EToro reports second quarter crypto loss even as total profit beats estimates

EToro reports second quarter crypto loss even as total profit beats estimates

Finance

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.

By

Olivier Acuna

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Edited by

Jamie Crawley

52 min ago

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Despite crypto revenue dropping nearly 120% in Q2 compared last year's second quarter, Yoni Assia, eToro CEO, said “We delivered another strong quarter." (Vanja Savic/Wikimedia Commons)

Summary

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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.

Overall, 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. The report also noted that the adjusted diluted earnings per share of $0.68 beat analysts’ estimates of $0.61.

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.

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