eToro Group NASDAQ: ETOR reported higher second-quarter net contribution and adjusted EBITDA as customer activity shifted toward equities, while the trading and investing platform also announced plans to acquire U.S. broker-dealer TradeZero.
Net contribution rose 9% year over year to $229 million in the second quarter of 2026, while adjusted EBITDA increased 9% to $78 million. Adjusted EBITDA margin was 34%, unchanged from the prior-year period. Adjusted diluted earnings per share were $0.68, compared with $0.56 a year earlier.
Chief Executive Officer Yoni Assia said the period underscored the benefits of eToro’s multi-asset platform as users moved between crypto, commodities and equities in response to changing market conditions.
“Regardless of where market opportunities emerge, our users can seamlessly move across asset class within a single platform,” Assia said, adding that the company believes this supports engagement, retention and business performance.
Accounts and assets under administration rise
Funded accounts increased 18% year over year to 4.28 million during the quarter, supported by investments in customer acquisition and improved retention. Assets under administration rose 10% to more than $19 billion, which the company attributed to continued customer inflows.
Chief Financial Officer Meron Shani said net trading contribution from capital markets—including equities, commodities and currencies—grew 25% year over year to $142 million. The number of trades increased 64%, driven by equity activity and continued engagement in copy trading.
Crypto net trading contribution totaled $11 million, reflecting lower crypto trading activity and a migration by users toward equities, Shani said. The figure also included a $2 million negative valuation impact related to eToro’s corporate crypto holdings, which had a $30 million balance at the end of the quarter.
Net interest income increased 7% year over year to $49 million, aided by a 12% increase in higher-interest-earning assets resulting from higher customer cash deposits and corporate cash. eToro Money’s contribution grew 44% to $26 million, as total money transfers increased 92% from a year earlier.
Adjusted operating expenses were $151 million, up 1% sequentially. Sales and marketing expense rose by $8 million as eToro continued to invest in customer acquisition, partly offset by lower research and development and general and administrative expenses. Adjusted sales and marketing expense was $68 million, or 29% of net contribution.
The company ended the quarter with $1.2 billion in cash equivalents and short-term investments and generated $39 million in operating cash flow. It repurchased about 2.3 million shares for approximately $87 million under its share repurchase program.
TradeZero deal targets U.S. expansion
eToro said it plans to acquire TradeZero for up to $231 million in cash and stock, with closing expected in the first half of 2027. The company said TradeZero generated approximately $80 million in revenue over the last 12 months and posted gross margins above 80% in the second quarter.
Assia said the acquisition is intended to bolster eToro’s U.S. presence and provide access to Canada, while adding a broker-dealer infrastructure, proprietary trading platforms and tools for active traders. TradeZero’s capabilities include futures, margin trading and short-selling technology, according to Assia.
Shani said eToro expects the transaction to be adjusted-EPS accretive in the first full year after completion. The company did not provide additional customer, asset or cost information for TradeZero, saying it expects to disclose more details closer to or after closing.
Assia said eToro remains interested in additional acquisition opportunities in the U.S. and internationally, though he characterized TradeZero as a significant step toward expanding the company’s American product lineup.
AI, active trading and wealth products
During the quarter, eToro continued rolling out products built around artificial intelligence and active trading. The company introduced eToro Edge, a web-based platform for active traders, and unveiled a redesigned AI-focused application featuring Tori, its AI agent.
The eToro App Store now includes more than 75 applications from developers, partners and professional investors. The company also launched Agent Portfolios, which allow customers to connect AI agents to designated portfolios while setting their own objectives, capital allocations and risk parameters.
In response to an analyst question, Assia said early Agent Portfolio adoption has come primarily from sophisticated users, who are employing AI tools to build automated strategies. He said customers can set permissions limiting agents to read-only access or to trading within specified agent portfolios or sub-portfolios.
eToro also launched sub-accounts to help users separate investments by goals such as education, home purchases or retirement. In wealth management, Assia said assets under management in the company’s savings offering grew 15-fold year over year.
In neobanking and digital assets, the company launched eToro Work, which is designed to let employees invest from their paychecks. It also announced the acquisition of crypto wallet provider Zengo, a strategic investment in on-chain perpetual futures platform Extended, and its role as a founding partner of Open USD. The number of eToro Money cards issued in Europe rose more than 30% sequentially.
July activity and third-quarter expenses
For July, funded accounts rose 18% year over year to 4.32 million. Assets under administration totaled $18.5 billion, down 5% from a year earlier due to lower crypto prices. Capital-markets trading activity was flat year over year, which management said was consistent with seasonal patterns.
Assia said July also reflected lower commodities activity and a correction in some popular stocks, while Shani said the company had seen improvement during the first 10 days of August. Customers also reduced some margin positions during the period, Shani said.
eToro expects adjusted operating expenses in the third quarter to be slightly above the second-quarter level as it continues investing in growth, including marketing and a modest increase in research and development spending.
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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Before you consider eToro Group, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and eToro Group wasn't on the list.
While eToro Group currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The AI boom extends far beyond the biggest tech names. Discover 10 companies supplying the memory, storage, networking, semiconductor manufacturing, and power infrastructure that make AI possible. Learn where the next wave of AI investment opportunities may emerge—and the key risks investors should watch as the global AI buildout accelerates.
Get This Free Report
