eToro to Acquire TradeZero as Crypto Revenue Drops 30%
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- eToro plans to acquire US online brokerage TradeZero as part of its US expansion, with the deal expected to close in the first half of 2026 and projected to be accretive to adjusted EPS in the first year after closing.
- eToro reported Q2 2026 revenue of $1.59 billion, down from $2 billion in Q2 2025, with crypto assets contributing $1.34 billion — roughly a 30% decline from $1.9 billion a year earlier.
- Total cryptocurrency trades on eToro's platform fell to 1.4 million in July 2026, a 73% year-over-year decline, with invested amount also down 50%.
- TradeZero generated approximately $80 million in revenue with 81% gross margins over the trailing 12 months ended June 30, 2026.
- ETOR shares dropped more than 5% in pre-market activity on Tuesday, poised to extend Monday's decline, according to Yahoo Finance data.
- eToro CFO Meron Shani highlighted cross-asset engagement, noting more than 60% of users who traded commodities in Q4 2025–Q1 2026 subsequently traded equities in Q2 2026, with nearly nine in ten of those users also trading crypto.
- In April, eToro announced plans to acquire self-custodial wallet provider Zengo as part of its push toward becoming a multi-asset platform.
Why it matters: eToro is adding a non-crypto brokerage — TradeZero brings $80M in revenue at 81% gross margins — as its crypto engine sputters, with Q2 crypto revenue down 30% and July trades plunging 73% year-over-year. ETOR shares fell 5%+ pre-market on the announcement.
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