Key facts
- eToro surpassed Q2 profit estimates with adjusted EPS of $0.68, exceeding the $0.61 consensus.
- The company agreed to acquire U.S. brokerage TradeZero for up to $231 million in a cash-and-stock deal.
- eToro's Q2 crypto revenue declined approximately 30% year-over-year to $1.35 billion.
- TradeZero generated about $80 million in revenue in the 12 months through June with 81% gross margins.
- The acquisition is expected to close in the first half of 2027 and be accretive to EPS in the first year.
Trading platform eToro announced it will acquire U.S. online brokerage TradeZero for up to $231 million in a cash-and-stock deal, aiming to boost its U.S. growth. The company also reported second-quarter earnings that surpassed analyst expectations, with adjusted diluted earnings per share of $0.68 against an estimate of $0.61.
Despite beating profit estimates, eToro's crypto trading swung to a $7.2 million loss in the second quarter of 2026, a significant drop from a $37.7 million profit a year earlier. Cryptoasset revenue fell approximately 29% year-over-year to $1.35 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.
Overall, eToro's net contribution rose 9% year over year to $229 million, driven by equities, commodities, and currencies, while funded accounts increased 18% to 4.28 million. TradeZero generated about $80 million in revenue with 81% gross margins in the last 12 months. The acquisition is expected to be accretive to adjusted earnings per share in the first year after closing, projected for the first half of 2027.