Community Trust ScoreVerified
eToro is bleeding. In July, the Israeli platform processed only 1.4 million crypto transactions—a painful 73% drop, clearly reflected in the second quarter 2026 figures.
Overall revenue fell to $1.59 billion for the quarter, down from $2 billion a year earlier. Specifically, crypto revenues? They dropped from $1.9 billion to $1.34 billion year-over-year. Not a slight correction. A real rupture. The direct cost related to crypto revenues rose to $1.35 billion, leaving a net profit in this segment at just $19.7 million—a decline from the $27 million previously generated. Margins are eroding, and investors are noticing.
Not really a surprise for those following the sector.
Stocks Take the Lead, and Fast
eToro didn’t wait to pivot. Commissions from stock trading are soaring: they now account for 60% of the group’s total commissions. At the end of 2024, this figure was at 25%. It’s a massive shift in just a few months. Stock and commodity trading generated a net profit of $141 million over the period—a figure that starkly contrasts with the thin crypto margins.
And it works, at least partially. GAAP net profit rose by 77% to reach $53.4 million in the second quarter of 2026. Adjusted EBITDA increased by 9% to $78.1 million. So yes, despite the collapse in crypto volumes, eToro shows an overall increase in profitability. The multi-asset model holds—for now.
Available cash remains strong at $1.2 billion. Assets under management reach $19.2 billion. The balance sheet is not in danger. But the markets didn’t wait for this good news to react.
TradeZero, Zengo: eToro Buys to Grow
Two recent acquisitions show where eToro wants to go. First, TradeZero, an American broker generating $80 million in annual revenue—a direct gateway to the U.S. market, probably one of the most competitive in the sector. Then Zengo, specializing in non-custodial wallets. A bet on crypto infrastructure, curiously, just as volumes are collapsing.
It’s still unclear if these two purchases will change the short-term trajectory. But the signal is there: eToro wants to grow, not retreat.
ETOR stock, listed on NASDAQ, lost between 5% and 8% on August 11, stabilizing around $31.20. Investors see the drop in crypto volumes and they sell—even if overall profitability figures remain decent. That’s the eToro paradox right now: better profitability, but less market confidence.
And that’s where it gets interesting. eToro built its reputation on social trading and crypto. That’s what made it popular, especially among young investors attracted to Bitcoin and altcoins between 2020 and 2022. Refocusing on stocks and commodities is rational on paper. But it changes the platform’s identity. Like, will a user who came to trade cryptos stay to buy stock ETFs? Not sure.
eToro’s management is pushing for the business model’s flexibility. The idea: quickly adapt resources to growing sectors, without waiting. On paper, it looks like agility. In practice, it’s also a response to a dependency that has proven too strong on the crypto cycle.
Because that’s the real problem, basically. When cryptos rise, eToro thrives. When volumes evaporate—as in July—revenues plummet sharply. Diversification into stocks is not an aggressive growth strategy. It’s a hedge against its own volatility.
Zengo and its non-custodial wallets remain in the crypto orbit. $1.2 billion in available cash to continue buying.
Frequently Asked Questions
How much did eToro’s crypto revenues drop in the second quarter of 2026?
eToro’s crypto revenues fell from $1.9 billion to $1.34 billion year-over-year, with only 1.4 million crypto transactions recorded in July, a 73% decrease.
What does the acquisition of TradeZero bring to eToro?
TradeZero is an American broker generating $80 million in annual revenue. Its acquisition gives eToro direct access to the U.S. stock trading market.
Was ETOR stock affected by these results?
Yes. ETOR stock lost between 5% and 8% on August 11 on NASDAQ, stabilizing around $31.20, despite a 77% increase in GAAP net profit for the quarter.
