EToro reports second quarter crypto loss even as total profit beats estimates
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- eToro swung to a $7.2 million crypto trading loss in Q2 2026, reversing a $37.7 million profit a year earlier, as cryptoasset revenue fell roughly 29% to $1.35 billion from $1.91 billion
- Crypto activity on the platform cooled sharply, with July crypto trades down 73% year over year and the average trade size halved to $182
- eToro's overall net contribution still rose 9% year over year to $229 million — driven mainly by equities — while funded accounts climbed 18% to 4.28 million
- Adjusted diluted EPS of $0.68 beat analyst estimates of $0.61, yet shares dropped as much as about 11% after the release, trading around $29.80
- eToro agreed to acquire U.S. brokerage TradeZero for up to $231 million in cash and stock, expected to close in H1 2027; TradeZero generated about $80 million in revenue over the 12 months through June and has no disclosed crypto or tokenization plans
Why it matters: The crypto segment that powered eToro's recent growth narrative is now the one bleeding — and the July data (73% fewer trades, average trade size halved) deepens that picture — yet management is deploying $231 million into a commission-free U.S. brokerage with no disclosed crypto plans, a diversification pivot the market punished with an 11% share drop despite the headline EPS beat.
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