the deal was “expected to be financially accretive while positioning us for accelerated growth,” calling it consistent with the company’s “disciplined approach to capital allocation.” Management said the transaction would be accretive to adjusted earnings per share in its first full year post-close, before accounting for synergies.
The announcement extends eToro’s US expansion push and follows the completed Zengo acquisition, adding a second inorganic growth move to the same earnings cycle.
On-chain products remain in development
eToro also continued developing its digital asset products during the quarter. The company expanded its self-custody offering and advanced development of on-chain perpetual futures. It also made a strategic investment in Extended, an on-chain perpetual futures platform, and became a founding partner of Open USD.
During Q2, eToro also launched a new mobile app and introduced products including eToro Edge and subaccounts. These developments were part of management’s broader product update, but the company’s latest operating data shows that crypto trading activity has moved sharply lower.
For now, eToro’s latest results present a mixed picture: profitability and equity-related activity supported the second quarter, while cryptocurrency trading remained significantly weaker in July.
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