EToro Posts Q2 Loss in Crypto Despite Beating Overall Profit Estimates

EToro has disclosed a $7.2 million loss in its cryptocurrency trading sector for the second quarter of 2026, a stark contrast to the $37.7 million profit seen in the same quarter last year. This decline came as the company's crypto revenue fell to $1.35 billion from $1.91 billion.

Overall Performance Shows Mixed Results Amid Crypto Challenges

Amidst a 73% year-over-year drop in crypto trading activity, with July alone seeing only 1.4 million trades, EToro managed to increase its overall net contribution by 9%, reaching $229 million. The average size of trades also diminished significantly, falling to $182.

While the company exceeded analysts’ expectations with an adjusted earnings per share of $0.68, higher than the projected $0.61, its stock price experienced a decline of about 11% following the earnings announcement. EToro is actively expanding its offerings in the crypto sector, including recent agreements to acquire U.S. brokerage TradeZero for up to $231 million, expected to finalize in 2027 pending regulatory approval.

Despite the setbacks in crypto trading, primarily attributed to the revenue cost matching the revenue generated, EToro continues to explore onchain products and aims to improve its crypto buying options. The firm recorded a notable increase in funded accounts, which rose by 18% to 4.28 million, indicating strong engagement in other areas like equity trading.

Following the earnings report, EToro's shares hovered around $29.80, reflecting market reactions to its mixed performance. The acquisition of TradeZero, which specializes in commission-free stock and options trading, marks EToro’s third purchase this year, although specific plans for integrating crypto services with TradeZero have not yet been revealed.