EToro reports second quarter crypto loss even as total profit beats estimates
The trading platform’s gross crypto revenue fell to $1.35 billion in the second quarter. It also agreed to buy U.S. brokerage TradeZero for up to $231 million.
- EToro swung to a $7.2 million loss in crypto trading in the second quarter of 2026, from a $37.7 million profit a year earlier, as cryptoasset revenue fell to $1.35 billion from $1.91 billion.
- Crypto activity on the platform has cooled sharply, with July crypto trades down 73% year over year and the average trade size halved to $182, even as overall net contribution rose 9% to $229 million and funded accounts climbed 18% to 4.28 million.
- Despite beating earnings expectations with adjusted diluted EPS of $0.68 versus analysts’ $0.61 estimate, eToro shares fell about 11% as the company pushed deeper into onchain products, completed multiple crypto-related deals and agreed to acquire U.S. brokerage TradeZero for up to $231 million.
EToro’s (ETOR) crypto trading was $7.2 million in the red in the second quarter of 2026, a decline of nearly 120% from the $37.7 million it made a year earlier, according to its second-quarter earnings released Tuesday.
The Tel Aviv, Israel-based trading platform reported $1.35 billion in cryptoasset revenue, around 29% lower than the $1.91 billion a year earlier. Its cost of revenue from cryptoassets was $1.35 billion, leaving a $7.2 million loss, compared with a $37.7 million gain a year earlier.
EToro said it is developing onchain perpetual futures and that crypto buying power is “coming soon.” Crypto activity has cooled, however: the company reported 1.4 million crypto trades in July, down 73% from a year earlier, while the average crypto trade fell 50% to $182.
As a whole, eToro’s net income for the second quarter was $53 million, with adjusted diluted earnings per share of $0.68, which beat analysts estimates of $0.61.
EToro’s net contribution rose 9% year over year to $229 million, driven mainly by equity trading, while funded accounts increased 18% to 4.28 million. Shares fell as much as about 11% after the announcements.
Shares nevertheless traded more than 12% lower in the hours following the earnings release at around $29.80.
EToro also announced an agreement to acquire TradeZero, a U.S. brokerage firm, for up to $231 million in cash and stock. The agreement is expected to be completed in the first half of 2027, pending regulatory approvals, the platform said.
TradeZero offers users commission-free U.S. stock and options trading, as well as tools for short sellers. Neither company disclosed any crypto, blockchain or tokenization plans for TradeZero, making the acquisition primarily a U.S. brokerage-and-distribution move for now.
TradeZero generated about $80 million in revenue in the 12 months through June, eToro said. It is eToro’s third signed acquisition this year.
UPDATE (Aug. 12, 8:16 UTC): Moves EPS figures to separate paragraph and adds net income figure.
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As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.
As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.
Why it matters:
As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.
