eToro Group Q1 Earnings Call Highlights

Key Points

• eToro delivered a strong Q1, with net contribution rising 19% year over year to $258 million and adjusted EBITDA up 35% to $109 million. The adjusted EBITDA margin expanded to 42%, reflecting improved profitability.
• Trading activity shifted sharply toward commodities as capital markets net trading contribution jumped 71% to a record $166 million. Commodities made up 60% of trading commissions, while crypto contribution fell to $13 million amid lower activity and a move into other asset classes.
• User growth and balance sheet metrics remained strong, with funded accounts up 12% to 4.02 million and assets under administration up 15% to $17 billion. The company also ended the quarter with $1.3 billion in cash and repurchased about 3.3 million shares for $103 million.

eToro Group NASDAQ: ETOR reported a strong start to 2026, with executives pointing to record public-company net contribution and adjusted EBITDA, accelerating funded account growth and a shift in trading activity from crypto toward commodities and other capital markets products.

On the company’s first-quarter earnings call, Chief Executive Officer Yoni Assia said net contribution rose 19% year over year to $258 million, while adjusted EBITDA increased 35% to $109 million. Chief Financial Officer Meron Shani said adjusted EBITDA margin expanded to 42%, compared with 37% a year earlier, driven by higher net contribution.

“This was a very strong quarter and a very strong start to 2026,” Assia said, adding that the results showed “the durability of our model” as users moved across asset classes while remaining active on the platform.

Commodities Drive Capital Markets Growth

eToro’s capital markets business was a major contributor to the quarter. Shani said net trading contribution from capital markets rose 71% year over year to a record $166 million, supported by increased customer engagement and a shift by crypto traders into other products. Commodities accounted for 60% of trading commissions in the first quarter, and Assia said commodities volumes increased nearly fourfold from a year earlier.

Assia said many users who traded commodities had originally come to eToro for crypto or equities, highlighting the company’s multi-asset model. During the past six months, he said users who initially traded crypto or equities accounted for most commodities trading volume. In the Q&A, he added that about 60% of customers who traded commodities in the first quarter originally joined eToro to trade crypto or equities.

Shani said the number of trades rose 90% during the quarter, primarily due to activity in commodities and record inflows into copy trading as professional investors responded to changing market conditions.

Crypto contribution declined. Shani said net trading contribution from crypto was $13 million, with the year-over-year decline driven by lower trading activity and customers shifting into commodities. The figure included a $5 million negative valuation impact from the company’s corporate crypto holdings, leaving a $14 million balance at quarter-end.

Funded Accounts and Assets Under Administration Rise

Funded accounts grew 12% year over year to 4.02 million, which Assia described as the company’s fastest organic growth in more than a year. Assets under administration reached $17 billion, up 15% year over year, driven by customer inflows.

Executives said momentum continued into April. Shani said April funded accounts reached 4.07 million, up 13% year over year, while assets under administration reached $18.7 billion, which he said was up 90% year over year. April trading trends continued to show strength in equities and commodities, with revenue per trade running “slightly above” the company’s typical $0.60 to $0.75 range, Shani said.

Net interest income was $48 million, down 5% year over year, which Shani attributed to lower interest rates and user deleveraging during market volatility. That decline was partly offset by a 13% increase in higher interest-earning assets, including user cash deposits, staking and corporate cash.

eToro Money contribution grew 32% year over year to a record $29 million, helped by a 70% increase in total money transfers. Assia said the number of eToro Money cards issued more than doubled from the prior quarter.

AI, Copy Trading and 24/7 Trading Remain Strategic Focuses

Assia emphasized eToro’s use of artificial intelligence across internal operations and customer-facing products. He said the company made AI a company-wide mandate six months ago and is using AI agents across research, engineering, product development and marketing.

“We believe 2026 is the year of agents, and eToro is among the early adopters of this shift in our industry,” Assia said.

The company discussed Agent Portfolios, which allow users to allocate capital to AI-driven strategies within a dedicated portion of an eToro account. Assia said the product had been live for about three weeks and had generated more than 500,000 trades, though he cautioned that it remains early. He said the company is seeing higher trading velocity but smaller trade sizes, with the model resembling copy trading and Smart Portfolios.

Copy trading reached an all-time high during the quarter, according to Assia, driven by demand to copy professional investors during volatile market events. The company also launched an eToro App Store and a builders portal for trading and analytics applications, including AI-related tools.

Assia also discussed extended-hours trading. He said 24/5 trading has shifted about 30% of stock volume to after-hours periods, though the company has not disclosed how much of that is additive rather than substitutive. For 24/7 trading, he said it is still early but he expects it could represent at least 10% to 20% of volumes over time.

Balance Sheet, Buybacks and Acquisitions

eToro ended the quarter with $1.3 billion in cash equivalents and short-term investments and generated $104 million in cash from operating activities. Shani said the company repurchased approximately 3.3 million shares for an aggregate $103 million under its previously announced share repurchase program.

Assia said the company has a “very strong M&A pipeline” and believes the current downturn in crypto creates opportunities for accretive acquisitions in 2026. He highlighted the recently announced acquisition of ZenGo, a self-custodial crypto wallet provider, as part of eToro’s longer-term crypto strategy.

Assia said ZenGo expands eToro’s ability to offer on-chain products, including swaps, yield, prediction markets and perpetuals over time. He said the deal gives eToro access to thousands of additional crypto assets through ZenGo, compared with more than 200 crypto assets available globally on eToro.

In response to an analyst question, Assia said ZenGo also expands eToro’s ability to compete across decentralized finance and traditional finance product categories, though he said it remains early to discuss revenue contribution.

Marketing Investment Set to Increase

Adjusted operating expenses were $150 million in the first quarter, up 7% sequentially, driven by a $12 million increase in customer acquisition costs. Adjusted sales and marketing expense was $58 million, or 22% of net contribution.

Shani said eToro plans to gradually increase sales and marketing investment from 21% of net contribution last year to 25% this year, while remaining responsive to market opportunities.

Assia said AI is also changing the company’s marketing process by allowing teams to create more campaigns and target smaller customer segments more quickly. He said eToro has moved from roughly five campaigns a month to potentially 20 to 50, and expects that could accelerate further.

Looking ahead, executives said eToro is focused on expanding products across trading, investing, wealth management and neobanking. Assia said the company is seeking to bring commodities trading to U.S. customers in the next six to nine months and expects broader U.S. rollout of Smart Portfolios and CopyTrader in the second half, subject to regulatory processes.

About eToro Group NASDAQ: ETOR

eToro Group Ltd. NASDAQ: ETOR is a global multi-asset brokerage company known for its social trading platform. The company enables individual and institutional investors to trade and invest in a broad range of financial instruments, including stocks, exchange-traded funds (ETFs), commodities, indices, forex, and cryptocurrencies. eToro’s platform integrates a user-friendly interface with advanced trading tools, catering to both novice and experienced market participants.

A distinguishing feature of eToro’s offering is its CopyTrader™ functionality, which allows users to replicate the trades of selected investors on the platform.

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