EToro reports second quarter crypto loss even as total profit beats estimates

EToro’s (ETOR) crypto trading was $7.2 million in the red in the second quarter of 2026, a decline of nearly 120% from the $37.7 million it made a year earlier, according to its second-quarter earnings released Tuesday.

The Tel Aviv, Israel-based trading platform reported $1.35 billion in cryptoasset revenue, around 29% lower than the $1.91 billion a year earlier. Its cost of revenue from cryptoassets was $1.35 billion, leaving a $7.2 million loss, compared with a $37.7 million gain a year earlier.

EToro said it is developing onchain perpetual futures and that crypto buying power is “coming soon.” Crypto activity has cooled, however: the company reported 1.4 million crypto trades in July, down 73% from a year earlier, while the average crypto trade fell 50% to $182.

Overall, eToro’s net contribution rose 9% year over year to $229 million, driven mainly by equity trading, while funded accounts increased 18% to 4.28 million. Shares fell as much as about 11% after the announcements. The report also noted that the adjusted diluted earnings per share of $0.68 beat analysts’ estimates of $0.61.

Shares nevertheless traded more than 12% lower in the hours following the earnings release at around $29.80.

EToro also announced an agreement to acquire TradeZero, a U.S. brokerage firm, for up to $231 million in cash and stock. The agreement is expected to be completed in the first half of 2027, pending regulatory approvals, the platform said.

TradeZero offers users commission-free U.S. stock and options trading, as well as tools for short sellers. Neither company disclosed any crypto, blockchain or tokenization plans for TradeZero, making the acquisition primarily a U.S. brokerage-and-distribution move for now.

TradeZero generated about $80 million in revenue in the 12 months through June, eToro said. It is eToro’s third signed acquisition this year.