eToro Group Ltd. (ETOR)

eToro Group Ltd. reported second-quarter 2026 net contribution of $229 million, up 9 percent from $210 million a year earlier 2. Net contribution is total revenue less the cost of the cryptoassets it sells and its margin interest expense 1.

Net income was $53 million, up from $30 million a year before, and funded accounts, users who have deposited money and made a trade, reached 4.28 million 21.

Chief executive Yoni Assia said the quarter brought a new mobile app built around Tori, the company's AI agent 2.

On the same day eToro agreed to acquire TradeZero, a US online brokerage for active traders, for up to $231 million in cash and up to 2.5 million new Class A shares 3. The company expects the deal to close in the first half of 2027, once regulators approve it 3. TradeZero generated about $80 million of revenue in the twelve months to 30 June 2026 3.

The open question is crypto 2. July's 1.4 million crypto trades were 73 percent fewer than a year earlier, the company reported 2.

eToro was founded in 2007 on the idea that anyone could trade and invest simply and openly, and it pioneered social investing, where users can view other investors' portfolios and talk strategy 1. The parent company was incorporated in the British Virgin Islands on December 14, 2006 1.

Its net contribution rose 10 percent to $868 million in 2025 from $787 million in 2024 1. The company uses net contribution to judge what users' activity brings in before overhead costs 1.

Total revenue and income was $13.8 billion in the latest annual report, but $12.9 billion of it was the cost of cryptoassets passed through to users 1. Net income was $216 million 1.

Crypto trading made the quarterly results lumpy: net trading contribution from cryptoassets went from $17 million in the third quarter of 2024 to $95 million in the fourth 1. The company says its multi-asset range has historically cushioned stretches of heavy or light trading in any one asset class 1.

In November 2024 eToro acquired Spaceship, an Australian investing app, which added about 0.2 million funded accounts and brought a local retirement savings product 1.

On May 15, 2025, eToro listed on Nasdaq through an initial public offering of 13,711,470 Class A shares 1. Of those, 7,749,961 were new shares from the company and 5,961,509 were sold by existing holders 1. The company's net proceeds were $378 million 1.

In November 2025 the board approved a share repurchase program of up to $150 million, and in February 2026 it added $100 million 1.

In the first quarter of 2026 net contribution rose 19 percent to $258 million, driven mainly by more commodities trading, the company said 4. Zengo, a self-custodial crypto wallet provider, was acquired on April 30, 2026 4.

Trading and investing platform

eToro is a multi-asset platform where users can trade equities, commodities, currencies and cryptoassets, either as the asset itself or as a derivative, depending on where they live 1. CopyTrader lets a user replicate other investors' strategies at no extra cost 1.

At the end of 2025 it had about 3.81 million funded accounts in 75 countries 1. In the second quarter of 2026 assets under administration grew 10 percent to $19.2 billion 2.

The company reports a single operating segment, trading activity, so the filing gives no split of revenue by product line 1.

How it earns

eToro earns from trading fees and spreads, interest on margin loans and on users' idle cash, money management fees such as currency conversion and card interchange, and subscriptions and other services 1. In the last quarter of 2025, equities, commodities and currencies trading contributed $116 million of $227 million net contribution, cryptoassets $26 million and interest $59 million 1.

AI, savings and banking

The company describes four strategic pillars: trading, investing, wealth management and neo-banking 2. Its new app is built around Tori, an AI agent, and Agent Portfolios let users connect AI agents to dedicated portfolios 2.

The eToro App Store now offers more than 75 applications built by developers, partners and professional investors 2. Cards issued across Europe for eToro Money rose by more than 30 percent from the previous quarter 2.

Offices, people and control

Headquarters are in Bnei Brak, Israel, where eToro leases about 86,000 square feet, with 12 more leased offices around the world 1. It had 1,520 employees at the date of the annual report 1.

Yoni Assia is co-founder and chief executive, and Meron Shani is chief financial officer 2. Class B shares carry ten votes each against one for Class A 1.

The nine executive officers and directors as a group reported 35.21 percent of combined voting power, a person's own stakes and not the company's 1. Spark Capital II, L.P. reported 10.65 percent of the Class A shares 1.

Rivals and problems

Competition is fragmented: retail banks, private banks, traditional brokers, fast-growing fintechs, tech-led brokers and crypto exchanges and wallets all compete with it, the annual report says 1.

The Australian regulator ASIC began civil proceedings against eToro's Australian subsidiary over its target market determination for contracts for difference, and is seeking pecuniary penalties 1. The Cyprus regulator CySEC has also made inquiries about the European subsidiary's product governance for those products 1.

The umbrella, in words

The parent is eToro Group Ltd. 5. Its subsidiaries include eToro (Europe) Limited in Cyprus and eToro (UK) Limited 5. Others are eToro USA LLC and eToro USA Securities Inc. in Delaware, eToro AUS Capital Pty Ltd and Spaceship Capital Limited in Australia, and eToro Money entities in Malta and the United Kingdom 5.

Owned outright by acquisition: Zengo, bought and closed on April 30, 2026 4, and Bit2C, completed in the second quarter 2. Invested: the company made a strategic investment in Extended, an on-chain perpetual futures platform 2. Agreed: TradeZero, a signed acquisition awaiting approvals 3.

Users' cash is held with banking partners including J.P. Morgan, Deutsche Bank and Coutts, and client funds are segregated from the company's own 1.

The company expects the TradeZero acquisition to close in the first half of 2027, subject to regulatory approvals 3. It expects the deal to add to adjusted earnings per share in the first year after completion 3.

In its second-quarter release the company said it is advancing the development of on-chain perpetual futures, and that crypto buying power is coming soon 2. It also said a US RIA licence lets it launch Smart Portfolios in the US 2.

In November 2025 the board approved a share repurchase program of up to $150 million, expanded by $100 million in February 2026 1. The annual report says the timing and amount depend on several factors and that repurchases are not guaranteed 1.

The company argues its markets are underpenetrated, noting that European retail participation is only 7 percent of the population against 58 percent in the United States 1. It says it is actively exploring other local partnership and acquisition opportunities 1.