EToro reports second quarter crypto loss even as total profit beats estimates — SkimNews
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- eToro swung to a $7.2 million crypto trading loss in Q2 2026, down from a $37.7 million profit a year earlier, as cryptoasset revenue fell 29% to $1.35 billion.
- Crypto activity on the platform cooled sharply: July trades dropped 73% year-over-year and average trade size halved to $182.
- eToro's overall net contribution rose 9% to $229 million, driven mainly by equity trading, while funded accounts climbed 18% to 4.28 million.
- Adjusted diluted EPS of $0.68 beat analyst estimates of $0.61, yet shares still fell roughly 11% to around $29.80 as the company pushed deeper into onchain products.
- eToro agreed to acquire U.S. brokerage TradeZero for up to $231 million in cash and stock, expected to close in the first half of 2027 pending regulatory approvals.
- TradeZero generated about $80 million in revenue in the 12 months through June, making the deal eToro's third signed acquisition this year.
Why it matters: eToro topped the EPS line ($0.68 vs. $0.61) but lost roughly 11% of its market value because the crypto franchise that defined its growth story is decelerating fast — July crypto trades fell 73% year-over-year. The $231 million TradeZero deal is a deliberate hedge, pulling eToro toward U.S. equity brokerage distribution at the same time its retail crypto base is shrinking.
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