EToro reported a loss of $7.2 million in its crypto trading segment for the second quarter of 2026, contrasting sharply with a $37.7 million profit from the same period last year, as its crypto revenue fell to $1.35 billion, down from $1.91 billion.
Trading Platform's Crypto Revenue Declines While Overall Profits Exceed Expectations
The platform has seen a significant decline in crypto trading activity, with July trades plummeting 73% year-over-year and the average trade size dropping to $182. Despite these setbacks, EToro's overall net contribution increased by 9% to $229 million, and the number of funded accounts grew by 18% to reach 4.28 million.
Although the company surpassed analysts' earnings expectations with an adjusted diluted earnings per share of $0.68 compared to the forecast of $0.61, EToro's stock fell by approximately 11% following the earnings announcement. The company is actively pursuing onchain products and has completed several crypto-related transactions, including an agreement to acquire U.S. brokerage TradeZero for up to $231 million.
EToro's recent earnings report indicates that the cost of revenue from crypto assets was equal to its revenue, resulting in a loss. The company is also working on onchain perpetual futures and plans to enhance crypto buying power in the near future.
In July, EToro recorded just 1.4 million crypto trades, which marks a 73% decrease compared to the previous year, and the average transaction amount fell by 50% to $182. Despite these challenges, the firm’s net contribution remains robust, bolstered primarily by its equity trading.
Shares of EToro traded down over 12% shortly after the earnings release, hovering around $29.80. In addition to its earnings report, EToro announced its intention to acquire TradeZero, which is expected to close in the first half of 2027, contingent on regulatory approvals. TradeZero specializes in commission-free stock and options trading for U.S. clients and provides tools for short selling, although details on crypto initiatives for the firm were not disclosed at this time. TradeZero reported revenues of approximately $80 million over the 12-month period ending in June, marking EToro's third acquisition this year.