eToro reports strong Q2 2026 earnings, announces $231M TradeZero acquisition to fuel US expansion

eToro Group posted a standout second quarter on August 11, with GAAP net income climbing 77% to $53 million. The company simultaneously announced it’s acquiring TradeZero, a US-focused online brokerage catering to active traders, for up to $231 million in cash and stock.

The dual announcement paints a picture of a company leaning hard into its US ambitions while quietly pivoting away from the crypto revenues that once defined its growth story. Revenue from crypto assets fell roughly 30% year-over-year during the quarter, a decline significant enough to weigh on overall top-line results despite strength elsewhere.

The numbers behind the quarter

Net contributions, a key metric for measuring new money flowing onto the platform, rose 9% year-over-year to $229 million. Adjusted net income came in at $63 million, up 17%, while adjusted EBITDA grew 9% to $78 million.

The user base kept expanding. Funded accounts reached 4.28 million, an 18% increase year-over-year. Assets under administration climbed to $19.2 billion, marking a 10% gain over the same period last year.

Why TradeZero, and why now

TradeZero is not a household name, but its financials suggest a solid operation. The brokerage generated approximately $80 million in revenue with 81% gross margins for the twelve months ended June 30, 2026.

The purchase consideration is structured as up to $231 million in cash plus up to 2.5 million new Class A common shares of eToro. The deal is expected to close in the first half of 2027.

The acquisition is projected to be accretive to eToro’s adjusted earnings per share within the first year after closing.

Crypto’s shrinking role and eToro’s pivot

The 30% year-over-year drop in crypto revenue is notable context for the TradeZero deal. eToro appears to be diversifying away from its dependence on crypto trading at precisely the moment when that revenue stream is proving unreliable.

Equities trading and the expansion of the active trader user base are now clearly the growth priorities. TradeZero brings broker-dealer infrastructure in the US, which is one of the most heavily regulated and hardest-to-crack markets for foreign-born fintechs. Rather than building that regulatory and operational plumbing from scratch, eToro is buying it, along with TradeZero’s existing base of retail active traders.

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